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A SUMMER TRAINING PROJECT REPORT ON

EMPLOYEE TURNOVER
AT VARDHMAN THREADS AND YARNS LTD (unit 3)
Submitted in partial fulfillment of the requirement For the award of degree Of MASTERS OF BUSINESS ADMINISTRATION SESSION (2010-2012) SUBMITTED TO: KURUKSHETRA UNIVERSITY KURUKSHETRA SUBMITTED BY:KARAN MALHOTRA MBA-3rd SEM

DOON VALLEY INSTITUTE OF COMPUTER APPLICATION, KARNAL


(APPROVED BY AICTE AND AFFILIATED TO KURUKSHETRA UNIVERSITY, KURUKSHETRA)

ACKNOWLEGMENT

It is my pleasure to be indebted to various people, who directly or indirectly contributed in the development of this work and who influenced my thinking, attitude, perception and acts during the course of my study. Joining VARDHMAN THREADS AND YARNS LIMITED at Ludhiana as a trainee gave me a solid platform in the beginning of my professional career. I express my sincere gratitude to MOHAN JANGHRA (HR MANAGER) Principal for providing me an opportunity to undergo summer training in this esteemed organization. I am thankful to Dr. G.S.SHARMA (Worthy Director) Mrs. MONIKA SHARMA(HOD MBA DEPTT.) for her cooperation and motivation provided to me during the training for constant inspiration, presence and blessings. I also extend my sincere appreciation to (ALL FACULTY LECT. OF MBA DEPT.) who provided her valuable suggestions and precious time in accomplishing my project report. I also extend my sincere appreciation to MS. JASWINDER KHERA (LABOUR WELFARE OFFICER VARDHMAN THREADS AND YARNS LTD) who provided her valuable suggestions and precious time in accomplishing my project report. Lastly, I would like to thank the almighty and my parents for their moral support and my friends with whom I shared my day-to-day experience and received lots of suggestions that improved my quality of work.

KARAN MALHOTRA

DECLARATION

I, Karan Malhotra, student of MBA (3RDsemester) ROLL NO. 14310026, studying at DOON VALLEY INSTITUTE OF COMPUTER APPLICATION , hereby declare that the summer training report on EMPLOYEE TURNOVER submitted to kurukshetra university, kurukshetra in partial fulfillment of Degree of Masters Of Business Administration is the original work conducted by me. The information and the data given in the report are authentic to the best of my knowledge. This summer training report is not being, submitted to any other University for award of any Degree, Diploma and Fellowship.

KARAN MALHOTRA

PREFACE

With the ongoing revolution where innovations are taking place at the blink of an eye, it is impossible to keep the pace with the emerging trends. In organization where Making Things Right in the first instance is the driving motto, perfection and accuracy are inevitable.

Excellence is an attitude that the whole of the human race is born with. It is the environment that makes sure that whether the result of this attitude is visible or otherwise. A well planned, properly executed and evaluated industrial training helps a lot in inculcating a professional attitude. It provides a linkage between the student and industry to develop an awareness of industrial approach to problem solving, based on a broad understanding of process and mode of operation of organization.

During this period, the students get the real, first hand experience for working in the actual environment. Most of the theoretical knowledge that has been gained during the course of their studies is put to test here. Apart from this, the students get an opportunity to learn the skills, which immensely helps them in building their career. I had the opportunity to have a real experience on many ventures, which increased my sphere of knowledge to a great extent. I was entrusted with a real life project, and gradually become a part of it.

KARAN MALHOTRA

TABLE OF CONTENTS

S.No. Particulars
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Introduction Of The Project Objectives Of The Study Industry Profile Company Profile About the Topic- ________________________ Research Methodology Data Analysis And Interpretation. Findings Conclusion Limitations Of The Study Suggestions Bibliography Annexure

Page No.

INTRODUCTION

The industrial city of Ludhiana, located in the fertile Malwa region of Central Punjab known as the Manchester of India". Within the precincts of this city, is located the Corporate headquarters of the Vardhman Group, a household name in Northern India. The Vardhman Group, born in 1965, under the entrepreneurship of Late Lala Rattan

Chand Oswal has today blossomed into one of the largest Textile Business houses in India. At its inception, Vardhman had an installed capacity of 14,000 spindles; today its capacity has increased multifold to over 8 lack spindles. In 1982 the Group entered the sewing thread market in the country which was a forward integration of the business. Today Vardhman Threads is the second largest producer of sewing thread in India. In 1990, it undertook yet another diversification this time into the weaving business. The grey fabric weaving unit at Baddi (HP), commissioned in 1990 with a capacity of 20,000 meters per day, has already made its mark as a quality producer of Grey poplin, sheeting, shirting in the domestic as well as foreign market. This was followed by entry into fabric processing by setting up Auro Textiles at Baddi, which currently has a processing capacity of 1 lack meters/day. In the year 1999 the Group has added yet another feather to its cap with the setting up of Vardhman Acrylics Ltd., Bharuch (Gujarat) which is a joint venture in Acrylic Fiber production undertaken with Marubeni and Exlan of Japan. The company also has a strong presence in the markets of Japan, Hong Kong, Korea, UK and EU in addition to the domestic market.

COMPANYS
OBJECTIVES
As it has been said truly that practical knowledge makes the person more capable, comprehensive and enhances his/her creativity. Along with theoretical data the exposure of practical life situation existing in the corporate is very much needed. The objective of my study was to develop practical knowledge in the training period. I learned a lot about how the human resource requirement is being analyzed, how their grievances are being handled and mainly I studied regarding the employee turnover. After completion of the degree course this training experience will help me to make my workplace stronger in all aspects.

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INDUSTRY

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PROFILE

VARDHMAN GROUP PROFILE

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Mr. S. P. Oswal Chairman - Vardhman Group and Yarn Business Head Vardhman is a major integrated textile producer in India. The Group was setup in 1962 at Ludhiana, Northern India. Since then, the Group has expanded manifold and is today, perhaps, the largest textile conglomerate in India. The Group portfolio includes manufacturing and marketing of Yarns, Fabrics, Sewing Threads, Fiber and Alloy Steel. Vardhman aims to be world class textile organization producing diverse range of products for the global textile market. Vardhman seeks to achieve customer delight through excellence in manufacturing and customer service based on creative combination of state-of-the-art technology and human resources. Vardhman is committed to be responsible corporate citizen. As a textile organization, we strive to create superior value for our customers. Vardhman is a major integrated textile producer in India. The Group was setup in 1965 at Ludhiana, Northern India. Since then, the Group has expanded manifold and is today, perhaps, the largest textile conglomerate in India. The group started its corporate journey with an installed capacity of 6000 spindles in 1965 under the flagship company Vardhman Spinning & General Mills Limited (now known as Vardhman Holdings Limited and is an investment arm of the Group) in Ludhiana. Over the years the group has expanded its spinning capacities besides

13 adding new businesses. The group has also diversified into yarn processing, weaving, Sewing thread, fabric processing, acrylic fiber manufacturing and into special/ alloy steels. Today, close to 30,000 people are the Organizations most important asset as its human capital. The total worth of the vardhman unit is approximately equivalent to US $700 millions.

