Description
Turnover is sometimes a synonym for revenue (or in certain contexts, sales), especially in European and South African usage
CHAPTER - I 1.1 INTRODUCTION
LABOUR TURNOVER Definition Labour turnover is concerned with movements of individuals into jobs (hiring) and out of jobs (separations) over a particular period.
Labour turnover is the sum of job turnover, which relates to the expansion and contraction of establishments or firms, and the movement of workers into and out of ongoing jobs in establishments or firms. Workers leave firms and firms hire other workers to replace them, regardless of whether the firm itself is growing or declining. Labour turnover is an important parameter indicating the over all health of any industry or an establishment in terms of wages, industrial relations, working conditions and other welfare facilities provided by the employers to the workers. Higher rate of Labour Turnover indicates lack of stability in the labour force, which in turn, may not be considered to be conducive to the productivity of labour. For higher productivity of labour, it is essential that labour force remains stable over a period of time. Labour Turnover measures the extent of change in the work force due to accession (total number of workers added to employment) or separation (severance of employment at the instance of workers or employers) during a particular period of time. Statistics relating to the rate of accession and separation in respect of directly employed regular workers, their average number in employment and the percentage of factories reporting labour turnover during the year 2000 have been presented.
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Labour Turnover in States State-wise labour turnover among directly employed regular workers is presented in Table 3.1.1. It may be seen from the Table that at all India level, the rate of accession during the year 2000 was 12.68 percent, whereas overall separation over the same period was 15.14 percent. Thus, there was 2.46 percent more separation than accession during the year, indicating, thereby, a decrease in overall employment during the year. The lowest and highest rates of accession during the year 2000 at State level are observed to be 1.23 percent in Jharkhand and 32.18 percent in Uttar Pradesh, respectively. Similarly, the lowest and highest rates of separation during the year were observed in Tripura at 3.00 percent and Andaman & Nicobar Islands at 37.81 percent, respectively. Labour Turnover in Industries Industry-wise labour turnover among directly employed regular workers during the year 2000 is given in Table 3.1.2. The highest rate of accession at 85.56 percent was recorded in the industry group ‘014-Agricultural and animal husbandry service activities, except veterinary activities’, whereas, the lowest rate of accession at 1.62 percent was recorded in the industry group ‘353–Manufacture of aircraft and space craft’. Highest rate of Separation was also recorded in the industry group ‘014Agricultural and animal husbandry service activities, except veterinary activities’ at 91.77 percent. On the other hand, the lowest rate of separation was reported in the industry group '232-Manufacture of refined petroleum products' at 3.87 percent.
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Dealing with labour turnover Areas commonly in need of attention may include:
• • • • • • •
recruitment and selection induction and training pay and grading communication and consultation management and supervision disciplinary and grievance procedures working conditions
employee involvement. The costs of replacing and retaining staff The main costs of high rates of labour turnover are
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replacement costs (i.e. recruiting and interviewing new employees) transition costs (including induction programmes and training costs) indirect costs (possible involving a loss of customer service whilst new workers are trained and gain relevant work experience).
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As any other thing the labour turnover has its advantages and disadvantages. The labour turnover has a large list of disadvantages, and where there is a large rate of this affect it results in a serious sign of unstability that is caused by employees leaving their jobs maybe because of lack of job satisfaction or bad management. Due to this result the company management must stop and think seriously what is happening and what can be done to improve. Another disadvantage is when the employees leave and have to be replaced by others, to recruit new staff and give the necessary training may be very costly to the company because the production will decreased during this time. This may result
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as an unaccounted expense. Another disadvantage is the bad image of the company because when there is a lot of labour turnover there will be less people who will apply within the company.
Some advantages of labour turnover are that unwanted employees who are not doing their job well or do not fit for post, the firm can dismiss them because if the targets are not reached the company does not need inefficient employees. With this labour turnover the company will start with enthusiastic employees who are willing to do their job well and can increase production. From previous labour turnover the management can learn from these experiences and so can do and take actions to improve the standards of the firm. Benefits of labour turnover Labour turnover does not just create costs. Some level of labour turnover is important to bring new ideas, skills and enthusiasm to the labour force. A "natural" level of labour turnover can be a way in which a business can slowly reduce its workforce without having to resort to redundancies (this is often referred to as "natural wastage".
1.2 INTRODUCTION OF THE PROJECT
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Finding out the turnover of employees in the manufacturing industries with reference to LUCAS TVS Padi, is the theme of the project. About the automobile industries: A well developed transport network indicates a well developed economy. For rapid development a well-developed and well-knit transportation system is essential. As India's transport network is developing at a fast pace, Automobile Industry is growing too. Also, the industry has strong backward and forward linkages and hence provides employment to a large section of the population. Thus the role of Automobile Industry cannot be overlooked in Indian Economy. All kinds of vehicles are produced by the Automobile Industry. It includes the manufacture of trucks, buses, passenger cars, defense vehicles, two-wheelers, etc. The industry can be broadly divided into the Car manufacturing, two-wheeler manufacturing and heavy vehicle manufacturing units. High labour turnover is costly, lowers productivity and morale and tends to get worse if not dealt with. What is labour turnover? Labour turnover is the total movement of employees in and out of an organisation. However, the term is commonly used to refer only to 'wastage' or the number of employees leaving.
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Patterns of labour turnover The biggest proportion of leavers tends to be among those who have recently joined an organisation. Longer serving employees are more likely to stay, mainly because they become used to the work and the organization and have an established relationship with those around them. Establishing the reasons for labour turnover The causes of labour turnover are more likely to be brought directly to management's attention where there is effective consultation with employee representatives. The views of individuals should also be obtained by asking existing employees what they like and dislike about the job and asking leavers why they are leaving. This may be done systematically through the use of opinion surveys, questionnaires and exit interviews.
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1.2.1 NEED OF THE STUDY
Measuring labour turnover ? To analyze the date collected and finding suggestions to improve the weakness. ? To be eye opener for everyone in LUCAS TVS as follows: ? For LUCAS TVS management • To drive a future plan of action regarding to reduce attrition. • To find the scale of labour turnover and the reasons comprising of it. ? For LUCASTVS employees: • Concern for self-improvement in order to reduce attrition. • Commitment to work and regular work attendance. ? For Researchers: • To gain an insight about employees problems and its future trends. The study also includes probable combat measures.
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1.2.2 OBJECTIVES OF THE STUDY
Primary objective: 1. To find out the labour turnover rate Secondary objectives: • To find out whether employees are satisfied with their job. • To analyze the prevailing working condition which influence turnover. • To analyze the various personal factors of the employees which influence turnover rate • To study how the mode of conveyance is responsible for turnover • To suggest various remedial measures to control attrition rate.
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1.2.3 SCOPE OF THE STUDY
The researcher has made an elaborate study to find out the reason for absenteeism authorized leave facilities, attendance incentives, & other labour welfare facilities which are being provided by the organization under study. The researcher, at the outset has made an in-depth study to analyze the causes for the “absenteeism” in spite of leave facilities offered by the organization. Moreover the study had revealed certain major internal and external (family related) causes, which are responsible for attrition. Further the researcher has suggested certain recommendation if they implement, it will help the organization to overcome frequent ‘absence’ by employee atleast in the future.
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CHAPTER - II 2. COMPANY PROFILE 2.1
About the Company…. Lucas - TVS was set up in 1961 as a joint venture of Lucas Industries plc., UK and T V Sundaram Iyengar & Sons (TVS), India, to manufacture Automotive Electrical Systems. One of the top ten automotive component suppliers in the world, Lucas Varity was formed by the merger of the Lucas Industries of the UK and the Varity Corporation of the US in September 1996. The company designs, manufactures and supplies advanced technology systems, products and services to the world's automotive, after market, diesel engine and aerospace industries. The combination of these two well-known groups has resulted in the establishment of a vibrant company, which has had a successful track record of sustained growth over the last three decades.TVS is one of India's twenty large industrial houses with twenty-five manufacturing companies and a turnover in excess of US$ 1.3 billion. The turnover of Lucas-TVS and its divisions is US$ 233 million during 2003-2004. Incorporating the strengths of Lucas UK and the TVS Group, Lucas TVS has emerged as one of the foremost leaders in the automotive industry today. Lucas TVS reaches out to all segments of the automotive industry such as passenger cars, commercial vehicles, tractors, jeeps, two-wheelers and off-highway vehicles as well as for stationary Mannur site and marine applications. With the automobile industry in India currently
INCEPTION
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undergoing phenomenal changes, Lucas-TVS, with its excellent facilities, is fully equipped to meet the challenges of tomorrow.The TVS Group, with a turnover of over one billion dollars, is the largest manufacturer of automotive components in India. The group produces auto electricals, diesel fuel injection systems, braking systems, automotive wheels and axle fasteners, powder metal components, radiator caps, two wheelers and computer peripherals. Backed by five service and distribution companies with an extensive network across the country, the group has the largest distribution network for automotive products in India.
About the QUALITY ASSURANCE…. "Lucas TVS is committed to achieving ever increasing levels of customer satisfaction through continuous improvements to the quality of the products and services. It will be the company's endeavour to increase customer trust and confidence in the label 'Made in Lucas TVS'." Quality is no longer an option but a basic requirement in today's world. At Lucas TVS, quality in inbuilt in every phase of manufacture. The company's quality assurance measures stand on the foundation of a solid belief - that quality begins and ends with the customer. This commitment forms the backbone of its approach to Quality Assurance.
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Lucas TVS has adopted a prevention-oriented quality policy though ingrained with the traditional ideas of quality control. Everyone from the highest levels of the organisation to the lowest practice quality control both as an individual and as a team. An effective Quality Control System has resulted in the recognition of the company's outstanding achievements in the various fields. Lucas-TVS was awarded the ISO 9001 certified by BVQI in December 1993. The company reached a further milestone when it recently received a certificate of recognition from BVQI for QS 9000 for Auto Electricals. WELFARE SERVICES PROVIDED LUCAS TVS: Services • • • • • • • • • • • • • • Canteen Medical center Issue of welfare items Reimbursement Birthday presentation Long service awards Family relief fund Insurance of marriage gift Special occasion or function Incentive for family planning Redressal – employee grievances Procedure-accident report Education awards Suggestion scheme
Loans, advances and allowance
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• Medical • Marriage • Education • Housing • Issue of cycle advance • Medical insurance scheme • Personal accident coverage • Retirement benefit • Industrial accident • Sickness benefit About the People…. Human resource is an asset never disclosed in a company's balance sheet. At Lucas-TVS, employees are considered partners in progress. Trust and confidence in their abilities are an important part of the Lucas-TVS philosophy. Employee participation takes place at almost every level of the organisation. Lucas-TVS recognises that in a fast changing world, constant updating of knowledge is vital. Thus its management style sets great store by employee involvement and actively encourages participation and commitment. The company strives to optimise HRD contribution to the its growth. Small Group Activity (SGA) has become a vibrant force with about 85 groups functioning continuously with one group meeting every week
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to present its achievements. The Suggestion Scheme has evoked tremendous response since its initiation in 1973. To hone the skills of its employees, the company operates a well-equipped training centre, which features a multi skill workshop, a product knowledge centre, CNC training and computer facilities. Individual skills are fine tuned through specialised courses, both within the country and abroad. About the Customers… CUSTOMER Cars Maruti Udyog Hindustan Motors TATA Engineering and Locomotive Company General Motors, India Ford India Daewoo Motors Co., India Ind Auto Hyundai Motors, India Light Commercial Vehicles TATA Engineering Company Bajaj Tempo Mahindra & Mahindra Mahindra Nissan Swaraj Mazda Eicher Motors Heavy commercial vehicles TATA Engineering Company Ashok Leyland & Locomotive Daimler Benz, Germany. Cummins, USA Iveco, Italy. Hino, Japan & Locomotive Daimler Benz, Germany Peugeot, France Nissan, Japan Mazda, Japan Mitsubishi, Japan General Motors, USA Ford, UK Daewoo, Korea Fiat, Italy Hyundai Motors, Korea Suzuki, Japan Isuzu, Japan. Mitsubishi, Japan INTERNATIONAL COLLABORATOR
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Tractors Mahindra & Mahindra Tractors and Farm Equipments (TAFE) Escorts HMT Eicher Tractors Punjab Tractors Gujarat Tractors L&T Tractors Greaves Tractors Earth Moving Equipment Hindustan Motors Bharat Earth Movers Ltd.(BEML) Stationary / Marine Engines, Gensets Cummins India Tata Cummins Simpsons Ruston and Hornsby Kirloskar Oil Engines Greaves Ashok Leyland EXPORT CUSTOMERS Helwan Diesel Engg Company Lucas Electrical, UK Delco Remy Prestolite Electric Ltd After Market Lombardini, Italy BLMC, UK COUNTRY Egypt UK USA USA USA / UK Cummins, USA Cummins, USA Perkins, USA Ruston & Hornsby, UK Caterpillar, USA Komatsu, Japan Zetor, Czechoslovakia Johndeer, USA Same, Italy International Harvestor Corporation, UK Massey Ferguson, UK Ursus, Poland. Ford, UK Zetor, Czechoslovakia Good Earth, Germany
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2.2 TYPE OF INDUSTRY
India Automobile Industry Following India's growing openness, the arrival of new and existing models, easy availability of finance at relatively low rate of interest and price discounts offered by the dealers and manufacturers all have stirred the demand for vehicles and a strong growth of the Indian automobile industry. The data obtained from ministry of commerce and industry, shows high growth obtained since 2001- 02 in automobile production continuing in the first three quarters of the 2004-05. Annual growth was 16.0 per cent in AprilDecember, 2004; the growth rate in 2003-04 was 15.1 per cent The automobile industry grew at a compound annual growth rate (CAGR) of 22 per cent between 1992 and 1997. With investment exceeding Rs. 50,000 crore, the turnover of the automobile industry exceeded Rs. 59,518 crore in 2002-03. Including turnover of the auto-component sector, the automotive industry's turnover, which was above Rs. 84,000 crore in 2002-03, is estimated to have exceeded Rs.1,00,000 crore ( USD 22. 74 billion) in 2003-04. Automobile Dealers Network in India. In terms of Car dealer networks and authorized service stations, Maruti leads the pack with Dealer networks and workshops across the country. The other leading automobile manufactures are also trying to cope up and are opening their service stations and dealer workshops in all the metros and major cities of the country. Dealers offer varying kind of discount of finances who in tern pass it on to the customers in the form of reduced interest rates.
