Description
atrrition rate in kansi nerolac paints
SUBMITTED TO UNIVERSITY OF MUMBAI THROUGHA SUMMER INTERNSHIP PROJECT ON STUDY OF ATTRITION IN KANSAI NEROLAC PAINTS LIMITED SUBMITTED BY MISS ASHWINI D. MHASAWADE UNDER THE GUIDANCE OF PROF YOGESH A MOHIRE
DEPARTMENT OF MANAGEMENT STUDIES (MBA/MMS) RAJENDRA MANE COLLEGE OF ENGINEERING AND TECHNOLOGY, AMBAV ACADEMIC YEAR 2012-13
1
CERTIFICATE (FROM)
2
CERTIFICATE (FROM COMPANY)
3
DECLERATION
I Miss Ashwini D.Mhasawade, student of second year of Master of Management Studies (III semester) at Rajendra Mane College of Engineering & Technology, Ambav affilated to University of Mumbai, hereby declare that I have completed the summer internship project on the topic “Study of Attrition” in Kansai Nerolac Paints Limited, Lote Parshuram and submitting report on the same in the partial fullfillment of MMS degree in the academic year 2011-12 as per norms of Unversity of Mumbai. The information gathered and organised is formulated with the aid of primary and secondary data.
Miss Ashwini D.Mhasawade.
4
ACKNOWLEDGEMENT
A great opportunities come by only once and I am grateful to Kansai Nerolac Paints industries for giving me this opportunity. It was grate pleasure and an extremely good learning experience to do my project on the “Atrrition rate of the employees” in this organization.
I take opportunity to thank Mr. S. Deshmukh (manager –HR& personnel) and Mr. Amol Akulakar ( Senior Executive officer) for giving me this opportunity. And providing essential & grateful information to my project.
A special thanks to Mr. Nitin Shedage for guiding me through this project and for providing me with an excellent project on “Atrrition rate for the employee” to work on.
5
EXECUTIVE SUMMARY
Here, as say about the attrition rate of the organisaion involves the infolows and outflows of the employees in the organisation. To attrition rate also called employees turnover ate. In this project I explain all parameters about the attrition rate. So, firstly I done this project in the MNCs company as Kansai Nerolac paints which is located in the Lote MIDC area near chiplun. About the attrion rate this company getting average percentage of the employees turnover. Actually this company getting average satisfaction with the employees and employees also getting average satisfaction about organisation and also about the job satisfaction.. For the my analysis of the organisational employees turnover result I used the primary data. This project is completely depend on the primary information and interactive basis. So all this information may true for this analysis. I have used past records of the employees and past year result of the organsation on the attrition which is preapre by only manager of this organisation. So, after using this all information I understand and I fully satisfied with my all objectives and purpose of this project report are list out in next page. So, I got all concept of the attrition analyais and how its calculated and why its important for the organisation. With the help of all these information I eveluate all this situations and try to conclude as per my thinking. As analysis of the data we can understand that, percentage of employees are leaves organisation is more than employees are join the organisation as newly. About an expreriance gained by the organsation is about the 132years in a year. And exeperiance drained is an about the 140 years in a year. And we know that most of the employees are leaving the organsation in the monthe of july and november because in that months chances to increments. And another important thing is that employees are prefers to leave organisaiton after completing 2 to 5 years in the one organisation. Because they want to adopt new opportunites in various types of organisaion and also they want more compemsaiton from orgnisation. For the increasing rate of attrition having various types of reasons in the organisation. Some of reasons are as personal maaters, location problems, higher studies, for the better opportunities, job dissatisfaction, working condition of the organisation, organisaitonal culture. For these these reasons many employees may leave the orgnisation. As per my data analysis I know that most of the employees are go for the better opportunities and try to go something new and different after some completing
6
years in one organisation. So every employee is try to change job after every 4 to 5 years. Actuly for the solving this problem organisaiton does various faciliites for the employees that they are does?t think about leaving the organisaiton. Organisaion provides various facilities for the employees are that, providing educational faciliites for the employees as they did not lost the job for the higher studies and as same way organisaion also requiers employees which are better for the organisaion. And which employees problem regarding location, for these employees provides housing facilities with the famaly near by company or near by city. Which employees having problem regarding working condition and organisaional culture, for these employees organisaon try to change culture of the organisation as requires.
7
INDEX
SR.NO.
CHAPTER 1 i. ii.
iii.
TOPICS
INTRODUCTION TO STUDY Introduction Objectives of the study Research methodology THEORETICAL FRAMEWORK
i. ii. iii. iv. v. vi. Concept of the attrition rate Meaning and definition Employee attrition in India Managing attrition in India Reasons for the leaving organization How to cub the increasing attrition rate
PAGE NO.
CHAPTER 2
CHAPTER 3
COMPANY PROFILE
CHAPTER 4
DATA ANALYSIS & INTERPRITATION
CHAPTER 5
FINDING &CONCLUSION
CHAPTER 6 CHAPTER 7
i.
CONCLUSION APPENDIX
Questioner
CHAPTER 8
BIBILOGRAPHY
8
CHAPTER 1 INTRODUCTION TO STUDY
9
CHAPTER 1 INTRODUCTION TO STUDY
1.1) INTRODUCTION:
Human Resource is integral part of any organisation. Human resource is very important and now a days, the qualified human resource is very scarce. The opportunities are flooded in market, and therefore more attrition is observed in companies than ever before. The company need to take care of their employees with regards to labour turnover. Therefore attempt is made to study the attrition rate of the Kansai Nerolac Paints Limited.
1.2) OBJECTIVE OF STUDY:
1) To understand the concept of attrition as well as organisation 2) To identify the causes of attrition and to suggest measures to control it 3) To find solutions to the problems leading to attrition 4) To know the theoretical knowledge and practical approach of attrition 5) To compare and contrast theoretical knowledge 6) To know the working environment, satisfaction with co-workers, superiors, stress so work place, remuneration, recognition, as a part of company policy which acts as the cause for attrition 7) To suggest measures to control attrition
1.3) RESEARCH METHODOLOGY:
The summer internship project “Study the Attrition at Kansai Nerolac Paints Limited” is required to be conducted in Organisation. The data about the attrition and history about the company is collected from the files with HR department and annual reports.Data is been collected by actually visiting to the company. This is type of field research. The data is mainly of two types:
10
PRIMARY DATA: Primary data is related with first-hand information. The following methods are used: 1) Observation method 2) Interview method 3) Questioner method
SECONDARY DATA: Secondary data means data already published in magazines, websites, reference books, historical data, written material, documents etc.
11
CHAPTER 2 THEORETICAL FRAMEWORK
12
CHAPTER 2 THEORETICAL FRAMEWORK
2.1) INTRODUCTION:
Human resources are assets of any organization. However, retaining employees is becoming difficult task for most organizations in the era of globalization and competitive environment. So retention of employees has become a great concern for all organizations. It is very frustrating for an organization if employees leave after two months or the training period is over. Attrition up to certain limit is favourable to an organization. Sometimes it works as a talent acquisition when new employees join. Organizations are fast realizing that losing underperformed employees is a boon in disguise to an organization. Attrition beyond desired limit only is a problem for an organization. In the best of worlds, employees would love their jobs, work hard for their employers, get paid well for their work, have many chances for advancement and flexible schedules so that they could attend to personal needs when necessary. But there is the real world. Employees do leave either because they want more money, hate the working conditions, hate their co-workers, and want a change. Attracting, keeping and motivating talent has become one of the main activities of organizations. Globalization, M & A and expansions of organizations have provided great scope for deployment of talented people. Boundary less company, worldwide labour markets, better communications systems and agile new organizations have contributed to this complex problem. Earlier, this challenge was faced by advanced economies like United States, Japan and Europe. Globalization and growth in economy has exposed challenge of attracting and retaining talent in emerging economies as well. Creation of work environment that provide meaningful challenge to employees has become a priority.
2.2) ATTRITION:
Attrition has been a major concern for most of the companies in the current competitive scenario. The word attrition means, a reduction in the no. of employees
13
through resignation or separation at the employees will, retirement, VRS, employees leaving due to end of contract are , not considered as attrition. Attrition rate is the rate if shrinkage in size or number. It is the mathematical representation, of the attrition in a particular organisation or an institution. Attrition is one of the most serious concerns of the organisations today, irrespective of the industry in which they are operating. Attrition is all about people leaving organisations with the slightest provocation and having no respect and commitment to the company in which they are working. Attrition analysis is a study in which an analysis gives the data on what is the current attrition trend in the company. It?s an analysis done by taking time, manpower strength & no. of people resigned into consideration to derive the final outcome. There is no standard formula to calculate the attrition rate of company; this is because of certain factors as: 1. The employee base changes each month. 2. Many form may not include attrition of fresher?s who leave because of higher studies or within three months of joining. 3. In some cases, attrition of poor performers may also not be treated as attrition. Attrition % = (No. of separations/Total employees) *100 Defining Attrition:A reduction in the number of employees through retirement, resignation or death
Defining Attrition rate:The rate of shrinkage in size or number
Definition of Attrition: The reduction in staff and employees in a company through normal means, such as retirement and resignation Attrition also known as employee churn, employee turnover, or employee defection, is an industrial term used to describe loss of employees or Man power. Attrition is pretty high in the industry these days. Attrition is a universal phenomenon
14
and no industry is devoid of it, but the degree fluctuates from industry to industry. Attrition is a serious issue in the industries because the industry is knowledge-based and hence employees are its “assets”. Deficiencies like inability to influence employee perception of growth; not aligning employees to roles based on their individual talent, inflexibility in leadership styles, are causing conflicts at a very intrinsic level, resulting in knowledge employees choosing the proverbial “easy way out.” Attrition is a phenomenon affecting any business organization in the industry. Over the past few years, organizations have taken an increased interest in aligning their HR practices to their business goals. Whereas the deficiencies like inability to influence employee perception of growth; not aligning employees to roles based on their individual talent, inflexibility in leadership styles, are causing conflicts at a very intrinsic level, resulting in knowledge employees choosing the proverbial “easy way out.” Employees thus attempt to change the manager or the work environment, resulting in employee attrition. Attrition is beginning to significantly affect offshore ROI. Just as businesses faced a scarcity of talented IT resources during the dotcom era, organizations in offshore countries such as India are experiencing similar pains. Skilled employees are hopping from job to job and taking with them the customer knowledge and technical expertise that any company needs. Their salaries are increasing, along with their perks, benefits, and bonuses.
2.3) EMPLOYEE ATTRITION IN INDIA:
Staff attrition (or turnover) represents significant costs to technology and business process outsourcing (BPO) companies. High attrition rates drive up training costs, and increase human resources, recruiting, and productivity costs. They also increase the prospect of customer service complaints or quality problems, and create substantial continuity problems for longer-lived projects. There are many causes for attrition including, retirement and death .However, most attrition is due to employee turnover. Employee?s leave their jobs for a number of reasons including: wanting more money, poor working conditions, irregular working hours, lack of advancement opportunities, lack of job security, difficulties with co-workers, desire for change,
15
better opportunities, and family reasons. High wage inflation is another major factor in job hopping. In India especially in insurance sector, period between 2002 and 2008 was rapid expansion due to stepping of many members of players into this insurance sector. This has caused high inflation in employee salaries and also high attrition in insurance sector due to many numbers of openings offered by new entrants. In this period due to abundant openings there was an unprecedented war of talent in the insurance sector to find the right people to join their organisation especially for the key positions.
