MAJOR PROJECT REPORT SUBMITTED TOWARDS THE PARTIAL FULFILMENT OF

Bachelor of Commerce (B.COM H)

MAJOR PROJECT REPORT ON

Analysis of Employee Turnover in Automobile Industry

Submitted by: PROJECT GUIDE
PRACHI DAS SAPNA THUKRAL
01424088815 ASSISTANT PROFESSOR

Trinity Institute of Professional studies

Affliated to Guru Gobind Singh Indraprastha University, New Delhi

TO WHOMSOEVER IT MAY CONCERN

This is to certify that the project work “Analysis of Employee Turnover in Automobile Industry”
made by “Prachi Das B.com h 6TH semester Enrolment number- 01424088815” is an authentic
work carried out by her under the guidance and supervision of Ms. Sapna Thukral.
The project report submitted has been satisfactory for the partial fulfilment of the degree of
Bachelor of Commerce.
Internal Supervisor

Signature

Ms. Sapna Thukral

 AKNOWLEDGEMENT
It is in particular that I am acknowledging my sincere feeling towards my mentors who
graciously gave me their time and expertise.
They have provided me with the valuable guidance, sustained efforts and friendly approach. It
would have been difficult to achieve the results in a short span of time without their help.
I deem it my duty to record my gratitude towards the Project Supervisor Ms. Sapna Thukral
who devoted her precious time to interact, guide and gave me the right approach to accomplish
the task and also helped me to enhance my knowledge and understanding of the project.

Signature
Prachi Das
01424088815
B.com H

6th sem/2nd shift

 DECLARATION
I hereby declare that the following documented Project Report titled “Analysis of Employee
Turnover in Automobile Industry” is an original and authentic work done by me for the partial
fulfillment of Bachelor of Commerce degree program.

I hereby certify that all the Endeavour put in the fulfillment of the task are genuine and original to the
best of my knowledge and I have not submitted it earlier elsewhere.

Signature
Prachi Das
01424088815
B.com H

6th sem/2nd shift

 Table of Content
S.NO Particulars Page No.

1. Chapter-1 (Introduction and Literature Review) 1-15


Introduction

History
(Theoretical concept about the topic such as Importance, Functions,
Types, Roles, etc.)
2. Chapter-2 (Research Objectives and Methodology) 15-30

Research objective of the study

Research Methodology

Research Design
(Types of research design)

Data Collection
(Sources of data collection-Primary and Secondary)

Sampling Design
Population/Universe
Sampling Unit
Sampling Size
Sampling Area
Sampling Technique

Sampling Instrument (Questionnaire)
No. of questions
Type of questions
Rating scale (if used)

3. Chapter-3 (Data Processing, Analysis and Interpretation) 30-45


Data Processing

Analysis of the problem under study

Interpretation of the result
4. Findings 46

5. Limitations 47

6. Conclusions 48

7. Recommendations and Suggestions 49

8. Bibliography 50

9. Annexures 51
CHAPTER-1
 I. INTRODUCTION

1.1.1 What is an Organization?

A set up where individuals come together and work in unison to achieve a common goal is
called as organization. Individuals working together in an organization to earn their bread
and butter as well as make profits are called employees. Employees are the lifeline of an
organization and contribute effectively to its successful running and profit making. An
organization can’t survive if the employees are not serious about it and are more concerned
about their personal interests.
1.1.2 What is Employee Turnover?
Employee turnover is technically and mathematically defined as ―the ratio of the number
of workers that had to be replaced in a given time period to the average number of workers.
Put simply, it is an instance when an employee leaves their position at their workplace and
needs to be replaced. Employee turnover is a ratio comparison of the number of employees
a company must replace in a given time period to the average number of total employees. A
huge concern to most companies, employee turnover is a costly expense especially in lower
paying job roles, for which the employee turnover rate is highest. Many factors play a role
in the employee turnover rate of any company, and these can stem from both the employer
and the employees. Wages, company benefits, employee attendance, and job performance
are all factors that play a significant role in employee turnover. In a human resources
context, turnover or labor turnover is the rate at which an employer gains and losses
employees. Simple ways to describe it are "how long employees tend to stay" or "the rate of
traffic through the revolving door." Turnover is measured for individual companies and for
their industry as a whole. If an employer is said to have a high turnover relative to its
competitors, it means that employees of that company have a shorter average tenure than
those of other companies in the same industry. High turnover can be harmful to a company's
productivity if skilled workers are often leaving and the worker population contains a high
percentage of novice workers.
 1.2 LITRETURE REVIEW

1. William H. Price & Richard Kiekbusch & John Theis in his study on causes of employees
turnover have talked about the causes and the implementation. Further he highlighted that
providing a challenging job, and offering realistic promotion opportunities. Other
variables that have less impact are schedule input, insurance and family income. Good
communication and job satisfaction.