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Major Manufacturers of Automobiles in India 01. Maruti Udyog Ltd. 02. General Motors India 03. Ford India Ltd. 04. Eicher Motors 05. Bajaj Auto 06. Daewoo Motors India 07. Hero Motors 08. Hindustan Motors 09. Hyundai Motor India Ltd. 10. Royal Enfield Motors 11. Telco 12. TVS Motors 13. DC Designs 14. Swaraj Mazda Ltd
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2.3 BRANCHES/NETWORK
LUCAS-TVS has branches at: • AUTO ELECTRICAL PLANT-Padi, Chennai. • AUTO ELECTRICAL PLANT-Rewaru, Chennai. • AUTO ELECTRICAL PLANT-Pondicherry
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2.4 PRODUCT/SERVICES
Lucas-TVS manufactures the most comprehensive range of auto electrical components in the country. A range which continues to set standards in the industry. The products are designed to meet the demands of vehicle manufacturers both in India and worldwide. With the emission standards in India becoming increasingly stringent, Lucas-TVS has ensured that each of its products is manufactured to meet global standards. Lucas-TVS Product Indian Market Range for Lucas-TVS Product US/European Market Range for
Starter Motor Alternator
Starter Motor
Alternator Headlamp Small Motor Wiper Motor Blower Motor Fan Motor Dynamo Regulator Dynamo Ignition Coil Distributor Diesel fuel injection About the Clients…
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Small Motor 14W Wiper Motor WindShield Wiper Motor (GM Range) LRW Products Dynamo Regulator Dynamo Auto Electricals Telco Vehicles Ashok Leyland Vehicles Suzuki Vehicles
COMPANY Manufacturing companies Axles India Ltd. Brakes India Ltd. India Ltd. Nippon Electricals
PRODUCTS Automotive axles Hydraulic brakes & clutch actuation systems Magnetos, Two/Three wheeler ignition systems
Lakshmi Auto Components Engine/transmission components Ltd. Lucas-TVS Ltd. TVS Srichakra Ltd. Auto electricals/Diesel fuel injection equipment Automotive tyres
Sundaram Brake Linings Brake linings & clutch facings Ltd. Sundaram Clayton Ltd. Sundaram Fasteners Ltd. Air brakes High tensile fasteners, cold extruded products, sintered components, intelligent systems, radiator caps Yarn Turbo chargers
Sundaram Textiles Ltd. Turbo Energy Ltd.
TVS Interconnect Systems Electronic connectors Limited. TVS Electronics Ltd. TVS Sewing Needles Ltd. TVS Motor Limited. Company Computer peripherals Sewing needles Two wheelers Precision miniature, sub-miniature, selector switches, hall effect sensors, key switches and advanced performance/special purpose keyboards. Automotive wheels
TVS Cherry Limited. Wheels India Ltd. Distribution companies
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India Motor Parts Accessories Ltd. Lucas Indian Service Ltd.
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Distributors of automotive components Distributors of auto electrical and auto components, Fuel Injection Equipment, LISPART & Batteries.
T V Sundaram Iyengar & Distributors of passenger cars, commercial Sons Ltd. vehicles, automotive spare parts Other companies Southern Roadways Ltd. Sunco Machines Ltd. Sundaram Industries Ltd. Freight services Precure tyre retreading equipment Tyre retreading, components coach building, rubber
DEMING AWARD FOR LUCAS-TVS
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Chennai, 9 October 2004: Lucas-TVS, a TVS group company, has bagged the prestigious Deming Application Award for the year 2004. This was announced by the Deming Prize Committee of Japanese Union of Scientists and Engineers (JUSE). Lucas-TVS, with manufacturing facilities at Padi (Chennai), Pondicherry and Rewari (Haryana), is the first and the only Auto Electrical Company from India to receive this coveted award. The award ceremony will be held on 9 th November 2004 at Tokyo, Japan. Lucas-TVS launched the Japanese Total Quality Management (TQM) movement during 1998. TQM is a vehicle to continuously improve all the Management Processes with Customer Focus in terms of Quality, Cost, Delivery and Service and the process motivates teamwork among all employees, promotes total employee involvement in achieving the company’s objectives. Lucas-TVS is the largest manufacturer of Auto Electricals in India catering to all segments of Auto Industry, which includes Cars, Utility Vehicles, Commercial Vehicles, Tractors and Two wheelers. The core competence of the company is its capability to design and develop products to the new variants and vehicles with its in house R&D facilities.
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The company is a pioneer in launching various manufacturing systems to respond to the customer requirements and brought in many change programmes and other contemporary practices. Its focus on customer, continuous improvement and employee involvement has always been commendable. Lucas-TVS is a TS 16949 and ISO 14001 certified company. The Deming Certification process is rather stringent and involves audits in two stages by an independent team from Japan. The initial process begins with the company submitting that it be considered for the award. The company’s various TQM processes were subjected to diagnostic audit during December 2003. The final audit was held on 19th and 20th August 2004 by JUSE, which is an apex organisation for awarding Deming Application Prize and it was confirmed on 6 th October 2004 that Lucas-TVS has won the Deming Application Prize for the year 2004.
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2.5. MARKET SHARE
Lucas Indian Service, a subsidiary of Lucas-TVS was established in 1930 and is primarily engaged in sales and service of auto electricals and fuel injection equipment manufactured by Lucas-TVS. It additionally handles several other manufacturer's products of a wide variety. With four regional offices located in the metros and 22 branches covering every major state in the country, it also manufactures a few products in its factory. The company's extensive distribution network comprising over 2000 outlets spans the entire length and breadth of the country. Further, in its efforts to become a leading auto-ancillary distribution house, Lucas Indian Service is continuously on the look out for tie-ups with reputed companies for marketing their products. Its unique strength lies in its network of branches and a host of service dealers developed over the last six and half decades. To support Lucas-TVS FIE Division, the company is in the process of setting up a network of service dealers, whose workshops will measure up to international standards.
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2.6 FUTURE PLANS
Automobile industries in India is currently under going phenomenal changes with so many new fuel efficient vehicles being launched and old vehicles being improved and reequipped to compete with the new comers. LUCAS-TVS with its excellent facilities fro product development, quality assurance, training and manufacturing is fully equipped to meet\ the challenges of tomorrow.
CHAPTER - III LITERATURE REVIEW
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“Employee turnover” as a term is widely used in business circles. Although several studies have been conducted on this topic, most of the researchers focus on the causes of employee turnover but little has been done on the examining the sources of employee turnover, effects and advising various strategies which can be used by managers in various organizations to ensure that there is employee continuity in their organizations to enhance organizational competitiveness. This paper examines the sources of employee turnover, effects and forwards some strategies on how to minimize employee turnover in organizations. INTRODUCTION Organizations invest a lot on their employees in terms of induction and training, developing, and retaining them in their organization. Therefore, managers at all costs must minimize employee’s turnover. Although, there is no standard framework for understanding the employees turnover process as whole, a wide range of factors have been found useful in interpreting employee turnover. Therefore, there is need to develop a fuller understanding of the employee turnover, more especially, the sources- what determines employee turnover, effects and strategies that managers can put in place minimize turnover. With globalization which is heightening competition, organizations must continue to develop tangible products and provide services which are based on strategies created by employees. These employees are extremely crucial to the organization since their value to the organization is essentially intangible and not easily replicated. Therefore, managers must recognize that employees as major contributors to the efficient achievement of the organization’s success. Managers should control employee turnover for the benefit of the organization success. The literature on employee turnover is divided into three groupings: sources of employee turnover, effects of turnover and the strategies to minimize turnover.
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Definition Employees’ turnover is a much studied phenomenon But there is no standard reason why people leave organization. Employee turnover is the rotation of workers around the labour market; between firms, jobs and occupations; and between the states of employment and unemployment. The term “turnover” is defined as: the ratio of the number of organizational members who have left during the period being considered divided by the average number of people in that organization during the period. Frequently, managers refer to turnover as the entire process associated with filling a vacancy: Each time a position is vacated, either voluntarily or involuntarily, a new employee must be hired and trained. This replacement cycle is known as turnover. This term is also often utilized in efforts to measure relationships of employees in an organization as they leave, regardless of reason. “Unfolding model” of voluntary turnover represents a divergence from traditional thinking focusing more on the decisional aspect of employee turnover, in other words, showing instances of voluntary turnover as decisions to quit. Indeed, the model is based on a theory of decision making. The image theory describes the process of how individuals process information during decision making. The underlying premise of the model is that people leave organizations after they have analyzed the reasons for quitting. Baech argues that individuals seldom have the cognitive resources to systematically evaluate all incoming information, so individuals instead of simply and quickly compare incoming information to more heuristic-type decision making alternatives. Sources of employee turnover Job related factors
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Most researchers have attempted to answer the question of what determines people's intention to quit by investigating possible antecedents of employees’ intentions to quit. To date, there has been little consistency in findings, which is partly due to the diversity of employed included by the researchers and the lack of consistency in their findings. Therefore, there are several reasons why people quit from one organization to another or why people leave organization. The experience of job related stress (job stress), the range factors that lead to job related stress (stressors), lack of commitment in the organization; and job dissatisfaction make employees to quit. This clearly indicates that these are individual decisions which make one to quit. They are other factors like personal agency refers to concepts such as a sense of powerlessness, locus of control and personal control. Locus control refers to the extent to which people believe that the external factors such as chance and powerful others are in control of the events which influence their lives. argue that employees quit from organization due economic reasons. Using economic model they showed that people quit from organization due to economic reasons and these can be used to predict the labour turnover in the market. Good local labour market conditions improve organizational stability. Large organizations can provide employees with better chances for advancement and higher wages and hence ensure organizational attachment. Trevor (2001) argues that local unemployment rates interact with job satisfaction to predict turnover in the market. Role stressors also lead to employees’ turnover. Role ambiguity refers to the difference between what people expect of us on the job and what we feel we should do. This causes uncertainty about what our role should be. It can be a result of misunderstanding what is expected, how to meet the expectations, or the employee thinking the job should be different. Insufficient information on how to perform the job adequately, unclear expectations of peers and supervisors, ambiguity of performance evaluation methods, extensive job pressures, and lack of consensus on job
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functions or duties may cause employees to feel less involved and less satisfied with their jobs and careers, less committed to their organizations, and eventually display a propensity to leave the organization. If roles of employees are not clearly spelled out by management/ supervisors, this would accelerate the degree of employees quitting their jobs due to lack of role clarity. Voluntarily vs. involuntary turnover There are some factors that are, in part, beyond the control of management, such as the death or incapacity of a member of staff. Other factors have been classed as involuntary turnover in the past such as the need to provide care for children or aged relatives. Today such factors should not be seen as involuntary turnover as both government regulation and company policies create the chance for such staff to come back to work, or to continue to work on a more flexible basis. Organizational factors Organizational instability has been shown to have a high degree of high turnover. Indications are that employees are more likely to stay when there is a predictable work environment and vice versa. In organizations where there was a high level of inefficiency there was also a high level of staff turnover. Therefore, in situations where organizations are not stable employees tend to quit and look for stable organizations because with stable organizations they would be able to predict their career advancement. The imposition of a quantitative approach to managing the employees led to disenchantment of staff and hence it leads to labour turnover. Therefore management should not use quantitative approach in managing its employees. Adopting a cost oriented approach to employment costs increases labour turnover. All these approaches should be avoided if managers
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want to minimize employee turnover an increase organizational competitiveness in this environment of globalization. Employees have a strong need to be informed. Organization with strong communication systems enjoyed lower turnover of staff. Employees feel comfortable to stay longer, in positions where they are involved in some level of the decision-making process. That is employees should fully understand about issues that affect their working atmosphere. But in the absence openness’ in sharing information, employee empowerment the chances of continuity of employees are minimal. Costly et al. (1987) points out that a high labour turnover may mean poor personnel policies, poor recruitment policies, poor supervisory practices, poor grievance procedures, or lack of motivation. All these factors contribute to high employee turnover in the sense that there is no proper management practices and policies on personnel matters hence employees are not recruited scientifically, promotions of employees are not based on spelled out policies, no grievance procedures in place and thus employees decides to quit noted that pay and pay-related variables have a modest effect on turnover. Their analysis also included studies that examined the relationship between pay, a person’s performance and turnover. They concluded that when high performers are insufficiently rewarded, they quit. If jobs provide adequate financial incentives the more likely employees remain with organization and vice versa. There are also other factors which make employees to quit from organizations and these are poor hiring practices, managerial style, lack of recognition, lack of competitive compensation system in the organisation and toxic workplace environment.
