ON

SIX WEEK TRAINING

SUBMITTED IN PARTIAL FULFILLMENT OF
REQUIREMENT OF DEGREE IN MASTER OF BUSINESS
ADMINISTRATION

JUNE - SESSION: 2010

UNDER GUIDENCE: SUBMITTED BY:

Mr. SUKHBIR SINGH PARVEEN KUMARI

ROLL NO. 90212233204

HCL CARRER DEVLOPMENT CENTRE

CT GROUP OF INSTITUTE
SHAHPUR, JALANDHAR

CTIMS, JALANDHAR 1
 PREFACE

A student undergoing a degree course need to be exposed to the realities in the field,
which puts to test theclassroom learning. Knowledge cannot be gained only on the
basis of theoretical understanding from the books. A practice insight for the learning
process to complete and effective.

I took my project on a very well known well managed organization HCL CDC
(JALANDHAR). Where I got ample opportunity to view the overall Human
Recourses management in the organization.

Technically, EMPLOYEE TURNOVER on which I did my project is a problem

faced by any organization. So in this project I study a lot on the causes of the
Employee Turnover in the organization and the ways to remove turnover.

In the forthcoming pages, an attempt has been made to present a project report of
study conducted on the problem of Employee Turnover of HCL CDC.

CTIMS, JALANDHAR 2
 STUDENT’S DECLARATION

I PARVEEN KUMARI solemonly affirm that the ideas, views and the
opinions presented in this report are my own. No part of this report has been copied
from any other source.

Full signature of the student.

CTIMS, JALANDHAR 3
 ACKNOWLEDGEMENT

"No Learning is proper and effective without Proper Guidance”

Every study is incomplete without having a well plan and concrete exposure to the
student. Management studies are not exception. Scope often project at this level is
very wide ranging. On the other hand it provide sound basis to adopt the theoretical
knowledge and on the other hand it gives an opportunities for exposure to real time
situation.
This study is an internal part of our MBA program and to do this
project in a short period was a heavy task.
Intention, dedication, concentration and hard work are very much
essential to complete any task. But still it needs a lot of support, guidance,
assistance, co-operation of people to make it successful.
I bear to imprint of my people who have given me, their precious ideas
and times to enable me to complete the research and the project report. I want to
thanks them for their continuous support in my research and writing efforts.
I wish to record my thanks and indebtedness to Mr. Sukhbir Singh
Khalsa whose inspiration, dedication and helping nature provided me the kind of
guidance necessary to complete this project.
I am extremely grateful to CT GROUP OF INSTITUTE of
management for granting me permission to be part of this college.
I would also like to acknowledge my parents and my batch mates and
their guidance and blessings.

CTIMS, JALANDHAR 4
 GUIDE CERTIFICATE

This is to certify that the project study title “EMPLOYEE

TURNOVER in HCL CDC” carried out by PARVEEN KUMARI has been
accomplished under my guidance supervision. Parveen Kumari is submitting this
project in the partial fulfillment of requirements of the degree of MBA from CT
CTIMS affiliated to Punjab Technical University, Jalandhar.

This is an original work has not been submitted by her anywhere

else for the award of any degree. All sources of information and help has been duly
mentioned and acknowledged.

NAME:
Mr. SUKHBIR SINGH KHALSA
CTIMS
JALANDHAR

CTIMS, JALANDHAR 5
 TABLE OF CONTENTS

SERIAL NO. TOPIC PAGE NO.

1. PREFACE 2
2. AKNOWLEDGEMENT 4
3. CHAPTER 1 INTRODUCTION 7-8
4 .CHAPTER 2 REVIEW OF LITERATURE 9-11
5 .CHAPTER 3 NEED AND SCOPE 12-13
a. OBJECTIVES OF THE
STUDY
b. LIMITATIONS OF THE
STUDY
6 .CHAPTER 4 MAIN TEXT 14-45
a. INTRODUCTION TO
STUDY
b. COMPANY PROFILE
c. RESEARCH
METHODOLOGY
7 .CHAPTER 5 DATA ANALYSIS, 46-69
INTERPRETATION, SUGGESTIONS
AND CONCLUSION
8. BIBILOGRAPHY 70
9. ANNEXURE (QUESTIONNAIRE) 71-72

A Project Report on

CTIMS, JALANDHAR 6
 INTRODUCTION TO EMPLOYEE TURNOVER

Employee turnover is the rate at which an employer gains and loses 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. lf
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. It harmful to a company's
productivity if skilled workers are often leaving and the worker population contains
a high percentage of novice workers.
The inflow and outflow of labor employed by an enterprise. Some of this is because
of fluctuations in total employment over time, either seasonally or cyclically.
Some turn over results from geographical mobility of activity, notably in the
construction sector. Some results from the aging of the labor force older workers
retire and young ones the labors force: older workers retire and young ones enter
employment. There is also a large amount of turnover for personal reasons. Workers
may leave jobs because they dislike their boss. Because their families mov

WHAT IS "EMPLOYEE TURNOVER"?

CTIMS, JALANDHAR 7
Employee turnover refers to the movement of employees in and out of a business.
However, the term is commonly used to refer only to ‘wastage’ or the number of
employees leaving. High employee turnover causes problems for business. It is
costly lower productivity and morale and tends to get worse if not dealt with.

Measuring Employee turnover

The simplest measure involves calculating the number of leavers in a period (usually
a year) as a percentage of the number employed during the same period. This is
known as the "separation rate" or “crude wastage rate" and is calculated as follows: -

Number of leavers I average no employed x 100

For example, if a business has 150 leavers during the year and, on average, it
employed 2,000 people during the year, the labor turnover figure would be 7.5%.

An alternative calculation of labor turnover is known as the "Stability Index”. This

illustrates the extent to which the experienced workforce is being retained and is
calculated as follows:

Number of employees with one or more years’ service now I Number employed one
year ago _x 100.

Labour turnover will vary between different groups of employees and measurement
is more useful if broken down by department or section or according to such factors
as length of service, age or occupation.

REVIEW OF LITERETURE

Innovative theory and empirical research on employee turnover

Rodger W. Grilieth, Peter W. Hum - 2004 - 256 pages

CTIMS, JALANDHAR 8
 CHAPTER 6 FIVE ANTECEDENTS NEGLECTED IN EMPLOYEE
TURNOVER MODELS. Identifying Theoretical Linkages to Tyr novel for
Specifically, I review turnover literature related to personality, culture (i.e
organizational and national)

Decision making in the workplace: a unified perspective - Page 74

Lee Roy Beach - 1996 - 2 l6 pages
In fact, these traditional theories tend to be somewhat narrow in their approach to
explaining employee turnover. ln a review of the literature, Hum and Griffith(1995)
argued that traditional turnover theories have been too narrowly .

Journal of vocational behavior 1977

Jounal of Vocational Behavior 10, 340 (1977) Employee Absenteeism: A Review of
the Literature Paul M. Machesney Iowa Slate University The Schuh (1967)
presented an extensive review of the predictability of employee turnover. I

Organizational behavior: readings and exercises.

Keith Davis, John W. Newstrom - 1985 ·- 559 pages.
lt has been estimated, for example, that there are well over 1000 relevant citations in
the literature addressing employee turnover (Machesney & Morrow, 1980; Steers &
Mowday, 1981). Staw (1980) suggests that the implicit assumption

Employee-Organization linkages: the psychology of commitment……

Richard T. Mowday, Lyman W. Porter, Richard M - 1982 - 253 pages` 5
Determinants of Employee Turnover investigations into the causes of employee

CTIMS, JALANDHAR 9
turnover abound in the literature Over the last 25 years, moreover, at least 13
review articles on turnover have been published (Brayiield & Crockett,

The SAGE Handbook of Organizational Behavior: Micro approaches.

Julian Barling, Cary L. Cooper - 2008 - 776 pagesi5
Price, JL and Mueller, CW (1986) Absenteeism and turnover of hospital employees.
Greenwich, CT: JAI Press. Rhoades, L. and Eisenberger R. (2002) 'Perceived
organizational support: A review of the literature', Joumal of Applied……

Personnel psychology 1979

Porter, LW and Steers, RM Organizational, work, and personal factors in employee
turnover and absenteeism. Psychological Bulletin, I973, 80, 151-176. Scbuh, A. The
predictability of employee tenure: A review of the literature…..