2.4) MANAGING ATTRITION IN INDIA:
To ensure that attrition rates are kept to a minimum, businesses need to redesign their reward and recognition packages to help the industry hold onto staff and to find the right kind of people who can keep pace with the unique work patterns. According to Oscar De Mello, country head of Hay Group is Reward Information Services in India, adjusting pay might not automatically lead to higher operating costs for BPO companies. By creatively designing their total reward package towards more short-term incentives and benefits, and linking the package to performance, companies can ensure that they get higher productivity without hefty increases in salary costs and minimize attrition costs and issues at the same time. Hays Group recommends providing a better balance of short- and long-term benefits such as performance bonuses, employee stock option plans and retention bonuses; effectively communicating details of compensation plans to encourage employee buy-in; and promoting non-financial benefits such asCareer development, job rotation and transparent performance management systems. First, if you are working on a longer-term project, understand your partner?s attrition rates and their management practices. Some firms manage attrition well, while others simply try to hide it. Second, review your team structure and ensure that there is sufficient information sharing and collaboration so that the loss of any one person does not set you back. Finally, get to know your key team members. Not only
16
will this help reduce attrition, but help you minimize the down side if you do lose a key team member Employee attrition is one of the critical problems which is faced by an HR manager during these days. In an ideal situation an employee consider multiple comfort level while working in a office for e.g. employer's goodwill in the market, remuneration, future growth, working condition, co-workers, current role's scope in the market & most important future stability with the organization. In a survey, approximate 70% of the working population in India is not happy at all due to one of the aspect (as mentioned aforesaid) which is not fulfilled while working in a organization which caused higher attrition rate. In broad term, attrition is a situation which employer face when employee left the organization due to job dissatisfaction, new opportunity in the market, retirement & natural cause (death/illness). Now a day this is one of the most important questions which is asked by higher authority to HR people…."Why our attrition rate is higher than other company". Earlier it wasn't important for the organization, whether their employees are committed or not, but now the time has been changed. The company cannot afford to lose its best employee to competitors. Therefore, HR team conducts EXIT interview when an employee left the job to get the information about one's decision to leave an organization. It is a paramount consideration for a HR team to think, why people are vacating their positions. Still Human Resource team face the challenge due to wrong information provided during EXIT interview.
2.5) ATTRITION IS A CRITICAL ISSUE:
Whenever a well-trained and well-adapted employee leaves any organization, it creates a vacuum. The organization loses key skills, knowledge and business relationships. And it is not an easy task to find a sustainable substitute. “Situation is worse when it happens at a critical (decision making) position, as there is a scarcity of such technical resources in the market,” explains Head HR, who feels attrition directly
17
affects the company. “Employees want not only work recognition, but also extra perks.
2.6) REASON FOR LEAVING:
It is not easy to find out as to who contributes and who has the control on the attrition of employees. There are number of reasons which may make an employee quit our organization. Various studies/survey conducted indicates that everyone is contributing to the prevailing attrition. Attrition does not happen for one or two reasons. The way the industry is projected and speed at which the companies are expanding has a major part in attrition.. All the major IT companies have faced these realities. If you look within, the specific reasons for attrition are varied in nature and it is interesting to know why the people change jobs so quickly. Even today, the main reason for changing jobs is for higher salary and better benefits. But in call centres the reasons are many and it is also true that for funny reasons people change jobs. At the same time the attrition cannot be attributed to employees alone. The reasons are various behind leaving an organization & any attempt to find one comprehensive explanation for this phenomenon would be futile. Though the rising attrition within industries is a well-discussed topic but very few HR executives have been able to pinpoint the 'exact' reason for this growing trend. A recent Hewitt 'Attrition & Retention' survey shows one of the top reasons for talent attrition to be "external inequity in compensation". They also show that 27% of the employees in their EXIT interview mentioned compensation as the primary reason. It comes no surprise to many that money is an important factor but what besides this, there are several factors that influence an employee's decision to leave. Those days are gone when salary was the sole motivator for an employee to leave an organization. According to a survey there arethree main reasons: In equity in compensation 1. Limited career opportunities
18
2. Role stagnation 3. Common reasons experienced by HR manager are discussed here 4. Mismatch of job profile. 5. Job stress and work-life imbalances 6. Odd working hours/Early morning-night shifts 7. Job hopping 8. Lack of authority provided to accomplish ones task 9. Monotony of job 10. Organizational culture 11. People “Quit their Boss” 12. Working hours 13. Ethical issues 14. Lack of recognition The list can be endless but the reason why employees leave the organization is vary according to the nature of the business. The work should give to them the level of the employees and the nature of the responsibility he/she can handle. Therefore it's very challenging task for an HR expert to cope up with this situation and retain talent with an organization. As another various reasons for the attrition explain in followings. These reasons are mostly finding in organisations at the time of leaving employees. Organizational matters: The employees always assess the management values, work culture, work practices and credibility of the organization. The Indian companies do have difficulties in getting the businesses and retain it for a long time. There are always ups and downs in the business. When there is no focus and in the absence of business plans, non-availability of the campaigns makes people to quickly move out of the organization. Working environment:
19
Working environment is the most important cause of attrition. Employees expect very professional approach and international working environment. They expect very friendly and learning environment. It means bossism; rigid rules and stick approach will not suit the call canter. Employees look for freedom, good treatment from the superiors, good encouragement, friendly approach from one and all, and good motivation. Job matters: No doubt the jobs today bring lots of pressure and stress is high. The employees leave the job if there is too much pressure on performance or any work related pressure. It is quite common that employees are moved from one process to another. They take time to get adjusted with the new campaigns and few employees find it difficult to get adjusted and they leave immediately. Monotony sets in very quickly and this is one of the main reasons for attrition. Youngsters look jobs As being temporary and them quickly changes the job once they get into their own field. The other option is to move to such other process work where there is no pressure of sales and meeting service level agreements (SLA). The employees move out if there are strained relations with the superiors or with the subordinates or any slightest discontent. Salary and other benefits: Moving from one job to another for higher salary, better positions and better benefits are the most important reasons for attrition. The salary and offered from MNC companies in Bangalore, Delhi and Mumbai have gone up very high (Rs 15000 to Rs 18000 per month) and it is highly impossible for Indian companies to meet the expectation of the employees. The employees expect salary revision once in 4-6 months and if not they move to other organizations. Personal reasons: The personal reasons are many and only few are visible to us. The foremost personal reasons are getting married or falling in love or change of place. The next
20
important personal reason is going for higher education. Most of the BE, MCA and others appear for GATE examination or other examinations and once they get cleared they quickly move out. Health is another aspect, which contributes for attrition. Employees do get affected with health problems like sleep disturbances, in digestion, headache, throat infection and gynaecological dysfunction for lady employees. Employees who have allergic problems and unable to cope with the AC hall etc will tend to get various other health problems and loose interest to work. Employee’s advocate: One of the main reasons why employees leave companies is because of problems with their managers. An HR professional can be termed an employee?s advocate and a bridge between top management and employees at all levels. There is a huge gap between HR professionals and employees in terms of understanding challenges and delivering requirements. HR has not really understood the problems associated with employees? careers and jobs. The company?s overall plans and strategies also depend on HR professionals as they voice employees? problems and requirements. The HR department should have genuine interest in the employees? welfare…it is responsible for making sure that their expectations are met. By doing this it is easier to meet the company?s business targets. If the organization does not provide employees with sufficient opportunity for growth, then they will decide to leave the organization. Employees leave the organization if the company does not provide congenial working environment. As comparison is a natural instinct of human beings, comparison of employees with their peers aggravates the problem of attrition in organizations. Sometimes comparisons will result in heartburning which should be curbed. Intimidation by the boss drives the best employees out of the organization. Some employees get bored doing the same job over a period of time. They like to take on new roles after some period of time. Stress, unfair practices in organizations, long distance from home etc., could be other reasons for attrition. When there is no job satisfaction for employees, then also they will quit the job. Lack of
21
internal networking of employees leads to attrition in organizations. If the reward policy is not transparent, then they will be encouraged to look for other opportunities. Employees often discuss their salaries with their colleagues. If there is inequality among them, then there is an issue for HR. If the compensation is not in match with the employees' knowledge, skill and attitude, people may leave without notice. Hiring of overqualified people may increase rate of attrition in organizations. In several cases, faced with a choice between high pay package and a challenging job, employees have opted for the latter
2.7) HOW TO CURB ATTRITION:
Money is not everything: Even though the importance of high salaries is slowly taking backseat, among fresher?s or laterals with less than three years of work experience, money is still considered to be the highest priority. According to RAKESH TIKU, vice-president, Deliveries, Infinite computer solutions, “with the overall package, the demand for performance based salaries is going up. Employees want not only work recognition, but also extra perks". Employees analyze the training programs of prospective companies with those of their current organization, which means that how an organization grooms an employee is weighted to a greater extent. This is because they know that developing next-level skills places them ahead in the job market and finally result in better compensation. They also search for a job with higher of responsibility. Treat employees like customers: Even though companies strive to understand which organizational, job and reward factors will contribute to retain good employees, industry experts have found several loopholes at the top management and HR Management level. According to BijaySahoo, Vice President, talent management and development, Wipro
technologies, "Companies should have a similar approach to retain an employees and customers. If a company strives to retain an employee in the same way it tries to retain a customer, him leaving the organization could be out of question." Since employees have different priorities at different points of time, organizations need to structure
22
their offer-mix while recruiting new hires as well as promoting existing ones. Communication is the foundation for entire process of managing attrition. Attrition is not bad always, if it happens in a controlled manner. Some attrition is always desirable and necessary for organizational growth and development. The only concern is how organizations differentiate “good attrition” from “bad attrition”. The term “healthy attrition” or “good attrition” signifies the importance of less productive employees voluntarily leaving the organization. This means if the ones who have left fall in the category of low performers, the attrition in considered being healthy. Attrition rates are considered to be beneficial in some ways: If all employees stay in the same organization for a very long time, most of them will be at the top of their pay scale which will result in excessive manpower costs. When certain employees leave, whose continuation of service would have negatively impacted productivity and profitability of the company, the company is benefited. New employees bring new ideas, approaches, abilities & attitudes which can keep the organization from becoming stagnant. There are also some people in the organization who have a negative and demoralizing influence on the work culture and team spirit. This, in the long-term, is detrimental to organizational health. Desirable attrition also includes termination of employees with whom the organization does not want to continue a relationship. It benefits the organization in the following ways: 1. It removes bottleneck in the progress of the company 2. It creates space for the entry of new talents 3. It assists in evolving high performance teams
23
There are people who are not able to balance their performance as per expectations, lack potential for future or need disciplinary action. Furthermore, as the rewards are limited, business pressures do not allow the management to over-reward the performers, but when undesirable employees leave the company, the good employees can be given the share that they deserve. Some companies believe attrition in any form is bad for an organization for it means that a wrong choice was made at the beginning while recruiting. Even good attrition indicates loss as recruitment is a time consuming and costly affair. The only positive point is that the realization has initiated action that will lead to cutting loss.
24
CHAPTER 3 COMPANY PROFILE
25
CHAPTER 3 COMPANY PROFILE
3.1) INTRODUCTION:
Industry Name House Name Year Of Incorporation Regd. Office Address Districts State Pin Code Tel. No. Email : [email protected] ''Nerolac House',', GanpatraoKadam Marg, Mumbai Maharashtra 400013 022-24992796,022-24992807 Internet :http://www.nerolac.com KANSAI NEROLAC PAINTSLTD MNC Associate 1920
3.2) LOTE INDUSTRY
–
PARSHURAM,
KANSAI
NEROLAC
PAINTS
the lote parshuram site was established in 1989 as an industrial paints manufacturing unite for the kansai nerolac paints industry limited. this plant is located on a 20 acre plot of the mumbai – goa highway (nlt-17)
26
3.3) INTRODUCTION OF THE KANSAI NEROLAC PAINTS LTD.