Effects of employee turnover
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Employee turnover is expensive from the view of the organization. Voluntary quits which represents an exodus of human capital investment from organizations and the subsequent replacement process entails manifold costs to the organizations. These replacement costs include for example, search of the external labour market for a possible substitute, selection between competing substitutes, induction of the chosen substitute, and formal and informal training of the substitute until he or she attains performance levels equivalent to the individual who quit. Addition to these replacement costs, output would be affected to some extend or output would be maintained at the cost of overtime payment. The reason so much attention has been paid to the issue of turnover is because turnover has some significant effects on organizations. Many researchers argue that high turnover rates might have negative effects on the profitability of organizations if not managed properly. Turnover has many hidden or invisible costs and these invisible costs are result of incoming employees, co-workers closely associated with incoming employees, co-workers closely associated with departing employees and position being filled while vacant. And all these affect the profitability of the organization. On the other hand turnover affects on customer service and satisfaction. This clearly demonstrates that turnover affects the profitability of the organization and if it’s not managed properly it would have the negative effect on the profit. Research estimates indicate that hiring and training a replacement worker for a lost employee costs approximately 50 percent of the worker’s annual salary– but the costs do not stop there. Each time an employee leaves the firm, we presume that productivity drops due to the learning curve involved in understanding the job and the organization. Therefore, if employee turnover is not managed properly it would affect the organization adversely in terms of personnel costs and in the long run it would affect its liquidity position. However, voluntary turnover incurs significant cost, both in terms of direct costs (replacement, recruitment and selection, temporary staff, management time), and also (and perhaps more significantly) in terms of indirect costs (morale, pressure
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on remaining staff, costs of learning, product/service quality, organisational memory) and the loss of social capital. Strategies to minimize employee turnover Strategies on how to minimize employee turnover, confronted with problems of employee turnover, management has several policy options viz. changing (or improving existing) policies towards recruitment, selection, induction, training, job design and wage payment. Policy choice, however, must be appropriate to the precise diagnosis of the problem. Employee turnover attributable to poor selection procedures, for example, is unlikely to improve were the policy modification to focus exclusively on the induction process. Equally, employee turnover attributable to wage rates which produce earnings that are not competitive with other firms in the local labour market is unlikely to decrease were the policy adjustment merely to enhance the organization’s provision of onthe job training opportunities. Given that there is increase in direct and indirect costs of labour turnover, therefore, management are frequently exhorted to identify the reasons why people leave organization’s so that appropriate action is taken by the management. Extensive research has shown that the following categories of human capital management factors provides a core set of measures that senior management can use to increase the effectiveness of their investment in people and improve overall corporate performance of business. Employee engagement, the organization’s capacity to engage, retain, and optimize the value of its employees hinges on how well jobs are designed, how employees'time is used, and the commitment and support that is shown to employees by the management would motivate employees to stay in organization’s. Knowledge accessibility, the extent of the organisation’s
“collaborativeness” and its capacity for making knowledge and ideas widely
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available to employees, would make employees to stay in the organisation. Sharing of information should be made at all levels of management. This accessibility of information would lead to strong performance from the employees and creating strong corporate culture. Therefore; information accessibility would make employees feel. That they are appreciated for their effort and chances of leaving the organisation are minimal. Workforce optimization, the organisation’s success in optimizing the performance of the employees by establishing essential processes for getting work done, providing good working conditions, establishing accountability and making good hiring choices would retain employees in their organisation. The importance of gaining better understanding of the factors related to recruitment, motivation and retention of employees is further underscored by rising personnel costs and high rates of employee turnover. With increased competitiveness on globalizations, managers in many organizations are experiencing greater pressure from top management to improve recruitment, selection, training, and retention of good employees and in the long run would encourage employees to stay in organisations. Job involvement describes an individual’s ego involvement with work and indicates the extent to which an individual identifies psychologically with his/her job. Involvement in terms of internalizing values about the goodness or the importance of work made employees not to quit their jobs and these involvements are related to task characteristics. Workers who have a greater variety of tasks tend stay in the job. Task characteristics have been found to be potential determinants of turnover among employees. These include the five core job characteristics: skill variety, which refers to the opportunity to utilize a variety of valued skills and talents on the job; task identity, or the extent to which a job requires completion of a whole and identifiable piece of work - that is, doing a job from beginning to end, with visible results; task significance, which reflects the extent to which the job has a substantial impact on the lives or work of other people, whether within or
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outside the organisation; job autonomy, or the extent to which the job provides freedom, independence, and discretion in scheduling work and determining procedures that the job provides; and job feedback, which refers to the extent to which the job provides information about the effectiveness of one’s performance. Involvement would influence job satisfaction and increase organizational commitment of the employees. Employees who are more involved in their jobs are more satisfied with their jobs and more committed to their organization Job involvement has also been found to be negatively related to turnover intentions. Job satisfaction, career satisfaction, and organisational commitment reflect a positive attitude towards the organization, thus having a direct influence on employee turnover intentions. Job satisfaction, job involvement and organisational commitment are considered to be related but distinguishable attitudes. Satisfaction represents an affective response to specific aspects of the job or career and denotes the pleasurable or positive emotional state resulting from an appraisal of one’s job or career. Organisational commitment is an affective response to the whole organisation and the degree of attachment or loyalty employees feel towards the organisation. Job involvement represents the extent to which employees are absorbed in or preoccupied with their jobs and the extent to which an individual identifies with his/her job.The degree of commitment and loyalty can be achieved if management they enrich the jobs, empower and compensate employees properly. Empowerment of employees could help to enhance the continuity of employees in organisations. Empowered employees where managers supervise more people than in a traditional hierarchy and delegate more decisions to their subordinates. Managers act like coaches and help employees solve problems. Employees, he concludes, have increased responsibility. Superiors empowering subordinates by delegating responsibilities to them leads to subordinates who are more satisfied with their leaders and consider them to be fair and in turn to
34
perform up to the superior’s expectations. All these makes employees to be committed to the organization and chances of quitting are minimal. Conclusions Therefore, if the above strategies are taken into account the business would be able to survive in a dynamic environment by treating their employees as one of their assets which needs a lot of attention. Employees are the backbone of any business success and therefore, they need to be motivated and maintained in organisation at all cost to aid the organisation to be globally competitive in terms of providing quality products and services to the society. And in the long-run the returns on investments on the employees would be achieved. Management should encourage job redesign-task autonomy, task significance and task identity, open book management, empowerment of employees, recruitment and selection must be done scientifically with the objective of retaining employees. Managers should examine the sources of employee turnover and recommend the best approach to fill the gap of the source, so that they can be in a position to retain employees in their organisation to enhance their competitiveness in the this world of globalization. Managers must understand that employees in their organizations must be treated as the most liquid assets of the organization which would make the organisation to withstand the waves of globalization. This asset needs to be monitored with due care, otherwise their organizations would cease to exist. Employees should be given challenging work and all managers should be hired on the basis of know how by following laid down procedures of the organization and this would make organisation to have competent managers at all levels of management and hence good supervision. Pay and pay-related variables have a great effect on employee turnover. Management must compensate employees adequately. They should pay employees based on their performance and in addition they should given employees incentives like individual bonus, lump sum
35
bonus, sharing of profits and other benefits. Hence, if these are put in place they would minimize employee turnover.
CHAPTER - IV 4.1 RESEARCH METHODOLOGY
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RESEARCH DESIGN: “ A Research Design is purely and simply the framework or plan for the study that guides the collection of the data.” Fundamental to the study of any formal research project is sound research design. A good research design has the following characteristics namely 1. Problem definition 2. Specific methods of data collection and analysis 3. Time required for research project 4. Estimate of expenses to be incurred Types of Research Design: 1. Exploratory Research Design 2. Descriptive Research Design 3. Casual or Experimental Research Designing In this study, the researcher has adopted Descriptive Research Design. Descriptive Research Design: A Descriptive Research Design is the one that simply describes something such as demographic characteristics of certain people who use something.
The descriptive study we typically concern with determining frequently with which something occurs or how two variables vary together. This study is
37
typically guided by an initial hypothesis. A descriptive study requires a clear specifications of who, what, when, where, why and how aspects of the research. Period of study: Period of study is 45days. TOTAL POPULATION: The total universe or population is the specific group of people, firm, conditions, etc., which form the pivotal point of research Therefore, the total population (employees) of the company is 3500. SAMPLING PROCEDURE: Convenience sampling: The methodology adopted in this study is convenience sampling. As the name implies, the sample is selected because they are convenient to the researcher. A convenience sample is used when you simply stop anybody in the street who is prepared to stop, or when you wander round a business, a shop, a restaurant, a theatre or whatever, asking people you meet whether they will answer your questions. SAMPLING UNIT A survey is conducted in LUCAS-TVS, PADI, CHENNAI. SAMPLE SIZE: The sample size for the survey is 100.
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DATA COLLECTION: In this present study both primary and secondary data are used. DATA: Raw facts are referred to as data. TYPES OF DATA: There are two types of data • Primary data • Secondary data Primary data: Primary data is information obtained from original sources by the researcher. A structured questionnaire was prepared to collect relevant primary data. QUESTIONNAIRE METHOD: The questionnaire is a sheet or sheets of paper containing questions relating to certain specific aspect, regarding which the researcher collects the data. The questionnaire is given to the respondent to be filled up. Sometimes, questionnaire is also in the form of files generated through computer. This is usually called as soft copy of questionnaire.
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A questionnaire consists of a number of questions printed or typed in a definite order on a form or set of forms. The questionnaire is mailed to respondents who are expected to read and understand the question itself. The respondents have to answer the questions on their own. In order to make the questionnaire effective and to ensure the quality to the replies received, a researcher should pay attention to the question to the question sequence in preparing the questionnaire. Secondary data: Data, which are collected already and published or unpublished. Such a source is used to save the time and cost in compiling the data relating to the past. There are several methods under which the secondary data has been collected. They are • Books • Journal • Websites ANALYSIS: The collected data were analyzed by applying percentage method, chisquare test.
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4.2 LIMITATIONS OF THE STUDY
The study has been conducted with the particular reference to employees of LUCAS TVS at Padi Branch. ? Sample size was limited as the workers were to be interviewed while at work. ? The time duration for the study was less. ? The findings of the study cannot be applicable to any other organization i.e., as the study was carried out at LUCAS TVS at Padi. The findings and suggestions are confined only to this organization. ? Some of the answers given by the respondents may be based.
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4.3 STATISTICAL TOOLS FOR ANALYSIS
Percentage analysis: Percentage analysis can be calculated as follows: First the frequency (i.e) no. of responses is noted in a tabular form, then the percentage is calculated by dividing the frequency by total number of respondents multiplied by 100. Then the values are noted in column as valid percent. Statistical tools: This collected data has been subjected to analysis by using appropriate tool. 1. Chi-square test: The objective of the chi-square test is to determine whether real or significant different exist among the various group. Chi-square test involves compared of expected frequency (Ei) with observed frequency. To determine whether the different between the two in greater than which might occur by chance. There are five steps in using chi-square test. a) The different between each observed frequency and each Expected Frequency. b) The differences are squared. c) Each squared different is divided by it least expected frequency. d) Their quotient are added together to obtain the computed chi-square values. e) This computed value is compared to the tabulated chi-square. If the computed chi-square value is greater than the tabulated chi-square value at the predetermined level of significance and degree of free, the hypothesis rejected. On the other hand if calculated chi-square value is less than the tabulated value, the hypothesis is accepted. The formula is =[ (Oi-Ei)-0.5]^2
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CHAPTER - V DATA ANALYSIS AND INTERPRETATION
TABLE No. 1 YEARS OF EXPERIENCE ATTAINED IN THE COMPANY Particulars 9 yrs TOTAL No.of respondents 6 24 2 68 0 100 Percentage 6 24 2 68 0 100
INFERENCE: The years of experience of workers for 6-9 years is 68% and for 1-3 years is 24%.
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CHART No. 1
Years of experience attained in the company
70 60 50 40 30 20 10 0 9yrs 9 years
INFERENCE: The years of experience of workers for 6-9 years is 68% and for 1-3 years is 24%.
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TABLE No. 2 THE FACTOR THAT TRIGGERED TO LEAVE THE COMPANY
Particulars Personal Benefits-salary, incentives Less growth opportunity Attitude of supervisors Health TOTAL
No.of respondents 20 18 38 6 18 100
Percentage 20 18 38 6 18 100
INFERENCE: The factors that triggered to leave the company for 38% of the respondents is of less growth opportunities and 20% of the respondents think its Personal and 18% of workers responded as Benefits-Salary, Incentives and Health.
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CHART No.2
The factor that triggered to leave the company
40 35 30 25 20 15 10 5 0
personal benefitsless attitude of salary growth supervisors incentives opportuni health
Personal Benefitssalary,incentives Less growth opportunities Attitude of supervisors Health
INFERENCE: The factors that triggered to leave the company for 38% of the respondents is of less growth opportunities and 20% of the respondents think its Personal and 18% of workers responded as Benefits-Salary, Incentives and Health.
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TABLE No. 3 OVERALL OPINION OF EMPLOYEES ABOUT THE ORIENTATION PROCESS Particulars Excellent Very Good Good Fair Poor TOTAL No.of respondents 2 26 48 24 0 100 Percentage 2 26 48 24 0 100
INFERENCE: About the orientation process conducted 48% of the respondents believe that there is a good orientation and 26% employees say that very good whereas 24% of the respondents say that its fair.
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CHART No. 3
Orientation process
50 40 30 20 10 0
excellent verygood good fair poor
Excellent Very Good Good Fair Poor
INFERENCE: About the orientation process conducted 48% of the respondents believe that there is a good orientation and 26% employees say that very good whereas 24% of the respondents say that its fair.
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TABLE No. 4 OPINION OF EMPLOYEES ABOUT THEIR TREATMENT IN THE COMPANY
Particulars Excellent Very Good Good Fair Poor TOTAL
No.of respondents 2 20 48 30 0 100
Percentage 2 20 48 30 0 100
INFERENCE:
About the treatment in the company 48% of the employees say that they are treated good and 30% of the employees say that they are treated fairly and 20% of the employees say that they are treated very good.
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CHART No. 4
Treating employees Fairly
50 45 40 35 30 25 20 15 10 5 0
Excellent Very good Good Fair Poor
excellent
very good
good
fair
poor
INFERENCE:
About the treatment in the company 48% of the employees say that they are treated good and 30% of the employees say that they are treated fairly and 20% of the employees say that they are treated very good.
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TABLE No. 5 OVERALL MORALE OF EMPLOYEES Particulars Excellent Very good Good Fair Poor TOTAL No.of respondents 0 22 68 10 0 100 Percentage 0 22 68 10 0 100
INFERENCE: 68% of the respondents say overall morale is good and 22% of the respondents say morale is very good.
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CHART No. 5
Overall Morale
70 60 50 40 30 20 10 0
excellent very good good fair poor
Excellent Very good Good Fair Poor
INFERENCE:
68% of the respondents say overall morale is good and 22% of the respondents say morale is very good.
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TABLE No. 6 SATISFACTION REGARDING FOOD FACILITIES PROVIDED IN THE COMPANY
Particulars Highly satisfied Satisfied Neither satisfied nor dissatisfied dissatisfied Highly dissatisfied TOTAL
No.of respondents 58 32 7 3 0 100
Percentage 58 32 7 3 0 100
INFERENCE:
Among the food facilities provided 58% of respondents are highly satisfied with food facilities and 7% of respondents are neither satisfied nor dissatisfied with food facilities.