Residential rvices and developmental disabilities in the United……

David L. Braddock, Dale Mitchell - 1992 - 402 pages I
Generic Labor Research This section includes three general literature reviews
examining. I employee turnover in various occupations. The first review (Porter &
Steers, 1973) I focused on research conducted during the 1960s and 1970s and….

Handbook of industrial, work & organizational psychology:…….

Neil Anderson, Deniz S. Ones, Handan Kepir - 2002 - 480 pages

CTIMS, JALANDHAR 10
Employee absenteeism: A review of the literature. Joumal of Vocational Behavior,
70316-340. Muchinsky, PM, & Turtle, ML (l979). Employee rumover: An
empirical and methodological assessment. Journal of Vocational Behavior, 14, 43-
77.

Organizational Behavior 3E - Page 435

Kinicki For a review of these models, see AP Brief Attitudes In and Around
Organizations (Thousand Oaks, CA: Sage Publications, 1998). .... The various costs
of employee turnover are also discussed by WG Bliss, "Cost of Employee
Tumover,"

CTIMS, JALANDHAR 11
 OBJECTIVES OF THE STUDY

The main objective of doing this study was to understand the causes of employee
turnover in the organization as the nature of work, employment, and employee
relationships and its impact on workers. This effort aims at identifying and exploring
the causes and the effects of the EMPLOYEE TURNOVER in the HCL CDC.

The overall aim of Human Resource is to establish a high performance culture in

which individuals and teams take responsibility for the continuous improvement of
business processes and for their own skills and contributions within a framework
provided by effective leadership. Its key purpose is to focus people on doing the
right things by achieving goal clarity. The aim is to develop the capacity of people
to meet and exceed expectations and to achieve their full potential to the benefit of
themselves and the organization.

OBJECTIVE OF THE STUDY ARE:

• To study the causes of the job turnover in the organization,.

• To study the impact of employee turnover in the performance of the organization.
• To study the methods for overcoming the major problem of the employee
turnovers.
• To study that whether the employees of the organization are satisfied the job of
working environment or not.

CTIMS, JALANDHAR 12
 LIMITATIONS OF THE STUDY

It is said, "Nothing is perfect" and if the quite is true, we are sure that there would be
few. Short coming in this project also. Sincere efforts have been made to eliminate
discrepancies as far as possible but few would have reminded due to limitations of
the study.

1 Time for the completion of the project was too short to do an in-depth study.
2 One of the major limitations of this project was to take out the turnover that as it is
very confidential and no organization wants to disclose it.
3 Most of the employees were not willing to answer the queries asked by me in the
questionnaire while conducting the survey in HCL
4 Another limitation of this project was that many times during the survey, I didn’t
get their consent or a sort of cooperation from them.

JOB RESPONBILITIES:

I had worked with HCL CDC Jalandhar in capacity of Assistant HR EXECUTIVE

for six weeks. During training period, I had played to provide the complete
knowledge to walk in candidates about the HCL Products . I was contributing in
telephonic activities to motivate the students.

CTIMS, JALANDHAR 13
 COMPANY PROFILE

HCL is a leading global Technology and IT Enterprise with annual revenues of USS
5 billion. The HCL Enterprise comprises two companies listed in India, HCL
Technologies and HCL Info systems. The 3 decade old enterprise, founded in 1976,
is one of India’s original IT garage start ups. Its range of offerings span R&D and
Technology Services, Enterprise and Applications Consulting, Remote Infrastructure
Management, BPO services, IT Hardware, Systems Integration and Distribution of
Technology and Telecom products in India. The HCL team comprises 62,000
professionals of l diverse nationalities, operating across 26 countries including 5.00
points of presence in India. HCL has global partnerships with several leading
Fortune 1000 firms, including several IT Technology

HCL CDC. Dominates the IT space as a leader 58000 gifted professionals, a colossal
US $5.0 billion turnover an international presence in 19 countries, and most
impotently, a deep- rooted commitment to innovate makes it a true technology giant.

As the fountainhead of the most significant pursuit of human mind, HCL believes
only a leader can transform me into a leader HCLcdc. Is an initiative that enables
individuals to be benefit industry ready IT.

OVERVIEW

HCL Technologies is a leading global IT services company, working with clients in

the areas that impact and redefine the core of their businesses. Since its inception
into the global landscape after its IPO in l999, HCL focuses on ‘transformational
outsourcing’, underlined by innovation and value creation, and offers integrated
portfolio of services including software-led IT solutions, remote infrastructure
management, engineering and R&D services and BPO.

CTIMS, JALANDHAR 14
HCL leverages its extensive E global offshore infrastructure and network of offices
in 26 countries to provide holistic, multi-service delivery in key industry verticals
including Financial Services, Manufacturing, Consumer Services, Public Services
and Healthcare. HCL takes pride in its philosophy of ‘Employee First' which
empowers our 55,688 transformers to create a real value for the customers. HCL
Technologies, along with its subsidiaries, had consolidated revenues of USS 2.5
billion (Rs. ll,833 crores), as on 3l December 2009 (on LTM basis).

HCL is a $5 billion leading global technology and IT enterprise comprising two

companies listed in India — HCL Technologies and HCL lnfosystems. Founded in
l976, HCL is one of India’s original IT garage start-ups. A pioneer of modem
computing, HCL is a global transformational enterprise today. Its range of offerings
includes product engineering, custom & package applications, BPO, IT
infrastructure services, IT hardware, systems integration, and distribution of
information and communications technology (ICT) products across a wide range of
focused industry verticals.
The HCL team consists of over 62,000 professionals of diverse nationalities, who
operate from 26countries including over 500 points of presence in India. HCL has
partnerships with several leading Global 1000 firms, including leading I'I` and
Technology firms.

CTIMS, JALANDHAR 15
 ADVANTAGE OF HCL

1 TOUCHING LIVES: From aeronautics, HCL touches millions of people through

technology across the world everyday.
2 FUTURE-PROOFING THE WORLD: One of the pioneers in imodern computing,
our expertise spans globally and we make a difference.
3 PIONEERING HERITEDGE: We proud of our pioneering heritage in India and
take forward the pioneering spirit to all our ventures.

CTIMS, JALANDHAR 16
 Opportunities and beyond:
HCL takes students to the core of IT fundamentals and the most advanced cutting
problems. Its course modules are structured to give me the best of both worlds,
academic and hands-on. Whether anybody are a beginner or a working professional,
HCLcdc. Can make a difference to our learning curve and there by to our curve.

Empowering students to bring out the

best:
As the fountainhead of the most significant pursuit of human mind (IT), HCL,
strongly believes “only a leader can transform me into a leader “HCLcdc. Is a
formalization of this experience and credo which has been perfected over three
decades?

it is an initiative that enables aspiring individuals to benefit from

HCL’s longstanding expertise in the space and become industry ready IT
professionals.

About HCL Enterprise

HCL Enterprise is a leading global technology and IT enterprise

with annual revenues of US $4.1 billion (Rs. 17,889 crores). The
HCL Enterprise comprises two companies listed in India - HCL
Technologies & HCL Info systems. The 3-decade-old enterprise,
founded in 1976, is India’s original IT garage start-up. Its range of
offerings span Product Engineering, Technology and Application
Services, BPO, Infrastructure Services, IT Hardware, Systems
Integration, and distribution of ICT products. The HCL team
comprises over 47,000 professionals of diverse nationalities, who
operate from 17 countries including 360 points of presence in
India. HCL has global partnerships with several leading Fortune
1000 firms, including leading IT and Technology firms

CTIMS, JALANDHAR 17
Vision statement
“To create industry ready professionals“

Mission statement

To provide world-class information technology and services in order to

enable our customer to serve their customer better.

Core Values

• Nothing transforms life like education.

•
I shall honor all commitments
•
I shall be committed to Quality, Innovation and growth.
•
I shall be responsible corporate citizens

CTIMS, JALANDHAR 18
 HCL TECHNOLOGIES

While HCL Enterprise has a 30-year history, HCL Technologies is a relatively

young company formed, nine years ago, in 1998. During this period, HCL has built
unique strengths in IT applications (custom applications for industry solutions and
package implementation), IT infrastructure management and business process
outsourcing, while maintaining and extending its leadership in product engineering.
HCL has also built domain depth through a micro-virtualization strategy in
industries such as Financial Services, Hi—tech and Manufacturing, Retail, Media
and Entertainment, Life Sciences, and Telecom.

HCL has created the ability to distribute value across the customer's IT landscape
through its well- distributed services portfolio, significant domain strengths, and
locally relevant geographic distribution. HCL has the widest service portfolio among
indian IT service providers, with each of its ` services having attained critical mass.