THE GROUP PORFOLIO


The group portfolio includes:YARNS, FABRICS, SEWING THREADS, FIBERS AND ALLOY STEEL. The business wise turnover of the Vardhman group for the year 2008-09 can is shown as below:-

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HOLDINGS OF THE VARDHMAN GROUP

VARDHMAN TEXTILE LTD. VARDHMAN HOLDINGS LTD. VARDHMAN ACRYLICS LTD.

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VARDHMAN THREADS AND YARNS LTD. VMT SPINNING COMPANY LTD.

YARNS

The group is one of the largest spinning group of the country with a spindlage of over 8, 00,000. The group has 12

16 production plants located in the states of Punjab, Himachal Pradesh and Madhya Pradesh. In many of the yarn market segments, vardhman holds the position of market leader besides being a large and reliable supplier in the country. Vardhman is also the largest exporter of yarn from India. The group yarn exports amount to over US$2OO million covering the most quality conscious markets in the world. The total export of Cotton yarn of the group is about 60% of total export of cotton yarn from the country.

SEWING THREADS

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Vardhman entered the Sewing thread business in 1982 as forward integration to its yarn business. The group had to struggle for survival being pitted against a large multinational organization. Today with approximately 25 metric tones/per day of sewing thread manufacturing capacity in its plant at Hoshiarpur, Ludhiana, Baddi & Perundurai. Vardhman threads have emerged as second largest sewing thread brand in the country.

PROCESSED FABRIC

In its quest for further value addition Vardhman started fabric processing in 1999. Vardhman established a modern fabric process house in 1999 with a capacity of 30 million meters per

18 annum. This capacity has been expanded to 69 meters per annum in FY 2008-09. Vardhman fabric is dedicated to meet customer demand for top quality finished fabric through product innovation, world class quality, state-of-art technologies and excellence in service.

FIBER

In 1999 the group set up an Acrylic staple fiber plant at Bharuch in Gujarat in collaboration with Marubeni and Exlan of Japan. The plant has annual capacity of 18500 metric tones per annum.

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STEEL

The steel business was setup in 1973 as diversification with a capacity of 35000 million tones per annum. Later on group acquired a steel plant from Mohta Group of Industries in 1988 and converted this loss making unit into a profitable business in first year of operation with the

20 Group. Subsequently the steel mill has been modernized and expanded to a capacity of 100000 million tones per annum. Catering to high technology quality conscious alloy steel segment, the unit has a reputation of being a dependable Source of supply of special and alloy steel to Indian & International standards.

WEAVING

Continuing its onward march on the value curve, Vardhman group entered weaving business in 1990 with a capacity of 7 million meters per annum. The capacity has been subsequently expanded to 45 million meters per annum. The group has already made its mark as a quality producer of grey poplin / shirting /suiting in the home market and has also entered the highly

21 competitive export market within this short span, now exporting fairly large volume of its production.

GARMENTS

This project is under implementation. The name of this unit is VARDHMAN NISSHINBO GARMENTS LTD. This unit will be situated at LUDHIANA. This unit is being set up in collaboration with the NISSHINBO TEXTILES JAPAN.

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COMPANY PROFILE

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Capacities at a Glance

Vardhman has one of the largest spinning capacities in India with a spindlage of more than 8, 00,000. Vardhman Threads has emerged as second largest sewing thread brand in the country. In fabrics, the Group has already made its mark as a quality producer of grey poplin / shirting / suiting in the home market and has also entered the highly competitive export market within this short span, now exporting fairly large volume of its production. Vardhman established a modern fabric process house in 1999 with a capacity of 30 million meters per annum. This capacity has been expanded to 69 million meters per annum in FY 2008-09.Set up in technical collaboration with Marubeni and Exlan of Japan, the acrylic fiber plant has an annual capacity of 16500 metric tones per annum. The steel mill has been modernized and expanded to a capacity of 1, 00,000 metric tones per annum.

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Market
Largest Spinning capacity in India - over half a million spindles. Largest producer of Cotton, Synthetics and Blended yarns in the country. Largest Dyeing Capacity of Fiber and Yarn. Largest producer of Cotton, Synthetics and Blended yarns in the country. Market Leader in Hand Knitting Yarns in India. Largest range of Textile products. Second largest producer of Sewing Thread in the country.

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Collaborations with specialist worldwide. ERP (Enterprise Resource Planning) enabled solutions for online order tracking.

Globalization
Vardhman ventured in to the global market in 1986 with an export value of one crore to reach an outstanding exports of $ 150 millions in FY 2008-09. Vardhman today, exports 40% of its yarn production to more than 25 countries and has a strong presence in markets like the EEC, USA, Canada, China, Japan, Korea, Mexico, Brazil, Mauritius, Middle East. Vardhman has a share of more than 60/o in total Yarn exports from India.

Mission
Vardhman aims to be world-class textile organization producing diverse range of products for the global textile market. Vardhman seeks to achieve customer delight through excellence in

26 manufacturing and customer service based on creative combination of state-of-the-art technology and human resources. Vardhman is committed to be responsible corporate citizen.

Philosophy
Faith in bright future of Indian textiles and hence continued expansion in areas "which we know best". Total customer focus in all operational areas.

Products to be of best available quality for premium market segments through TQM and zero defect implementation all functional areas. Global orientation targeting - at least 20% production for exports.

Integrated diversification or product range expansion.

27 World-class manufacturing facilities with most modern R&D and process technologies.

Faith in individual potential and respect for human values.

Encouraging innovation for constant improvements to achieve excellence in all functional areas.. Appreciating our role as a responsible corporate citizen

Strengths of vardhman mgt

A proper communication channel between the employers and the employees as well as between employees and employers.