Name
Kansai Nerolac Paints Ltd
F-2, LOTE PARSHURAM MIDC, Chiplun 415722, Maharashtra, India
Establishment Products
24april.1989 industrial Paints. Decorative Paints, Powder coating paints,
PRODUCTS OF THE COMPANY:
27
3.4) HISTORY OF THE KANSAI NEROLAC PAINTS:
It is the second largest coating company in India and market leader in Industrial Coatings. It?s Industrial Coatings has a wide range of products in the Automotive, Powder, General Industrial and High performance Coatings space. Nerolac paint, as it is popularly known, is an established brand in decorative paints. Kansai Nerolac Paints Ltd is a subsidiary of Japan based Kansai Paint Company Limited, which is one of the top ten coating companies in the world. The technological edge of Kansai helps us constantly innovate and come up with products that meet consumer need gaps. Kansai Nerolac has always believed that the key to its business is: ? ? ? ? Technology Research & Development Innovations Quality
1920: Started the journey as Gahagan Paints and Varnish Co. Ltd at Lower Parel in Mumbai. 1957:Goodlass Wall Pvt. Ltd grew popular as Goodlass Nerolac Paints (Pvt) Ltd. Also, it went public in the same year and established itself as Goodlass Nerolac Paints Ltd. 1976:Goodlass Nerolac Paints Ltd. became a part of the Tata Forbes Group on acquisition of a part of the foreign shareholdings by Forbes Gokak.
28
1983:Goodlass Nerolac Paints Ltd. Strengthened itself by entering in technical collaboration agreements with Kansai Paint Co. Ltd, Japan and Nihon Tokushu Toryo Co. Ltd, Japan. 1999: Kansai Paint Co. Ltd, Japan took over the entire stake of Tata Forbes group and thus GNP became wholly owned subsidiary of Kansai Paint Company Ltd. 2006: On the 11th of July, Goodlass Paints Ltd. name has been changed to Kansai Nerolac Paints Ltd.
3.5) AWARDS AND ACHIEVEMENTS:
Awards and Achievements:
While we look to the future, it is important to bask in past glory. Nerolac has won many accolades for its stupendous work in product development, environmental consciousness and in being a responsible corporate citizen.
?
Golden Peacock Environment Management Award 2005' for environment management of Jainpur factory & DSIR National Award – ACED for adaptation of technology to suit local needs.
?
Short listed for the „Best Managed Company? award from Business Today & A.T. Kearney 2005.
?
Best Vendor Award from customers like Toyota Kirloskar Motors (TKML) for Cost & from MarutiUdyog (MUL) on overall commendation.
? ?
„Hall of Fame? from CTO Forum, PC Quest & Best Implementation-APO in IT Excellence in Corporate Governance from ICSI
29
?
Environmental Excellence Gold Award by Greentech Foundation for the Lote Plant for the year 08-09.
?
Our Technical Partners (NIPA Chemical Chennai), was awarded with TKML?s Best delivery performance award. April 2009
?
Best Delivery Performance Award by Whirlpool India Ltd at Faridabad – April 2010
?
Award for the “Most Proactive Contribution through New Developments ” in Powder Coatings by Godrej Appliances Ltd April 2010
? ?
Product of the Year Award 2010 for Nerolac Excel – April 2010 SAP Ace Award 2011 for the Best run Business in consumer and Trade Industry 2011
?
Sustainability Award for outstanding contribution” by Mahindra and Mahindra October 2011
?
Best vendor PERFORMANCE AWARD in Paint Supplier?s Category by Honda Motor cycles and scooters at their annual conference Jan 2012
3.6) THE HR ANGLE: The HR Philosophy:
At Nerolac we recognize our human resources as extremely important and critical assets. We honour the dignity of each individual, irrespective of position and highly value the feelings and emotions of people. Our Human Resource Policy is, to facilitate creation of synergy, mutuality and interdependence between individual and corporate development and growth through total employee involvement and building an enabling work culture in the organization. Informality in interactions, transparency and openness in communications at all levels, and an enabling work environment supporting high autonomy of work, transparency and an objective subjectivity of Performance Management System, fair dealing, tremendous care and concern for people are a few of the softer aspects of
30
permeable people management environment which represent the organizational climate and culture. Our faith is averred by the fact that people feel pride in being part of the Nerolac family. We care for people; people care for our business.
HR- vision
To create a climate of trust and confidence through world class HR systems and processes which are transparent whereby organisation members are committed and motivated to continuously excel in learning environment which is mutually beneficial.
Company vision
To leverage global technology, for serving our customers with superior coating system built on innovative and superior product and world class solution, to strengthen our leadership in industrial coating and proposal for leadership in architectures coating all to delight of our stakeholders.
Quality policy
We are committed to provide total customer satisfaction by supplying quality products and service to meet or exceed customer requirements. This commitment is effectively achieved through continual improvement of the quality of management systems.
Company value
Followings are the main companies? core values and company follow these values for the company development and success. Company calls it “TRIES”. T – Team orientation R – Responsive
31
I – Innovation E – Entrepreneurship S – Simplicity
Qualities and EHS certifications
April 2000 – Q.S 9000 May 2004 – ISO 9000 Sept 2002 – ISO 14000 Jan 2005 – QH.SAS 18000 Mar 2006 – TS 16949
Corporate social responsibility
1. Education: a. Adaption of poor girl students. b. Financial assistance for constructions of classroom, providing educational material. c. Notebook distribution.
2.
Health: a. Organise with eye campaigns with lions club. b. Organise with health club with joycees. c. Providing equipment to the health club.
3.
General: a. Various beautification projects. b. Financial assistance to the various libraries, blind schools, etc. c. Achieved trophy for the excellent contribution social work.
32
CHAPTER 4 DATA ANALYSIS & INTERPRETATION
33
CHAPTER 5 DATA ANALYSIS & INTERVENTION
5.1) In following table shows the how many experience drained in a organisation. Following data analysis is done by with the help of this chart.
2011-2012 EXPERIENCE DRAINED Past Exp KNP Total Paint Other Exp Ind. Ind. 0.2 22 3 0.5 11.2 0.6 5 2.9 2.9 29 0.4 3.4 2.2 3.4 0.2 17.4 2.5 2.3 1.3 1.4 3 0.7 1 3 1 11.4 Total 0.2 22 3 0.5 11.2 0.6 5 2.9 2.9 29 0.4 3.4 2.2 3.4 0.2 17.4 2.5 2.3 1.3 1.4 3.7 7 14.4 136.9
Empl No. SR. No.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Name
Dept
DOJ
DOL
23554 21644 22882 23516 90112 23522 22158 21365 22359 22427 24408 22836 23092 11141 23743 20773 23011 23091 23448 23427 23667 22992 22392
Bipinchandra Y. Patil Tech 4-Feb-11 1-Apr-11 Industrial 1-May-89 6-Apr-11 Narendra B. Naik Ramchanra K. Patil Industrial 1-Jul-08 21-May-11 Milesh M. Rawool Resin 27-Dec-10 31-May-11 Raghavendra N. Kulkarni Engg. 21-Sep-00 15-Jun-11 Dilipkumar Yadav Q.C 10-Jan-11 11-Jul-11 Nilesh B. Jangam H.R 22-Mar-06 11-Jul-11 Dinesh S. Saraf Q.C 3-Oct-07 18-Jul-11 Anand V. Deshmukh Industrial 13-Oct-06 23-Jul-11 M.M. Bukhari production 14-Jun-82 4-Sep-11 S.C. Bastawade Resin 26-May-11 10-Sep-11 K.S.jangam Q.C 2-May-08 30-Sep-11 S.R.Hogale production24-Aug-09 5-Oct-11 E. Padmanabhan SOD 15-Jun-08 31-Oct-11 Amit K. Yatam Resin 7-Sep-11 5-Nov-11 H.A. Bagul P.E 25-Jul-94 7-Nov-11 Dadaso V. Kale Resin 8-Jun-09 23-Nov-11 S.R. Bhalmiki P.E 24-Aug-09 10-Dec-11 C.B. Kolhe Q.C 12-Sep-10 17-Dec-11 P.V. Pawar Accounts 3-Sep-10 14-Jan-12 D.B. Thorat H.R 14-Jun-11 10-Jan-12 S.K.Butala Engg. 6-Jan-09 31-Jan-12 A.S. Mulik CED 6-Nov-06 16-Mar-12
0 3 2
34
5.2) In following table shows that how many experience gained by the organisation.
EXPERIENCE GAINED Past Exp Empl No. Name D ept DOJ Paint Ind. Other Ind.
1 1.5 3 0 2 2 0.6 1 2 2 0 2 1 1 1 2 4 3 2 2 2 1 1 0 0 1 3 3 0 3 1 3 4 0 0 0 2 2 0.3 0.6 2 3 1 0.5 2 2 0.4 0 4 0 2 1 0.8 0 2 1 1 0 1 2 2 2 2 2 1 1 4 0 0 1 0 2 2 2.5 1 2
KNP Exp
Total 0
23605 23603 23608 23639 23648 23653 23675 23694 23719 23713 23730 23739 23742 23760 23765 23766 23768 23769 23777 23789 23797 23815 23818 23832 23881 23882 23866 23885 23890 23898 23900 23903 23911 23930 23934 23939 23947 23948
R.B. Jamadar R.S. Padwal M.B. Gokhale S.S. Salvi S.D. Bhuwad V.A. Sutar Zuneid Sangle Ramesh Talaye Rohan Kane Amit Khadatkar Mithun Jadhav Tanmoy Chowdhury Dipak Pawar Manojkumar Sonule Udaysingh Rane Rajkumar Nimbalkar Harishchandra Pate Ramashankar Roy Ashok Bhosale Pravin Deshpande Mahesh Ambare Satish Pokale Chandan Shetye Nilesh Sakpal Mahendra Patil Sooraj Tandkar Balkrishna Hiray Dhananjay Darekar Amol Akulkar M Bhaskar
SOD EHS Q.C Q.C Decorative Resin Engineering Industrial PC Unit P.E Purchase Q.C Industrial Engineering Prod Commercial Prod Q.C Industrial Engineering PC Unit Production Commercial Q.C Resin Commercial Technical Q.C H.R Resin
02-Apr-2011 06-Apr-2011 12-Apr-2011 06-May-2011 09-May-2011 01-Jun-2011 27-Jun-2011 04-Jul-2011 20-Jul-2011 02-Aug-2011 18-Aug-2011 02-Sep-2011 02-Sep-2011 23-Sep-2011 05-Oct-2011 10-Oct-2011 10-Oct-2011 12-Oct-2011 19-Oct-2011 07-Nov-2011 14-Nov-2011 21-Dec-2011 26-Dec-2011 21-Jan-2012 05-Mar-2012 05-Mar-2012 09-Mar-2012 10-Mar-2012 19-Mar-2012 26-Mar-2012 02-Apr-2012 03-Apr-2012 10-Apr-2012 23 Apr, 2012 30 Apr, 2012 05 May, 2012 11 May, 2012 14 May, 2012
1.2 1.2 1.2 1.3 1.3 1.4 1 0.11 0.11 0.11 0.11 0.9 0.9 0.9 0.8 0.8 0.8 0.8 0.8 0.7 0.7 0.6 0.6 0.5 0.3 0.3 0.3 0.3 0.3 0.3 0.2 0.2 0.2 0.2 0.2 0.1 0.1 0.1
2.5 3.3 6.2 4.3 4.3 3.9 3.6 3.11 2.51 2.11 4.11 2.9 3.9 2.9 2.6 2.8 6.8 4.8 3.8 2.7 3.7 3.6 3.6 2.5 2.3 3.3 4.3 4.3 4.3 3.3 1.2 4.2 4.2 2.2 2.2 2.6 3.1 4.1
Nandan Surve H.R Dnyaneshwar Karbele Resin Rajesh S. Santra Q.C Mr. Viraj Sawant Q.C Mr. Atul Joshi Engineering Mr. Vishal Shinde Technical Mr. Pramod shankar Naynak Production Mr. Omkar Suhas Pandhare Production
Total
132.14
35
1. Graph representing No. of Employees who left and Join during the months of 2011-2012 Months of 2011 April may June July august September October November December January February march No of employees Left 2 2 1 4 0 3 2 3 2 3 0 1
No of employees Left
4 3.5 3 2.5 2 1.5 1 0.5 0
No of employees Left
Interpretation: Above diagram shows that no. of employees leaves organisation in most of month of July and November, because of increments are done in these months mostly.