Our five mature lines of business are R&D and Engineering, Custom Applications,
Enterprise Applications, IT Infi·astructure Management, and BPO Services. In
addition, HCL has recently launched its Enterprise Transformation Service offerings
comprising of Business, Technology, Application and Data Transformation — the
four broad needs of any enterprise. Our ability to synergistically integrate these
service lines across the entire IT landscape creates new zones for value creation.
Additionally, HCL has created unique service leadership in each of these areas
through best-of-breed unique propositions. HCL’s leadership in these service areas
has been recognized by several leading independent analysts. ln 2005, HCL started
questioning the linearity of scale-driven business models adopted by service
providers (largely in the IT application business).

CTIMS, JALANDHAR 19
The questioning led us to the belief that the market was rapidly approaching a point
of inflection, that is a point where the volume and value proportionality would
change, opening up new opportunities for service providers who aspire to focus on
value. With this realization, HCL embarked on a transformational journey that
focuses on value centricity in customer relationships and on leveraging new market
opportunities, while creating a unique employee experience. Hence HCL entered a
new phase of evolution — transforming it from a volume-driven provider to value-
centric enterprise that turns technology into competitive advantage for all its
customers across the globe. Today HCL’s new way of doing business is being
recognized by Harvard, IDC, Fortune, Forbes, Economist, Business Week and the lik

DIFFERENTIATORS
`
In one of its articles, Business Week reports that,
“...a more enlightened, strategic view of global sourcing is starting to emerge as
managers get and better fix on TTS potential. The new buzzword is
'Transformational Outsourcing?”

We believe that IT driven business innovation, the emergence of new disruptive

technologies and business models, and the widespread acceptance of global delivery
models are some of the transformational forces at work today.
While everyone is talking transformation these days, most actually mean
upgradation — i.e. business process improvements or service re-engineering, at best.
True transformation is revolutionary and is directed at core processes, resulting in
deep and rudimental change. It ` doesn't merely cut costs or streamline the way a
company works - it radically alters market position by building competitive
advantage.

CTIMS, JALANDHAR 20
An IDC repor Application Outsourcing Game' states that the combination of
offshore and on demand creates one of the most compelling value propositions to
help customers move closer to truly dynamic IT. HCL is uniquely positioned with
this perfect blend of onshore presence and offshore economics. Building competitive
advantage also demands a shift from the earlier fee- driven service provider model to
a new age, outcome-based? Partnership model. At HCL, we call this Transformation
– version2.

At the core of our Employee First philosophy is Talent Transformation, where we

recognize and enable competencies as opposed to just sculling employees in
technical, business and behavioral areas. Technology is key in creating a process
capable of empowering 58,000 employees at HC L.

In a word of commodity, I treasure value……….with the “Five Fold

path to Customer Value.”

Our Value Services model adopts a 360-degree approach in embedding value in all
facets of the I HCL-customer relationship.

VALUE CULTURE - The most reliable way that we create customer value is
through engaged, I empowered and result-oriented employees. We ensure that the
working culture gives them enough - support, tools and training in order to create
value. ·

VALUE CREATION- HCL's history of leading the industry by creating and

dominating uncontested market spaces has been leveraged into a service innovation
model that is creating new value for customers. A large portion of our revenue
comes from emerging services - services that we pioneered in the industry like

CTIMS, JALANDHAR 21
Remote infrastructure Management, and Engineering and R&D. We have captured
and institutionalized the process for creating value through a unique framework,
which creates that 'extra‘ value (beyond base delivery), called the 'Value Add
Framework'. This has been successliilly rolled out to select customers who are able
to actually measure success while reaping quantifiable savings.

VALUE ENGAGEMENT — HCL is flexible in that it can treat each customer

uniquely by imbibing patterns and characteristics of the customer organization,
industry and geography. This unique flexibility has resulted in innovative
commercial models like output based pricing, and global account management
programs that enable each relationship yield more business value than could be °
normally expected by both partners.

VALUE DISTRIBUTION - HCL is able to distribute value across a customers

IT landscape through its well-distributed services portfolio, significant domain
strengths, and locally relevant geographic distribution.

VALUE DELIVERY - In the physical world, value is judged on the basis of

reliability, quality, and speed. In the services world, especially IT services, security
is an added component. Value is calculated based on the business benefit delivered
by the service provider. This calls for high levels of maturity and customer
satisfaction, and would be difficult to achieve if the outsourcing strategy is based
solely on short-term goals. HCL has geared its Service Delivery Framework, Quality
Systems and information Security to meet the maturity levels required in a value
centric world.

CTIMS, JALANDHAR 22
In a world full of effort, l see outcome list... ...througl1 outcome based
chimerical models.
In an industry driven by effort based pricing, HCL has taken a giant leap with its
outcome based commercial models and deal structuring approach.
HCL works with a wide range of customers at various stages of offshore maturity,
and designs customized models for them T&M based models( for projects where
accountability and collaboration is low), output based models, fixed pricing models,
and risk reward based models where we collaborate to commit to outcomes through
a gain share or joint venture model. We believe that if we share the vision, we must
also share the risk.

ln a world of discrete services, I focus on integration

Value is created by optimally integrating services at interface points for greater end-
business impact. HCL brings unique strengths to organizations engaged in business
transformation to create new competitive advantages. For such organizations, we
perhaps have the most mature portfolio of services among other offshore providers
across Application Services, Core Infrastructure Support, Business Process
Outsourcing, as also R&D and Technology Services. Multi-integrated solutions
enable our customers achieve significant optimization at all interface points
(integrated helpdesk for applications and infrastructure).

In an ofierings-centric world- I see customer ccntricity.

Customer centric value offerings establish the difference between services and
services. The difference comes from unique customer insights and value
propositions
backed by competencies and customer experience.

In a contract driven world l practice trust and transparency.

CTIMS, JALANDHAR 23
All relationship be it with employees, customers, partners or stakeholders need to be
built on the foundations of trust and transparency. This is what we believe and
practice every day at HCL.

No more ‘business-as-usual. I‘ve seen the inflection point".

HCL started questioning the linearity of scale-driven business models adopted by
service providers (largely in the IT applications business). This questioning led us to
the belief that the market was rapidly approaching a point of inflection - i.e. a point
where the volume and value proportionality was changing, opening up new
opportunities for service providers who want to focus on value. Realizing this, way
back in 2005 HCL embarked on a transformational journey, focusing on value
centricity in customer relationships and leveraging new market opportunities while
creating a unique employee experience.

LEADERSHIP TEAM

VINEET NAYAR
CEO, HCL Technologies
Vineet Nayar is the CEO of the $2.3 billion HCL Technologies Ltd, leading a team
of 54,443 professionals in 26 countries to drive growth in IT Services industry. He
also serves on the board of the company as a whole time Director. Vineet has
instituted several radical programs that began a quiet transformation across the
organization. His mantra of "Employee First" A strong belief in value-based
leadership has been recognized globally. Fortune Magazine has articulated his

CTIMS, JALANDHAR 24
leadership style as "The World’s Most Modem Management" and the London
Business School calls him "the leader of organizational innovation"

RANJIT NARASIMHAN
President & CEO - BPO Services, HCL Technologies Ltd Ranjit heads the BPO
Division of HCL Technologies Ltd (HCL BPO}. As an President & CEO, Ranjit
has been instrumental in the rapid growth of HCL BPO during the last few years.
The organization has grown nom a headcount of 30 in September 2001 to over Ii,
400 employees today.
Under his leadership, HCL BPO witnessed phenomenal growth in size and revenues
(USD 232.15 milIion).

ANIL CHANANA
Executive Vice President - Finance, HCL Technologies. Anil Chanana is a Leanne
professional with over 25 years’ rich experience if in this domain. Anil’s first stint
at HCL was way back in 1985, when the company was still called Hindustan
Computers Limited. It is a qualified Chartered Accountant and has attended various
programs including the Leadership Program conducted by Hewlett-Packard and an
Executive Program in Finance from Stanford University.

ANANT GUPTA
President- Infrastructure Services Division, HCL Technologies
Anant Gupta is the President of HCL Technologies Infrastructure Services Division
(HCL ISD) HCLT ISD (also popularly known as HCL Comnet) is a leading IT
services company and a subsidiary of HCL Technologies Ltd. A focused player in
the IT services arena, I-ICLT ISD seeks to provide simplified infrastructure solutions

CTIMS, JALANDHAR 25
through delivering high-performance management services for complex, distributed
infrastructure environments encompassing the Internet, Client and legacy based
infrastructure.