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CHART No. 6
Satisfied with food facilities Provided in the company
60 50 40 30 20 10 0
highly satisfied satisfied neutral dissatisfied highly dissatisfied
Highly Satisfied Satisfied Neither satisfied nor dissatisfied Dissatisfied Highly dissatisfied
INFERENCE:
Among the food facilities provided 58% of respondents are highly satisfied with food facilities and 7% of respondents are neither satisfied nor dissatisfied with food facilities.
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TABLE No. 7 EMPLOYEES LIKES WHICH IS LEAST ABOUT THE COMPANY
Particulars Shifts Salary Attitude of supervisors Management TOTAL
No.of respondents 26 34 30 10 100
Percentage 26 34 30 10 100
INFERENCE: About the likes of respondents least in the company 34% of the employees say they like salary and 30% of the employees say they like attitude of supervisors.
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CHART No. 7
Like least about the company
35 30 25 20 15 10 5 0
shifts salary attitude of management supervisors
Shifts Salary Attitude of supervisors Management
INFERENCE: About the likes of respondents least in the company 34% of the employees say they like salary and 30% of the employees say they like attitude of supervisors.
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TABLE No. 8 ONE FACTOR THAT EMPLOYEES LIKE MOST ABOUT THEIR JOB
Particulars Training Friendly Atmosphere Project Team Work Technology TOTAL
No.of respondents 22 26 24 24 4 100
Percentage 22 26 24 24 4 100
INFERENCE
One factor that respondents like most about their job is friendly atmosphere which 26% of the total employees.
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CHART No. 8
One factor you like most about the job
30 25 20 15 10 5 0
friendly training atmosphereproject team w ork technology
Training Friendly atmosphere Project Team work Technology
INFERENCE
One factor that respondents like most about their job is friendly atmosphere which 26% of the total employees.
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TABLE No. 9 ONE FACTOR THAT EMPLOYEES LIKE LEAST ABOUT THEIR JOB
Particulars Salary Attitude Stress Employee Care Growth Opportunities TOTAL
No.f respondents 14 10 48 14 14 100
Percentage 14 10 48 14 14 100
INFERENCE: One factor that employees like least about their job is stress and respondents for that is 48%.
CHART No. 9
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One factor that you like least about the job
50 40 30 20 10 0
salary attitude stress employee grow th care opportunities
Salary Attitude Stress Employee care Growth opportunities
INFERENCE: One factor that employees like least about their job is stress and respondents for that is 48%.
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TABLE No. 10 OPINION OF EMPLOYEES REGARDING MEDICAL FACILITIES PROVIDED BY THE ORGANIZATION INCASE OF MINOR INJURIES
Particulars Yes No TOTAL
No.f respondents 72 28 100
Percentage 72 28 100
INFERENCE: Among the total respondents 72% of them say that proper medical facilities provided by the company for injuries and 28% of the respondents say that proper medical facilities are not provided by the company.
CHART No. 10
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Whether medical facilities are provided by the organization incase of minor injuries
80 60 40 20 0 YES NO yes no
INFERENCE: Among the total respondents 72% of them say that proper medical facilities provided by the company for injuries and 28% of the respondents say that proper medical facilities are not provided by the company.
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TABLE No. 11 OPINION ABOUT EMPLOYEES WORK PRESSURE LEVEL
Particulars Heavy Achievable Normal TOTAL
No.f respondents 28 36 36 100
Percentage 28 36 36 100
INFERENCE:
Among the total respondents work pressure level is achievable and normal and 36% of respondents agree to it and 28% of the respondents feel that work pressure is heavy.
CHART No. 11
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Opinion about work pressure level
40 35 30 25 20 15 10 5 0
heavy achievable normal
heavy achievable normal
INFERENCE: Among the total respondents work pressure level is achievable and normal and 36% of respondents agree to it and 28% of the respondents feel that work pressure is heavy.
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TABLE No. 12 OPINION OF EMPLOYEES ABOUT ATTRITION REGARDING SHIFT BASIS Particulars First Shift Second Shift TOTAL No.of respondents 34 66 100 Percentage 34 66 100
INFERENCE:
Among the total respondents 34% of them say attrition is because of first shift and 66% of the respondents say it is because of second shift.
CHART No. 12
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Is the attrition is mostly because of the shift basis
70 60 50 40 30 20 10 0 first shift second shift First Shift Second Shift
INFERENCE: Among the total respondents 34% of them say attrition is because of first shift and 66% of the respondents say it is because of second shift.
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TABLE No. 13 OPINION ABOUT EMPLOYEES WAGE RELATED TO WORK
Particulars More than enough Sufficient Insufficient TOTAL
No.of respondents 0 62 38 100
Percentage 0 62 38 100
INFERENCE:
62% of the respondents among the total say that wage related to work is sufficient and 38% of them say that wage related to work is insufficient
CHART No. 13
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Opinion about your wage related to work
70 60 50 40 30 20 10 0
more than enough sufficient insufficient
More than enough Sufficient In sufficient
INFERENCE:
62% of the respondents among the total say that wage related to work is sufficient and 38% of them say that wage related to work is insufficient
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TABLE No. 14 OPINION OF EMPLOYEES ABOUT THE ATTENDANCE INCENTIVES
Particulars Yes No TOTAL
No.of respondents 78 22 100
Percentage 78 22 100
INFERENCE:
78% of the total respondents say that attendance incentives is provided by the organization and 22% of the respondents say that it is not provided.
CHART No. 14
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Whether attendence incentives is provided by the organization
80 60 40 20 0 YES NO yes no
INFERENCE:
78% of the total respondents say that attendance incentives is provided by the organization and 22% of the respondents say that it is not provided.
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TABLE No. 15 OPINION OF EMPLOYEES ABOUT ATTRITION DUE TO HEAVY WORKLOAD Particulars Strongly Agree Agree Neutral Disagree Strongly Disagree TOTAL No.of respondents 22 52 24 2 0 100 Percentage 22 52 24 2 0 100
INFERENCE: Attrition occurs due to heavy workload and 52% of the total respondents agree to that and 24% of the respondents say that it is neutral
CHART No. 15
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Do you agree that the attrition occurs due to heavy workload
60 50 40 30 20 10 0
strongly strongly agree neutral dissagree agree disagree
Strongly Agree Agree Neutral Dissagree Strongly Dissagree
INFERENCE:
Attrition occurs due to heavy workload and 52% of the total respondents agree to that and 24% of the respondents say that it is neutral
TABLE No. 16
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THE RELATIONSHIP BETWEEN EMPLOYER AND EMPLOYEES WILL REDUCE ATTRITION.
Particulars Strongly Agree Agree Neutral Disagree Strongly Disagree TOTAL
No.of respondents 30 52 16 2 0 100
Percentage 30 52 16 2 0 100
INFERENCE:
Among the total respondents 52% of them agree that the relationship between employer and employee will reduce attrition and 30% of the respondents strongly agree that the relationship between employer and employee will reduce attrition.
CHART No. 16
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The relationship between employer and employee will reduce attrition
60 50 40 30 20 10 0
strongly agree agree Strongly dissagree
Strongly agree Agree Neutral Disagree Strongly disagree
neutral disagree
INFERENCE: Among the total respondents 52% of them agree that the relationship between employer and employee will reduce attrition and 30% of the respondents strongly agree that the relationship between employer and employee will reduce attrition.
TABLE No. 17 MOST LIKE ABOUT THE COMPANY
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FACTORS Gained Knowledge, Technology, Networking The Work/ Open culture was best The Employee care was excellent
STRONGLY AGREE NEUTRAL DISSAGREE STRONGLY AGREE AGREE 0 42 54 4 0
4
40
52
4
0
0
66
34
0
0
Strongly Agree Agree Neutral Dissagree Strongly Dissagree
: : : : :
5 4 3 2 1
CALCULATION: Gained Knowledge, Technology, Networking =(0*5) + (42*4) + (54*3) + (4*2) + (0*1)/100 The work/ Open culture was best =(4*5) + (40*4) + (52*3) + (4*2) + (0*1)/100 The Employee care was excellent =(0*5) + (66*4) + (34*3) + (0*2) + (0*1)/100 INFERENCE:
= = =
3.38 3.44 3.66
Majority of employees feel that employee care was excellent.
TABLE No. 18 SUPERVISOR CARE TOWARDS EMPLOYEES
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FACTOR Listened to suggestions Treated you fairly Gave performance feedback Coached Trained and developed you ALWAYS USUALLY SELDOM NEVER : : : :
ALWAYS 6 0 6 2 4 3 2 1
USUALLY 54 64 58 58
SELDOM 45 36 32 38
NEVER 0 0 4 2
CALCULATION: Listened to suggestions =(6*4) + (54*3) + (45*2) + (0*1)/100 Treated you Fairly =(0*4) + (64*3) + (36*2) + (0*1)/100 Gave performance feedback =(6*4) + (58*3) + (32*2) + (4*1)/100 Coached , Trained and developed you =(2*4) + (58*3) + (38*2) + (2*1)/100 INFERENCE
= = = =
2.76 2.64 2.66 2.6
Majority of employees suggestions were taken into considerations by the supervisors.
CHI SQUARE TEST TABLE No. 19
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RELATIONSHIP BETWEEN EMPLOYER AND EMPLOYEE ATTRITION WITH RESPECT TO WORK EXPERIENCE Null Hypothesis(H0): There is no significant difference between employer and employee attrition with respect to work Experience. Alternate Hypothesis(H1): There is significant difference between employer and employee attrition with respect to work Experience.
PARTICULARS STRONGLY AGREE NEUTRAL DISSAGREE STRONGLY TOTAL AGREE DISSAGREE
9 YEARS TOTAL
4 22 4 0 0 30
2 32 14 2 0 50
0 12 6 0 0 18
0 2 0 0 0 2
0 0 0 0 0 0
6 68 24 2 0 100
S.NO 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Oi 4 2 22 32 12 2 4 14 6 2
Ei 1.8 3 20.4 34 12.24 1.36 7.2 12 4.32 1
(Oi-Ei)^2/Ei 2.688 0.333 0.125 0.117 0.004 0.301 1.422 0.333 0.653 1 6.976
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Degree of Freedom = 16; Level of significance is at 5% ; Calculated value of X = 6.976 Table Value X = 26.296 Calculated value < Table value Hence Null Hypothesis is accepted. INFERENCE: There is no significant difference between employer and employee attrition with respect to work experience
CHAPTER - VI 6.1.1FINDINGS
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After the detailed study, the collected information and data was analyzed. A lot of valuable findings were found common towards at LUCAS TVS are as explained below.: 68% of the respondents are having 6-9 years experience and 24% of respondents are having 1-3 years experience ? 38% of the respondents prefer less growth opportunity and 20% of the respondents triggered Personal reasons and only 18% of respondents triggered Benefits- salary, Incentives and health to leave the company. ? 48% of the respondents believe that the orientation process in the organization is good and 26% of respondents says very good and 24% respondents says fair. ? 48% of the respondents are treated good and 30% of the employees treated fairly and 20% of the employees are treated very good. ? ? 68% of the respondents say that the overall morale is good. 58% of the respondents are highly satisfied with food facilities provided and 7% of respondents neither satisfied nor dissatisfied and no respondent is highly dissatisfied with this. ? 34% of the employees least like the salary and 30% of the employees least like their attitude of superiors and 26% of the employees with their shift pattern and only 10% of the respondents least like about their management.
?
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?
One factor that most like about the job is friendly atmosphere and the respondents are 26%. 48% of the respondents least like stress in their job. 72% of the respondents say that proper medical facilities are provided by the organization incase of minor injuries where only 28% of the respondents says that medical facilities are not provided. Feel that work pressure is heavy. Yes the attrition because of the shift basis and 66% of attrition because of second shift and 34% of attrition because of first shift. 62% of them say that wage related to work is sufficient and 38% of them say that wage related to work is insufficient. 78% of the respondents say that attentence incentives is provided by the organization where only 22% of the respondents say it is not provided. 52% of the employees agree that the attrition occurs due to heavy workload and 24% of the respondents say that it is neutral. 52% of the respondents agree with the relationship between employer and employees will reduce attrition.
?
?
?
?
?
?
?
?
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6.2 SUGGESTIONS AND RECOMMENDATIONS
An overview of the study carried out to analyze a set of characteristics that describe organizations. The following suggestions, which can avoid attrition in the organization, are as follows:
• Transport facilities can be provided. • Work pressure can be reduced to make employees to feel comfortable in their work. • The relationship between employer and employee should be more so that we can reduce the attrition level in the organization. • Work load to the employees should be reduced. • Stress in the work should be reduced.
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6.3 CONCLUSION
In the contemporary corporate world, success of an organization comes from its people and it is irrespective of the nature of their job. Labour Turnover analysis is one of the factors that help the organization to achieve this success. LUCAS TVS is one among the organizations which give atmost importance to is people. LUCAS TVS values its human resources much more than anything, Despite such efforts, the study indicates that for a few aspects regarding the topic there should be a change. These findings do not hold back the labour turnover employees prevailing in the organization. On the other hand the changes if implemented will definitely lift up the existing position.
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6.4 SCOPE FOR FURTHER RESEARCH
This study can act as a base for any researcher who would like to carry a research in Labour turnover analysis. Very few dimensions have been analysed in this study due to limited time frame. There are more dimensions like participative management, safety, security, etc. to be analysed and this is a clear indication that there is a great scope for further research. Moreover, present employee’s perception is subject to variation over a period of time. This study though relevant now may not be applicable after a period of time.
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BIBLIOGRAPHY
Books referred: ? C.R Kothari,(2002), “Research Methodology”, Vishwa Prakashan. ? Gupta and Gupta,(2001), “Practical statistics” , Oscar Publications ? LUCAS TVS company manuals Websites browsed: ?http://www.academicjournals.org/ajbm ?http://www.lucas-tvs.com ?http://www.economywatch.com
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doc_489664393.doc
Turnover is sometimes a synonym for revenue (or in certain contexts, sales), especially in European and South African usage
CHAPTER - I 1.1 INTRODUCTION
LABOUR TURNOVER Definition Labour turnover is concerned with movements of individuals into jobs (hiring) and out of jobs (separations) over a particular period.