36
2. Graph representing no of employees who left and Join during the each Department in the year 2011-2012. Dept. GIHPC P.E Industrial Q.C Resin Tech SOD HR Commercial Decorative WB CED Accounts No of employees left 1 1 4 4 4 1 1 2 1 1 1 1 1
No of employees left
4 3.5 3 2.5 2 1.5 1 0.5 0
No of employees left
Interpretation: As per the analysis we can say that rate of employees leaving organisation mostly in departments of the industrial, Q.C, and resin in particular organisation.
37
3. Chart Representing Percentage of Attrition Reasons supported by Left Employees 2011-2012.
Reasons For Attrition Better opportunities Location Problem Studies Job dis-satisfaction Others problems Total
Percentage 52.2 8.7 4.3 4.3 30.4 100.0
Frequency 12 2 1 1 7 23
Percentage
Better opportunities Job dis-satisfaction Location Problem Others problems Studies Total
26% 50% 5% 15% 2% 2%
Interpretation: In the todays context, most of the employees are going to the higher salary or better opportunities, because of their standard of living and higher status. So most of the employees move to the forward and choose their job as per their demand. If says about above diagram, we can see here also most of the employees are move further or leaving organization because of only better opportunity. About more than 50 % employees are left organization for this reason. And other resons are also important but not as much to the better opportunity.
38
4. Charts Representing Tenure Period of Employees 2011-2012. Tenure Period 0 - 6m 6m - 2y 2y - 5y 5y - 7y 7y and above total No. of employee 5 3 10 0 5 23 Percentage 21.7391304 13.0434783 43.4782609 0 21.7391304 100
Percentage
45 40 35 30 25 20 15 10 5 0 0 - 6m 6m - 2y 2y - 5y 5y - 7y 7y and above Percentage
Interpretation: Here, above diagram suggest that, no. of employees are left from the organization mostly in the 2yr to 5yrs of the tenure period. Around more than 40% employees are left from the organization in the 2 to 5yrs period. This diagram, we can co-relate with the previous graph. As most employees are prefer to the better opportunity, so every employees is think for the leaving job within the short period. And another highest rate for the leaving organization is the period of 7yrs and above.
39
From the following we can see the details of the all tenure period wise analysis to the attrition analysis and the reason analysis.
5. Analysis according to reasons for Attrition Under each category.(as per above tenure period) (2011-2012)
A.
(0 TO 6 MONTHS) 0 - 6m Reasons For Attrition Better Opportunity Location Problem Studies job dis-satisfaction Others problems Total
Priority 1 1 1 0 2 5
Percentage 20 20 20 0 40 100
0 to six months Sr No 1 2 3 4 5 Name Bipinchandra Y. Patil Milesh M. Rawool DilipkumarYadav Amit K. Yatam S.C. Bastawade KNP Experience 0.2 0.5 0.6 0.2 0.4 Reason 1 Better Opportunity Location problem Personal Problem Personal Problem Higher studies Reason 2 Personal Problem no job satisfaction Location problem Future growth Future growth
40
40 35 30 25 20 15 10 5 0 Better Location Opportunity Problem Studies job disOthers satisfaction problems Percentage
Interpretation: This graph for the first tenure period is (0 to 6months). In this tenure period, we can see the around 20% employees are leaving organisation equal to because, of to the better opportunity, higher study, and other various problems. And after analysing also we may understands that, many employees are leaving organisation because of their higher studies. Most of think for the completing their studies. So, for this reason organization have to clear and have to give some facilities to their employees, where they could not leave the organisation and company get welleducated employees for their achieving organisational goal.
41
B. (6 M TO 2 YRS.) 6m to 2 y Sr Name No C.B. 1 Kolhe D.B. 2 Thorat P.V. 3 Pawar
6m-2y Reasons For Attrition Priority Better Opportunity 1 Location Problem 1 Studies Others problems Total 0 1 3 Percentage 33.3 33.3 0.0 33.3 100.0
KNP Reason 1 Experience Personal 1.3 Problem Better 0.7 Opportunity Better 1.4 Opportunity
Reason 2
Reason 3
Location no self problem development Location problem
100.0 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 Better Opportunity Location Problem Studies Others problems Total Percentage
42
Interpretation: In this diagram, we can see tenure period for the 6 months to 2 yrs. And here equal proportionate to the all reasons. But as compare to the previous diagram no preference to the higher study and location problems.So this tenure period is not that much effect on attrition rate for the organisation.
C.
(2 yrs. to 5 yrs.)
2y to 5y
Sr No 1 2 3 4 5 6 7 8 9 10 Name Ramchanra K. Patil Dinesh S. Saraf Anand V. Deshmukh Kiran S. Jangam Dadaso V. Kale E. Padmanabhan S.R. Bhalmiki S.K.Butala S.R.Hogale Nilesh B. Jangam KNP Experience 3 2.9 2.9 3.4 2.5 3.4 2.3 3 2.2 5 Reason 1 Better Opportunity Better Opportunity Better Opportunity Better Opportunity Better Opportunity Better Opportunity Location problem Family problems Better Opportunity Family Problem Reason 2 future growth no job satisfaction Location problem personal problem Better Opportunity Location problem
2y – 5y Reasons For Attrition Better Opportunity Location Problem Studies Job dis-satifaction Others problems Total Priority 4 3 0 1 2 10 Percentage 40 30 0 10 20 100
43
40 35 30 25 20 15 10 5 0 Better Location Opportunity Problem Studies Job disOthers satifaction problems Percentage
Interpretation: In this diagram shows us that, higher proportionate comes for the better opportunity, location problem as well as job –dissatisfaction. As we say earlier, company have to provide opportunity for their job satisfaction as well as achieving organisational goal through well-educated employees. And also have to provide good housing facility for employees, who?s having problem regarding location. And by providing these various facilities to their employees, its good effect on attrition rate to the organisation. Here, around their 40% for the better opportunity and 30% for the location problem and remaining for the job-dissatisfaction and other problems.
44
D. (7 yrs. to above )
7y and above Sr No 1 2 3 4 5 Name Narendra B. Naik R. N. Kulkarni M.M. Bukhari H.A. Bagul A.S. Mulik KNP Experience 22 11.2 29 17.4 11.4
Reason 1 Personal Problem Personal Problem Location problem Better Opportunity Better Opportunity
Reason 2
personal problem
7y and above
Reasons For Attrition Better opportunities Location Problem Studies Job dis-satifaction Others problems Total
Priority 2 1 0 0 2 5
Percent 40 20 0 0 40 100
Percent
40 35 30 25 20 15 10 5 0
Percent
45
Interpretation: Here above diagram is shows us that, after completion of the 7 years or above then most of the employees leaves a job because of any personal problem of better opportunity. After completion 7 years employees required some kind of change to his job or role play. So most of the time employees are prefers to leave the job and search for the new or better opportunity.
6. Main Supported Reasons by the Left Employees of Different Category.
Tenure Period
Better Location opportunities Problem 1 1 3 0 1
Studies 1 0 0 0 1
Job dis- Others satisfaction problems 0 0 1 0 1 2 1 2 0 1 Total
0 - 6m 1 6m - 2y 1 2y - 5y 4 5y - 7y 0 7y and above 1
Total 5 3 10 0 5 23
Chart Title
10 8 6 4 2 0 0 - 6m 6m - 2y 2y - 5y 5y - 7y 7y and above
Better opportunities Location Problem Studies Job dis-satisfaction Others problems Total
46
Interpretation: Here, with the help of above diagram we know that all about the reason analysis with the time duration of the employees leaving the organisation in different category. And we also know that no. employees are left from the organisation in what basis and in what period. All over data and analysis we can understand in this one diagram with the reason analysis.
7.
Experience gained and experience drained of the company in the year 20102011.
Experience drained Experience grain
2011-2012 136.9 132.14
2011-2012
137 136 135 134 133 132 131 130 129 Experience drained Experience grain
2011-2012
Interpretation: Here, overall productivity and average attrition rate is not a good, as standard attrition rate. Here, we know that experience gain is low towards the experience drained.
47
8.
dgfhjjjjjjjjj
48
CHAPTER 5 FINDING &OBSERVATION
49
5.1) Findings and observation regarding with the attrition analysis in the Kansai Nerolac Paints LTD.
1. In Kansai Nerolac paints I found firstly that there is experience drained is more than experience grained. That is No. of employees left form organization are more than No. of employees joint in the year 2011-2012. 2. Secondly that I can say here most of the employees are left from this organization in the month of July as well as in the month of November. Because, at that time increments are will be declaring. 3. As per monthly analysis I make a department wise also, hence we can say that No. of employees are left this organization mostly in the resin and quality control departments. 4. As we see in data evaluation for the reason analysis to the employees, knowing the various reason behind to the leaving the organisation. Hence, there is most of the employees are leaving the organization because of the better opportunity in the external world. As we came to know most of employees are giving more preference to the better opportunity in today?s context. Here percentage around 52%. 5. As I found that most of the employees are leaving the organization that?s having the experience with within the 2 to 5 years (as tenure period). Here percentage is around the 43% employees are leaving the organization. 6. At the time of any employees have to leave the organization that time company take exit interview for the particular that employee. This interview take for the sake of understanding attitude towards the leave this job and reasons of the leaving this particular job. Every organisation take this interview for the getting feedback from the employees about the job satisfaction. 7. Here, total experience gained is 132.6 and experience drained is 139.9 so this situation is not good for the any organisation. So company?s attrition rate is around 3.75 in a year. And this rate of attrition is not good for the any organisation. There is for the manufacturing organisation good attrition rate is 7% in a year. 8. Here, main reason for the leaving the organisation in a KNPL is better opportunity and higher studies. Most of the employees are leaving the organisation because of the only better opportunities in other organisation and
50
for the higher salary and other main reason is that they wants to go for the higher studies for the promotions as well as better increment. 9. KNPL provides their employees various other facilities for the employees relaxation and to getting some kind of rest of the job and then they are can be doing his/her job efficiently and effectively. And employees may get job satisfaction and automatically organisation may improve productivity, but even though organisation may lose their satisfaction and employees may get dissatisfaction from the organisation?s facility and employee may leave the organisation.
51
CHAPTER 6 SUGGETIONS AND RECOMMENDATIONS
52
6.1) following are the various suggestions given by me as per my knowledge and my observation as well as thinking.
1. According to me organisation may have to concentration on the employee?s satisfaction. Company may increase the effective other facilities for the employees satisfaction. 2. More than half of the employees are satisfied with their nature of job and with their working conditions. So the company can attain a further improvement level for the rest if it guides its employees.