BOARD OF DIRECTORS

SHIV NADAR
Founder — HCL
Chairman & Chief Strategy Ofiicer - HCL Technologies At a time when India had a
total of 250 computers, Shiv Nadar led a young team which passionately believed in
and bet on the growth of the IT industry. That vision in l976, born out of a Delhi
“barsaati", akin to a garage start-up, has resulted 3 decades later in a $5 billion
global transfer technology enterprise today. From designing India’s first PC at the
same time global IT peers in l978 to working on the Boeing Dreamline1·’s Flight
Management Systems now, HCL has stayed a true Pioneer of Modem Computing.
HCL’s range of offerings spans Product Engineering, Custom & Package
Applications, BPO, IT Infrastructure Services, IT Hardware, Systems Integration,
and distribution of ICT products across a wide range of focused industry verticals.
The HCL team comprises over 60,000 professionals of diverse nationalities, who
operate from 26 countries including over 500 points of presence in India. HCL has
global partnerships with several leading Femme l000 fums, including leading IT and
Technology firms.

VINEET NAYAR
CEO, HCL Technologies
Vineet Nayar is the CEO of the $2.3 billion HCL Technologies Ltd, leading U a
team of 54,443 professionals in 26 countries to drive growth in IT Services
industry. I-le also serves on the board of the company as a whole time Director.
Vineet has instituted several radical programs that began a quiet transformation

CTIMS, JALANDHAR 26
across the organization. His mantra of "Employee First" and a strong belief in value-
based leadership has been recognized globally. Fortune Magazine has articulated his
leadership style as "The World’s Most Modern Management" and the London
Business School calls him "the leader of organizational innovation".

The Harvard Business School (HBS) has written a case study on the Transformation
at HCL, based on his innovative and radical leadership. The case study is being
taught in the Strategy and Leadership classes at HBS.

AJAI CHOWDHRY
Founder — HCL
Chairman & CEO - HCL Info systems
An engineer by training, Ajai Chowdhry is one of the six founder members of HCL,
lndia’s leading Technology and IT company. HCL, 1ndia‘s original IT garage start
—up formed in 1976, is today a USS 5 Billion Global Enterprise.
Ajai Chowdhry took over the reins of HCL Info systems, the flagship company of
the group, as President and CEO in l994. He was appointed the Chairman of HCL
Info systems in November 1999. Under Ajai’s stewardship, the company’s turnover
has gown to US$ 3.1 Bn (approx. Rs.l550 crores) from USS 89 Million in 1994.

T S R SUBRAMANIAN
Director Mr. Subrarnanian had a distinguished career in the Indian Administrative
Service, where he held various positions including that of Cabinet Secretary, the
highest post in the Indian administration and the post of Secretary in the Ministry of
Textiles. He has also worked in the Ministry of Commerce, where he dealt with trade
policy issues and matters relating to General Agreement on Trade and Tariffs
(GATT) and with UNCTAD. His assignments in the state of Uttar Pradesh included
the highest executive post, Chief Secretary of the State. For over five years, Mr.
Subrarnanian was a Senior Adviser in the International Trade Centre in Geneva, a
United Nations Organization tender the purview of GATT, where he dealt with

CTIMS, JALANDHAR 27
issues relating to small and medium enterprises (SMES) as well as export-oriented
joint ventures. His work Covered developing countries in Asia, Africa and Latin
America, as well as developed countries.
As Cabinet Secretary to the Government of India, Mr. Subramanian took a number
of initiatives to modernize and develop the infrastructure sector in India, especially
in the Power, Telecom and Surface Transport sectors.

ROBIN ABRAMS
Director Robin Abrams was most recently interim CEO at ZILOG. She had been the
President `of Palm Computing and Senior Vice President at 3Com Corporation. She
was also formerly the President and CEO at VeriFone. She has 30+ years of
computing and computing services expertise coupled with strategic planning and
management experience.
Before joining Verilione in 1997, Abrams held a variety of senior management
positions with Apple Computer. As Vice President and General Manager of the
Americas, she oversaw sales and channel ' management for U.S., Canada and Latin
America. Prior to that, she was Vice President and General Manager of Apple Asia,
where she was responsible for sales and marketing in the region. In this position,
Abrams was based in Asia for two years. Abrams spent eight years with Unisys in
several senior-level positions. Her responsibilities included managing the delivery
of business solutions focused on banking, airlines, government and networking. A
portion of her tenure at Unisys also included a five-year stint in Asia Pacific. The
first twelve years of her career were in various management positions at Norwest
Banks now Wells. Q Abrams has served on several U.S. public company boards
including Openwave Systems, ZiLOG and BEA Systems (until it was acquired by
Oracle). Abrams also serves on the Anita Borg Institute Board and several academic
advisory committees.

SUBROTO BHATTACHARYA
Director Mr. Subroto Bhattacharya, a Chartered Accountant by training, spent his
early career with DCM Ltd. where he rose to the position of a Director on the board.

CTIMS, JALANDHAR 28
ln the late eighties, he joined the HCL modernize and develop the infrastructure
sector in India, especially in the Power, Telecom and Surface Transport sectors.

ROBIN ABRAMS
Director:Robin Abrams was most recently interim CEO at ZiLOG. She had been the
President of Palm Computing and Senior Vice President at 3Com Corporation. She
was also formerly the President and CEO at VeriFone. She has 30 years of
computing and Computing services expertise coupled with strategic planning and
management experience. Before joining Verilione in 1997, Abrams held a variety of
senior management positions with Apple Computer. As Vice President and General
Manager of the Americas, she oversaw sales and channel ' management for U.S.,
Canada and Latin America. Prior to that, she was Vice President and General
Manager of Apple Asia, where she was responsible for sales and marketing in the
region. In this position, Abrams was based in Asia for two years. Abrams spent eight
years with Unisys in several senior-level positions. Her responsibilities included
managing the delivery of business solutions focused on banking, airlines,
government and networking. A portion of her tenure at Unisys also included a five-
year stint in Asia Pacific. The first twelve years of her career were in various
management positions at Norwest Banks now Wells Abrams has served on several
U.S. public company boards including Openwave Systems, ZiLOG and BEA
Systems (until it was acquired by Oracle). Abrams also serves on the Anita Borg
Institute Board and several academic advisory committees.

SUBROTO BHATTACHARYA
Director · Mr.Subroto Bhattacharya, a Chartered Accountant by training, spent his
early career with DCM Ltd. where he rose to the position of a Director on the board.

CTIMS, JALANDHAR 29
PRODUCTS OF HCL

Offering an entire range of Computing

Products for Corporate, Businesses and
Small to Large Setups.

Computing Products

Introducing great display products that you

would love setting your eyes on.

Display Products

Enjoy fast data transfer with our exclusive

range of Networking Products.

Networking Products

Offering an entire range of storage solutions.

Storage Solutions

Enjoy benefits of genuine software licenses

through HCL Infosystems.

Software Licenses

Offering an entire range of Digital Lifestyle

Products and Solutions for entertainment and
business.

CTIMS, JALANDHAR 30
Digital Lifestyle Products & Solutions

.
Introducing world class imaging products
and solutions to meet business
requirements.

Office Automation Imaging & PrintingSolutions

Introducing world class telecom

products and AVSI solutions to meet
business requirements.

Office Automation Telecom & AVSI Solutions

Offering an entire range of POS

products and solutions.

POS, KIOSK, Customer Service Counter Products

HCL offers a comprehensive range of

19” racks with standard accessories for
Computer networking applications and
IP Enclosures of all standards

Racks & Enclosures

Software Solutions

CTIMS, JALANDHAR 31
 RESEARCH METHODOLOGY

RESEARCH in common parlance refers to a search of knowledge. It can also be

defined as a scientific and systematic search for pertinent information on a specific
topic.
The advanced learner‘s dictionary of current English lays down the meaning of
research as “a careful investigation or inquiry specially through search for new facts
in any branch of knowledge”
Research as a "systematized effort to gain new knowledge?

-» ACC TO REDMAN &: MORY

Research is an academic activity and such the Tenn. should be used technically.
According to Clifford Woody research comprises defining and redefining problems,
formulating hypothesis or suggested solutions; collecting, organizing and evaluating
data making deductions and reaching conclusions; and at last carefully testing the
conclusions to determine whether they fit the Formulating hypothesis.
As such the term ‘research’ to the systematic method consisting of enunciating the
problems, formulating the hypothesis, collecting the facts or data, analyzing the facts
and reaching certain conclusions either in the form of solutions towards the
concerned problem.