A healthy co-ordination among various departments of the company.

Willingness to learn more and more.

A great interest in various kinds of training programs.

It has an open and entrepreneurial environment.

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Proper handling of the process regarding the ESIC & the PF RETURNS.

Absence of labour unions and its politics.

Weaknesses of the Vardhman mgt


A large rate of hiring.

A little sophisticated production areas.

Disordered medical facilities for the employees.

Cleanliness regarding the canteens kitchen area.

Infrastructure should be developed more.

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Vardhman's international Alliances


Fabric Dyeing & Finishing
Tokai Senko, Japan

Fiber & Yarn Dyeing


Nihon Sanmo Dyeing Co. Ltd., Japan

Cotton Yarn
Toho Rayon, Japan

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Sewing Thread
American & Efird Inc., USA

Acrylic Fiber
Marubani Corporation and Exlan of Japan

Stitching India together

In India, Vardhman is synonymous with threads. Not just threads for clothes, but for furnishings, wallets, hand bags, suitcases, shoes, car upholstery, tents, industrial applications and even kiteflying. In each case, users demands differ. Designers expect strength in some threads, strength and finish in another, the qualities of fusion in a third. A leather craftsman expects a completely different combination of attributes. An automobile manufacturer spells out another set of specifications. So does the little boy on the rooftop, the kite flyer. Reputed manufacturers and buying houses prefer Vardhman because of its unswerving commitment to quality and service. The company fulfils IS/ISO 9001:2000 requirements and the products manufactured are azo free. They meet OekoTex Standard 1OO under stringent environmental norms. Sheer technical competence and service makes Vardhman India's one and only flag bearer in threads.

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Besides, Vardhman covers vast ground: cotton, polyester, core spun (polyester cotton/ polyester), trilobal embroidery thread, bonded nylon and lubricated nylon thread including specialized threads like button fusing, bead fusing and anti wicking, button shanking, indigo dyed and so on.

Corporate Philosophy
Quality shall be built into organization's products to not only meet customer's requirements continuously but exceed them. The organization shall achieve this through an interface with the market place, access to state of the art technologies, R&D, process development and adoption of innovative manufacturing and marketing strategies. The quality policy shall be integrated with the organization's main objectives:

To remain market leader in quality.

To increase market share with focus on niche segments.

32 To improve productivity.

Cost reduction.

Reduction in percentage of seconds.

YARNS- an overview
The Vardhman range of yarnOur's was a humble beginning. Three decades of hard work, commitment and constant innovation have resulted in well earned trust and goodwill of our customers across the globe.

At Vardhman, we move with the notion that Customer service is a way of life. We strive to provide our customers a delight with 3P services Prompt, Polite and Personalized.

We today have a capacity of over half a million spindles along with two dyeing plants bearing a capacity of more than 27 tons Yarn and 22 ton Fiber per day. Our goal therefore calls for serving our customers with a multiple range of products meeting the most diverse of requirements. This, in fact has positioned Vardhman as a "supermarket of High Quality Yarns".

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GREY YARNS

Cotton hosiery, weaving, open end & tyrecord yarn. Acrylic yarn(bulk and regular) Polyester cotton yarn. Special blended yarn. Compact yarn.

DYED YARNS

Crayons(package dyed cotton yarn) Rainbow(100% fiber dyed cotton yarn) Rangoli(100% cotton mlange yarn) Paragon(fiber dyed polyester cotton yarn) Harmony(fiber dyed polyester cotton mlange yarn) Padam(superior tow dyed acrylic bulked yarn)

34 Daffodil(tow dyed acrylic bulked yarn) Yarn dyed acrylic Hand knitting yarn

Cotton threads
Super seam Super seam is a 100% extra long staple mercerized cotton thread. This product is gassed to provide a smooth surface and lubricated for better sew ability where as mercerization process gives extra strength and luster. Application Sewing of cotton garments.

Sizes Available Tex 35

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Texturised thread Soff Soff is a continuous filament Polyester Texturised thread. It provides with better stretch on the seams and gives a very soft feel. It can be used on over locking and Cover seaming machines as a looper thread.

Application Lingerie, Swimwear, Knitwear, Baby wear

Sizes Available Denier 150, 300 DENIM

Denim denotes a rugged cotton twill textile, in which the weft passes under two or more warp fibers, producing the familiar diagonal ribbing identifiable on the reverse of the fabric, which distinguishes denim from cotton duck. Denim was traditionally colored blue with indigo dye to make blue 'Jeans," though 'Jean" denoted a different, lighter cotton textile.

CORESPUN THREADS DURO SOFT / D-CORE (A&E) Duro Soft is a high quality extra long cotton staple fiber wrapped core spun thread with a core of continuous filament polyester yarn. The polyester core provides the strength while the softness of cotton cover provides very good sewing performance.

36 Applications Denim Shirts, Pants, Dresses, Kids wear Sizes Available Tex 60, 80, 90, 105, 150, 120, 180, 220.

SPECIAL APPLICATION THREAD


FUSER Fuser is a poly corespun thread with a fusible coating. This product is meant for the attachment of beads, sequins and buttons. When heat is applied the coating melts and fuses the knots thus securing the attachment. SIZES AVAILABLE Tex 24, 40

TAURUS

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Taurus is a continuous filament polyester thread. DTEX 120 and DTEX 80 can be used for blind hemming.

EMPLOYEE TURNOVER

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EMPLOYEE TURNOVER
Employee turnover has been defined as a permanent movement of the employee beyond the boundary of the organization. Interest in the topic has gained momentum in the recent past among organizational psychologists, economists, and sociologists with different perspectives being adopted to study the phenomenon.

In other words, employee turnover is the number of permanent employees leaving the organization within the reported period versus the number of actual active permanent Employees on the last day of the previous reported period.

There is a formula which is being used for the calculation of the employee turnover rate. It is-

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Labour turnover arises because of accession in the organization and separation from the organization. These concepts are defined below-

ACCESSION- It means addition of employees due to their appointment in the organization. SEPARATION- It means separation of employees from the organization.

It includesa) Retirement or death.

b)

Quit i.e., when an employee leaves the organization on his own.

c)

Layoff, i.e., when an employer removes an employee declaring him to be surplus.

40 d) Discharge, i.e., termination of an employee because of misconduct or poor performance.