53
54
doc_590889260.docx
atrrition rate in kansi nerolac paints
SUBMITTED TO UNIVERSITY OF MUMBAI THROUGHA SUMMER INTERNSHIP PROJECT ON STUDY OF ATTRITION IN KANSAI NEROLAC PAINTS LIMITED SUBMITTED BY MISS ASHWINI D. MHASAWADE UNDER THE GUIDANCE OF PROF YOGESH A MOHIRE
DEPARTMENT OF MANAGEMENT STUDIES (MBA/MMS) RAJENDRA MANE COLLEGE OF ENGINEERING AND TECHNOLOGY, AMBAV ACADEMIC YEAR 2012-13
1
CERTIFICATE (FROM)
2
CERTIFICATE (FROM COMPANY)
3
DECLERATION
I Miss Ashwini D.Mhasawade, student of second year of Master of Management Studies (III semester) at Rajendra Mane College of Engineering & Technology, Ambav affilated to University of Mumbai, hereby declare that I have completed the summer internship project on the topic “Study of Attrition” in Kansai Nerolac Paints Limited, Lote Parshuram and submitting report on the same in the partial fullfillment of MMS degree in the academic year 2011-12 as per norms of Unversity of Mumbai. The information gathered and organised is formulated with the aid of primary and secondary data.
Miss Ashwini D.Mhasawade.
4
ACKNOWLEDGEMENT
A great opportunities come by only once and I am grateful to Kansai Nerolac Paints industries for giving me this opportunity. It was grate pleasure and an extremely good learning experience to do my project on the “Atrrition rate of the employees” in this organization.
I take opportunity to thank Mr. S. Deshmukh (manager –HR& personnel) and Mr. Amol Akulakar ( Senior Executive officer) for giving me this opportunity. And providing essential & grateful information to my project.
A special thanks to Mr. Nitin Shedage for guiding me through this project and for providing me with an excellent project on “Atrrition rate for the employee” to work on.
5
EXECUTIVE SUMMARY
Here, as say about the attrition rate of the organisaion involves the infolows and outflows of the employees in the organisation. To attrition rate also called employees turnover ate. In this project I explain all parameters about the attrition rate. So, firstly I done this project in the MNCs company as Kansai Nerolac paints which is located in the Lote MIDC area near chiplun. About the attrion rate this company getting average percentage of the employees turnover. Actually this company getting average satisfaction with the employees and employees also getting average satisfaction about organisation and also about the job satisfaction.. For the my analysis of the organisational employees turnover result I used the primary data. This project is completely depend on the primary information and interactive basis. So all this information may true for this analysis. I have used past records of the employees and past year result of the organsation on the attrition which is preapre by only manager of this organisation. So, after using this all information I understand and I fully satisfied with my all objectives and purpose of this project report are list out in next page. So, I got all concept of the attrition analyais and how its calculated and why its important for the organisation. With the help of all these information I eveluate all this situations and try to conclude as per my thinking. As analysis of the data we can understand that, percentage of employees are leaves organisation is more than employees are join the organisation as newly. About an expreriance gained by the organsation is about the 132years in a year. And exeperiance drained is an about the 140 years in a year. And we know that most of the employees are leaving the organsation in the monthe of july and november because in that months chances to increments. And another important thing is that employees are prefers to leave organisaiton after completing 2 to 5 years in the one organisation. Because they want to adopt new opportunites in various types of organisaion and also they want more compemsaiton from orgnisation. For the increasing rate of attrition having various types of reasons in the organisation. Some of reasons are as personal maaters, location problems, higher studies, for the better opportunities, job dissatisfaction, working condition of the organisation, organisaitonal culture. For these these reasons many employees may leave the orgnisation. As per my data analysis I know that most of the employees are go for the better opportunities and try to go something new and different after some completing
6
years in one organisation. So every employee is try to change job after every 4 to 5 years. Actuly for the solving this problem organisaiton does various faciliites for the employees that they are does?t think about leaving the organisaiton. Organisaion provides various facilities for the employees are that, providing educational faciliites for the employees as they did not lost the job for the higher studies and as same way organisaion also requiers employees which are better for the organisaion. And which employees problem regarding location, for these employees provides housing facilities with the famaly near by company or near by city. Which employees having problem regarding working condition and organisaional culture, for these employees organisaon try to change culture of the organisation as requires.
7
INDEX
SR.NO.
CHAPTER 1 i. ii.
iii.
TOPICS
INTRODUCTION TO STUDY Introduction Objectives of the study Research methodology THEORETICAL FRAMEWORK
i. ii. iii. iv. v. vi. Concept of the attrition rate Meaning and definition Employee attrition in India Managing attrition in India Reasons for the leaving organization How to cub the increasing attrition rate
PAGE NO.
CHAPTER 2
CHAPTER 3
COMPANY PROFILE
CHAPTER 4
DATA ANALYSIS & INTERPRITATION
CHAPTER 5
FINDING &CONCLUSION
CHAPTER 6 CHAPTER 7
i.
CONCLUSION APPENDIX
Questioner
CHAPTER 8
BIBILOGRAPHY
8
CHAPTER 1 INTRODUCTION TO STUDY
9
CHAPTER 1 INTRODUCTION TO STUDY
1.1) INTRODUCTION:
Human Resource is integral part of any organisation. Human resource is very important and now a days, the qualified human resource is very scarce. The opportunities are flooded in market, and therefore more attrition is observed in companies than ever before. The company need to take care of their employees with regards to labour turnover. Therefore attempt is made to study the attrition rate of the Kansai Nerolac Paints Limited.
1.2) OBJECTIVE OF STUDY:
1) To understand the concept of attrition as well as organisation 2) To identify the causes of attrition and to suggest measures to control it 3) To find solutions to the problems leading to attrition 4) To know the theoretical knowledge and practical approach of attrition 5) To compare and contrast theoretical knowledge 6) To know the working environment, satisfaction with co-workers, superiors, stress so work place, remuneration, recognition, as a part of company policy which acts as the cause for attrition 7) To suggest measures to control attrition
1.3) RESEARCH METHODOLOGY:
The summer internship project “Study the Attrition at Kansai Nerolac Paints Limited” is required to be conducted in Organisation. The data about the attrition and history about the company is collected from the files with HR department and annual reports.Data is been collected by actually visiting to the company. This is type of field research. The data is mainly of two types:
10
PRIMARY DATA: Primary data is related with first-hand information. The following methods are used: 1) Observation method 2) Interview method 3) Questioner method
SECONDARY DATA: Secondary data means data already published in magazines, websites, reference books, historical data, written material, documents etc.
11
CHAPTER 2 THEORETICAL FRAMEWORK
12
CHAPTER 2 THEORETICAL FRAMEWORK
2.1) INTRODUCTION:
Human resources are assets of any organization. However, retaining employees is becoming difficult task for most organizations in the era of globalization and competitive environment. So retention of employees has become a great concern for all organizations. It is very frustrating for an organization if employees leave after two months or the training period is over. Attrition up to certain limit is favourable to an organization. Sometimes it works as a talent acquisition when new employees join. Organizations are fast realizing that losing underperformed employees is a boon in disguise to an organization. Attrition beyond desired limit only is a problem for an organization. In the best of worlds, employees would love their jobs, work hard for their employers, get paid well for their work, have many chances for advancement and flexible schedules so that they could attend to personal needs when necessary. But there is the real world. Employees do leave either because they want more money, hate the working conditions, hate their co-workers, and want a change. Attracting, keeping and motivating talent has become one of the main activities of organizations. Globalization, M & A and expansions of organizations have provided great scope for deployment of talented people. Boundary less company, worldwide labour markets, better communications systems and agile new organizations have contributed to this complex problem. Earlier, this challenge was faced by advanced economies like United States, Japan and Europe. Globalization and growth in economy has exposed challenge of attracting and retaining talent in emerging economies as well. Creation of work environment that provide meaningful challenge to employees has become a priority.
2.2) ATTRITION:
Attrition has been a major concern for most of the companies in the current competitive scenario. The word attrition means, a reduction in the no. of employees
13
through resignation or separation at the employees will, retirement, VRS, employees leaving due to end of contract are , not considered as attrition. Attrition rate is the rate if shrinkage in size or number. It is the mathematical representation, of the attrition in a particular organisation or an institution. Attrition is one of the most serious concerns of the organisations today, irrespective of the industry in which they are operating. Attrition is all about people leaving organisations with the slightest provocation and having no respect and commitment to the company in which they are working. Attrition analysis is a study in which an analysis gives the data on what is the current attrition trend in the company. It?s an analysis done by taking time, manpower strength & no. of people resigned into consideration to derive the final outcome. There is no standard formula to calculate the attrition rate of company; this is because of certain factors as: 1. The employee base changes each month. 2. Many form may not include attrition of fresher?s who leave because of higher studies or within three months of joining. 3. In some cases, attrition of poor performers may also not be treated as attrition. Attrition % = (No. of separations/Total employees) *100 Defining Attrition:A reduction in the number of employees through retirement, resignation or death
Defining Attrition rate:The rate of shrinkage in size or number
Definition of Attrition: The reduction in staff and employees in a company through normal means, such as retirement and resignation Attrition also known as employee churn, employee turnover, or employee defection, is an industrial term used to describe loss of employees or Man power. Attrition is pretty high in the industry these days. Attrition is a universal phenomenon
14
and no industry is devoid of it, but the degree fluctuates from industry to industry. Attrition is a serious issue in the industries because the industry is knowledge-based and hence employees are its “assets”. Deficiencies like inability to influence employee perception of growth; not aligning employees to roles based on their individual talent, inflexibility in leadership styles, are causing conflicts at a very intrinsic level, resulting in knowledge employees choosing the proverbial “easy way out.” Attrition is a phenomenon affecting any business organization in the industry. Over the past few years, organizations have taken an increased interest in aligning their HR practices to their business goals. Whereas the deficiencies like inability to influence employee perception of growth; not aligning employees to roles based on their individual talent, inflexibility in leadership styles, are causing conflicts at a very intrinsic level, resulting in knowledge employees choosing the proverbial “easy way out.” Employees thus attempt to change the manager or the work environment, resulting in employee attrition. Attrition is beginning to significantly affect offshore ROI. Just as businesses faced a scarcity of talented IT resources during the dotcom era, organizations in offshore countries such as India are experiencing similar pains. Skilled employees are hopping from job to job and taking with them the customer knowledge and technical expertise that any company needs. Their salaries are increasing, along with their perks, benefits, and bonuses.
2.3) EMPLOYEE ATTRITION IN INDIA:
Staff attrition (or turnover) represents significant costs to technology and business process outsourcing (BPO) companies. High attrition rates drive up training costs, and increase human resources, recruiting, and productivity costs. They also increase the prospect of customer service complaints or quality problems, and create substantial continuity problems for longer-lived projects. There are many causes for attrition including, retirement and death .However, most attrition is due to employee turnover. Employee?s leave their jobs for a number of reasons including: wanting more money, poor working conditions, irregular working hours, lack of advancement opportunities, lack of job security, difficulties with co-workers, desire for change,
15
better opportunities, and family reasons. High wage inflation is another major factor in job hopping. In India especially in insurance sector, period between 2002 and 2008 was rapid expansion due to stepping of many members of players into this insurance sector. This has caused high inflation in employee salaries and also high attrition in insurance sector due to many numbers of openings offered by new entrants. In this period due to abundant openings there was an unprecedented war of talent in the insurance sector to find the right people to join their organisation especially for the key positions.