RESEARCH DESIGN
“A research design is the arrangement of conditions for collection and analysis of
data in a manner that aims to combine relevance to the research purpose with
economy in procedure." in fact, the research design is a conceptual structure within

CTIMS, JALANDHAR 32
which research is conducted, it consists the blueprints for the collection,
measurement and analysis of data. As such the design includes an outline of what the
researcher will do from writing the hypothesis and its operational implications to the
final analysis of data.

TYPES OF RESEARCH
The research can be of various types which help in solving a problem. These types
are as follows:
l) Descriptive research. ·
2) Analytical research.
3) Applied research.
4) Fundamental research.
5) Quantitative research.
6) Qualitative research.
7) Conceptual research.
8) Empirical research.

DATA COLLECTION
The task of data collection begins after a research problem has been defined and
research design/plan chalked out. The data can be collected in two ways, these ways
are as follows:
I) Primary data
OBSERVATIO
2) Secondary data N
METHOD

PRIMARY
DATA
CTIMS, JALANDHAR 33
INTERVIEW QUESTION-
METHOD AIRE
I

COLLECTION OF SECONDARY DATA

PULISHED DATA UNPUBLISHED DATA

PUBLICATION OF CENTRAL DIARIES
OF FOREIGN GOVT LETTERS
TECHNICAL AND TRADE UNPUBLISHED
BOOKS MAGAZINES

SAMPLE DESIGN

A sample design is a definite plan for obtaining a sample from a given population. it
refers to a technique or the procedure the researcher would adopt in selecting items
for the sample. Sample design is determined before data are collected. There are
many sample designs from which a researcher can choose. Some designs are
relatively more precise and easier to apply than others.
Researcher must select of prepare a sample design which should be reliable and
appropriate for his research study.

CTIMS, JALANDHAR 34
TYPES OF SAMPLE DESIGN:

SAMPLE

PROBABILITY NON-PROBABILITY
SAMPLING SAMPLING

RESEARCH USED IN THIS PROJECT

The objectives of the project are such that both primary and secondary data is
required to achieve them. So both primary and secondary data was used for the
project. The mode of collecting primary data is questionnaire mode and sources of
secondary data are various magazines, & websites etc.

CTIMS, JALANDHAR 35
1. Primary Data: The primary data was collected to make the conclusion about
"LABOUR TURNOVER "means of questionnaire and analysis was done on the
basis of response received from the employees of the company.

The questionnaire has been designed in such a manner that the general’s view points
of employees can be measured and enters their responses easily.

2. Secondary Data: The purpose of collecting secondary data was to achieve the
objective of studying the recent changes taking place in within the mind to` the
employees regarding the job satisfaction / dissatisfaction.
`
Sample Plan
Sample size: - Keeping in mind all the constraints 15 employees of the company of
the HCL. Sampling Unit: - HCL ( Jalandhar)

CTIMS, JALANDHAR 36
 WHAT IS "EMPLOYEE TURNOVER"?

Employee turnover refers to the movement of employees in and out of a business.

However, the term is commonly used to refer only to ‘wastage’ or the number of
employees leaving. High employee turnover causes problems for business. It is
costly lower productivity and morale and tends to get worse if not dealt with.

Measuring Employee turnover

The simplest measure involves calculating the number of leavers in a period (usually
a year) as a percentage of the number employed during the same period. This is
known as the "separation rate" or “crude wastage rate" and is calculated as follows: -

Number of leavers I average no employed x 100

For example, if a business has 150 leavers during the year and, on average, it
employed 2,000 people during the year, the labor turnover figure would be 7.5%.

An alternative calculation of labor turnover is known as the "Stability Index”. This

illustrates the extent to which the experienced workforce is being retained and is
calculated as follows:

Number of employees with one or more years’ service now I Number employed one
year ago _x 100.

CTIMS, JALANDHAR 37
Labour turnover will vary between different groups of employees and measurement
is more useful if broken down by department or section or according to such factors
as length of service, age or occupation.

Patterns of employee turnover

The highest rate of employee turnover tends to be among those who have recently
joined an business.. Longer—serving employees are more likely to stay, mainly
because they become used to the work and the business and have an established
relationship with those around them.

CAUSES OF EMPLOYEE TURNOVER

A high level of employee turnover could be caused by many factors:

• Inadequate wage levels leading to employees moving to competitors
· Poor morale and low levels of motivation within the workforce
· Recruiting and selecting the wrong employees in the first place, meaning they leave
to seek more suitable employment
• A buoyant local labor market powering more (and perhaps more attractive)
opportunities to employee

Costs of employee turnover

High rates of employee turnover are expensive in terms of:
- Additional recruitment costs
- Lost production costs
- Increased costs of training replacement employees

CTIMS, JALANDHAR 38
- Loss of know—how and customer goodwill
-Potential loss of sales (e.g. if there is high turnover amongst the sales force)
- Damage that may be done to morale and productivity (an intangible cost)
Labor turnover is an important parameter indicating the over all health of an 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 Labor Turnover indicates lack of stability in the labor force, which in
turn may not be considered conducive to the productivity of labor. For higher
productivity of labor, it is essential that labor force remains stable over a period of
time.

Labor Turnover measures the extent of change in the work force due to accession
separation during a particular period of time. High Labor Turnover causes problems
for a business. it is costly, lowers productivity and morale and tends to get worse if
not dealt with. Labor Turnover does not just create costs, but some level of Labor
Turnover is important to bring new ideas, skills and enthusiasm to the labor force.

A natural level of Labor Turnover can be a way in which a business can slowly
reduce its Workforce without having to resort . A high level of Labor Turnover
could be caused by many factors:
a) Inadequate wage levels leading to employees moving to competitors,
b) Poor morale and low level of motivation within the workforce,
c) Recruiting and seeking the wrong employees in the first place, meaning they seek
more suitable employment, and
d) A buoyant local labor market offering more attractive opportunities to employees.

CTIMS, JALANDHAR 39
 SOME STATISTICS

Labor Turnover in States ·

State-wise Labor Turnover among directly employed regular workers. It may be seen
that at all India level, the rate of accession, during the year 2009, was 13.12 percent
as compared to 12.84 percent during the year 2008. The overall separation during the
year 2009 was 15.53 percent as compared to 16.37 percent during the year 2008.
Thus, there was about 2.41 percent decrease in overall employment during the year
2009 as compared to 3.53 percent decrease during the year 2008. At all India level,
about 84.95 percent factories reported Labor Turnover in their units during the year
2009.
The lowest and highest rates of accession, during the year 2009 were observed at
1.00 percent in Jharkhand and 38.96 percent in Delhi, respectively. Similarly, the
lowest and highest rates of Separation, during the year, was observed in Tripura
(3.08 percent) and Uttar Pradesh (35.70percent), respectively. The total Labor
Turnover was highest in Delhi (71.73 percent) and lowest in Meghalaya (5.60
percent). During the year, 13 States recorded higher accession rates and 12 States
Recorded higher separation rates than the respective rates at the all India level.

Labor Turnover in Industries

Industry-wise Labor Turnover among directly employed regular workers during the
year 2009. The highest rate of accession at 108.58 percent was recorded in the

CTIMS, JALANDHAR 40
industry group ‘014-Agricultural and animal husbandry service activities, except
veterinary activities’, whereas, the lowest rate of accession at 1.11 percent was
recorded in the industry group ‘353-Manufacture of aircraft and space cratt’. On the
other hand, like accession, the highest rate of separation at 110.02 percent was also
recorded in the industry group ‘0l4—Agricultural and animal husbandry service
activities, except Veterinary activities’. The lowest rate of separation, however, was
recorded at 2.46 percent in industry group '223-Reproduction of recorded media'.
The total labor turnover was highest in industry group 201-Saw milling and planning
of wood’, (218-.60 percent) and lowest in industry group 353—Manufacture of
aircraft and spacecraft (5.24 percent).