COST OF EMPLOYEE TURNOVER


The management should try to keep the rate of employee turnover as low as possible because it involves preventive and replacement costs. Preventive costs consist of expenditure incurred on personnel administration, medical benefits, welfare facilities, retirement benefits and compensation. Replacement costs includes cost of recruitment, induction, training, loss of output etc.

ACCORDING TO EDWIN B FLIPPO, The following are the costs involved when employees leave the firm-

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Procurement costs, involving time and facilities for recruitment, interviewing and finding out
a replacement.

Training costs, involving the time of supervisor, personnel department and trainer.

Loss of production in the interval between separation of the old employee and replacement by
the new.

The pay of the learner is in excess of his productivity.

Accident rates of the new employees are always higher.

Scrap and waste rates increase when new employees are involved.

CAUSES OF EMPLOYEE TURNOVER


Either employees leave on their own or they are discharged. There are many reasons why the employees leave the organization. These causes can be divided into avoidable and unavoidable causes. AVOIDABLE CAUSES The avoidable causes are Bad working conditions in the organization.

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Poor dissatisfaction.

Long hours of work.

Lack of any incentive scheme and lack of promotional avenues.

Inadequate housing, medical and welfare facilities.

Lack of safety measures in the organization.

Faulty selection of employees and lack of proper training programs. Ineffective grievance procedure.

UNAVOIDABLE CAUSES
The unavoidable causes are not due to the fault of the management. It is because of some other factors which are beyond the control of the organization. These causes can be Personal betterment.

Domestic affairs, marriage, pregnancy in case of female employees etc.

Illness, accident etc.

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Departure from the locality.

Unsuitable for job or misconduct on his part.

Housing or transportation problem.

Retirement, death etc.

CONTROL OF EMPLOYEE TURNOVER


The causes of employee turnover can be ascertained by arranging personal interview with the outgoing employees and opinion poll or survey of opinion of the present employees by the independent persons. Exit interview is the best way to know the causes. Remedial measures should be taken after ascertaining the exact the reasons for leaving. Actions should be taken to reduce the employee turnover which is avoidable.

Some of the measures are Introduction of a satisfactory wage plan.

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Introduction of a proper incentive and promotion plan.

Provision of reasonable amenities and welfare measures.

Provision of retirement benefits.

Improvement of quality of supervision.

Introduction of training programs for increasing the skills of the employees. Setting up of machinery for handling the grievances of the employees.

PROS AND CONS OF EMPLOYEE TURNOVER


High levels of employee turnover have its pros and cons. In some industries, a higher level of employee turnover is expected and this is typically accounted for, however in other industries, a rapid degree of staff turnover can be costly.

Whether or not high employee turnover is a problem depends on the industry. Some industries expect and command high turnover, while other kinds of businesses depend on the longevity of employees in order to thrive, keep costs down and succeed. It's probable for most industries high employee turnover is more of a problem than a benefit.

Here are a few pros and cons that are associated with high employee turnover-

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PROS
Despite the cons, there are also pros to high turnover. Some are industry specific, but others can be beneficial in a general sense too.

NEW IDEAS- While employees bring knowledge with them, on the flip side people often get locked into a particular mindset and sometimes see things from a pretty limited perspective. A turnover of new hires also has good potential for lots of new and fresh ideas, many of which the business could profit from.Group think is sometimes an issue in the workplace and a stream of new employees is a positive in this respect because no one works together long enough to fall into this phenomenon and the organizational challenges that sometimes comes with.

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POTENTIAL INNOVATION- New and fresh ideas often leads to innovation and businesses who have high turnover often find themselves able to come up with new products, services and ways of doing things.Additionally new hires may see flaws in existing processes or organizational ways of thinking and if allowed, using their fresh eye and perspective, can typically offer insight on how to fix existing problems that no one else identified because they are too close to the process or situation.

Cons
HIGH COST- High cost are one of the biggest drawbacks to high employee turnover. It takes a lot of efforts and resources in the application process to advertise positions, recruit, interview and hire.The costs associated with the hiring process can run steep after a while if this is a repeated pattern and the need for new employee recruitment is ongoing.

TIME CONSUMING - Once an employee is brought on board, they need time to learn their job and this entails training. It doesn't matter whether or not the training is informal or formal, effort and time of other employees has to be shared in order to bring the new staff member up to speed.When colleagues are continuously pulled away from their own work to train new hires, this weighs down on their ability to do their own jobs and can impact productivity, which is costly.The time invested in the training process is a considered as con of high emplo

47 In the end we can conclude it by saying that, High employee turnover can be costly, or it can be beneficial, depending on the organization's own goals and objectives. If the turnover is deemed to be a problem, then the business can look for ways to reduce the high turnover rate, but if it seems the benefits outweigh the drawbacks, business may want to continue as usual.The key to successfully managing rapid employee turnover is to isolate the problem areas and find ways to either eliminate or absorb those costs and capitalize on the benefits. If the problem is severe then organizational cultural issues may have to be addressed in order to solve the problem

RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY

RESEARCH IS A PROCEDURE OF SYSTEMATIC AND LOGICAL APPLICATION OF THE FUNDAMENTALS OF SCIENCE TO THE GENERAL AND OVERALL QUESTIONS OF A STUDY AND SCIENTIFIC TECHNIQUE WHICH PROVIDE PRECISE TOOLS, SPECIFIC PROCEDURES AND TECHNICAL RATHER THAN PHILOSOPHICAL MEANS FOR GETTING AND ODERING THE DATA PRIOR TO THEIR LOGICAL ANALYSIS AND MANIPULATION.

DIFFERENT TYPES OF RESEARCH DESIGNS ARE AVAILABLE DEPENDING UPON THE NATURE OF THE RESEARCH PROJECT, AVAILABILITY OF THE ABLE MANPOWER AND CIRCUMSTANCES.

49 AN EXPLORATORY RESEARCH WAS CONDUCTED AND THE DATA REQUIRED FOR THE RESEARCH PURPOSE WAS COLLECTED.

BASICALY THERE ARE TWO TYPES OF DATA THE PRIMARY DATA. THE SECONDARY DATA.

THE PRIMARY DATA WAS COLLECTED THROUGH THE QUESTIONNAIRES AND THE SECONDARY DATA WAS COLLECTED THROUGH THE INTERNET AND DIFFERENT BOOKS.