Labour turnover is the sum of job turnover, which relates to the expansion and contraction of establishments or firms, and the movement of workers into and out of ongoing jobs in establishments or firms. Workers leave firms and firms hire other workers to replace them, regardless of whether the firm itself is growing or declining. Labour turnover is an important parameter indicating the over all health of any industry or an establishment in terms of wages, industrial relations, working conditions and other welfare facilities provided by the employers to the workers. Higher rate of Labour Turnover indicates lack of stability in the labour force, which in turn, may not be considered to be conducive to the productivity of labour. For higher productivity of labour, it is essential that labour force remains stable over a period of time. Labour Turnover measures the extent of change in the work force due to accession (total number of workers added to employment) or separation (severance of employment at the instance of workers or employers) during a particular period of time. Statistics relating to the rate of accession and separation in respect of directly employed regular workers, their average number in employment and the percentage of factories reporting labour turnover during the year 2000 have been presented.
1
Labour Turnover in States State-wise labour turnover among directly employed regular workers is presented in Table 3.1.1. It may be seen from the Table that at all India level, the rate of accession during the year 2000 was 12.68 percent, whereas overall separation over the same period was 15.14 percent. Thus, there was 2.46 percent more separation than accession during the year, indicating, thereby, a decrease in overall employment during the year. The lowest and highest rates of accession during the year 2000 at State level are observed to be 1.23 percent in Jharkhand and 32.18 percent in Uttar Pradesh, respectively. Similarly, the lowest and highest rates of separation during the year were observed in Tripura at 3.00 percent and Andaman & Nicobar Islands at 37.81 percent, respectively. Labour Turnover in Industries Industry-wise labour turnover among directly employed regular workers during the year 2000 is given in Table 3.1.2. The highest rate of accession at 85.56 percent was recorded in the industry group ‘014-Agricultural and animal husbandry service activities, except veterinary activities’, whereas, the lowest rate of accession at 1.62 percent was recorded in the industry group ‘353–Manufacture of aircraft and space craft’. Highest rate of Separation was also recorded in the industry group ‘014Agricultural and animal husbandry service activities, except veterinary activities’ at 91.77 percent. On the other hand, the lowest rate of separation was reported in the industry group '232-Manufacture of refined petroleum products' at 3.87 percent.
2
Dealing with labour turnover Areas commonly in need of attention may include:
• • • • • • •
recruitment and selection induction and training pay and grading communication and consultation management and supervision disciplinary and grievance procedures working conditions
employee involvement. The costs of replacing and retaining staff The main costs of high rates of labour turnover are
• •
replacement costs (i.e. recruiting and interviewing new employees) transition costs (including induction programmes and training costs) indirect costs (possible involving a loss of customer service whilst new workers are trained and gain relevant work experience).
•
As any other thing the labour turnover has its advantages and disadvantages. The labour turnover has a large list of disadvantages, and where there is a large rate of this affect it results in a serious sign of unstability that is caused by employees leaving their jobs maybe because of lack of job satisfaction or bad management. Due to this result the company management must stop and think seriously what is happening and what can be done to improve. Another disadvantage is when the employees leave and have to be replaced by others, to recruit new staff and give the necessary training may be very costly to the company because the production will decreased during this time. This may result
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as an unaccounted expense. Another disadvantage is the bad image of the company because when there is a lot of labour turnover there will be less people who will apply within the company.
Some advantages of labour turnover are that unwanted employees who are not doing their job well or do not fit for post, the firm can dismiss them because if the targets are not reached the company does not need inefficient employees. With this labour turnover the company will start with enthusiastic employees who are willing to do their job well and can increase production. From previous labour turnover the management can learn from these experiences and so can do and take actions to improve the standards of the firm. Benefits of labour turnover Labour turnover does not just create costs. Some level of labour turnover is important to bring new ideas, skills and enthusiasm to the labour force. A "natural" level of labour turnover can be a way in which a business can slowly reduce its workforce without having to resort to redundancies (this is often referred to as "natural wastage".
1.2 INTRODUCTION OF THE PROJECT
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Finding out the turnover of employees in the manufacturing industries with reference to LUCAS TVS Padi, is the theme of the project. About the automobile industries: A well developed transport network indicates a well developed economy. For rapid development a well-developed and well-knit transportation system is essential. As India's transport network is developing at a fast pace, Automobile Industry is growing too. Also, the industry has strong backward and forward linkages and hence provides employment to a large section of the population. Thus the role of Automobile Industry cannot be overlooked in Indian Economy. All kinds of vehicles are produced by the Automobile Industry. It includes the manufacture of trucks, buses, passenger cars, defense vehicles, two-wheelers, etc. The industry can be broadly divided into the Car manufacturing, two-wheeler manufacturing and heavy vehicle manufacturing units. High labour turnover is costly, lowers productivity and morale and tends to get worse if not dealt with. What is labour turnover? Labour turnover is the total movement of employees in and out of an organisation. However, the term is commonly used to refer only to 'wastage' or the number of employees leaving.
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Patterns of labour turnover The biggest proportion of leavers tends to be among those who have recently joined an organisation. Longer serving employees are more likely to stay, mainly because they become used to the work and the organization and have an established relationship with those around them. Establishing the reasons for labour turnover The causes of labour turnover are more likely to be brought directly to management's attention where there is effective consultation with employee representatives. The views of individuals should also be obtained by asking existing employees what they like and dislike about the job and asking leavers why they are leaving. This may be done systematically through the use of opinion surveys, questionnaires and exit interviews.
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1.2.1 NEED OF THE STUDY
Measuring labour turnover ? To analyze the date collected and finding suggestions to improve the weakness. ? To be eye opener for everyone in LUCAS TVS as follows: ? For LUCAS TVS management • To drive a future plan of action regarding to reduce attrition. • To find the scale of labour turnover and the reasons comprising of it. ? For LUCASTVS employees: • Concern for self-improvement in order to reduce attrition. • Commitment to work and regular work attendance. ? For Researchers: • To gain an insight about employees problems and its future trends. The study also includes probable combat measures.
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1.2.2 OBJECTIVES OF THE STUDY
Primary objective: 1. To find out the labour turnover rate Secondary objectives: • To find out whether employees are satisfied with their job. • To analyze the prevailing working condition which influence turnover. • To analyze the various personal factors of the employees which influence turnover rate • To study how the mode of conveyance is responsible for turnover • To suggest various remedial measures to control attrition rate.
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1.2.3 SCOPE OF THE STUDY
The researcher has made an elaborate study to find out the reason for absenteeism authorized leave facilities, attendance incentives, & other labour welfare facilities which are being provided by the organization under study. The researcher, at the outset has made an in-depth study to analyze the causes for the “absenteeism” in spite of leave facilities offered by the organization. Moreover the study had revealed certain major internal and external (family related) causes, which are responsible for attrition. Further the researcher has suggested certain recommendation if they implement, it will help the organization to overcome frequent ‘absence’ by employee atleast in the future.
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CHAPTER - II 2. COMPANY PROFILE 2.1
About the Company…. Lucas - TVS was set up in 1961 as a joint venture of Lucas Industries plc., UK and T V Sundaram Iyengar & Sons (TVS), India, to manufacture Automotive Electrical Systems. One of the top ten automotive component suppliers in the world, Lucas Varity was formed by the merger of the Lucas Industries of the UK and the Varity Corporation of the US in September 1996. The company designs, manufactures and supplies advanced technology systems, products and services to the world's automotive, after market, diesel engine and aerospace industries. The combination of these two well-known groups has resulted in the establishment of a vibrant company, which has had a successful track record of sustained growth over the last three decades.TVS is one of India's twenty large industrial houses with twenty-five manufacturing companies and a turnover in excess of US$ 1.3 billion. The turnover of Lucas-TVS and its divisions is US$ 233 million during 2003-2004. Incorporating the strengths of Lucas UK and the TVS Group, Lucas TVS has emerged as one of the foremost leaders in the automotive industry today. Lucas TVS reaches out to all segments of the automotive industry such as passenger cars, commercial vehicles, tractors, jeeps, two-wheelers and off-highway vehicles as well as for stationary Mannur site and marine applications. With the automobile industry in India currently
INCEPTION
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undergoing phenomenal changes, Lucas-TVS, with its excellent facilities, is fully equipped to meet the challenges of tomorrow.The TVS Group, with a turnover of over one billion dollars, is the largest manufacturer of automotive components in India. The group produces auto electricals, diesel fuel injection systems, braking systems, automotive wheels and axle fasteners, powder metal components, radiator caps, two wheelers and computer peripherals. Backed by five service and distribution companies with an extensive network across the country, the group has the largest distribution network for automotive products in India.
About the QUALITY ASSURANCE…. "Lucas TVS is committed to achieving ever increasing levels of customer satisfaction through continuous improvements to the quality of the products and services. It will be the company's endeavour to increase customer trust and confidence in the label 'Made in Lucas TVS'." Quality is no longer an option but a basic requirement in today's world. At Lucas TVS, quality in inbuilt in every phase of manufacture. The company's quality assurance measures stand on the foundation of a solid belief - that quality begins and ends with the customer. This commitment forms the backbone of its approach to Quality Assurance.
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Lucas TVS has adopted a prevention-oriented quality policy though ingrained with the traditional ideas of quality control. Everyone from the highest levels of the organisation to the lowest practice quality control both as an individual and as a team. An effective Quality Control System has resulted in the recognition of the company's outstanding achievements in the various fields. Lucas-TVS was awarded the ISO 9001 certified by BVQI in December 1993. The company reached a further milestone when it recently received a certificate of recognition from BVQI for QS 9000 for Auto Electricals. WELFARE SERVICES PROVIDED LUCAS TVS: Services • • • • • • • • • • • • • • Canteen Medical center Issue of welfare items Reimbursement Birthday presentation Long service awards Family relief fund Insurance of marriage gift Special occasion or function Incentive for family planning Redressal – employee grievances Procedure-accident report Education awards Suggestion scheme
Loans, advances and allowance
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• Medical • Marriage • Education • Housing • Issue of cycle advance • Medical insurance scheme • Personal accident coverage • Retirement benefit • Industrial accident • Sickness benefit About the People…. Human resource is an asset never disclosed in a company's balance sheet. At Lucas-TVS, employees are considered partners in progress. Trust and confidence in their abilities are an important part of the Lucas-TVS philosophy. Employee participation takes place at almost every level of the organisation. Lucas-TVS recognises that in a fast changing world, constant updating of knowledge is vital. Thus its management style sets great store by employee involvement and actively encourages participation and commitment. The company strives to optimise HRD contribution to the its growth. Small Group Activity (SGA) has become a vibrant force with about 85 groups functioning continuously with one group meeting every week
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to present its achievements. The Suggestion Scheme has evoked tremendous response since its initiation in 1973. To hone the skills of its employees, the company operates a well-equipped training centre, which features a multi skill workshop, a product knowledge centre, CNC training and computer facilities. Individual skills are fine tuned through specialised courses, both within the country and abroad. About the Customers… CUSTOMER Cars Maruti Udyog Hindustan Motors TATA Engineering and Locomotive Company General Motors, India Ford India Daewoo Motors Co., India Ind Auto Hyundai Motors, India Light Commercial Vehicles TATA Engineering Company Bajaj Tempo Mahindra & Mahindra Mahindra Nissan Swaraj Mazda Eicher Motors Heavy commercial vehicles TATA Engineering Company Ashok Leyland & Locomotive Daimler Benz, Germany. Cummins, USA Iveco, Italy. Hino, Japan & Locomotive Daimler Benz, Germany Peugeot, France Nissan, Japan Mazda, Japan Mitsubishi, Japan General Motors, USA Ford, UK Daewoo, Korea Fiat, Italy Hyundai Motors, Korea Suzuki, Japan Isuzu, Japan. Mitsubishi, Japan INTERNATIONAL COLLABORATOR
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Tractors Mahindra & Mahindra Tractors and Farm Equipments (TAFE) Escorts HMT Eicher Tractors Punjab Tractors Gujarat Tractors L&T Tractors Greaves Tractors Earth Moving Equipment Hindustan Motors Bharat Earth Movers Ltd.(BEML) Stationary / Marine Engines, Gensets Cummins India Tata Cummins Simpsons Ruston and Hornsby Kirloskar Oil Engines Greaves Ashok Leyland EXPORT CUSTOMERS Helwan Diesel Engg Company Lucas Electrical, UK Delco Remy Prestolite Electric Ltd After Market Lombardini, Italy BLMC, UK COUNTRY Egypt UK USA USA USA / UK Cummins, USA Cummins, USA Perkins, USA Ruston & Hornsby, UK Caterpillar, USA Komatsu, Japan Zetor, Czechoslovakia Johndeer, USA Same, Italy International Harvestor Corporation, UK Massey Ferguson, UK Ursus, Poland. Ford, UK Zetor, Czechoslovakia Good Earth, Germany
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2.2 TYPE OF INDUSTRY
India Automobile Industry Following India's growing openness, the arrival of new and existing models, easy availability of finance at relatively low rate of interest and price discounts offered by the dealers and manufacturers all have stirred the demand for vehicles and a strong growth of the Indian automobile industry. The data obtained from ministry of commerce and industry, shows high growth obtained since 2001- 02 in automobile production continuing in the first three quarters of the 2004-05. Annual growth was 16.0 per cent in AprilDecember, 2004; the growth rate in 2003-04 was 15.1 per cent The automobile industry grew at a compound annual growth rate (CAGR) of 22 per cent between 1992 and 1997. With investment exceeding Rs. 50,000 crore, the turnover of the automobile industry exceeded Rs. 59,518 crore in 2002-03. Including turnover of the auto-component sector, the automotive industry's turnover, which was above Rs. 84,000 crore in 2002-03, is estimated to have exceeded Rs.1,00,000 crore ( USD 22. 74 billion) in 2003-04. Automobile Dealers Network in India. In terms of Car dealer networks and authorized service stations, Maruti leads the pack with Dealer networks and workshops across the country. The other leading automobile manufactures are also trying to cope up and are opening their service stations and dealer workshops in all the metros and major cities of the country. Dealers offer varying kind of discount of finances who in tern pass it on to the customers in the form of reduced interest rates.