2. Beri G.C., Human Resource Tata McGraw New Delhi, in his study on the cause of factor
influencing turnover and retention of staff and retention problems for professional have
talked about the Working hours, workload and work schedules which are also common
concerns to both groups. In addition, career development, promotion and 4appreciation of
contribution were important retention factors, while a supportive professional
environment, reduction in workload and working hours and more flexible work patterns
were important to consultants.

3. Cari McLean, Labour Management in Agriculture, in her study knowing the reason why
workers leave or edge in improving working condition and have talked about
dissatisfaction with work or working condition, select and train new personnel, conducting
workers satisfaction survey, find specific problem area to watch and improve

4. Cosenza, Robert M.in his study on the causes of the cost of employees turnover due
solely to unfairness in the workplace and have talked about the effect of unfairness
upon an employee’s decision to leave their employer and the financial to employer
due to voluntary turnover. Further he highlighted Recruiting and retaining the best
and the brightest Remove the barriers and biases which create unfair workplace

5. Moore, in her study on the cause of an informative report regarding employees turnover
and retention on the causes of high employee turnover which affect the most, and the
companies can decrease employees turnover in order to cut the
hidden cost. Further she highlighted the poor management, low pay, boring repetitive
work, with no opportunity for advancement, high turnover of employees is a symptom of a
mismanaged company.
 1.3 Types of Employees Turnover

1. Internal vs. external turnover

Like recruitment, turnover can be classed as 'internal' or external. Internal turnover

involves employees leaving their current position, and taking a new position with the
same organization. Both positive (such as increased morale from the change of task and
supervisor) and negative (such as project/relational disruption,) effects of internal
turnover exist, and thus this form of turnover may be as important to monitor as its
external counterpart. Internal turnover might be moderated and controlled by typical HR
mechanisms, such as an internal recruitment policy or formal succession planning.

2. Skilled vs. unskilled employees

Unskilled positions often have high turnover, and employees can generally be replaced
without the organization or business incurring any loss of performance. The ease of replacing
these employees provides little incentive to employers to offer generous employment
contracts; conversely, contracts may strongly favour the employer and lead to increased
turnover as employees seek, and eventually find, more favorable employment.
However, high turnover rates of skilled professionals can pose as a risk to the business or
organization, due to the human capital (such as skills, training, and knowledge) lost.
Notably, given the natural specialization of skilled professionals, these employees are
likely to be re-employed within the same industry by a competitor. Therefore, turnover of
these individuals incurs both replacement costs to the organization, as well as resulting in
a competitive disadvantage to the business.

3. Voluntary vs. involuntary turnover

1. Involuntary: - In this case, the employee ceases to work for the company due to
being laid off or terminated. It could be because the company is trying to cut costs, or the
employee has violated company policy.
 2. Voluntary: - Voluntary turnover is when an employee terminates employment on
their
own accord. There are several possible
causes:-2.1 relocation
2.2 going back to school
2.3 starting a family
2.4 taking care of an elderly relative
2.5 general job dissatisfaction such as low pay, lack of benefits, or poor management

1.3.1 Causes of Employee Turnover

There are several factors that cause high turnover within companies. This report will focus on
voluntary turnover, because voluntary turnover is something that companies are more able to
control. Employees voluntarily quit for several reasons, specifically:
1. pay is too low

2. lack of benefits

3. tasks are too repetitive

4. circumstances listed above such as family, school, or moving

5. poor management

6. lack of advancement

7. burnout

8. Compensation package differences Job and employee skill mismatch: the job may be less
or more satisfying and challenging according o the employee.