Theoretical Framework Based on stated review of literature and theories, following conceptual framework is devised to conduct this study:|

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Demotivation

Dissatisfaction of job

Employee Turnover

Organizational Performance

Better job opportunities

The impact of employee turnover on the organizational performance will lead to the decrease the development of industry, which in turn mediates the impact of employee turnover on performance through mediating their motivation. In the above conceptual framework demotivation, dissatisfaction of job and better job opportunities are the factors which increases employee turnover. An increasing rate in employee turnover negatively affects organizational performance and organization spent more money for hiring and training new employees.

Methodology Mixed Methodology: I have used mixed methodology in my proposal because both qualitative and quantitative methods have been used in research. Mixed method is a philosophical assumption that integrates qualitative and quantitative research approaches within a simple subject. Its central premise is that the use of quantitative and qualitative approaches in combination provides a better understanding of research problems that either approached alone.

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Rational for the selection of Mixed Methods Approach: The most important thing in the selection of approach is the nature of research problem as my research problem is twofold in nature. So I have decided to choose mixed methods research approach as to accommodate my first objective of exploring and understanding the complexity of the contextual variances in context of Pakistan. I will use interpretivism as a research philosophy and use semi-structured interview method under the umbrella of qualitative paradigm. Then to cope with my second objective i.e. to deal with the validity, reliability, and generalizability, positivism will be chosen supported by survey method in the circumference of quantitative paradigm. Furthermore this decision is supported by the rationale of availing the merits and overcoming the demerits of both approaches as discussed by Creswell (2003), the use of multiple data sets can inform the research, by yielding insight and methodological changes that improve the study and strengthen findings as well as collecting diverse types of data best provides an understanding of a research problem.

Research Design: Selecting Mixed Methods Approach on the basis of Pragmatic Knowledge Claims I have decided to collect the qualitative and quantitative data in phases using Sequential Exploratory Design in sequential strategies. A visual view of the sequential strategy is as follows: Interpretation based QUAL quan Results

QUAL

quan

qual data collection

qual data analysis

qual results

Develop Instrument

QUAN Data collection

QUAN Data analysis

QUAN results

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Interpretation qual QUAN During this process qualitative data will be collected using semi-structured interviews in the first phase of the study through open ended questions. Purposeful sampling will be used to choose experienced respondents regarding the phenomena under consideration. On the other hand quantitative data will be collected through questionnaire in the second phase of the study. Questionnaire including close ended questions will be delivered to selected sample in order to validate the themes emerge from the qualitative phase and to generalize the findings to a larger population followed by data analysis with the help of SPSS software.

Sample And Sampling Technique: I will use convenience sampling technique for data collection. Convenience sampling denotes choosing settings, groups, individuals that are conveniently available and willing to participate in the study. I will target industrial sector in Pakistan. I will select 15 industries but for further research I will take 8 industries.

Tools of Data Collection:

53 Data is collected through both qualitative and quantitative method. During this process qualitative data is collected using semi-structured interviews and surveys in the first phase of the study through open ended questions supported by probes and prompts to get deep insights and to keep the respondent on track respectively with time and cost saving approach.. The rational that I will use semi-structured interview method instead of observations or document study is based on the fact that my research is based on exploring and understanding the

complexity of what contextual variances occur in a specific social setting by taking account of participants multiple subjectivities, interpretations, and perspectives regarding employee turnover and organization performance .My decision to use interview over other means of data collection is influenced by the various arguments presented by different authors. As Wellman (2001) stated that interviews are very useful because highly specified data can be obtained in a very short span of time and is also useful in providing a general overview of peoples thoughts. Further I have decided to choose semi-structured interview that could be argued as the most important way of conducting a research interview because of its flexibility balanced by structure and the quality of the data so obtained (Gillham B. 2007), Choosing interview on other data collection methods i.e. observation or documents is a decision made on the basis of deep comparative study and critical review of all the methods and there relative strengths and weakness. Interview method is rational to choose for this study as it not only provides highly specified data as compare to observation and documents but also, as per the objectives of my study, it gives deep insights to perceptions and meanings of individuals with broad yet controlled exposure and scope with the flexibility of opportunity to be learned by the researcher even if he is not acquaint with this technique earlier.

54 On the other hand quantitative data is collected through questionnaire in the second phase of the study. Questionnaire including close ended questions will be delivered to selected sample in order to validate the themes emerge from the qualitative phase and to generalize the findings to a larger population followed by data analysis with the help of SPSS software.

Validity and Reliability: Validity refers to issues of whether or not an indicator really measures the concept that it is advised to measure whereas Reliability us the stability or the consistency of measurement. So keeping in view my research problem I have choose the mixed method sequential approach in which preference is given to qualitative` approach so first issue which I will face regarding validity and reliability is that it does not carry the same meaning as in quantitative approach However for the first phase which is qualitative I will ensure reliability by comparing coding among several coders and will see that after transcription whether they will arrive at the same codes and themes or different one . In order to ensure accuracy of findings or validity .I will use the following strategies 1-Member Checking: Discussing the summaries of the findings (e.g., themes) with participants and ask them whether the findings are an accurate reflection of their experiences. 2-Peer Examination: A Doctoral student will serve as peer examiner with the approval of the supervisor. 3-Clarification of the researcher bias

55 4-Rich and Thick description to covey the findings And finally I will use 5-An external auditor to review the entire process For the second phase which is quantitative in nature reliability means, whether the result is replicable, whereas validity means whether means of measurement are accurate and whether they are measuring what they are intend to measure. So with regards to reliability I will check the results through statistical procedure of internal consistency and with regards to the validity I will establish the validity of the questionnaire through content validity (i.e. asking the expert opinion) and of their results through criterion related and construct validity(i.e. factor analysis of the measures). Moreover validation of the instrument will be done through a pilot study and by taking a large sample representative of the population.

Ethical Consideration: Developing this proposal as well as during the complete research process, ethical issue should be deeply and wholly kept into consideration since the introduction of research problem statement

56 till writing and disseminating the whole research. The following ethical issues will be kept under consideration during the research process and aftermaths

The purpose of study is made clear and simple to be easily understood by the readers as well as the respondents to avoid any ambiguity at any end. Precisely yet comprehensive information will be provided to respondents in order to make them clear about all aspects, objectives and outcomes of the research. Mutual consent form, permission letter and any other written approval if needed will be dually signed by both the researcher and the respondent. Prior time adjustment will be made in order to avoid any interruption in the flow at research site It will be made sure to secure and protect the information gathered from respondent to avoid any harmful consequences for them Permission to tape the interview and to keep this information on an electronic database and analyze it for research purpose. The privacy of the participants would be protected to the maximum extent allowable by law.