2.4) MANAGING ATTRITION IN INDIA:
To ensure that attrition rates are kept to a minimum, businesses need to redesign their reward and recognition packages to help the industry hold onto staff and to find the right kind of people who can keep pace with the unique work patterns. According to Oscar De Mello, country head of Hay Group is Reward Information Services in India, adjusting pay might not automatically lead to higher operating costs for BPO companies. By creatively designing their total reward package towards more short-term incentives and benefits, and linking the package to performance, companies can ensure that they get higher productivity without hefty increases in salary costs and minimize attrition costs and issues at the same time. Hays Group recommends providing a better balance of short- and long-term benefits such as performance bonuses, employee stock option plans and retention bonuses; effectively communicating details of compensation plans to encourage employee buy-in; and promoting non-financial benefits such asCareer development, job rotation and transparent performance management systems. First, if you are working on a longer-term project, understand your partner?s attrition rates and their management practices. Some firms manage attrition well, while others simply try to hide it. Second, review your team structure and ensure that there is sufficient information sharing and collaboration so that the loss of any one person does not set you back. Finally, get to know your key team members. Not only
16
will this help reduce attrition, but help you minimize the down side if you do lose a key team member Employee attrition is one of the critical problems which is faced by an HR manager during these days. In an ideal situation an employee consider multiple comfort level while working in a office for e.g. employer's goodwill in the market, remuneration, future growth, working condition, co-workers, current role's scope in the market & most important future stability with the organization. In a survey, approximate 70% of the working population in India is not happy at all due to one of the aspect (as mentioned aforesaid) which is not fulfilled while working in a organization which caused higher attrition rate. In broad term, attrition is a situation which employer face when employee left the organization due to job dissatisfaction, new opportunity in the market, retirement & natural cause (death/illness). Now a day this is one of the most important questions which is asked by higher authority to HR people…."Why our attrition rate is higher than other company". Earlier it wasn't important for the organization, whether their employees are committed or not, but now the time has been changed. The company cannot afford to lose its best employee to competitors. Therefore, HR team conducts EXIT interview when an employee left the job to get the information about one's decision to leave an organization. It is a paramount consideration for a HR team to think, why people are vacating their positions. Still Human Resource team face the challenge due to wrong information provided during EXIT interview.
2.5) ATTRITION IS A CRITICAL ISSUE:
Whenever a well-trained and well-adapted employee leaves any organization, it creates a vacuum. The organization loses key skills, knowledge and business relationships. And it is not an easy task to find a sustainable substitute. “Situation is worse when it happens at a critical (decision making) position, as there is a scarcity of such technical resources in the market,” explains Head HR, who feels attrition directly
17
affects the company. “Employees want not only work recognition, but also extra perks.
2.6) REASON FOR LEAVING:
It is not easy to find out as to who contributes and who has the control on the attrition of employees. There are number of reasons which may make an employee quit our organization. Various studies/survey conducted indicates that everyone is contributing to the prevailing attrition. Attrition does not happen for one or two reasons. The way the industry is projected and speed at which the companies are expanding has a major part in attrition.. All the major IT companies have faced these realities. If you look within, the specific reasons for attrition are varied in nature and it is interesting to know why the people change jobs so quickly. Even today, the main reason for changing jobs is for higher salary and better benefits. But in call centres the reasons are many and it is also true that for funny reasons people change jobs. At the same time the attrition cannot be attributed to employees alone. The reasons are various behind leaving an organization & any attempt to find one comprehensive explanation for this phenomenon would be futile. Though the rising attrition within industries is a well-discussed topic but very few HR executives have been able to pinpoint the 'exact' reason for this growing trend. A recent Hewitt 'Attrition & Retention' survey shows one of the top reasons for talent attrition to be "external inequity in compensation". They also show that 27% of the employees in their EXIT interview mentioned compensation as the primary reason. It comes no surprise to many that money is an important factor but what besides this, there are several factors that influence an employee's decision to leave. Those days are gone when salary was the sole motivator for an employee to leave an organization. According to a survey there arethree main reasons: In equity in compensation 1. Limited career opportunities
18
2. Role stagnation 3. Common reasons experienced by HR manager are discussed here 4. Mismatch of job profile. 5. Job stress and work-life imbalances 6. Odd working hours/Early morning-night shifts 7. Job hopping 8. Lack of authority provided to accomplish ones task 9. Monotony of job 10. Organizational culture 11. People “Quit their Boss” 12. Working hours 13. Ethical issues 14. Lack of recognition The list can be endless but the reason why employees leave the organization is vary according to the nature of the business. The work should give to them the level of the employees and the nature of the responsibility he/she can handle. Therefore it's very challenging task for an HR expert to cope up with this situation and retain talent with an organization. As another various reasons for the attrition explain in followings. These reasons are mostly finding in organisations at the time of leaving employees. Organizational matters: The employees always assess the management values, work culture, work practices and credibility of the organization. The Indian companies do have difficulties in getting the businesses and retain it for a long time. There are always ups and downs in the business. When there is no focus and in the absence of business plans, non-availability of the campaigns makes people to quickly move out of the organization. Working environment:
19
Working environment is the most important cause of attrition. Employees expect very professional approach and international working environment. They expect very friendly and learning environment. It means bossism; rigid rules and stick approach will not suit the call canter. Employees look for freedom, good treatment from the superiors, good encouragement, friendly approach from one and all, and good motivation. Job matters: No doubt the jobs today bring lots of pressure and stress is high. The employees leave the job if there is too much pressure on performance or any work related pressure. It is quite common that employees are moved from one process to another. They take time to get adjusted with the new campaigns and few employees find it difficult to get adjusted and they leave immediately. Monotony sets in very quickly and this is one of the main reasons for attrition. Youngsters look jobs As being temporary and them quickly changes the job once they get into their own field. The other option is to move to such other process work where there is no pressure of sales and meeting service level agreements (SLA). The employees move out if there are strained relations with the superiors or with the subordinates or any slightest discontent. Salary and other benefits: Moving from one job to another for higher salary, better positions and better benefits are the most important reasons for attrition. The salary and offered from MNC companies in Bangalore, Delhi and Mumbai have gone up very high (Rs 15000 to Rs 18000 per month) and it is highly impossible for Indian companies to meet the expectation of the employees. The employees expect salary revision once in 4-6 months and if not they move to other organizations. Personal reasons: The personal reasons are many and only few are visible to us. The foremost personal reasons are getting married or falling in love or change of place. The next
20
important personal reason is going for higher education. Most of the BE, MCA and others appear for GATE examination or other examinations and once they get cleared they quickly move out. Health is another aspect, which contributes for attrition. Employees do get affected with health problems like sleep disturbances, in digestion, headache, throat infection and gynaecological dysfunction for lady employees. Employees who have allergic problems and unable to cope with the AC hall etc will tend to get various other health problems and loose interest to work. Employee’s advocate: One of the main reasons why employees leave companies is because of problems with their managers. An HR professional can be termed an employee?s advocate and a bridge between top management and employees at all levels. There is a huge gap between HR professionals and employees in terms of understanding challenges and delivering requirements. HR has not really understood the problems associated with employees? careers and jobs. The company?s overall plans and strategies also depend on HR professionals as they voice employees? problems and requirements. The HR department should have genuine interest in the employees? welfare…it is responsible for making sure that their expectations are met. By doing this it is easier to meet the company?s business targets. If the organization does not provide employees with sufficient opportunity for growth, then they will decide to leave the organization. Employees leave the organization if the company does not provide congenial working environment. As comparison is a natural instinct of human beings, comparison of employees with their peers aggravates the problem of attrition in organizations. Sometimes comparisons will result in heartburning which should be curbed. Intimidation by the boss drives the best employees out of the organization. Some employees get bored doing the same job over a period of time. They like to take on new roles after some period of time. Stress, unfair practices in organizations, long distance from home etc., could be other reasons for attrition. When there is no job satisfaction for employees, then also they will quit the job. Lack of
21
internal networking of employees leads to attrition in organizations. If the reward policy is not transparent, then they will be encouraged to look for other opportunities. Employees often discuss their salaries with their colleagues. If there is inequality among them, then there is an issue for HR. If the compensation is not in match with the employees' knowledge, skill and attitude, people may leave without notice. Hiring of overqualified people may increase rate of attrition in organizations. In several cases, faced with a choice between high pay package and a challenging job, employees have opted for the latter
2.7) HOW TO CURB ATTRITION:
Money is not everything: Even though the importance of high salaries is slowly taking backseat, among fresher?s or laterals with less than three years of work experience, money is still considered to be the highest priority. According to RAKESH TIKU, vice-president, Deliveries, Infinite computer solutions, “with the overall package, the demand for performance based salaries is going up. Employees want not only work recognition, but also extra perks". Employees analyze the training programs of prospective companies with those of their current organization, which means that how an organization grooms an employee is weighted to a greater extent. This is because they know that developing next-level skills places them ahead in the job market and finally result in better compensation. They also search for a job with higher of responsibility. Treat employees like customers: Even though companies strive to understand which organizational, job and reward factors will contribute to retain good employees, industry experts have found several loopholes at the top management and HR Management level. According to BijaySahoo, Vice President, talent management and development, Wipro
technologies, "Companies should have a similar approach to retain an employees and customers. If a company strives to retain an employee in the same way it tries to retain a customer, him leaving the organization could be out of question." Since employees have different priorities at different points of time, organizations need to structure
22
their offer-mix while recruiting new hires as well as promoting existing ones. Communication is the foundation for entire process of managing attrition. Attrition is not bad always, if it happens in a controlled manner. Some attrition is always desirable and necessary for organizational growth and development. The only concern is how organizations differentiate “good attrition” from “bad attrition”. The term “healthy attrition” or “good attrition” signifies the importance of less productive employees voluntarily leaving the organization. This means if the ones who have left fall in the category of low performers, the attrition in considered being healthy. Attrition rates are considered to be beneficial in some ways: If all employees stay in the same organization for a very long time, most of them will be at the top of their pay scale which will result in excessive manpower costs. When certain employees leave, whose continuation of service would have negatively impacted productivity and profitability of the company, the company is benefited. New employees bring new ideas, approaches, abilities & attitudes which can keep the organization from becoming stagnant. There are also some people in the organization who have a negative and demoralizing influence on the work culture and team spirit. This, in the long-term, is detrimental to organizational health. Desirable attrition also includes termination of employees with whom the organization does not want to continue a relationship. It benefits the organization in the following ways: 1. It removes bottleneck in the progress of the company 2. It creates space for the entry of new talents 3. It assists in evolving high performance teams
23
There are people who are not able to balance their performance as per expectations, lack potential for future or need disciplinary action. Furthermore, as the rewards are limited, business pressures do not allow the management to over-reward the performers, but when undesirable employees leave the company, the good employees can be given the share that they deserve. Some companies believe attrition in any form is bad for an organization for it means that a wrong choice was made at the beginning while recruiting. Even good attrition indicates loss as recruitment is a time consuming and costly affair. The only positive point is that the realization has initiated action that will lead to cutting loss.
24
CHAPTER 3 COMPANY PROFILE
25
CHAPTER 3 COMPANY PROFILE
3.1) INTRODUCTION:
Industry Name House Name Year Of Incorporation Regd. Office Address Districts State Pin Code Tel. No. Email : [email protected] ''Nerolac House',', GanpatraoKadam Marg, Mumbai Maharashtra 400013 022-24992796,022-24992807 Internet :http://www.nerolac.com KANSAI NEROLAC PAINTSLTD MNC Associate 1920
3.2) LOTE INDUSTRY
–
PARSHURAM,
KANSAI
NEROLAC
PAINTS
the lote parshuram site was established in 1989 as an industrial paints manufacturing unite for the kansai nerolac paints industry limited. this plant is located on a 20 acre plot of the mumbai – goa highway (nlt-17)
26
3.3) INTRODUCTION OF THE KANSAI NEROLAC PAINTS LTD.