Labour Turnover in States by Sectors

State—wise and Sector-wise Labor Turnover among directly employed regular
workers . From the data, it may be observed that at all India level, accession rate was
the highest in Joint Sector at 18.50 percent, followed by Private Sector (13.51
percent) and Public Sector (6.68 percent).
Separation rate was again the highest at 22.60 percent in Joint Sector, followed by
Public Sector(15.26 percent) and Private Sector (14.87 percent).
Among States, the highest rate of accession in Public Sector was recorded in Uttar
Pradesh at 51.74 percent and lowest rate in Bihar (0.48 percent). in Joint Sector, the
highest rate of accession was reported in Haryana at 64.10 percent and lowest rate in
Himachal Pradesh (0.11 percent). In Private Sector, Delhi reported the highest rate
of accessions at 39.26 percent, whereas, Jharkhand reported lowest rate of accessions
at 2.63 percent.
In Public Sector, the highest rate of separation was reported in Madhya Pradesh at
108.41 percent -and lowest rate in Bihar (0.48 percent). in Joint Sector, the highest
rate of separation was reported in Haryana at 58.59 percent and lowest in Meghalya
(0.74 percent), whereas, in Private Sector, the highest rate of separation was reported
in Uttaranchal at 36.09 percent and lowest in Assam (2.92 percent).

CTIMS, JALANDHAR 41
Labour Turnover in Industries by Sectors
Industry—wise and Sector-wise Labor Turnover among directly employed regular
workers. It may be seen from the data that in Private Sector, the highest rates of
accession and separation were recorded in the industry group ‘0l4-Agricultural and
animal husbandry service activities, except veterinary activities’ at the rate of 1
13.60 percent and 113.27 percent, respectively.

The highest rates of accession and separation in the Public Sector were reported in
the industry group '154- Manufacture of other food products‘ at the rate of 70.52
percent and 84.72 percent, respectively. In Joint Sector, the highest rates of
accession and separation were reported in the industry groups ‘154- Manufacture of
other food products‘ and 181-Manufacture of wearing apparel, except fur apparel' at
the rate of 71.80 percent and 214.29 percent, respectively.
Sector-wise lowest rate of accession was recorded at 0.04 percent in the industry
group '2l0- Manufacture of paper and paper products' in Public Sector, 0.05 percent
in industry group ‘3.22—Manufacture of television and radio transmitters and
apparatus for line telephony and line telegraphy‘ in Joint Sector and 0.86 percent in
industry group ‘353—Manufactu1·e of aircraft and spacecraft in Private Sector. ·
ln Public Sector, separation rate was lowest at 0.81 percent in industry group '1 72-
Manufacture of other textiles‘. In Joint Sector, the separation was lowest at 0.70
percent in the industry ‘243- Manufacture of man—made fibers‘ and in Private
Sector, the separation rate was lowest at 2.46 percent in industry group ‘223-
Reproduction of recorded media'.

CTIMS, JALANDHAR 42
 TYPES OF LABOUR TURNOVER

1. Internal vs. external turnover

Like recruitment, turnover can be classified as ‘internal' or 'external‘. Internal
turnover involves employees leaving their current positions and taking new positions
within the same organization. Both positive (such as increased morale from the
change of task and supervisor) and negative (such as project/relational disruption, or
the Peter Principle) effects of internal turnover exist, and therefore, it may be equally
important to monitor this form of turnover as it is to monitor its external counterpart.
Internal turnover might be moderated and controlled by typical I-IR mechanisms,
such as an internal recruitment policy or formal succession planning.

2. Skilled and 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 favor 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, tumover of these individuals incurs both replacement costs to
the organization, as well as resulting in a competitive disadvantage to the business.

CTIMS, JALANDHAR 43
3. Voluntary and involuntary Turnover
Practitioners can differentiate between instances of voluntary turnover, initiated at
the choice of the employee, and those involuntary instances where the employee has
no choice in their l termination (such as long term sickness, death, moving overseas,
or employer-initiated termination). Typically, the characteristics of employees who
engage in involuntary turnover are no different from job stayers. However, voluntary
turnover can he predicted (and in tum, controlled) by the construct of turnover intent.

CTIMS, JALANDHAR 44
 CAUSES OF LABOUR TURNOVER

The Causes of Labor Turn Over can be classified with the following 3 heads:

Personal causes: Workers may leave the organization purely on personal

grounds. These may be Death, Family problems and responsibility, Personal
betterment and Retirement.
Avoidable causes: This causes can be avoided if employer takes some steps,
these are the following:
Poor wages.
• Odd working hour.
• Lack of training.
• Lack of good recruitment policy.
• Bad working conditions.
• Dissatisfaction with job.
• Lack of incentive and promotion.

Unavoidable causes: In certain circumstances it becomes necessary for the

management to ask some of the workers to leave the organization. These
circumstances may he as follows:
• Disablement
• Discharge on disciplinary grounds. `
• Discharge due to continuous illness.
• Inefficiency and negligence.
• Pilferage, theft, dishonesty etc.

CTIMS, JALANDHAR 45
 ANALYZIGN AND DEALING WITH LABOUR
TURNOVER

There are two main reasons for measuring and analyzing levels of labor turnover:

Control ; the organization must know current levels of turnover before it can
decide whether steps need to be taken to reduce them. Objective measurement is
essential if the cost of labor turnover is to I be calculated accurately. As with absence
a subjective view can sometimes lead management to ‘overestimate localized
problems and underestimate widespread ones. Universally ‘acceptable’ level - it will
depend on factors such as occupation, industry, region, etc.The important thing is to
establish the level in each organization so that changes can be measured.

Forecasting: if future starting and recruitment needs are to be estimated reliably,

account wills I need to be taken of past levels of labor turnover. For these purposes
personnel records must include l accurate details of all starters and leavers, and
should be in a form which assists analysis by length of service, section or
department, month or year, etc.

Measuring Labour Turnover

The simplest and most usual way of measuring labour turnover is to measure the
number of leavers in a period as a percentage of the number employed during the
same period, usually on a quarterly or annual basis. This is sometimes called the
separation rate, and is expressed as follows:

CTIMS, JALANDHAR 46
Number of leavers x 100 = Separation rate Average no. working

l Unless there are special circumstances such as a sudden large increase in the size of
the workforce, the average number working is usually taken to be the number
working at the start of the period added to the number working at the end, the total
then being divided by two. _
For example, if there are 210 workers at the start of the period being studied, 222 at
the end of the period, and 72 leavers during the period, the separation rate is: ‘ 72 .
210 + 222 x 100 = 33.3%
This simple index is useful in comparing one organization of labor turnover with that
of other local employers,-or with the industry as a whole. lf calculated by department
or section, it can be a useful guide to the areas which require further investigation.
For example, the index can be calculated by using voluntary resignations only,
where the inclusion of unavoidable or anticipated labor turnover would be
misleading. The separation rate is only a crude measure of the lab our turnover
problem and makes no distinction between new starters and experienced workers
who can be much more difficult to replace. The stability index illustrates the extent
to which the experienced workforce is being retained, and is calculated as follows:

Number of workers with one year‘s service (or more) now x 100 =
Stability index Number of workers one year ago

For example, if 160 current workers have been employed for one year or longer, and
the total number of workers a year ago was 250, the stability index is:
160 x 100 = 64% of 250
As with all such indices, the stability index is most useful in comparisons over a
period or with other similar organizations. ln an earlier section reference was made
to the characteristic pattern of labor turnover: high for new starters, then decreasing.

CTIMS, JALANDHAR 47
The degree to which this pattern applies in any single organization will naturally
vary, and can be shown graphically. The number of leavers is plotted against the
period for which they were working. The result typically looks like this:

Number (or proportion) of leavers Length of service on leaving

This steeply sloping curve shows that many more workers leave after a short length
of service than after a longer period. This is likely to be true even when the total
number of leavers is small, ie: when labor turnover is low.
lf the curve were much more shallow, it would indicate that leavers were spread
more generally throughout the workforce in circumstances of low labor turnover this
would cause little concern. If turnover is high and large numbers are involved it
would indicate serious loss of trained and skilled workers. So while the ‘survival
curve’ can be extremely helpful in understanding the nature of labor turnover within
an organization, it must always be used in conjunction with the. labor turnover rate.
lf there is a problem, it should be approached systematically by identifying groups
primarily ’ affected by high turnover and then examining each aspect of their
working conditions to identify causes of dissatisfaction. This will mean analysis by
department, skill level, grade, age, sex an length of service, especially in large or
diverse organizations. This analysis can indicate problems, for example, in pay
differentials or career progression which can then be studied in greater depth.