57 1. What according to you are the types of employee turnover? Functional Turnover Dysfunctional Turnover Avoidable Turnover Unavoidable Turnover 49 31 69 52

69
70 60 50 40 30 20 10 0 Functional Turnover Dysfunctional Turnover Avoidable Turnover Unavoidable Turnover

49

52

31

Interpretation: According to the 100 employees of VARDHMAN THREADS AND YARNS LIMITED 49 of them say that functional turnover is one of the types of employee turn over, 31 of them suggested dysfunctional turnover, 69 of them suggested avoidable turnover and rest 52 of them suggested unavoidable turnover is one of the type of employee turn over.

2. What are the various reasons for employee turnover?

58

Management demands that one person do the jobs of two or more people Management doesn't allow the rank and file to make decisions about their work Management constantly reorganizes, shuffles people around and changes direction constantly Management doesn't take the time to clarify their decisions Management promotes departments to compete against each other Management throws a temper tantrum, points fingers and assigns blame
57 51 50 40 30 20 10 0
Management Management Management Management Management Management demands that one doesn't allow the costantly doesn't take the promotes throw s a temper person do the rank and f ile to reorganizes, time to clarif y their departments to tantrum, points jobs of tw o or make decisions shuf fles people decisions compete against fingers and more people about their w ork around and each other assigns blame changes direction constantly

44 39 33 57 29 51

60 44 39 33

29

Interpretation: According to the 100 employees of VARDHMAN THREADS AND YARNS LIMITED 44 of them say management demands that one person do the jobs of two or more people is one of the various reasons of employee turn over, 39 of them say management doesnt allow the rank and file to make decisions about their work is one of the various reasons of employee turn over, 33 of them say management constantly reorganizes is one of the various reasons of employee turn over, shuffle people around and change direction constantly is one of the various reasons of employee turn over, 57 of them say management doesnt take the time to clarify their decisions is one of the various reasons of employee turn over, 29 of them say management promotes departments to compete against each other is one of the various reasons of employee turn over, and rest 51of them say management throws a temper tantrum, points fingers 3. In an organization, a little rate of employee turnover may result into?

59

Bringing in new ideas and skills from new hires Better employee-job matches More staffing flexibility Facilitate change and innovation

37 29 46 53

60 50 40 30 20 10 0 Bringing in new ideas and skills from new hires Better employeejob matches More satffing flexibility 37 29 46

53

Facilitate change and inovation

Interpretation: According to the 100 employees of VARDHMAN THREADS AND YARNS LIMITED from which 37 of them say a little rate of employee turnover may result into bringing in new ideas and skills from new hires, 29 of them say a little rate of employee turnover may result into a little rate of employee turnover may result into better employee job matches, 46 of them say a little rate of employee turnover may result into more staffing flexibility and rest 53 of them say a little rate of employee turnover may result into facilities change and innovation.

60 4. High rate of turnover may lead to decrease in? Productivity Service Delivery Spread of Organizational Knowledge 43 51 57

57
60 50 40 30 20 10 0 Productivity ServiceDelivery Spread ofOrganizational Knowledge

51 43

Interpretation: According to the 100 employees of VARDHMAN THREADS AND YARNS LIMITED from which 43 of them say turnover may lead to decrease in productivity, 51 of them say turnover may lead to decrease in service delivery and rest 57 of them say turnover may lead to decrease in spread of organizational knowledge.

61 5. What according to you are the causes of employee turnover? Compensation package differences Job and employee skill mismatch Inferior facilities, tools. etc Less recognition Less or no appreciation for work done Less growth opportunities Poor training Poor Supervision 37 41 39 27 43 51 22 37

60

51
50

41
40 30 20 10 0

43 39 27 22 37

37

Compensation package diff erences

Job and employee skill mismatch

Inferior f acilities, Less recognition Less or no tools. etc appreciation f or w ork done

Less gropw th opportunities

Poortraining

Poor Supervision

Interpretation: According to the 100 employees of VARDHMAN THREADS AND YARNS LIMITED from which 37 of them say from Compensation package differences is one the causes of employee turnover, 41 of them say Job and employee skill mismatch is one the causes of employee turnover, 39 of them say from Inferior facilities, tools. etc is one the causes of employee turnover , 27 of them say from Less recognition is one the causes of employee turnover, 43 of them say from Less or no appreciation for work done is one the causes of employee turnover, 51 of them say from Less growth opportunities is one the causes of employee turnover, 22 of them say from Poor training is one the causes of employee turnover, and rest 37of them say from Poor Supervision is one the causes of employee turnover.

62 6. What according to you are the few ideas that a smart company use to keep their employee turnover rate low. Pay them well Treat each employee with respect regardless of their job Offer good health care plans Offer flexible hours and generous vacation plans Offer a bonus plan to safe and efficient workers Begin a profit sharing plan
59 51 50 40 31 30 20 10 0
Pay them well Trat each employee with respect regardless of their job Offer goodhealth care plans Offer flexible Offer a bous Begin a profit hours and plan to safe sharing plan generous and efficient vacation plans workers

44 31 39 27 59 51

60 44 39 27

Interpretation: According to the 100 employees of VARDHMAN THREADS AND YARNS LIMITED from which 44 of them say pay them well is one the ideas that a smart company use to keep their employee turnover rate low, 31 of them say Treat them well is one the ideas that a smart company use to keep their employee turnover rate low, 39 of them say offer good health care plans is one the ideas that a smart company use to keep their employee turnover rate low, 27of them say offer flexible hours and generous vacation plans is one the ideas that a smart company use to keep their employee turnover rate low, 59 of them say they offer a bonus plan to safe and efficient workers is one the ideas that a smart company use to keep their employee turnover rate low and rest 51 of them say begin a profit sharing plan.

63 7. How you calculate the turnover costs of the organization? Very High High Low Very Low 21 19 37 23

Very Low 23%

Very High 21%

Low 37%

High 19%

Very High

High

Low

Very Low

Interpretation: According to the 100 employees of VARDHMAN THREADS AND YARNS LIMITED from which 21% of them say that turnover costs of the organization is very high, 19% of them say that the turnover costs of the organization is high, 37% of them say that the turnover costs of the organization is low and rest 23% of them say that the turnover costs of the organization is very low.