9. Inferior facilities, tools, etc.

10. Less recognition

11. Less or no appreciation for work done

12. Less growth opportunities

13. Poor training

14. Poor supervision

15. Less work and life balance practices

There are some other numbers of factors that contribute to employee turnover. We explore
some of these factors in more detail below:-
1. The economy - in exit interviews one of the most common reasons given for leaving is
the availability of higher paying jobs. Some minimum wage workers report leaving one job for
another that pays only 50 cents an hour more. Obviously, in a better economy the availability of
alternative jobs plays a role in turnover, but this tends to be overstated in exit interviews.
2. The performance of the organization - an organization perceived to be in economic
difficulty will also raise the specter of impending layoffs. Workers believe that it is rational to
seek other employment.
3. The organizational culture - much has been written about organizational culture. It is
sufficient to note here that the reward system, the strength of leadership, the ability of the
organizations to elicit a sense of commitment on the part of workers, and its development of a
sense of shared goals, among other factors, will influence such indices of job satisfaction as
turnover intentions and turnover rate.
4. The characteristics of the job - some jobs are intrinsically more attractive than others. A
job's attractiveness will be affected by many characteristics, including its repetitiveness,
challenge, danger, perceived importance, and capacity to elicit a sense of accomplishment. A
job's status is also important, as are many other factors.
5. Unrealistic expectations - Another factor is the unrealistic expectations and general lack
of knowledge that many job applicants has about the job at the time that they receive an offer.
When these unrealistic expectations are not realized, the worker becomes disillusioned and
decides to quit.
6. Demographics - empirical studies have demonstrated that turnover is associated in
particular situations with demographic and biographical characteristics of workers. But to use
lifestyle factors (e.g. smoking) or past employment history (e.g. many job changes) as an explicit
basis for screening applicants, it is important for legality and fairness to job applicants to verify
such biodata empirically.
1.3.2 Causes of High and low employee turnover

High turnover often means that employees are unhappy with the work or compensation, but
it can also indicate unsafe or unhealthy conditions, or that too few employees give satisfactory
performance (due to unrealistic expectations or poor candidate screening). The lack of career
opportunities and challenges, dissatisfaction with the job-scope or conflict with the management
has been cited as predictors of high turnover.

High rate of turnover may lead to decrease in:

1. Productivity

2. Service delivery

3. Spread of organizational knowledge

Low turnover indicates that none of the above is true: employees are satisfied, healthy and
safe, and their performance is satisfactory to the employer. However, the predictors of low
turnover may sometimes differ than those of high turnover. Aside from the fore-mentioned
career opportunities, salary, corporate culture, management's recognition, and a comfortable
workplace seem to impact employees' decision to stay with their employer.

A little rate of employee turnover may result into:

1. Bringing in new ideas and skills from new hires.

2. Better employee-job matches.

3. More staffing flexibility.

4. Facilitate change and innovation.

1.3.3 HOW TO CALCULATE THE TURNOVER RATIO

Step 1. Calculate the average number of employees the number of employees is calculated by
adding the number at the start of the period, to the number at the end of the period. Then dividing
by 2 to arrive at the average number of employees.

For example: At the start of the year the firm employed 1000 people. At the end of the year the
firm employed 1200. To arrive at the average we add together 1000 + 1200 = 2200. Then divide
by 2 to get our answer 2200/2 = 1100 this figure is the average number of people employed
during the period.

Step 2. Calculate the number of departures during the period The key here is to make sure that
we only include those departures that are actually relevant. That means those that come within
the definition we are using. So for the definitions we are using in this example the relevant
figures are: Total number of exits = 220 Voluntary = 110 Early = 55

Step 3. Divide departures by number of employees to arrive at our final figures, we divide the
number of relevant departures by the average number of employees. Then multiply by 100 to get
the percentage rate. For total turnover we have: 220 / 1100 (x 100) = 20% for voluntary turnover
we have: 110/1100 (x100) = 10% for early turnover we have: 55/1100 (x100) = 5% Calculating
Employee Turnover.

However, please keep in mind that there are a number of complications:

Let's say there were 100 employees at the beginning of the year, and 100 employees at the end of
the year, and at the end of the year, 84 of those employees were the same ones as were there the
previous year. You might say that the turnover rate was 16%.

But suppose one of those 16 who left was actually replaced three times. The employee quit in
January, the replacement quit in April, and another person was hired who lasted only until
November. Then you might want to count every time an employee left the company and another
one was hired - in this case you'd get 18%.

Another complication: suppose the work force is 100 at the beginning and 90 at the end of the
year. Perhaps 16 people have left, but only 6 have been hired during the year, while 2 more were
hired and retired within the same year. You might define turnover as 18/100 or as 18/90, or as
18/95, since 95 is the average of 90 and 100. Instead of 95, you might want to do a fancier
average, where you actually add up the number of employees on each day of the year, and divide
the total by 365.