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Major Manufacturers of Automobiles in India 01. Maruti Udyog Ltd. 02. General Motors India 03. Ford India Ltd. 04. Eicher Motors 05. Bajaj Auto 06. Daewoo Motors India 07. Hero Motors 08. Hindustan Motors 09. Hyundai Motor India Ltd. 10. Royal Enfield Motors 11. Telco 12. TVS Motors 13. DC Designs 14. Swaraj Mazda Ltd
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2.3 BRANCHES/NETWORK
LUCAS-TVS has branches at: • AUTO ELECTRICAL PLANT-Padi, Chennai. • AUTO ELECTRICAL PLANT-Rewaru, Chennai. • AUTO ELECTRICAL PLANT-Pondicherry
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2.4 PRODUCT/SERVICES
Lucas-TVS manufactures the most comprehensive range of auto electrical components in the country. A range which continues to set standards in the industry. The products are designed to meet the demands of vehicle manufacturers both in India and worldwide. With the emission standards in India becoming increasingly stringent, Lucas-TVS has ensured that each of its products is manufactured to meet global standards. Lucas-TVS Product Indian Market Range for Lucas-TVS Product US/European Market Range for
Starter Motor Alternator
Starter Motor
Alternator Headlamp Small Motor Wiper Motor Blower Motor Fan Motor Dynamo Regulator Dynamo Ignition Coil Distributor Diesel fuel injection About the Clients…
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Small Motor 14W Wiper Motor WindShield Wiper Motor (GM Range) LRW Products Dynamo Regulator Dynamo Auto Electricals Telco Vehicles Ashok Leyland Vehicles Suzuki Vehicles
COMPANY Manufacturing companies Axles India Ltd. Brakes India Ltd. India Ltd. Nippon Electricals
PRODUCTS Automotive axles Hydraulic brakes & clutch actuation systems Magnetos, Two/Three wheeler ignition systems
Lakshmi Auto Components Engine/transmission components Ltd. Lucas-TVS Ltd. TVS Srichakra Ltd. Auto electricals/Diesel fuel injection equipment Automotive tyres
Sundaram Brake Linings Brake linings & clutch facings Ltd. Sundaram Clayton Ltd. Sundaram Fasteners Ltd. Air brakes High tensile fasteners, cold extruded products, sintered components, intelligent systems, radiator caps Yarn Turbo chargers
Sundaram Textiles Ltd. Turbo Energy Ltd.
TVS Interconnect Systems Electronic connectors Limited. TVS Electronics Ltd. TVS Sewing Needles Ltd. TVS Motor Limited. Company Computer peripherals Sewing needles Two wheelers Precision miniature, sub-miniature, selector switches, hall effect sensors, key switches and advanced performance/special purpose keyboards. Automotive wheels
TVS Cherry Limited. Wheels India Ltd. Distribution companies
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India Motor Parts Accessories Ltd. Lucas Indian Service Ltd.
&
Distributors of automotive components Distributors of auto electrical and auto components, Fuel Injection Equipment, LISPART & Batteries.
T V Sundaram Iyengar & Distributors of passenger cars, commercial Sons Ltd. vehicles, automotive spare parts Other companies Southern Roadways Ltd. Sunco Machines Ltd. Sundaram Industries Ltd. Freight services Precure tyre retreading equipment Tyre retreading, components coach building, rubber
DEMING AWARD FOR LUCAS-TVS
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Chennai, 9 October 2004: Lucas-TVS, a TVS group company, has bagged the prestigious Deming Application Award for the year 2004. This was announced by the Deming Prize Committee of Japanese Union of Scientists and Engineers (JUSE). Lucas-TVS, with manufacturing facilities at Padi (Chennai), Pondicherry and Rewari (Haryana), is the first and the only Auto Electrical Company from India to receive this coveted award. The award ceremony will be held on 9 th November 2004 at Tokyo, Japan. Lucas-TVS launched the Japanese Total Quality Management (TQM) movement during 1998. TQM is a vehicle to continuously improve all the Management Processes with Customer Focus in terms of Quality, Cost, Delivery and Service and the process motivates teamwork among all employees, promotes total employee involvement in achieving the company’s objectives. Lucas-TVS is the largest manufacturer of Auto Electricals in India catering to all segments of Auto Industry, which includes Cars, Utility Vehicles, Commercial Vehicles, Tractors and Two wheelers. The core competence of the company is its capability to design and develop products to the new variants and vehicles with its in house R&D facilities.
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The company is a pioneer in launching various manufacturing systems to respond to the customer requirements and brought in many change programmes and other contemporary practices. Its focus on customer, continuous improvement and employee involvement has always been commendable. Lucas-TVS is a TS 16949 and ISO 14001 certified company. The Deming Certification process is rather stringent and involves audits in two stages by an independent team from Japan. The initial process begins with the company submitting that it be considered for the award. The company’s various TQM processes were subjected to diagnostic audit during December 2003. The final audit was held on 19th and 20th August 2004 by JUSE, which is an apex organisation for awarding Deming Application Prize and it was confirmed on 6 th October 2004 that Lucas-TVS has won the Deming Application Prize for the year 2004.
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2.5. MARKET SHARE
Lucas Indian Service, a subsidiary of Lucas-TVS was established in 1930 and is primarily engaged in sales and service of auto electricals and fuel injection equipment manufactured by Lucas-TVS. It additionally handles several other manufacturer's products of a wide variety. With four regional offices located in the metros and 22 branches covering every major state in the country, it also manufactures a few products in its factory. The company's extensive distribution network comprising over 2000 outlets spans the entire length and breadth of the country. Further, in its efforts to become a leading auto-ancillary distribution house, Lucas Indian Service is continuously on the look out for tie-ups with reputed companies for marketing their products. Its unique strength lies in its network of branches and a host of service dealers developed over the last six and half decades. To support Lucas-TVS FIE Division, the company is in the process of setting up a network of service dealers, whose workshops will measure up to international standards.
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2.6 FUTURE PLANS
Automobile industries in India is currently under going phenomenal changes with so many new fuel efficient vehicles being launched and old vehicles being improved and reequipped to compete with the new comers. LUCAS-TVS with its excellent facilities fro product development, quality assurance, training and manufacturing is fully equipped to meet\ the challenges of tomorrow.
CHAPTER - III LITERATURE REVIEW
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“Employee turnover” as a term is widely used in business circles. Although several studies have been conducted on this topic, most of the researchers focus on the causes of employee turnover but little has been done on the examining the sources of employee turnover, effects and advising various strategies which can be used by managers in various organizations to ensure that there is employee continuity in their organizations to enhance organizational competitiveness. This paper examines the sources of employee turnover, effects and forwards some strategies on how to minimize employee turnover in organizations. INTRODUCTION Organizations invest a lot on their employees in terms of induction and training, developing, and retaining them in their organization. Therefore, managers at all costs must minimize employee’s turnover. Although, there is no standard framework for understanding the employees turnover process as whole, a wide range of factors have been found useful in interpreting employee turnover. Therefore, there is need to develop a fuller understanding of the employee turnover, more especially, the sources- what determines employee turnover, effects and strategies that managers can put in place minimize turnover. With globalization which is heightening competition, organizations must continue to develop tangible products and provide services which are based on strategies created by employees. These employees are extremely crucial to the organization since their value to the organization is essentially intangible and not easily replicated. Therefore, managers must recognize that employees as major contributors to the efficient achievement of the organization’s success. Managers should control employee turnover for the benefit of the organization success. The literature on employee turnover is divided into three groupings: sources of employee turnover, effects of turnover and the strategies to minimize turnover.
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Definition Employees’ turnover is a much studied phenomenon But there is no standard reason why people leave organization. Employee turnover is the rotation of workers around the labour market; between firms, jobs and occupations; and between the states of employment and unemployment. The term “turnover” is defined as: the ratio of the number of organizational members who have left during the period being considered divided by the average number of people in that organization during the period. Frequently, managers refer to turnover as the entire process associated with filling a vacancy: Each time a position is vacated, either voluntarily or involuntarily, a new employee must be hired and trained. This replacement cycle is known as turnover. This term is also often utilized in efforts to measure relationships of employees in an organization as they leave, regardless of reason. “Unfolding model” of voluntary turnover represents a divergence from traditional thinking focusing more on the decisional aspect of employee turnover, in other words, showing instances of voluntary turnover as decisions to quit. Indeed, the model is based on a theory of decision making. The image theory describes the process of how individuals process information during decision making. The underlying premise of the model is that people leave organizations after they have analyzed the reasons for quitting. Baech argues that individuals seldom have the cognitive resources to systematically evaluate all incoming information, so individuals instead of simply and quickly compare incoming information to more heuristic-type decision making alternatives. Sources of employee turnover Job related factors
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Most researchers have attempted to answer the question of what determines people's intention to quit by investigating possible antecedents of employees’ intentions to quit. To date, there has been little consistency in findings, which is partly due to the diversity of employed included by the researchers and the lack of consistency in their findings. Therefore, there are several reasons why people quit from one organization to another or why people leave organization. The experience of job related stress (job stress), the range factors that lead to job related stress (stressors), lack of commitment in the organization; and job dissatisfaction make employees to quit. This clearly indicates that these are individual decisions which make one to quit. They are other factors like personal agency refers to concepts such as a sense of powerlessness, locus of control and personal control. Locus control refers to the extent to which people believe that the external factors such as chance and powerful others are in control of the events which influence their lives. argue that employees quit from organization due economic reasons. Using economic model they showed that people quit from organization due to economic reasons and these can be used to predict the labour turnover in the market. Good local labour market conditions improve organizational stability. Large organizations can provide employees with better chances for advancement and higher wages and hence ensure organizational attachment. Trevor (2001) argues that local unemployment rates interact with job satisfaction to predict turnover in the market. Role stressors also lead to employees’ turnover. Role ambiguity refers to the difference between what people expect of us on the job and what we feel we should do. This causes uncertainty about what our role should be. It can be a result of misunderstanding what is expected, how to meet the expectations, or the employee thinking the job should be different. Insufficient information on how to perform the job adequately, unclear expectations of peers and supervisors, ambiguity of performance evaluation methods, extensive job pressures, and lack of consensus on job
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functions or duties may cause employees to feel less involved and less satisfied with their jobs and careers, less committed to their organizations, and eventually display a propensity to leave the organization. If roles of employees are not clearly spelled out by management/ supervisors, this would accelerate the degree of employees quitting their jobs due to lack of role clarity. Voluntarily vs. involuntary turnover There are some factors that are, in part, beyond the control of management, such as the death or incapacity of a member of staff. Other factors have been classed as involuntary turnover in the past such as the need to provide care for children or aged relatives. Today such factors should not be seen as involuntary turnover as both government regulation and company policies create the chance for such staff to come back to work, or to continue to work on a more flexible basis. Organizational factors Organizational instability has been shown to have a high degree of high turnover. Indications are that employees are more likely to stay when there is a predictable work environment and vice versa. In organizations where there was a high level of inefficiency there was also a high level of staff turnover. Therefore, in situations where organizations are not stable employees tend to quit and look for stable organizations because with stable organizations they would be able to predict their career advancement. The imposition of a quantitative approach to managing the employees led to disenchantment of staff and hence it leads to labour turnover. Therefore management should not use quantitative approach in managing its employees. Adopting a cost oriented approach to employment costs increases labour turnover. All these approaches should be avoided if managers
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want to minimize employee turnover an increase organizational competitiveness in this environment of globalization. Employees have a strong need to be informed. Organization with strong communication systems enjoyed lower turnover of staff. Employees feel comfortable to stay longer, in positions where they are involved in some level of the decision-making process. That is employees should fully understand about issues that affect their working atmosphere. But in the absence openness’ in sharing information, employee empowerment the chances of continuity of employees are minimal. Costly et al. (1987) points out that a high labour turnover may mean poor personnel policies, poor recruitment policies, poor supervisory practices, poor grievance procedures, or lack of motivation. All these factors contribute to high employee turnover in the sense that there is no proper management practices and policies on personnel matters hence employees are not recruited scientifically, promotions of employees are not based on spelled out policies, no grievance procedures in place and thus employees decides to quit noted that pay and pay-related variables have a modest effect on turnover. Their analysis also included studies that examined the relationship between pay, a person’s performance and turnover. They concluded that when high performers are insufficiently rewarded, they quit. If jobs provide adequate financial incentives the more likely employees remain with organization and vice versa. There are also other factors which make employees to quit from organizations and these are poor hiring practices, managerial style, lack of recognition, lack of competitive compensation system in the organisation and toxic workplace environment.