Name
Kansai Nerolac Paints Ltd
F-2, LOTE PARSHURAM MIDC, Chiplun 415722, Maharashtra, India
Establishment Products
24april.1989 industrial Paints. Decorative Paints, Powder coating paints,
PRODUCTS OF THE COMPANY:
27
3.4) HISTORY OF THE KANSAI NEROLAC PAINTS:
It is the second largest coating company in India and market leader in Industrial Coatings. It?s Industrial Coatings has a wide range of products in the Automotive, Powder, General Industrial and High performance Coatings space. Nerolac paint, as it is popularly known, is an established brand in decorative paints. Kansai Nerolac Paints Ltd is a subsidiary of Japan based Kansai Paint Company Limited, which is one of the top ten coating companies in the world. The technological edge of Kansai helps us constantly innovate and come up with products that meet consumer need gaps. Kansai Nerolac has always believed that the key to its business is: ? ? ? ? Technology Research & Development Innovations Quality
1920: Started the journey as Gahagan Paints and Varnish Co. Ltd at Lower Parel in Mumbai. 1957:Goodlass Wall Pvt. Ltd grew popular as Goodlass Nerolac Paints (Pvt) Ltd. Also, it went public in the same year and established itself as Goodlass Nerolac Paints Ltd. 1976:Goodlass Nerolac Paints Ltd. became a part of the Tata Forbes Group on acquisition of a part of the foreign shareholdings by Forbes Gokak.
28
1983:Goodlass Nerolac Paints Ltd. Strengthened itself by entering in technical collaboration agreements with Kansai Paint Co. Ltd, Japan and Nihon Tokushu Toryo Co. Ltd, Japan. 1999: Kansai Paint Co. Ltd, Japan took over the entire stake of Tata Forbes group and thus GNP became wholly owned subsidiary of Kansai Paint Company Ltd. 2006: On the 11th of July, Goodlass Paints Ltd. name has been changed to Kansai Nerolac Paints Ltd.
3.5) AWARDS AND ACHIEVEMENTS:
Awards and Achievements:
While we look to the future, it is important to bask in past glory. Nerolac has won many accolades for its stupendous work in product development, environmental consciousness and in being a responsible corporate citizen.
?
Golden Peacock Environment Management Award 2005' for environment management of Jainpur factory & DSIR National Award – ACED for adaptation of technology to suit local needs.
?
Short listed for the „Best Managed Company? award from Business Today & A.T. Kearney 2005.
?
Best Vendor Award from customers like Toyota Kirloskar Motors (TKML) for Cost & from MarutiUdyog (MUL) on overall commendation.
? ?
„Hall of Fame? from CTO Forum, PC Quest & Best Implementation-APO in IT Excellence in Corporate Governance from ICSI
29
?
Environmental Excellence Gold Award by Greentech Foundation for the Lote Plant for the year 08-09.
?
Our Technical Partners (NIPA Chemical Chennai), was awarded with TKML?s Best delivery performance award. April 2009
?
Best Delivery Performance Award by Whirlpool India Ltd at Faridabad – April 2010
?
Award for the “Most Proactive Contribution through New Developments ” in Powder Coatings by Godrej Appliances Ltd April 2010
? ?
Product of the Year Award 2010 for Nerolac Excel – April 2010 SAP Ace Award 2011 for the Best run Business in consumer and Trade Industry 2011
?
Sustainability Award for outstanding contribution” by Mahindra and Mahindra October 2011
?
Best vendor PERFORMANCE AWARD in Paint Supplier?s Category by Honda Motor cycles and scooters at their annual conference Jan 2012
3.6) THE HR ANGLE: The HR Philosophy:
At Nerolac we recognize our human resources as extremely important and critical assets. We honour the dignity of each individual, irrespective of position and highly value the feelings and emotions of people. Our Human Resource Policy is, to facilitate creation of synergy, mutuality and interdependence between individual and corporate development and growth through total employee involvement and building an enabling work culture in the organization. Informality in interactions, transparency and openness in communications at all levels, and an enabling work environment supporting high autonomy of work, transparency and an objective subjectivity of Performance Management System, fair dealing, tremendous care and concern for people are a few of the softer aspects of
30
permeable people management environment which represent the organizational climate and culture. Our faith is averred by the fact that people feel pride in being part of the Nerolac family. We care for people; people care for our business.
HR- vision
To create a climate of trust and confidence through world class HR systems and processes which are transparent whereby organisation members are committed and motivated to continuously excel in learning environment which is mutually beneficial.
Company vision
To leverage global technology, for serving our customers with superior coating system built on innovative and superior product and world class solution, to strengthen our leadership in industrial coating and proposal for leadership in architectures coating all to delight of our stakeholders.
Quality policy
We are committed to provide total customer satisfaction by supplying quality products and service to meet or exceed customer requirements. This commitment is effectively achieved through continual improvement of the quality of management systems.
Company value
Followings are the main companies? core values and company follow these values for the company development and success. Company calls it “TRIES”. T – Team orientation R – Responsive
31
I – Innovation E – Entrepreneurship S – Simplicity
Qualities and EHS certifications
April 2000 – Q.S 9000 May 2004 – ISO 9000 Sept 2002 – ISO 14000 Jan 2005 – QH.SAS 18000 Mar 2006 – TS 16949
Corporate social responsibility
1. Education: a. Adaption of poor girl students. b. Financial assistance for constructions of classroom, providing educational material. c. Notebook distribution.
2.
Health: a. Organise with eye campaigns with lions club. b. Organise with health club with joycees. c. Providing equipment to the health club.
3.
General: a. Various beautification projects. b. Financial assistance to the various libraries, blind schools, etc. c. Achieved trophy for the excellent contribution social work.
32
CHAPTER 4 DATA ANALYSIS & INTERPRETATION
33
CHAPTER 5 DATA ANALYSIS & INTERVENTION
5.1) In following table shows the how many experience drained in a organisation. Following data analysis is done by with the help of this chart.
2011-2012 EXPERIENCE DRAINED Past Exp KNP Total Paint Other Exp Ind. Ind. 0.2 22 3 0.5 11.2 0.6 5 2.9 2.9 29 0.4 3.4 2.2 3.4 0.2 17.4 2.5 2.3 1.3 1.4 3 0.7 1 3 1 11.4 Total 0.2 22 3 0.5 11.2 0.6 5 2.9 2.9 29 0.4 3.4 2.2 3.4 0.2 17.4 2.5 2.3 1.3 1.4 3.7 7 14.4 136.9
Empl No. SR. No.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Name
Dept
DOJ
DOL
23554 21644 22882 23516 90112 23522 22158 21365 22359 22427 24408 22836 23092 11141 23743 20773 23011 23091 23448 23427 23667 22992 22392
Bipinchandra Y. Patil Tech 4-Feb-11 1-Apr-11 Industrial 1-May-89 6-Apr-11 Narendra B. Naik Ramchanra K. Patil Industrial 1-Jul-08 21-May-11 Milesh M. Rawool Resin 27-Dec-10 31-May-11 Raghavendra N. Kulkarni Engg. 21-Sep-00 15-Jun-11 Dilipkumar Yadav Q.C 10-Jan-11 11-Jul-11 Nilesh B. Jangam H.R 22-Mar-06 11-Jul-11 Dinesh S. Saraf Q.C 3-Oct-07 18-Jul-11 Anand V. Deshmukh Industrial 13-Oct-06 23-Jul-11 M.M. Bukhari production 14-Jun-82 4-Sep-11 S.C. Bastawade Resin 26-May-11 10-Sep-11 K.S.jangam Q.C 2-May-08 30-Sep-11 S.R.Hogale production24-Aug-09 5-Oct-11 E. Padmanabhan SOD 15-Jun-08 31-Oct-11 Amit K. Yatam Resin 7-Sep-11 5-Nov-11 H.A. Bagul P.E 25-Jul-94 7-Nov-11 Dadaso V. Kale Resin 8-Jun-09 23-Nov-11 S.R. Bhalmiki P.E 24-Aug-09 10-Dec-11 C.B. Kolhe Q.C 12-Sep-10 17-Dec-11 P.V. Pawar Accounts 3-Sep-10 14-Jan-12 D.B. Thorat H.R 14-Jun-11 10-Jan-12 S.K.Butala Engg. 6-Jan-09 31-Jan-12 A.S. Mulik CED 6-Nov-06 16-Mar-12
0 3 2
34
5.2) In following table shows that how many experience gained by the organisation.
EXPERIENCE GAINED Past Exp Empl No. Name D ept DOJ Paint Ind. Other Ind.
1 1.5 3 0 2 2 0.6 1 2 2 0 2 1 1 1 2 4 3 2 2 2 1 1 0 0 1 3 3 0 3 1 3 4 0 0 0 2 2 0.3 0.6 2 3 1 0.5 2 2 0.4 0 4 0 2 1 0.8 0 2 1 1 0 1 2 2 2 2 2 1 1 4 0 0 1 0 2 2 2.5 1 2
KNP Exp
Total 0
23605 23603 23608 23639 23648 23653 23675 23694 23719 23713 23730 23739 23742 23760 23765 23766 23768 23769 23777 23789 23797 23815 23818 23832 23881 23882 23866 23885 23890 23898 23900 23903 23911 23930 23934 23939 23947 23948
R.B. Jamadar R.S. Padwal M.B. Gokhale S.S. Salvi S.D. Bhuwad V.A. Sutar Zuneid Sangle Ramesh Talaye Rohan Kane Amit Khadatkar Mithun Jadhav Tanmoy Chowdhury Dipak Pawar Manojkumar Sonule Udaysingh Rane Rajkumar Nimbalkar Harishchandra Pate Ramashankar Roy Ashok Bhosale Pravin Deshpande Mahesh Ambare Satish Pokale Chandan Shetye Nilesh Sakpal Mahendra Patil Sooraj Tandkar Balkrishna Hiray Dhananjay Darekar Amol Akulkar M Bhaskar
SOD EHS Q.C Q.C Decorative Resin Engineering Industrial PC Unit P.E Purchase Q.C Industrial Engineering Prod Commercial Prod Q.C Industrial Engineering PC Unit Production Commercial Q.C Resin Commercial Technical Q.C H.R Resin
02-Apr-2011 06-Apr-2011 12-Apr-2011 06-May-2011 09-May-2011 01-Jun-2011 27-Jun-2011 04-Jul-2011 20-Jul-2011 02-Aug-2011 18-Aug-2011 02-Sep-2011 02-Sep-2011 23-Sep-2011 05-Oct-2011 10-Oct-2011 10-Oct-2011 12-Oct-2011 19-Oct-2011 07-Nov-2011 14-Nov-2011 21-Dec-2011 26-Dec-2011 21-Jan-2012 05-Mar-2012 05-Mar-2012 09-Mar-2012 10-Mar-2012 19-Mar-2012 26-Mar-2012 02-Apr-2012 03-Apr-2012 10-Apr-2012 23 Apr, 2012 30 Apr, 2012 05 May, 2012 11 May, 2012 14 May, 2012
1.2 1.2 1.2 1.3 1.3 1.4 1 0.11 0.11 0.11 0.11 0.9 0.9 0.9 0.8 0.8 0.8 0.8 0.8 0.7 0.7 0.6 0.6 0.5 0.3 0.3 0.3 0.3 0.3 0.3 0.2 0.2 0.2 0.2 0.2 0.1 0.1 0.1
2.5 3.3 6.2 4.3 4.3 3.9 3.6 3.11 2.51 2.11 4.11 2.9 3.9 2.9 2.6 2.8 6.8 4.8 3.8 2.7 3.7 3.6 3.6 2.5 2.3 3.3 4.3 4.3 4.3 3.3 1.2 4.2 4.2 2.2 2.2 2.6 3.1 4.1
Nandan Surve H.R Dnyaneshwar Karbele Resin Rajesh S. Santra Q.C Mr. Viraj Sawant Q.C Mr. Atul Joshi Engineering Mr. Vishal Shinde Technical Mr. Pramod shankar Naynak Production Mr. Omkar Suhas Pandhare Production
Total
132.14
35
1. Graph representing No. of Employees who left and Join during the months of 2011-2012 Months of 2011 April may June July august September October November December January February march No of employees Left 2 2 1 4 0 3 2 3 2 3 0 1
No of employees Left
4 3.5 3 2.5 2 1.5 1 0.5 0
No of employees Left
Interpretation: Above diagram shows that no. of employees leaves organisation in most of month of July and November, because of increments are done in these months mostly.