One more complication: who decided it was a calendar year that we should use for sampling the
turnover rate? Perhaps there was no turnover at all for 3 years prior, and then a shift in
management caused a lot of people to leave this year. Then a more representative measure would
average over 2 or 3 or 4 years. Maybe you'd want to average the turnover in each month of the
last 48, but weight recent months more heavily than earlier months.

1.3.4 Measures to Reduce the Rate of Turnover

1. Benefits. Offering employees an affordable medical, dental, and vision package in this
day and age is a great way to keep employees happy. Healthy employees are happy employees,
and being able to provide affordable health care for their spouses and families as well is
something every company should offer.
2. An added bonus could be vacation time, sick leave. On-site child care would be
extremely helpful for parents who have to work long or late hours—especially single parents.
3. Higher pay. Giving employees regular raises and paying well over minimum wage
would be an incentive for them to stay.
4. A set schedule. In food service and retail, and most service industries as well as health
care, employees are forced to work six or more—even up to ten days in a row without a day off.
Days off may even be split up, so the employees never really get a chance to rest. Giving them
the opportunity to choose which days off they want, or at least giving them two in a row and not
working them more than five, would be extremely beneficial in employee retention. This would
also increase productivity and would be beneficial to the company.
5. Job variation. Employees get burned out on performing the same job every hour of
every day, day in and day out for years, even months. Cross-training should be done, especially
in food service and retail, in order to avoid burnout.
6. A positive attitude from superiors. Most employees don’t like negativity from their
superiors. Instead of always being told what they’re doing wrong, they need positive reinforcement
as well as constructive criticism. Managers and supervisors should always have a positive
attitude toward their employees and never insult, criticize, or berate them.

7. Proper training for management. Managers should be trained thoroughly and

consistently. The policies from location to location should be the same, and every manager and
supervisor in the company should be trained the same way and be in agreement and consistent
with company policies. Managers should be trained to treat their employees with respect,
because without those employees, the business could not operate.

1.3.5 Benefits of reducing employee turnover


Businesses that invest in employees and have high employee engagement  have a
 competitive advantage in their ability to make it through a recession.


These companies will emerge from the recession 
stronger and healthier unlike the
 companies whose workforce has been decimated.
 
 Employees feel respected, valued, and appreciated
 
 Employees get to be players and not just hired hands

 
Employees get to make a difference.
 1.4 Company Profile
I. Maruti Suzuki
Incorporation

Incorporated in 1981

Turnover

Rs.37522.4 Cr Audited results for April 1, 2010 to March 3, 2011

People

More than 15000 direct employees including more than 1400 managers

Parentage

MARUTI is a part of the €44.3 billion

Reach

Reaches over 6.3 million retail outlets including direct reach to over 1 million

R&D

Two R&D centers in India in New Delhi and Mumbai

Maruti Udyog Limited is India's largest Fast Moving Consumer Goods Company with a
heritage of over 75 years in India and touches the lives of two out of three Indians.

It was the first company in India to mass-produce and sell more than a million cars. It is largely
credited for having brought in an automobile revolution to India. It is the market leader in India,
and on 17 September 2007, Maruti Udyog Limited was renamed as Maruti Suzuki India Limited.
The company's headquarters are located in New Delhi.

Maruti`s vision Statement

Maruti is India’s leader in the automobile industry. It believes that the customer is king.
It is making sure that performance, after sales service and customer support are really good in
India. Here are some key points from Maruti’s vision statement:

1. Modernization of the Indian Automobile Industry

2. Developing cars faster and selling them for less.

3. Production of fuel-efficient vehicles to conserve scarce resources.

 4. Production of large number of motor vehicles which was necessary for economic growth.

5. Market Penetration, Market Development Similarly Product Development and

Diversification.

6. Partner relationship management, Value chain, Value delivery network

Mission

The leader in the Indian automobile industry, creating customer delight and shareholder's
wealth; a pride for India.

Purpose & principles

Always working with integrity

Conducting our operations with integrity and with respect for the many people, organisations and
environments our business touches has always been at the heart of our corporate responsibility.

Positive impact

We aim to make a positive impact in many ways: through our brands, our commercial operations
and relationships, through voluntary contributions, and through the various other ways in which
we engage with society.