CTIMS, JALANDHAR 48
ESTABLISHING THE CAUSES OF LABOUR
TURNOVER

Dissatisfactions and problems contributing to high labor turnover are more likely to
be brought directly to management’s attention where there is effective joint
consultation(l0). The views of individual workers can also help point to
problem areas and there are two main ways in which these may be
obtained: through exit interviews and attitude surveys.

Exit interviews:
Exit interviews may help in highlighting problem areas within the organization and
in identifying any characteristics which may be common to early leavers. As well as
recording classification details about leavers, they should be asked why they are
leaving and what they think is good and bad about
The firm, for example:
• The job itself
· Supervision and management pay and other terms and conditions of work
• Training and career prospects with the organization .
· Working conditions and amenities -
• Equal opportunities. -
However, it should be kept in mind that workers may not always disclose the real
reasons for leaving or their true views about the organization. To minimizes
‘distortion’ it can help to:
• Have the interviews carried out by a person other than the immediate line manager
• Conduct them away from the normal place of work

CTIMS, JALANDHAR 49
• Explain that the interview is confidential
· Explain fully the reason for the interview
• Explain that the reasons for leaving will not affect any future references or offers to
work again for the organization.

Attitude of survey
A revealing method of finding out what workers like and dislike about their jobs and
their Organization is the attitude survey. Existing workers are asked questions
covering a whole range of work issues, often including topics such as pay and
conditions, employment relations, equal opportunities, communication, participation
arrangements, canteen facilities, organization products, and organization image.
Attitude surveys can attempt to involve every worker by asking them to complete a
written I questionnaire. Their success largely depends on good questionnaire design
and the level of response. Both require specialist knowledge. An alternative (or
complementary) method is to select a sample of workers and to interview them in
depth, following an interview plan similar to a questionnaire but allowing
interviewees more scope to give their views. An important point to remember is that
an attitude survey will raise the expectations of workers. The exercise can generate
Considerable goodwill towards the employer. The survey are freely communicated
to workers and acted upon. lf expectations are ignored, the survey may well be
counterproductive.

Consultaion
The exercise is most likely to be success till if worker representatives are fully
involved in the exercise from the planning stage onwards Interviews should be
conducted independently of the organization. Interviewees should be allowed to
speak freely and anonymously Choice of sample A
It is possible to select a sample which is random but ‘stratified’ to get proportions of
young, old, male, female, new or long-serving workers that are representative of the

CTIMS, JALANDHAR 50
organization. it is advisable where a sample is selected to invite volunteers to
contribute.
This can contribute useful information, ensures no one feels left out, and helps to
remove suspicions of bias in selecting the sample. However, the views of volunteers
should not be allowed to over-ride the results of the selected sample.

Communication
The plans for the survey, progress reports, tidings and subsequent action must be
fully communicated to workers. Reducing turnover of new starters Organizations
that want to reduce the labor turnover of new starters should pay particular attention
to the following key areas:
Recruitment and selection
Induction
Job training.

Recruitment and selection

Most employers develop some kind of recruitment and selection process often
including a selection test, to determine whether applicants are suitable for the job.
Where the job involves practical skills, it can make sense to test them at the time of
interview.
Advertisements and details given to the local jobcentre or employment agency
should give an accurate picture of the jobs, including terms and conditions. They
should also include an indication of starting pay and future prospects. Organizations
sometimes feel forced to hire less than ideal replacements when labor turnover is I
high. This can simply worsen the problem and every effort should be made to
maintain the standard for new recruits. The result of not doing so is often higher
costs of training and supervision and a Reduction in the quality of output.
Organizations should also beware of the disadvantages of setting unnecessarily high
standards — overqualified candidates may quickly become bored with jobs that ;turn
out to be more mundane than they had imagined. The responsibility for seeing that

CTIMS, JALANDHAR 51
the new recruit becomes a fully—trained effective worker falls to the 'supervisor,
and it is useful to involve the supervisor of the section in the selection process. This
involvement is important in securing the supervisor’s commitment to seeing the
worker properly Trained and settled into the job.

Induction
When new workers start, there is a good deal of information which they need, quite
apart from training for the specific job, before they can properly settle down and feel
part of the organization. This induction training is often shared between the
personnel or administration department, which covers such matters as pay and
conditions, hours of work, and the supervisor, who covers the place of work,
introductions to colleagues, fire and safety regulations. lf there is a written induction
programmed, items are less likely to be forgotten. It is important to realise that this
process is more than a simple administrative chore and should not be skimpily, even
if time is short. It is especially important where there are particular difficulties such
as language problems. A good impression of the organization helps new workers
settle down and learn their jobs quickly.
This process will be assisted by:
· Giving them prompt attention when they first arrive for work .
· A friendly welcome and introduction to the workforce
· the early provision of smartly presented written information about the company,
including written statements of main employment particulars.
Extra care is needed for the induction of school leavers and others entering
employment for the first I time, for people returning to work after a long period
away, for people with disabilities and for ·; members of ethnic minority groups.

Job training
Training a new entrant for a job naturally varies in length and complexity according
to the organization and the job itself. Training may be on or off the job and even
quite small organizations l may make use of off the job facilities, particularly where

CTIMS, JALANDHAR 52
the job is complex or cannot be taught I satisfactorily on the job. A training scheme
should ensure that the new starter is gradually introduced · to each stage of the job,
and can do each task satisfactorily before moving on to the next.
Whether the job calls for a detailed training programme or something more
informal, the supervisor ` should keep a constant check on the trainee’s progress, be
available to answer questions, correct faults before they become bad habits, and give
encouragement.
The supervisor in charge of on-the-job training will need to ensure that he or she
devotes sufficient time to this task and that it is given no lower priority than his or
her other duties. Otherwise there is a real danger that the trainee will be neglected.
lt is in the interests of both the organization and the trainees themselves that they
become fully effective workers as quickly as possible. Where an incentive bonus
scheme is in operation, it is important that new recruits are told at what point to
expect to reach an effective standard and earn bonus. They should be given every
assistance in training to reach the standard on schedule.
Disappointments and delays in reaching this stage often result in resignations,
especially if workers believe their slow development to be due to unsatisfactory
training arrangements. It is not unusual for lead-in allowances to be made in order to
give the new starter an opportunity to earn bonus whilst working up to the required
standard. Where a group bonus scheme is in operation, allowances should be made
to protect the eamings of existing group members, which otherwise may suffer due
to the lower output of the new member.

Reducing turnover of long-term workers

Where analysis shows that significant numbers of trained and experienced workers
are leaving the company, it is more difficult to point to specific areas for remedial
action. The causes of this type of labour turnover are often more fundamental and
may require attention to wider issues such BS organizational structure or
management style.

CTIMS, JALANDHAR 53
As a first step, however, it is necessary to examine rates of pay and earnings levels to
ensure that they have not become out of line with those paid for comparable jobs in
the industry or area. It is also useful to make sure that, wherever possible,
opportunities for career progression and steady improvements in earnings and skill
are maintained. Where there is a declared policy of promotion from within the
organization, workers naturally see less need to seek career development or pay
improvements elsewhere, provided the policy is seen to operate in an open and fair
way.

CTIMS, JALANDHAR 54
 ANALYSIS AND INTERPRETATION

Q1.Are you satisfied with company polices ?

YES
NO

NO. OFPEOPLE

YES
NO
TOTAL

ANALYSIS/INTERPRETATION:
As most of the employees are not satisfied from the companies policies. It indicates
that the company is not doing so much for the benefits of the employees which
generally leads to the turnover. So company should reform its policy to satisfy its
employees of the organization.

CTIMS, JALANDHAR 55
Q2.Are you satisfied with the working condition of your company?

YES
NO

NO. OFPEOPLE

YES
NO
TOTAL

ANALYSIS/INTERPRETATION:
From the above graph it is clear that most of the employees of the company are not
satisfied with the working conditions are provided by the company. The company
should take feedback from the employees to improve the working condition of the
organization.

CTIMS, JALANDHAR 56
3. Are sufficient resources available in your company?
YES
NO

NO. OFPEOPLE

YES
NO
TOTAL

ANALYSIS/INTERPRETATION:
From the above graph it is clear that there are sufficient resources available in the
company still the company’s turnover is high. So there must be some other reason
for the high turnover like, there may not be proper utilization and allocation of the
resources.

CTIMS, JALANDHAR 57
Q4.Are you satisfied with the working hours?

YES
NO

NO. OFPEOPLE

YES
NO
TOTAL

ANALYSIS/INTERPRETATION:
From the above graph we come to know that the working hours in the company are
high and not satisfactory. So it is one of the main reason which leads to the labour
turnover.