36
2. Graph representing no of employees who left and Join during the each Department in the year 2011-2012. Dept. GIHPC P.E Industrial Q.C Resin Tech SOD HR Commercial Decorative WB CED Accounts No of employees left 1 1 4 4 4 1 1 2 1 1 1 1 1
No of employees left
4 3.5 3 2.5 2 1.5 1 0.5 0
No of employees left
Interpretation: As per the analysis we can say that rate of employees leaving organisation mostly in departments of the industrial, Q.C, and resin in particular organisation.
37
3. Chart Representing Percentage of Attrition Reasons supported by Left Employees 2011-2012.
Reasons For Attrition Better opportunities Location Problem Studies Job dis-satisfaction Others problems Total
Percentage 52.2 8.7 4.3 4.3 30.4 100.0
Frequency 12 2 1 1 7 23
Percentage
Better opportunities Job dis-satisfaction Location Problem Others problems Studies Total
26% 50% 5% 15% 2% 2%
Interpretation: In the todays context, most of the employees are going to the higher salary or better opportunities, because of their standard of living and higher status. So most of the employees move to the forward and choose their job as per their demand. If says about above diagram, we can see here also most of the employees are move further or leaving organization because of only better opportunity. About more than 50 % employees are left organization for this reason. And other resons are also important but not as much to the better opportunity.
38
4. Charts Representing Tenure Period of Employees 2011-2012. Tenure Period 0 - 6m 6m - 2y 2y - 5y 5y - 7y 7y and above total No. of employee 5 3 10 0 5 23 Percentage 21.7391304 13.0434783 43.4782609 0 21.7391304 100
Percentage
45 40 35 30 25 20 15 10 5 0 0 - 6m 6m - 2y 2y - 5y 5y - 7y 7y and above Percentage
Interpretation: Here, above diagram suggest that, no. of employees are left from the organization mostly in the 2yr to 5yrs of the tenure period. Around more than 40% employees are left from the organization in the 2 to 5yrs period. This diagram, we can co-relate with the previous graph. As most employees are prefer to the better opportunity, so every employees is think for the leaving job within the short period. And another highest rate for the leaving organization is the period of 7yrs and above.
39
From the following we can see the details of the all tenure period wise analysis to the attrition analysis and the reason analysis.
5. Analysis according to reasons for Attrition Under each category.(as per above tenure period) (2011-2012)
A.
(0 TO 6 MONTHS) 0 - 6m Reasons For Attrition Better Opportunity Location Problem Studies job dis-satisfaction Others problems Total
Priority 1 1 1 0 2 5
Percentage 20 20 20 0 40 100
0 to six months Sr No 1 2 3 4 5 Name Bipinchandra Y. Patil Milesh M. Rawool DilipkumarYadav Amit K. Yatam S.C. Bastawade KNP Experience 0.2 0.5 0.6 0.2 0.4 Reason 1 Better Opportunity Location problem Personal Problem Personal Problem Higher studies Reason 2 Personal Problem no job satisfaction Location problem Future growth Future growth
40
40 35 30 25 20 15 10 5 0 Better Location Opportunity Problem Studies job disOthers satisfaction problems Percentage
Interpretation: This graph for the first tenure period is (0 to 6months). In this tenure period, we can see the around 20% employees are leaving organisation equal to because, of to the better opportunity, higher study, and other various problems. And after analysing also we may understands that, many employees are leaving organisation because of their higher studies. Most of think for the completing their studies. So, for this reason organization have to clear and have to give some facilities to their employees, where they could not leave the organisation and company get welleducated employees for their achieving organisational goal.
41
B. (6 M TO 2 YRS.) 6m to 2 y Sr Name No C.B. 1 Kolhe D.B. 2 Thorat P.V. 3 Pawar
6m-2y Reasons For Attrition Priority Better Opportunity 1 Location Problem 1 Studies Others problems Total 0 1 3 Percentage 33.3 33.3 0.0 33.3 100.0
KNP Reason 1 Experience Personal 1.3 Problem Better 0.7 Opportunity Better 1.4 Opportunity
Reason 2
Reason 3
Location no self problem development Location problem
100.0 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 Better Opportunity Location Problem Studies Others problems Total Percentage
42
Interpretation: In this diagram, we can see tenure period for the 6 months to 2 yrs. And here equal proportionate to the all reasons. But as compare to the previous diagram no preference to the higher study and location problems.So this tenure period is not that much effect on attrition rate for the organisation.
C.
(2 yrs. to 5 yrs.)
2y to 5y
Sr No 1 2 3 4 5 6 7 8 9 10 Name Ramchanra K. Patil Dinesh S. Saraf Anand V. Deshmukh Kiran S. Jangam Dadaso V. Kale E. Padmanabhan S.R. Bhalmiki S.K.Butala S.R.Hogale Nilesh B. Jangam KNP Experience 3 2.9 2.9 3.4 2.5 3.4 2.3 3 2.2 5 Reason 1 Better Opportunity Better Opportunity Better Opportunity Better Opportunity Better Opportunity Better Opportunity Location problem Family problems Better Opportunity Family Problem Reason 2 future growth no job satisfaction Location problem personal problem Better Opportunity Location problem
2y – 5y Reasons For Attrition Better Opportunity Location Problem Studies Job dis-satifaction Others problems Total Priority 4 3 0 1 2 10 Percentage 40 30 0 10 20 100
43
40 35 30 25 20 15 10 5 0 Better Location Opportunity Problem Studies Job disOthers satifaction problems Percentage
Interpretation: In this diagram shows us that, higher proportionate comes for the better opportunity, location problem as well as job –dissatisfaction. As we say earlier, company have to provide opportunity for their job satisfaction as well as achieving organisational goal through well-educated employees. And also have to provide good housing facility for employees, who?s having problem regarding location. And by providing these various facilities to their employees, its good effect on attrition rate to the organisation. Here, around their 40% for the better opportunity and 30% for the location problem and remaining for the job-dissatisfaction and other problems.
44
D. (7 yrs. to above )
7y and above Sr No 1 2 3 4 5 Name Narendra B. Naik R. N. Kulkarni M.M. Bukhari H.A. Bagul A.S. Mulik KNP Experience 22 11.2 29 17.4 11.4
Reason 1 Personal Problem Personal Problem Location problem Better Opportunity Better Opportunity
Reason 2
personal problem
7y and above
Reasons For Attrition Better opportunities Location Problem Studies Job dis-satifaction Others problems Total
Priority 2 1 0 0 2 5
Percent 40 20 0 0 40 100
Percent
40 35 30 25 20 15 10 5 0
Percent
45
Interpretation: Here above diagram is shows us that, after completion of the 7 years or above then most of the employees leaves a job because of any personal problem of better opportunity. After completion 7 years employees required some kind of change to his job or role play. So most of the time employees are prefers to leave the job and search for the new or better opportunity.
6. Main Supported Reasons by the Left Employees of Different Category.
Tenure Period
Better Location opportunities Problem 1 1 3 0 1
Studies 1 0 0 0 1
Job dis- Others satisfaction problems 0 0 1 0 1 2 1 2 0 1 Total
0 - 6m 1 6m - 2y 1 2y - 5y 4 5y - 7y 0 7y and above 1
Total 5 3 10 0 5 23
Chart Title
10 8 6 4 2 0 0 - 6m 6m - 2y 2y - 5y 5y - 7y 7y and above
Better opportunities Location Problem Studies Job dis-satisfaction Others problems Total
46
Interpretation: Here, with the help of above diagram we know that all about the reason analysis with the time duration of the employees leaving the organisation in different category. And we also know that no. employees are left from the organisation in what basis and in what period. All over data and analysis we can understand in this one diagram with the reason analysis.
7.
Experience gained and experience drained of the company in the year 20102011.
Experience drained Experience grain
2011-2012 136.9 132.14
2011-2012
137 136 135 134 133 132 131 130 129 Experience drained Experience grain
2011-2012
Interpretation: Here, overall productivity and average attrition rate is not a good, as standard attrition rate. Here, we know that experience gain is low towards the experience drained.
47
8.
dgfhjjjjjjjjj
48
CHAPTER 5 FINDING &OBSERVATION
49
5.1) Findings and observation regarding with the attrition analysis in the Kansai Nerolac Paints LTD.
1. In Kansai Nerolac paints I found firstly that there is experience drained is more than experience grained. That is No. of employees left form organization are more than No. of employees joint in the year 2011-2012. 2. Secondly that I can say here most of the employees are left from this organization in the month of July as well as in the month of November. Because, at that time increments are will be declaring. 3. As per monthly analysis I make a department wise also, hence we can say that No. of employees are left this organization mostly in the resin and quality control departments. 4. As we see in data evaluation for the reason analysis to the employees, knowing the various reason behind to the leaving the organisation. Hence, there is most of the employees are leaving the organization because of the better opportunity in the external world. As we came to know most of employees are giving more preference to the better opportunity in today?s context. Here percentage around 52%. 5. As I found that most of the employees are leaving the organization that?s having the experience with within the 2 to 5 years (as tenure period). Here percentage is around the 43% employees are leaving the organization. 6. At the time of any employees have to leave the organization that time company take exit interview for the particular that employee. This interview take for the sake of understanding attitude towards the leave this job and reasons of the leaving this particular job. Every organisation take this interview for the getting feedback from the employees about the job satisfaction. 7. Here, total experience gained is 132.6 and experience drained is 139.9 so this situation is not good for the any organisation. So company?s attrition rate is around 3.75 in a year. And this rate of attrition is not good for the any organisation. There is for the manufacturing organisation good attrition rate is 7% in a year. 8. Here, main reason for the leaving the organisation in a KNPL is better opportunity and higher studies. Most of the employees are leaving the organisation because of the only better opportunities in other organisation and
50
for the higher salary and other main reason is that they wants to go for the higher studies for the promotions as well as better increment. 9. KNPL provides their employees various other facilities for the employees relaxation and to getting some kind of rest of the job and then they are can be doing his/her job efficiently and effectively. And employees may get job satisfaction and automatically organisation may improve productivity, but even though organisation may lose their satisfaction and employees may get dissatisfaction from the organisation?s facility and employee may leave the organisation.
51
CHAPTER 6 SUGGETIONS AND RECOMMENDATIONS
52
6.1) following are the various suggestions given by me as per my knowledge and my observation as well as thinking.
1. According to me organisation may have to concentration on the employee?s satisfaction. Company may increase the effective other facilities for the employees satisfaction. 2. More than half of the employees are satisfied with their nature of job and with their working conditions. So the company can attain a further improvement level for the rest if it guides its employees.
53
54
doc_590889260.docx