Continuous commitment

We're also committed to continuously improving the way we manage our environmental impacts
and are working towards our longer-term goal of developing a sustainable business.

Setting out our aspirations

Our corporate purpose sets out our aspirations in running our business. It's underpinned by our
code of business Principles which describes the operational standards that everyone at Unilever
follows, wherever they are in the world. The code also supports our approach to governance
and corporate responsibility.

Working with others

We want to work with suppliers who have values similar to our own and work to the same
standards we do. Our Business partner code, aligned to our own Code of business principles,
comprises ten principles covering business integrity and responsibilities relating to
employees, consumers and the environment.
Company structure

Currently Suzuki holds 54.2% stake of Maruti, the balance being held by various QIBs, PCBs and
public. On BSE, Maruti has the highest market capitalisation in the auto sector. We are the largest car
company in the country. So far, we have produced more than 6.6 million cars. We are Suzuki's
largest manufacturing facility, outside Japan offering 11 models in over 150 variants. The turnover
last year was USD 3.37 Bn employing more than 6700 employees. The high localization of parts
within India is one of our distinct strengths. Where the company has 3 plants in Gurgaon facility, 4th
plant was added with the capacity of 1 hundred thousand at Manesar in 2006-07.

PRODUCTS OF MARUTI
II. HYUNDAI

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor
Company (HMC), South Korea and is the largest passenger car exporter and the second largest
car manufacturer in India. HMIL presently markets 6 models of passeng er cars across segments.
The A2 segment includes the Santro, i10 and the i20, the A3 segment includes the Accent and
the Verna, the A5 segment includes the Sonata Transform.

HMIL’s fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most
advanced production, quality and testing capabilities in the country. To cater to rising demand,
HMIL commissioned its second plant in February 2008, which produces an additional 300,000
units per annum, raising HMIL’s total production capacity to 600,000 units per annum.

In continuation with its commitment to providing Indian customers with cutting -edge global
technology, HMIL has set up a modern multi -million dollar research and development facility in
the cyber city of Hyderabad. It aims to b ecome a centre of excellence for automobile
engineering and ensure quick turnaround time to changing consumer needs.

As HMC’s global export hub for compact cars, HMIL is the first automotive company in India to
achieve the export of 10 lakh cars in just ov er a decade. HMIL currently exports cars to more
than 110 countries across EU, Africa, Middle East, Latin America, Asia and Australia. It has
been the number one exporter of passenger car of the country for the sixth year in a row.

To support its growth and expansion plans, HMIL currently has a 290 strong dealer network and
580 strong service points across India, which will see further expansion in 2010.

To support its growth and expansion plans, HMIL currently has a 290 strong dealer network and
580 strong service points across India.
COMANY’S HISTORY

The beginning of Hyundai Motor Company dates to April 1946 when founder, Ju-Yung Chung
established Hyundai Auto Service in Seoul, South Korea at The age of 31 years. The name
Hyundai was chosen for its meaning which in English translates to “modern.” The Hyundai logo
is symbolic of The Company's desire to expand. The oval shape represents The Company's
global expansion and The stylized "H" is symbolic of two people (The Company and customer)
shaking hands.

Hyundai Motor India Limited was formed in 6 May 1996 by The Hyundai Motor
Company of Korea. The first production plant was established in Irrungattukotai
near Chennai, India.

HMIL's first car, The Hyundai Santro was launched in 23 September 1998 and was a runaway
success. Within a few months of its inception HMIL became The second largest automobile
manufacturer and The largest automobile exporter in India.

Hyundai sells several models in India, The most popular being The Santro Xing, i10 and The
i20.OTheR models Include Getz Prime, Accent, Verna TRANSFORM, Tucson, and The Sonata
Transform.

COMPANY’S VISION

The company’s motto is "Innovation for Customers". The company’s vision is five core strategies:
global orientation, respect for human values, customer satisfaction, technology innovation, and
cultural creation. They have a desire to create an automobile culture of putting customer first via
developing human–centered and environment–friendly technological innovation.

The company’s strive’s to create a more affluent lifestyle for humanity, and contribute to the
harmony and co-prosperity with shareholders, customers, employees and other stakeholders in
The automobile industry.

The spirit of creative challenge of the company has been a driving force in leading HMIL to where it
is today. It is the permanent key factor for HMIL to actively respond to change in the company’s
the management system and seek creative and self–innovative system. The spirit of creative
challenge, creates profits, The primary objective of a private enterprise. Furthermore, the
company’s takes responsibility for The environment and society and provide benefits to all
stakeholders including shareholders, customers, executives, employees, suppliers, and
communities.