64 8. In the case of high employee turnover what are the major direct cost include for an organization? Recruitment Selection Training of new people 41 37 22

Training of new people 22%

Recruitment 41%

Selection 37%

Recruitment

Selection

Training of new people

Interpretation: According to the 100 employees of VARDHMAN THREADS AND YARNS LIMITED from which 41% of them say that recruitment is the major direct cost for an organization, 37 of them say that selection is the major direct cost for an organization, and rest 22% of them say that training of new people is the major direct cost for an organization.

65 9. In the case of high employee turnover what are the major indirect cost include for an organization? Increased Workloads Increased overtime expenses for coworkers Reduced productivity associated with low employee morale 43 31 26

Reduced productivity associated with low employee morale 26%

Increased Workloads 43%

Increased overtime expenses for cowokers 31%

Increased Workloads Increased overtime expenses for cowokers Reduced productivity associated with low employee morale

Interpretation: According to the 100 employees of VARDHMAN THREADS AND YARNS LIMITED from which 40% of them suggested that in the case of high employee turnover the major indirect cost include for an organization is increased workloads, 31% of them suggested increased overtime expenses for coworkers and rest 26% of them suggested reduced productivity associated with low employee morale. 10. What are the certain causes associated with turnover in any specific job or organization?

66 Non- competitive compensation High stress Working conditions Monotony Poor Supervision Poor fit between the employee and the job Inadequate training Poor communications Organization Practice
50 45 40 35 30 25 20 15 10 5 0
Non com etitive p com en p sation Hig stree h W orkin con iton g d s Mon oton y y PoorSu e p rvision Poor fit b tw e een th e p eea d e m loy n th ejob In eq ate train g ad u in Poor com u ica m n tion s Org iza an tion Practice

33 47 25 29 21 37 24 35 22

47

37 33 29 25 21 24

35

22

Interpretation: According to the 100 employees of VARDHMAN THREADS AND YARNS LIMITED from which 33 of them say non-competitive compensation is one the causes to associated with the turn over in any job/organization, 47of them say High stress is one the causes to associated with the turn over in any job/organization, 25 of them say Working conditions is one the causes to associated with the turn over in any job/organization, 29of them say Monotony is one the causes to associated with the turn over in any job/organization, 21 of them say Poor Supervision is one the causes to associated with the turn over in any job/organization, 37 of them say Poor fit between the employee and the job is one the causes to associated with the turn over in any job/organization, 24 of them say Organization Practice is one the causes to associated with the turn over in any job/organization, 35 of them say Poor communications is one the causes to associated with the turn over in any job/organization, and rest 22 of them say Inadequate training is one the causes to associated with the turn over in any job/organization.

67 11. What steps should have to be taken by the company to check employee turnover time to time? Measure the cost of turnover Develop retention strategies Plan for some expected turnover Plan for a changing workforce culture Recognize quality of work life
59 60 50 40 31 30 20 10 0 47 39

47 59 39 31 2

2
Measurethe cost ofurnover Develop retention strategies Plan for some expected turnover Plan for a changing workforce culture Recognize quality of work life

Interpretation: According to the 100 employees of VARDHMAN THREADS AND YARNS LIMITED from which 47 of them say measure the cost of turnover is one the steps taken by the company to check employee turnover time to time, 59 of them say develop retention strategies is one the steps taken by the company to check employee turnover time to time, 39 of them say plan for some expected turnover is one the steps taken by the company to check employee turnover time to time, 31 of them say plan for a changing workforce culture is one the steps taken by the company to check employee turnover time to time and rest 2 of them say recognize quality of work life is one the steps taken by the company to check employee turnover time to time.

68 12. What initial steps can be taken to reduce turnover? Hire the right people and continue to develop their careers Most companies with low turnover rates are very employee oriented Development an overall strategies compensation package 57 39 43

57 60 50 40 30 20 10 0 43 39

Hire the right people and continue Most companies with low low Development an overall strategies to develop their careers turnover rates are very employee compensation package oriented

Interpretation: According to the 100 employees of VARDHMAN THREADS AND YARNS LIMITED from which 57 of them say hire the right people and continue to develop their careers is one of the initial steps taken to reduce turnover, 39 of them say most companies with low turnover rates are very employee oriented is one of the initial steps taken to reduce turnover and rest 43 of them say development an overall strategies compensation package is one of the initial steps taken to reduce turnover.

69 13. What are the various ways to reduce employee turnover? Challenge the Employee Recognize Employee Success Create a Career Path Offer Competitive pay and Benefits 45 51 39 55

60 50 40 30 20 10 0 Challenge the Employee

51 45 39

55

Recognize Employee Create a Career Path Offer Competitive pay Success and Benefits

Interpretation: According to the 100 employees of VARDHMAN THREADS AND YARNS LIMITED from which 45 of them suggested to challenge the employee, 51 of them suggested to recognize employee success, 39 of them suggested to create a career path, and rest 55 of them suggested to offer competitive pay and benefits.

70 14. What suggestions should be given to the organization in order to avoid employee turnover? Be fair and consistent in establishing compensation Promote from within if possible Attempt to avoid bringing new people on board at a higher rate than current employees Policies to prevent discussion of wages simply do not work 57 43 39 33

60 50 40 30 20 10 0

57 43

39 33

Befair and consistent in est5ablishing compensation

Promote from within if Attempt to avoid bringing possible new people on board ata higher rate than current employees

Policies to prevent discussion of wages simply do not work

Interpretation: According to the 100 employees of VARDHMAN THREADS AND YARNS LIMITED from which 57 of them suggested to be fair and consistent in establishing compensation, 43 of them suggested to promote from within possible, 39 of them suggested to avoid bringing new people on board at a higher rate than current employees, and rest 33 of them suggested policies to prevent discussion of wages simply do not work are the various suggestions given to the organization in order to avoid employee turnover.

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FINDINGS

FINDINGS OF THE SURVEY After the conduction of the research and from the data collected the following have been observed-

1. Most of the employees feel good, comfortable and safe in the factorys atmosphere.

2. The employees working in the company are very much impressed and convinced by the co-operative staff and supervisors. The senior staff helps the employees to do well in the best possible way.

3. Proper safety and security is being provided by the company to the female workers. There is a proper facility of girls hostel and mess within the company premises.

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4. A negative feedback was also given regarding the hostel services. The girls working here complaint that the mess charges, electricity charges and room charges are very much higher.