CTIMS, JALANDHAR 58
 Q 5. Is the working invironment is safe, comfortable and appropriately equipped?

YES
NO

NO. OFPEOPLE

YES
NO
TOTAL

ANALYSIS/INTREPRETATION:
From the above graph we come to the point that most of the people are feel well in
the company. So it may not be the reason of employee turnover.

CTIMS, JALANDHAR 59
Q 6. Do you have good relations with your colleagues and enjoy working hours with
them?

YES
NO

NO. OFPEOPLE

YES
NO
TOTAL

ANALYSIS/INTREPRETATION:
From the above graph ,I come this point that all the colleagues don’t have good
relations with each other. So they don’t enjoy their job and also lead to the labour
turnover..

CTIMS, JALANDHAR 60
Q 7.do you feel stress at work if yes does it effect your personal health?

YES
NO

NO. OFPEOPLE

YES
NO
TOTAL

ANALYSIS/INTREPRETATRION:
From the above graph I come this point environment of the company is so bad so
everybody come exhaust due to more working hour.

CTIMS, JALANDHAR 61
Q 8.Are you getting good salary?

YES
NO

NO. OFPEOPLE

YES
NO
TOTAL

ANALYSIS/INTEREPTATION :
As every employees work harder and expect fair salary. But according to the
survey, we found that most of the employees are satisfied with their salary. Which
leads to the job dissatisfaction and increase the labour turnover.

CTIMS, JALANDHAR 62
Q 9.Do you expect any growth in future?

YES
NO

NO. OFPEOPLE

YES
NO
TOTAL

ANALYSIS/INTREPTATION:

CTIMS, JALANDHAR 63
 Every employee expects growth career but the employees working in HCL
CDC don’t found any sort of growth as they should get. So it leads to job
dissatisfaction.

Q 10. Did you ever get good opportunities other than your personal job?
YES
NO

NO. OFPEOPLE

YES
NO
TOTAL

ANALYSIS/INTERPRETATION:
As most of the employees working over there don’t get good salary, working
condition etc. and most of them are getting good opportunity then the present job.

CTIMS, JALANDHAR 64
So they will defiantly leave the job and will be the major cause of the labour
turnover.

Q 11. Do you think your company fulfills its commitments?

YES
NO

NO. OFPEOPLE

YES
NO
TOTAL

ANALYSIS/INTERPRETATION:
The above graph shows that it is clear that majority of the employees are not
satisfied with the commitments and the policies of the company.

CTIMS, JALANDHAR 65
Q 12. Do you think that you do not have social life?
YES
NO

NO. OFPEOPLE

YES
NO
TOTAL

ANALYSIS/ INTERPRETATION:

CTIMS, JALANDHAR 66
As the working hours of the company are more and level of stress is high. So the
employee’s social life have also get effected by this. This leads to the sick health of
the employees and turnover.

FINDINGS OF THE PROJECT

The project was based on employee turnover of the HCLCDC. lt involves the cause
behind the study of the project is to develop an understanding about the impact of
the
‘Turnover’ and the finding the way to overcome from this problem.

► The employees of the HCL are not satisfied with HR policies adopted by the
HCL.
►In the organization, there are sufficient resources available for the employees but
there are not proper allocation and utilization of that resources.
► Most of the employees in the organization are not satisfied with working
conditions over there. As there is no friendliness in between the colleagues and high
working hours leads to increasing stress among the employees.
► In spite of having good resources, HCL not able to reduce the stress `level of the
employees working. The stress in the working life also leads to the ill health of the l
Employees.

CTIMS, JALANDHAR 67
►In the HCL, most of the employees are not satisfied with the salary they getting.
And the fixture growth opportunity in the organization are not offered. Which leads
to job dissatisfaction among the employees and increases turnover.
►In the HCL, the another reason of the labour turnover is the high job
dissatisfaction among employees as there personal and social life have been cut off
due to long working and stress full work.

SUGGESTIONS

The practice which the company has adopted is good enough to survive in this
inflationary condition, but the following suggestions will help the company to a
large extent:

►The employees working in the HCL are not satisfied with the HR policies. So
according to me there is need to reform the policies in the organizations.
►The resources should be allocated according to the requirement of every
department.
►The work load and stress over there is very high and according to me, one of the
major reason is the lack of` cooperation and friendly behavior among employees. So
there must be an environment which is employee friendly and help in reducing the
stress.
►In the organization, the policies should be such that they motivate the employees.
There must be an arrangement for arranging a meeting of employers and employees
in which employers should ask the employees about policies, working conditions
and also take feedback. So that employees feel a sense of belongingness with the
company.

CTIMS, JALANDHAR 68
►Compliments and thanks cost little and can bring great benefits.
►Let employees know that their opinions are valuable.
►Give salary and extra benefits as per existing or prevailing market rates, and prove
it that these are best in industry.
►Give flexi timings or give 2 hour beak so that employees can perform their
household work too. Monthly based entertainment programs should be there.
►Involve employees in organizational planning.

CONCLUSION OF THE PROJECT

In order to allow an organization to design and implement an effective retention

strategy or strategy to control the turnover, it is important for Management to
understand the reasons that prompt high performers to leave and find alternative
ways.

After analysis the whole project I came to reach with the conclusion that the most
common and the main cause of LABOUR TURNOVER is not only urge for high
growth but also when an emp1oyee’s motivation level affected by their low
productivity as expected by the employers due to high competition .
There are some ways that I have relished which can be proved fruitful to overcome
turnover problem ' as discussed below.

l. There should be special training sessions for the employees. ;

2. There should be cordial relations among the employees and healthy working
environment. .

CTIMS, JALANDHAR 69
 BIBLOGRAPHY

REFERENCE:

TITLE: AUTHER: PUBLISHER:

“Human Resource Management" Rosy Joshi Kalyani Publisher
"Human Resource Management" Ashwathappa Himalaya Publisher

WEB SITES

►http://www.wisegeek.com/what-is-employee-turnover.htm
►http://retention.naukrihub.com/employee-turnover.html
► http://www.chally.com/turnovcr cost calculator.html
► httg://www.hclcdc.in/Aboutus.htm

CTIMS, JALANDHAR 70
 QUESTIONNAIRE

Respected Sir/Madam,
This information provided by you will be utilized in completion of our MBA
project. I will be thankful for the time & effort you will spend in filling the
questionnaire.

NAME………………………………………………………………………
DEPARTMENT…………………………………………………………….
JOB TITLE………………………………………………………………….

1 Are you satisfied with the company policies?

Ans. Yes _____ or No_____
2 Are you satisfied with the working conditions of your company?
Ans. Yes _____ or No______
3 Are the sufficient resources are available in your company?

CTIMS, JALANDHAR 71
Ans. Yes ______ or No ______
4 Is the working environment is safe, comfortable and appropriately equipped?
Ans. Yes _______ or No ______
5 Are you satisfied with the working hours?
Ans. Yes _______ or No _______
6 Did your work give you a feeling of accomplishment?
Ans. Yes _______ or No _______

7 Do you have good relations with your clleagues and enjoy working with them?
Ans. Yes _______ or No ________
8 Do you feel stress at work, if yes does it effect your personal health?
Ans. Yes _______ or No ________
9 Do expect any growth in future?
Ans. Yes_______ or No________
10 Do you ever get good opportunities other than your personal job?
Ans. Yes_______ or No________
11 Do you think your company fulfills its commitment?
Ans. Yes_______ or No________
12 Do you think that you do not have social life?
Ans. Yes________ or No________

CTIMS, JALANDHAR 72
 PREFACE

CTIMS, JALANDHAR 73
AKNOWLEDGEMENT

CTIMS, JALANDHAR 74
 CHAPTER 1
INTRODUCTION

CTIMS, JALANDHAR 75
 CHAPTER 2
REVIEW OF
LITERATURE
CTIMS, JALANDHAR 76
CHAPTER 3
NEED AND
SCOPE
CTIMS, JALANDHAR 77
 CHEPTER 4
MAIN TEXT

CTIMS, JALANDHAR 78
 CHAPTER 5
DATA ANALYSIS,
INTERPRETATION,
SUGGESTIONS AND
CONCLUSION

CTIMS, JALANDHAR 79
BIBILOGRAPHY

CTIMS, JALANDHAR 80
 ANNEXURE

CTIMS, JALANDHAR 81
CTIMS, JALANDHAR 82
CTIMS, JALANDHAR 83