MGF DEVELOPMENTS

The MGF Developments has been making a difference to Indian lifestyle and development for
over seven decades. Our longevity and success represents an unmatched commitment to our
customers, our business and our employees. From being the pioneers in the Hire Purchase and
Leasing business, the MGF Developments today is making a difference in Real Estate
Development and Automobiles Distribution ventures across India.

ABOUT MGF

MGF Developments is a leading player in the field of retail real estate and property development in
India, and has brought in international standards in commercial complexes and shopping malls. It
was first in the sector to introduce the concept of condominiums in the country. Today, it is one of
the largest shopping mall developers in the National Capital Region, with almost 3 million sq.ft. of
retail space under development. Some of MGF Developments’ landmark projects include the
Metropolitan, The Plaza and the City Square Mall in Gurgaon in 2003. It is an organization that in
many ways has been a model for a host of new companies entering the field.

MGF Hyundai is one of the leading names in Automobiles dealership of Hyundai. Motor India
Ltd located at 1, Jhandewalan, Faiz Road, New Delhi. The centralized location of the showroom
effectively covers whole of Delhi in North, East, West & South and providing dedicated
professional after sales service to our esteemed customers by having service centers at G.T.
Karnal Road, Patparganj, Mayapuri and Okhla.

MGF Mayapuri service station is also the training hub for all North Indian Hyundai Service
stations.
MGF Hyundai is having highly professional & motivated team, dedicated leaders providing their
prompt, efficient services to our customers with utmost priority being the Quality of Service and
Customer Satisfaction. Our longevity and success represent an unmatched commitment to our
esteemed customers, solid knowledge of the Indian Market and to a certain extent our competitive
advantage with our large customer database, distribution network and customer services.

VISION AND MISSION

At a time when India was awakening to the call of freedom, MGF was taking a revolutionary
step that would help hasten the country's development. Today, the MGF Developments portfolio
spans the entire spectrum of small, medium and large-scale equipment finance as well as big
ticket leasing, vehicle financing, Automobiles dealerships, factoring services, consumer finance,
and infrastructural development. The MGF Developments brings international expertise, cutting-
edge technology and global scale of operations to deliver 100 percent satisfaction to its
customers, clients and employees. The MGF Developments vision is to be recognized as:

The preferred provider of services and integrated solutions in all its areas of operation A
diverse team of talented professionals with expertise in selected segments
An employer of choice, fostering a culture that values Dedication, Respect and Continuous
Improvement
Comparative Study of Both the Companies
Through the comparative study of both the companies I have found that companies have facing
the problem of employees turnover because of the pay is too low, lack of benefits ,tasks are too
repetitive circumstances listed above such as family, school, or moving, poor management ,lack
of advancement, burnout, less recognition, less or no appreciation for work done, less growth
opportunities, Poor training, Poor supervision, Less work and life balance practices which are
almost the same in both companies.
Chapter 2
2.1 OBJECTIVE OF THE STUDY
 
PRIMARY OBJECTIVE:
• To find out the reason behind employee
turnover. there employees.

SECONDARY OBJECTIVE:
To find out the whether there is any strategy or policy of Automobile Industry to retain.
To find employees overall satisfaction in the organization with relation to work environment
culture.
To make suggestions to the organization to improve its employees retention strategies.

2.2 RESEARCH METHODOLOGY

The source of the data being Primary data was collected through a questionnaire given to the
respondents, from New Delhi. The sample size was 100 & was based on convenience sampling.
The questionnaire method was employed to know their satisfaction level & reasons for low
employee retention.
The collected data was first ordered, classified and tabulated to analyze. Cross tabulation method
using SPSS software was used to interpret & draw conclusions keeping in mind, the objectives of
the study.

2.3 RESEARCH DESIGN:

A research design is the arrangement of conditions for collection and analysis in a manner that
aims to combine relevance to the research purpose with economy in procedure. Research design
is the conceptual structure within which research is conducted it constitutes the blueprint for the
collection, measurement and analysis of data. This project uses the descriptive type of research
design which describes the characteristics of group, individual or a situation.