Effects of employee turnover
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Employee turnover is expensive from the view of the organization. Voluntary quits which represents an exodus of human capital investment from organizations and the subsequent replacement process entails manifold costs to the organizations. These replacement costs include for example, search of the external labour market for a possible substitute, selection between competing substitutes, induction of the chosen substitute, and formal and informal training of the substitute until he or she attains performance levels equivalent to the individual who quit. Addition to these replacement costs, output would be affected to some extend or output would be maintained at the cost of overtime payment. The reason so much attention has been paid to the issue of turnover is because turnover has some significant effects on organizations. Many researchers argue that high turnover rates might have negative effects on the profitability of organizations if not managed properly. Turnover has many hidden or invisible costs and these invisible costs are result of incoming employees, co-workers closely associated with incoming employees, co-workers closely associated with departing employees and position being filled while vacant. And all these affect the profitability of the organization. On the other hand turnover affects on customer service and satisfaction. This clearly demonstrates that turnover affects the profitability of the organization and if it’s not managed properly it would have the negative effect on the profit. Research estimates indicate that hiring and training a replacement worker for a lost employee costs approximately 50 percent of the worker’s annual salary– but the costs do not stop there. Each time an employee leaves the firm, we presume that productivity drops due to the learning curve involved in understanding the job and the organization. Therefore, if employee turnover is not managed properly it would affect the organization adversely in terms of personnel costs and in the long run it would affect its liquidity position. However, voluntary turnover incurs significant cost, both in terms of direct costs (replacement, recruitment and selection, temporary staff, management time), and also (and perhaps more significantly) in terms of indirect costs (morale, pressure
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on remaining staff, costs of learning, product/service quality, organisational memory) and the loss of social capital. Strategies to minimize employee turnover Strategies on how to minimize employee turnover, confronted with problems of employee turnover, management has several policy options viz. changing (or improving existing) policies towards recruitment, selection, induction, training, job design and wage payment. Policy choice, however, must be appropriate to the precise diagnosis of the problem. Employee turnover attributable to poor selection procedures, for example, is unlikely to improve were the policy modification to focus exclusively on the induction process. Equally, employee turnover attributable to wage rates which produce earnings that are not competitive with other firms in the local labour market is unlikely to decrease were the policy adjustment merely to enhance the organization’s provision of onthe job training opportunities. Given that there is increase in direct and indirect costs of labour turnover, therefore, management are frequently exhorted to identify the reasons why people leave organization’s so that appropriate action is taken by the management. Extensive research has shown that the following categories of human capital management factors provides a core set of measures that senior management can use to increase the effectiveness of their investment in people and improve overall corporate performance of business. Employee engagement, the organization’s capacity to engage, retain, and optimize the value of its employees hinges on how well jobs are designed, how employees'time is used, and the commitment and support that is shown to employees by the management would motivate employees to stay in organization’s. Knowledge accessibility, the extent of the organisation’s
“collaborativeness” and its capacity for making knowledge and ideas widely
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available to employees, would make employees to stay in the organisation. Sharing of information should be made at all levels of management. This accessibility of information would lead to strong performance from the employees and creating strong corporate culture. Therefore; information accessibility would make employees feel. That they are appreciated for their effort and chances of leaving the organisation are minimal. Workforce optimization, the organisation’s success in optimizing the performance of the employees by establishing essential processes for getting work done, providing good working conditions, establishing accountability and making good hiring choices would retain employees in their organisation. The importance of gaining better understanding of the factors related to recruitment, motivation and retention of employees is further underscored by rising personnel costs and high rates of employee turnover. With increased competitiveness on globalizations, managers in many organizations are experiencing greater pressure from top management to improve recruitment, selection, training, and retention of good employees and in the long run would encourage employees to stay in organisations. Job involvement describes an individual’s ego involvement with work and indicates the extent to which an individual identifies psychologically with his/her job. Involvement in terms of internalizing values about the goodness or the importance of work made employees not to quit their jobs and these involvements are related to task characteristics. Workers who have a greater variety of tasks tend stay in the job. Task characteristics have been found to be potential determinants of turnover among employees. These include the five core job characteristics: skill variety, which refers to the opportunity to utilize a variety of valued skills and talents on the job; task identity, or the extent to which a job requires completion of a whole and identifiable piece of work - that is, doing a job from beginning to end, with visible results; task significance, which reflects the extent to which the job has a substantial impact on the lives or work of other people, whether within or
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outside the organisation; job autonomy, or the extent to which the job provides freedom, independence, and discretion in scheduling work and determining procedures that the job provides; and job feedback, which refers to the extent to which the job provides information about the effectiveness of one’s performance. Involvement would influence job satisfaction and increase organizational commitment of the employees. Employees who are more involved in their jobs are more satisfied with their jobs and more committed to their organization Job involvement has also been found to be negatively related to turnover intentions. Job satisfaction, career satisfaction, and organisational commitment reflect a positive attitude towards the organization, thus having a direct influence on employee turnover intentions. Job satisfaction, job involvement and organisational commitment are considered to be related but distinguishable attitudes. Satisfaction represents an affective response to specific aspects of the job or career and denotes the pleasurable or positive emotional state resulting from an appraisal of one’s job or career. Organisational commitment is an affective response to the whole organisation and the degree of attachment or loyalty employees feel towards the organisation. Job involvement represents the extent to which employees are absorbed in or preoccupied with their jobs and the extent to which an individual identifies with his/her job.The degree of commitment and loyalty can be achieved if management they enrich the jobs, empower and compensate employees properly. Empowerment of employees could help to enhance the continuity of employees in organisations. Empowered employees where managers supervise more people than in a traditional hierarchy and delegate more decisions to their subordinates. Managers act like coaches and help employees solve problems. Employees, he concludes, have increased responsibility. Superiors empowering subordinates by delegating responsibilities to them leads to subordinates who are more satisfied with their leaders and consider them to be fair and in turn to
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perform up to the superior’s expectations. All these makes employees to be committed to the organization and chances of quitting are minimal. Conclusions Therefore, if the above strategies are taken into account the business would be able to survive in a dynamic environment by treating their employees as one of their assets which needs a lot of attention. Employees are the backbone of any business success and therefore, they need to be motivated and maintained in organisation at all cost to aid the organisation to be globally competitive in terms of providing quality products and services to the society. And in the long-run the returns on investments on the employees would be achieved. Management should encourage job redesign-task autonomy, task significance and task identity, open book management, empowerment of employees, recruitment and selection must be done scientifically with the objective of retaining employees. Managers should examine the sources of employee turnover and recommend the best approach to fill the gap of the source, so that they can be in a position to retain employees in their organisation to enhance their competitiveness in the this world of globalization. Managers must understand that employees in their organizations must be treated as the most liquid assets of the organization which would make the organisation to withstand the waves of globalization. This asset needs to be monitored with due care, otherwise their organizations would cease to exist. Employees should be given challenging work and all managers should be hired on the basis of know how by following laid down procedures of the organization and this would make organisation to have competent managers at all levels of management and hence good supervision. Pay and pay-related variables have a great effect on employee turnover. Management must compensate employees adequately. They should pay employees based on their performance and in addition they should given employees incentives like individual bonus, lump sum
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bonus, sharing of profits and other benefits. Hence, if these are put in place they would minimize employee turnover.
CHAPTER - IV 4.1 RESEARCH METHODOLOGY
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RESEARCH DESIGN: “ A Research Design is purely and simply the framework or plan for the study that guides the collection of the data.” Fundamental to the study of any formal research project is sound research design. A good research design has the following characteristics namely 1. Problem definition 2. Specific methods of data collection and analysis 3. Time required for research project 4. Estimate of expenses to be incurred Types of Research Design: 1. Exploratory Research Design 2. Descriptive Research Design 3. Casual or Experimental Research Designing In this study, the researcher has adopted Descriptive Research Design. Descriptive Research Design: A Descriptive Research Design is the one that simply describes something such as demographic characteristics of certain people who use something.
The descriptive study we typically concern with determining frequently with which something occurs or how two variables vary together. This study is
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typically guided by an initial hypothesis. A descriptive study requires a clear specifications of who, what, when, where, why and how aspects of the research. Period of study: Period of study is 45days. TOTAL POPULATION: The total universe or population is the specific group of people, firm, conditions, etc., which form the pivotal point of research Therefore, the total population (employees) of the company is 3500. SAMPLING PROCEDURE: Convenience sampling: The methodology adopted in this study is convenience sampling. As the name implies, the sample is selected because they are convenient to the researcher. A convenience sample is used when you simply stop anybody in the street who is prepared to stop, or when you wander round a business, a shop, a restaurant, a theatre or whatever, asking people you meet whether they will answer your questions. SAMPLING UNIT A survey is conducted in LUCAS-TVS, PADI, CHENNAI. SAMPLE SIZE: The sample size for the survey is 100.
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DATA COLLECTION: In this present study both primary and secondary data are used. DATA: Raw facts are referred to as data. TYPES OF DATA: There are two types of data • Primary data • Secondary data Primary data: Primary data is information obtained from original sources by the researcher. A structured questionnaire was prepared to collect relevant primary data. QUESTIONNAIRE METHOD: The questionnaire is a sheet or sheets of paper containing questions relating to certain specific aspect, regarding which the researcher collects the data. The questionnaire is given to the respondent to be filled up. Sometimes, questionnaire is also in the form of files generated through computer. This is usually called as soft copy of questionnaire.
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A questionnaire consists of a number of questions printed or typed in a definite order on a form or set of forms. The questionnaire is mailed to respondents who are expected to read and understand the question itself. The respondents have to answer the questions on their own. In order to make the questionnaire effective and to ensure the quality to the replies received, a researcher should pay attention to the question to the question sequence in preparing the questionnaire. Secondary data: Data, which are collected already and published or unpublished. Such a source is used to save the time and cost in compiling the data relating to the past. There are several methods under which the secondary data has been collected. They are • Books • Journal • Websites ANALYSIS: The collected data were analyzed by applying percentage method, chisquare test.
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4.2 LIMITATIONS OF THE STUDY
The study has been conducted with the particular reference to employees of LUCAS TVS at Padi Branch. ? Sample size was limited as the workers were to be interviewed while at work. ? The time duration for the study was less. ? The findings of the study cannot be applicable to any other organization i.e., as the study was carried out at LUCAS TVS at Padi. The findings and suggestions are confined only to this organization. ? Some of the answers given by the respondents may be based.
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4.3 STATISTICAL TOOLS FOR ANALYSIS
Percentage analysis: Percentage analysis can be calculated as follows: First the frequency (i.e) no. of responses is noted in a tabular form, then the percentage is calculated by dividing the frequency by total number of respondents multiplied by 100. Then the values are noted in column as valid percent. Statistical tools: This collected data has been subjected to analysis by using appropriate tool. 1. Chi-square test: The objective of the chi-square test is to determine whether real or significant different exist among the various group. Chi-square test involves compared of expected frequency (Ei) with observed frequency. To determine whether the different between the two in greater than which might occur by chance. There are five steps in using chi-square test. a) The different between each observed frequency and each Expected Frequency. b) The differences are squared. c) Each squared different is divided by it least expected frequency. d) Their quotient are added together to obtain the computed chi-square values. e) This computed value is compared to the tabulated chi-square. If the computed chi-square value is greater than the tabulated chi-square value at the predetermined level of significance and degree of free, the hypothesis rejected. On the other hand if calculated chi-square value is less than the tabulated value, the hypothesis is accepted. The formula is =[ (Oi-Ei)-0.5]^2
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CHAPTER - V DATA ANALYSIS AND INTERPRETATION
TABLE No. 1 YEARS OF EXPERIENCE ATTAINED IN THE COMPANY Particulars 9 yrs TOTAL No.of respondents 6 24 2 68 0 100 Percentage 6 24 2 68 0 100
INFERENCE: The years of experience of workers for 6-9 years is 68% and for 1-3 years is 24%.
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CHART No. 1
Years of experience attained in the company
70 60 50 40 30 20 10 0 9yrs 9 years
INFERENCE: The years of experience of workers for 6-9 years is 68% and for 1-3 years is 24%.
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TABLE No. 2 THE FACTOR THAT TRIGGERED TO LEAVE THE COMPANY
Particulars Personal Benefits-salary, incentives Less growth opportunity Attitude of supervisors Health TOTAL
No.of respondents 20 18 38 6 18 100
Percentage 20 18 38 6 18 100
INFERENCE: The factors that triggered to leave the company for 38% of the respondents is of less growth opportunities and 20% of the respondents think its Personal and 18% of workers responded as Benefits-Salary, Incentives and Health.
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CHART No.2
The factor that triggered to leave the company
40 35 30 25 20 15 10 5 0
personal benefitsless attitude of salary growth supervisors incentives opportuni health
Personal Benefitssalary,incentives Less growth opportunities Attitude of supervisors Health
INFERENCE: The factors that triggered to leave the company for 38% of the respondents is of less growth opportunities and 20% of the respondents think its Personal and 18% of workers responded as Benefits-Salary, Incentives and Health.
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TABLE No. 3 OVERALL OPINION OF EMPLOYEES ABOUT THE ORIENTATION PROCESS Particulars Excellent Very Good Good Fair Poor TOTAL No.of respondents 2 26 48 24 0 100 Percentage 2 26 48 24 0 100
INFERENCE: About the orientation process conducted 48% of the respondents believe that there is a good orientation and 26% employees say that very good whereas 24% of the respondents say that its fair.
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CHART No. 3
Orientation process
50 40 30 20 10 0
excellent verygood good fair poor
Excellent Very Good Good Fair Poor
INFERENCE: About the orientation process conducted 48% of the respondents believe that there is a good orientation and 26% employees say that very good whereas 24% of the respondents say that its fair.
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TABLE No. 4 OPINION OF EMPLOYEES ABOUT THEIR TREATMENT IN THE COMPANY
Particulars Excellent Very Good Good Fair Poor TOTAL
No.of respondents 2 20 48 30 0 100
Percentage 2 20 48 30 0 100
INFERENCE:
About the treatment in the company 48% of the employees say that they are treated good and 30% of the employees say that they are treated fairly and 20% of the employees say that they are treated very good.
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CHART No. 4
Treating employees Fairly
50 45 40 35 30 25 20 15 10 5 0
Excellent Very good Good Fair Poor
excellent
very good
good
fair
poor
INFERENCE:
About the treatment in the company 48% of the employees say that they are treated good and 30% of the employees say that they are treated fairly and 20% of the employees say that they are treated very good.
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TABLE No. 5 OVERALL MORALE OF EMPLOYEES Particulars Excellent Very good Good Fair Poor TOTAL No.of respondents 0 22 68 10 0 100 Percentage 0 22 68 10 0 100
INFERENCE: 68% of the respondents say overall morale is good and 22% of the respondents say morale is very good.
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CHART No. 5
Overall Morale
70 60 50 40 30 20 10 0
excellent very good good fair poor
Excellent Very good Good Fair Poor
INFERENCE:
68% of the respondents say overall morale is good and 22% of the respondents say morale is very good.
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TABLE No. 6 SATISFACTION REGARDING FOOD FACILITIES PROVIDED IN THE COMPANY
Particulars Highly satisfied Satisfied Neither satisfied nor dissatisfied dissatisfied Highly dissatisfied TOTAL
No.of respondents 58 32 7 3 0 100
Percentage 58 32 7 3 0 100
INFERENCE:
Among the food facilities provided 58% of respondents are highly satisfied with food facilities and 7% of respondents are neither satisfied nor dissatisfied with food facilities.