A descriptive study involves the following steps:

1. Formulating the objectives of the study.

2. Defining the population and selecting the sample.
3. Designing the method of data collection.
4. Analysis of the data.
5. Conclusion and recommendation for further improvement in the practices.

2.4 SAMPLING DESIGN:

A sample design is a definite plan for obtaining a sample from a given population. It refers to
the technique or the procedure the researcher would adopt in selecting items for the sample.
2.5 TYPE OF UNIVERSE:

The first step in developing any sample design is to clearly define the set of objects called the
universe to be studied. The universe can be finite or infinite. In finite universe the number of
items is certain but in case of an infinite universe the number of items is infinite i.e., we cannot
have any idea about the total number of items. In this project the type of universe is finite.

2.6 SAMPLING UNIT:

A sampling unit has to be decided before selecting sample. Sampling unit may be geographical
one such as state, district, village, etc or a construction unit such as a flat, house, etc or it may
be a social unit such as a family, club, school, etc or it may be an individual. In this the sampling
unit is the manufacturing operations.

2.7 SAMPLING SIZE:

This refers to the number of items to be selected from the universe to constitute a sample. The size of
sample should neither be excessively large, nor too small. It should be optimum. An optimum sample
is one which fulfills the requirements of efficiency, representativeness, reliability and flexibility.
From the total number of employees 25 have been selected for this project.

2.8 DATA COLLECTION METHOD:

Primary data are those which are collected for the first time and thus happen to be original in
character. In this primary data are collected using questionnaires.

2.9 STATISTICAL TOOLS:

The data collected from the respondents were analyzed using the statistical technique. They are:

Crossta
b Limitations:

I. The study was conducted only in Bangalore city.

II.The study was done for a specific age slab.
III.The study is limited to 100 respondents.
IV. The study was based on convenience sampling which may not capture the whole population
V. The study had time constraint.

2.10 The Research Instrument:

2.10.1 Questionnaire: The questionnaire is prepared in such a way that is correct the comprehensive
objectives of the study. Open end, multiple choice of questionnaire adopted in this research.

2.11 Period of study: The time period of the study is 45 days.

Questionnaire
A STUDY ON THE TURNOVER OF EMPLOYEES
Designation:
Age group:
a)18-25 b)26-35 c)36-45 d)46-55 e)Over 55
Gender:
a)Male b)Female
1. How much are you satisfied with the current job?
a)Very high b)Fairley enough c)Moderate d)Very less
2. Do you have Rewards and recognition for your achievements in current
company? a)Yes b) No. If no, Please specify the reason.
3. Is it important that appreciation for your work by your coworkers and supervisors
is necessary?
a)Yes b) No. If no, Please specify the reason………
4. How do you rate the infrastructure and equipment provided by the
organization? a)Excellent b)Very good c)Good d)Poor e)Worst
5.Does the retention bonus have any impact on the motivation levels for an associate?
a)Yes b)No. If no, Please specify the reason……..
6. Do you feel that the company provides opportunities for your growth and development?
a)Yes b) No. If no, Please specify the reason……

7. Do you think that the implementation of three Rs (recognition, reward, respect) will increase
employee retention?

Never Sometimes Most of the times All the time

Recognition
Reward

Respect

8. What is your opinion on the working environment?

 a)Highly Dissatisfied b)Dissatisfied c) Neutral d)Satisfied e)Highly Satisfied

9. Express your level of satisfaction regarding the welfare measures provided by the Company?

a) Highly Dissatisfied b) Dissatisfied c) Neutral d) Satisfied e) Highly Satisfied

10. Have you worked in any other organization previously to this company?

a)Yes b) No
If yes, for what reason you shifted to this company?

11. Benefits
Please rate the following benefits of employment on a scale of 1 to 5 where 1 = not at all
important and 5 = very important
NOT AT ALL NOT VERY NEUTRAL SOMEWHAT VERY
IMPORTANT IMPORTANT IMPORTANT IMPORTANT
Salary/Compensation 1 2 3 4 5

Leave benefits 1 2 3 4 5
(Including sick,
vacation, personal and
paid holidays)
Retirement plans 1 2 3 4 5

Health and related 1 2 3 4 5

benefits
Long term care 1 2 3 4 5
insurance
Deferred compensation 1 2 3 4 5
Employee Assistance 1 2 3 4 5
Program (EAP)
Life works (resource 1 2 3 4 5
and referral)

12. Would you like to plan your further carrier in this organization?

a ) yes b ) No. If no, please specify the reason