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CHART No. 6
Satisfied with food facilities Provided in the company
60 50 40 30 20 10 0
highly satisfied satisfied neutral dissatisfied highly dissatisfied
Highly Satisfied Satisfied Neither satisfied nor dissatisfied Dissatisfied Highly dissatisfied
INFERENCE:
Among the food facilities provided 58% of respondents are highly satisfied with food facilities and 7% of respondents are neither satisfied nor dissatisfied with food facilities.
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TABLE No. 7 EMPLOYEES LIKES WHICH IS LEAST ABOUT THE COMPANY
Particulars Shifts Salary Attitude of supervisors Management TOTAL
No.of respondents 26 34 30 10 100
Percentage 26 34 30 10 100
INFERENCE: About the likes of respondents least in the company 34% of the employees say they like salary and 30% of the employees say they like attitude of supervisors.
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CHART No. 7
Like least about the company
35 30 25 20 15 10 5 0
shifts salary attitude of management supervisors
Shifts Salary Attitude of supervisors Management
INFERENCE: About the likes of respondents least in the company 34% of the employees say they like salary and 30% of the employees say they like attitude of supervisors.
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TABLE No. 8 ONE FACTOR THAT EMPLOYEES LIKE MOST ABOUT THEIR JOB
Particulars Training Friendly Atmosphere Project Team Work Technology TOTAL
No.of respondents 22 26 24 24 4 100
Percentage 22 26 24 24 4 100
INFERENCE
One factor that respondents like most about their job is friendly atmosphere which 26% of the total employees.
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CHART No. 8
One factor you like most about the job
30 25 20 15 10 5 0
friendly training atmosphereproject team w ork technology
Training Friendly atmosphere Project Team work Technology
INFERENCE
One factor that respondents like most about their job is friendly atmosphere which 26% of the total employees.
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TABLE No. 9 ONE FACTOR THAT EMPLOYEES LIKE LEAST ABOUT THEIR JOB
Particulars Salary Attitude Stress Employee Care Growth Opportunities TOTAL
No.f respondents 14 10 48 14 14 100
Percentage 14 10 48 14 14 100
INFERENCE: One factor that employees like least about their job is stress and respondents for that is 48%.
CHART No. 9
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One factor that you like least about the job
50 40 30 20 10 0
salary attitude stress employee grow th care opportunities
Salary Attitude Stress Employee care Growth opportunities
INFERENCE: One factor that employees like least about their job is stress and respondents for that is 48%.
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TABLE No. 10 OPINION OF EMPLOYEES REGARDING MEDICAL FACILITIES PROVIDED BY THE ORGANIZATION INCASE OF MINOR INJURIES
Particulars Yes No TOTAL
No.f respondents 72 28 100
Percentage 72 28 100
INFERENCE: Among the total respondents 72% of them say that proper medical facilities provided by the company for injuries and 28% of the respondents say that proper medical facilities are not provided by the company.
CHART No. 10
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Whether medical facilities are provided by the organization incase of minor injuries
80 60 40 20 0 YES NO yes no
INFERENCE: Among the total respondents 72% of them say that proper medical facilities provided by the company for injuries and 28% of the respondents say that proper medical facilities are not provided by the company.
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TABLE No. 11 OPINION ABOUT EMPLOYEES WORK PRESSURE LEVEL
Particulars Heavy Achievable Normal TOTAL
No.f respondents 28 36 36 100
Percentage 28 36 36 100
INFERENCE:
Among the total respondents work pressure level is achievable and normal and 36% of respondents agree to it and 28% of the respondents feel that work pressure is heavy.
CHART No. 11
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Opinion about work pressure level
40 35 30 25 20 15 10 5 0
heavy achievable normal
heavy achievable normal
INFERENCE: Among the total respondents work pressure level is achievable and normal and 36% of respondents agree to it and 28% of the respondents feel that work pressure is heavy.
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TABLE No. 12 OPINION OF EMPLOYEES ABOUT ATTRITION REGARDING SHIFT BASIS Particulars First Shift Second Shift TOTAL No.of respondents 34 66 100 Percentage 34 66 100
INFERENCE:
Among the total respondents 34% of them say attrition is because of first shift and 66% of the respondents say it is because of second shift.
CHART No. 12
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Is the attrition is mostly because of the shift basis
70 60 50 40 30 20 10 0 first shift second shift First Shift Second Shift
INFERENCE: Among the total respondents 34% of them say attrition is because of first shift and 66% of the respondents say it is because of second shift.
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TABLE No. 13 OPINION ABOUT EMPLOYEES WAGE RELATED TO WORK
Particulars More than enough Sufficient Insufficient TOTAL
No.of respondents 0 62 38 100
Percentage 0 62 38 100
INFERENCE:
62% of the respondents among the total say that wage related to work is sufficient and 38% of them say that wage related to work is insufficient
CHART No. 13
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Opinion about your wage related to work
70 60 50 40 30 20 10 0
more than enough sufficient insufficient
More than enough Sufficient In sufficient
INFERENCE:
62% of the respondents among the total say that wage related to work is sufficient and 38% of them say that wage related to work is insufficient
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TABLE No. 14 OPINION OF EMPLOYEES ABOUT THE ATTENDANCE INCENTIVES
Particulars Yes No TOTAL
No.of respondents 78 22 100
Percentage 78 22 100
INFERENCE:
78% of the total respondents say that attendance incentives is provided by the organization and 22% of the respondents say that it is not provided.
CHART No. 14
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Whether attendence incentives is provided by the organization
80 60 40 20 0 YES NO yes no
INFERENCE:
78% of the total respondents say that attendance incentives is provided by the organization and 22% of the respondents say that it is not provided.
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TABLE No. 15 OPINION OF EMPLOYEES ABOUT ATTRITION DUE TO HEAVY WORKLOAD Particulars Strongly Agree Agree Neutral Disagree Strongly Disagree TOTAL No.of respondents 22 52 24 2 0 100 Percentage 22 52 24 2 0 100
INFERENCE: Attrition occurs due to heavy workload and 52% of the total respondents agree to that and 24% of the respondents say that it is neutral
CHART No. 15
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Do you agree that the attrition occurs due to heavy workload
60 50 40 30 20 10 0
strongly strongly agree neutral dissagree agree disagree
Strongly Agree Agree Neutral Dissagree Strongly Dissagree
INFERENCE:
Attrition occurs due to heavy workload and 52% of the total respondents agree to that and 24% of the respondents say that it is neutral
TABLE No. 16
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THE RELATIONSHIP BETWEEN EMPLOYER AND EMPLOYEES WILL REDUCE ATTRITION.
Particulars Strongly Agree Agree Neutral Disagree Strongly Disagree TOTAL
No.of respondents 30 52 16 2 0 100
Percentage 30 52 16 2 0 100
INFERENCE:
Among the total respondents 52% of them agree that the relationship between employer and employee will reduce attrition and 30% of the respondents strongly agree that the relationship between employer and employee will reduce attrition.
CHART No. 16
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The relationship between employer and employee will reduce attrition
60 50 40 30 20 10 0
strongly agree agree Strongly dissagree
Strongly agree Agree Neutral Disagree Strongly disagree
neutral disagree
INFERENCE: Among the total respondents 52% of them agree that the relationship between employer and employee will reduce attrition and 30% of the respondents strongly agree that the relationship between employer and employee will reduce attrition.
TABLE No. 17 MOST LIKE ABOUT THE COMPANY
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FACTORS Gained Knowledge, Technology, Networking The Work/ Open culture was best The Employee care was excellent
STRONGLY AGREE NEUTRAL DISSAGREE STRONGLY AGREE AGREE 0 42 54 4 0
4
40
52
4
0
0
66
34
0
0
Strongly Agree Agree Neutral Dissagree Strongly Dissagree
: : : : :
5 4 3 2 1
CALCULATION: Gained Knowledge, Technology, Networking =(0*5) + (42*4) + (54*3) + (4*2) + (0*1)/100 The work/ Open culture was best =(4*5) + (40*4) + (52*3) + (4*2) + (0*1)/100 The Employee care was excellent =(0*5) + (66*4) + (34*3) + (0*2) + (0*1)/100 INFERENCE:
= = =
3.38 3.44 3.66
Majority of employees feel that employee care was excellent.
TABLE No. 18 SUPERVISOR CARE TOWARDS EMPLOYEES
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FACTOR Listened to suggestions Treated you fairly Gave performance feedback Coached Trained and developed you ALWAYS USUALLY SELDOM NEVER : : : :
ALWAYS 6 0 6 2 4 3 2 1
USUALLY 54 64 58 58
SELDOM 45 36 32 38
NEVER 0 0 4 2
CALCULATION: Listened to suggestions =(6*4) + (54*3) + (45*2) + (0*1)/100 Treated you Fairly =(0*4) + (64*3) + (36*2) + (0*1)/100 Gave performance feedback =(6*4) + (58*3) + (32*2) + (4*1)/100 Coached , Trained and developed you =(2*4) + (58*3) + (38*2) + (2*1)/100 INFERENCE
= = = =
2.76 2.64 2.66 2.6
Majority of employees suggestions were taken into considerations by the supervisors.
CHI SQUARE TEST TABLE No. 19
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RELATIONSHIP BETWEEN EMPLOYER AND EMPLOYEE ATTRITION WITH RESPECT TO WORK EXPERIENCE Null Hypothesis(H0): There is no significant difference between employer and employee attrition with respect to work Experience. Alternate Hypothesis(H1): There is significant difference between employer and employee attrition with respect to work Experience.
PARTICULARS STRONGLY AGREE NEUTRAL DISSAGREE STRONGLY TOTAL AGREE DISSAGREE
9 YEARS TOTAL
4 22 4 0 0 30
2 32 14 2 0 50
0 12 6 0 0 18
0 2 0 0 0 2
0 0 0 0 0 0
6 68 24 2 0 100
S.NO 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Oi 4 2 22 32 12 2 4 14 6 2
Ei 1.8 3 20.4 34 12.24 1.36 7.2 12 4.32 1
(Oi-Ei)^2/Ei 2.688 0.333 0.125 0.117 0.004 0.301 1.422 0.333 0.653 1 6.976
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Degree of Freedom = 16; Level of significance is at 5% ; Calculated value of X = 6.976 Table Value X = 26.296 Calculated value < Table value Hence Null Hypothesis is accepted. INFERENCE: There is no significant difference between employer and employee attrition with respect to work experience
CHAPTER - VI 6.1.1FINDINGS
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After the detailed study, the collected information and data was analyzed. A lot of valuable findings were found common towards at LUCAS TVS are as explained below.: 68% of the respondents are having 6-9 years experience and 24% of respondents are having 1-3 years experience ? 38% of the respondents prefer less growth opportunity and 20% of the respondents triggered Personal reasons and only 18% of respondents triggered Benefits- salary, Incentives and health to leave the company. ? 48% of the respondents believe that the orientation process in the organization is good and 26% of respondents says very good and 24% respondents says fair. ? 48% of the respondents are treated good and 30% of the employees treated fairly and 20% of the employees are treated very good. ? ? 68% of the respondents say that the overall morale is good. 58% of the respondents are highly satisfied with food facilities provided and 7% of respondents neither satisfied nor dissatisfied and no respondent is highly dissatisfied with this. ? 34% of the employees least like the salary and 30% of the employees least like their attitude of superiors and 26% of the employees with their shift pattern and only 10% of the respondents least like about their management.
?
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?
One factor that most like about the job is friendly atmosphere and the respondents are 26%. 48% of the respondents least like stress in their job. 72% of the respondents say that proper medical facilities are provided by the organization incase of minor injuries where only 28% of the respondents says that medical facilities are not provided. Feel that work pressure is heavy. Yes the attrition because of the shift basis and 66% of attrition because of second shift and 34% of attrition because of first shift. 62% of them say that wage related to work is sufficient and 38% of them say that wage related to work is insufficient. 78% of the respondents say that attentence incentives is provided by the organization where only 22% of the respondents say it is not provided. 52% of the employees agree that the attrition occurs due to heavy workload and 24% of the respondents say that it is neutral. 52% of the respondents agree with the relationship between employer and employees will reduce attrition.
?
?
?
?
?
?
?
?
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6.2 SUGGESTIONS AND RECOMMENDATIONS
An overview of the study carried out to analyze a set of characteristics that describe organizations. The following suggestions, which can avoid attrition in the organization, are as follows:
• Transport facilities can be provided. • Work pressure can be reduced to make employees to feel comfortable in their work. • The relationship between employer and employee should be more so that we can reduce the attrition level in the organization. • Work load to the employees should be reduced. • Stress in the work should be reduced.
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6.3 CONCLUSION
In the contemporary corporate world, success of an organization comes from its people and it is irrespective of the nature of their job. Labour Turnover analysis is one of the factors that help the organization to achieve this success. LUCAS TVS is one among the organizations which give atmost importance to is people. LUCAS TVS values its human resources much more than anything, Despite such efforts, the study indicates that for a few aspects regarding the topic there should be a change. These findings do not hold back the labour turnover employees prevailing in the organization. On the other hand the changes if implemented will definitely lift up the existing position.
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6.4 SCOPE FOR FURTHER RESEARCH
This study can act as a base for any researcher who would like to carry a research in Labour turnover analysis. Very few dimensions have been analysed in this study due to limited time frame. There are more dimensions like participative management, safety, security, etc. to be analysed and this is a clear indication that there is a great scope for further research. Moreover, present employee’s perception is subject to variation over a period of time. This study though relevant now may not be applicable after a period of time.
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BIBLIOGRAPHY
Books referred: ? C.R Kothari,(2002), “Research Methodology”, Vishwa Prakashan. ? Gupta and Gupta,(2001), “Practical statistics” , Oscar Publications ? LUCAS TVS company manuals Websites browsed: ?http://www.academicjournals.org/ajbm ?http://www.lucas-tvs.com ?http://www.economywatch.com
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