5. The employees working in the company also made a complaint regarding the production targets. According to them the production targets are very high and it is almost unable to achieve.

6. Some of the employees also made a complaint that the salaries given to them were not according to the work they were doing. The salaries were not according to the market rate. Basically employees gave salaries as the main reason of employee turnover in vardhman.

7. The workers working in the company suggested that some sort of cultural or entertainment programs should be conducted once in a while so that they can avoid the monotonous situations and can work with full concentration and dedication.

8. The workers are impressed by the training and development programs being conducted on regular basis for the overall growth of the employees so that they can work properly and can attain their targets.

9. According to the employees, the basic reason for employee turnover in vardhman is because of the personal problems or social problems or it can be that the employees are getting better jobs other than this.

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CONCLUSION

CONCLUSION Firstly, the company should spend an appropriate amount on recruitment of its employees. This will lead to higher productivity if good employees are recruited in an appropriate manner. In reality, the rate of employee turnover is healthy in the company. If proper check is being kept on this rate then the company will be benefited. For e.g. - if the employee turnover in the company reduces from 8% to 4%, then the cost will be reduced, moreover we will have skilled workers to work in the organization and on the other hand the reputation of the company will be improved.

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LIMITATIONS The limitations need to be considered during the research work. So the main limitations which I faced during my training period are as following: Due to certain norms and regulations followed by the management of the organization, all the subjects could not be studied intensively. As such the report is subjected to a particular time frame since it is quite possible that the inferences may differ in different periods.

SUGGESTIONS

RECOMMENDATIONS TO REDUCE THE EMPLOYEE TURNOVER

1. Focused recruitment

75 The Company should properly concentrate on their recruitment strategies. The recruitment process should not be complicated or complex. Properly educated and healthy employees should be employed.

2. Recruitment through references


Emphasis on recruitment through references should not be made. If the employee on whose reference the other employees are recruited leaves the company there may be a tendency that the other employees may also leave.

3. Training and development


Proper training and development programs should be conducted for the employees from time to time. With the help of the training the employees will become aware of the work they are doing. Proper training will motivate the employees to work in a more efficient way. 4. Salary according to the market The salary given to the employees should be according to the market rate. If more salary in given in the market than what the company is giving for doing the same kind of job, there may be a tendency that the employees may leave the organization and this will result in employee turnover.

5. Employee involvement Every employee working in the company must be given a fair chance to speak or to give suggestions. If the same is not done the employees may feel neglected. This may result in employees leaving the organization and shifting to the other.

6. Incentives & bonus Proper incentives and bonus should be given to the employees in order to motivate them. This will lead to increase in their efficiency and will feel good while performing their jobs. This is the way by which employee turnover can be reduced.

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7. Co-operative staff & supervisors


The staff and supervisors should be co-operative with the employees in the company. They should not behave in a harsh or rude manner. If they do so, then the employees may feel frustrated and they may decide to leave the organization.

8. Entertainment programs
Some sort of entertainment programs should be conducted from time to time for the employees so that they can become fresh and can come out from the monotony which is being caused by the continuous working. This will in return increase the interest of the employees and will reduce employee turnover.

9. Bulk recruitment
The employees should be recruited according to the number of persons required for doing a particular job. Bulk recruitment should be avoided. If more number of employees are recruited then required on a particular job then it may lead to reduction in the efficiency of the employees which reduces the productivity and sometimes the employees are forced to leave the organization if the targets are not met.

10. Performance appraisal


Proper steps should be taken in order to evaluate the performance of the employees and in turn if deviation occurs it should be corrected by taking necessary steps. This will improve the efficiency of the employees and in turn will motivate them to work better. This will create a good feeling in them regarding their job and hence employee turnover will be reduced to an extent.

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BIBLIOGRAPHY LIBRARY RESOURCES HUMAN RESOURCE & PERSONNEL MANAGEMENT K. ASHWATHAPPA BUSINESS RESEARCH & METHODOLOGY C.R KOTHARI HUMAN RESOURCE & PERSONNEL MANAGEMENT RAJKUMAR ORGANISATIONAL BEHAVIOURL.M PRASAD

INTERNET RESOURCES WWW.CITEHR.COM

78 WWW.VARDHMAN.CO.IN

QUESTIONNAIRE Name.. Tenure Post Instruction: Mark ( ) which you prefer. 1. What according to you are the types of employee turnover? a) Functional turnover b) Dysfunctional turnover c) Avoidable turnover d) Unavoidable turnover 2. What are the various reasons for employee turnover? a) Management demands that one person do the jobs of two or more people b) Management doesn't allow the rank and file to make decisions about their work c) Management constantly reorganizes, shuffles people around and changes direction constantly d) Management doesn't take the time to clarify their decisions e) Management promotes departments to compete against each other f) Management throws a temper tantrum, points fingers and assigns blame Age. Sex.. Contact No..

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3. In an organization, a little rate of employee turnover may result into? a) Bringing in new ideas and skills from new hires. b) Better employee-job matches. c) More staffing flexibility. d) Facilitate change and innovation. 4. High rate of turnover may lead to decrease in? a) Productivity b) Service delivery c) Spread of organizational knowledge 5. What according to you are the causes of employee turnover?
a) b) c) d) e) f) g) h)

Compensation package differences Job and employee skill mismatch Inferior facilities, tools, etc Less recognition Less or no appreciation for work done Less growth opportunities Poor training Poor supervision

6. What according to you are the few ideas that a smart company use to keep their employee turnover rate low. a) Pay them well, b) Treat each employee with respect regardless of their job, c) Offer good health care plans, d) Offer flexible hours and generous vacation plans. e) Offer a bonus plan to safe and efficient workers f) Begin a profit sharing plan

80 7. How you calculate the turnover costs of the organization? a) Very High b) High c) Low d) Very Low 8. In the case of high employee turnover what are the major direct cost include for an organization? a) Recruitment b) Selection c) Training of new people 9. In the case of high employee turnover what are the major indirect cost include for an organization? a) Increased workloads b) Increased overtime expenses for coworkers c) Reduced productivity associated with low employee morale 10. What are the certain causes associated with turnover in any specific job or organization? a) Non-competitive compensation b) High stress c) Working conditions d) Monotony e) Poor Supervision f) Poor fit between the employee and the job g) Inadequate training h) Poor communications i) Organization practices 11. What steps should have to be taken by the company to check employee turnover time to time? a) Measure the cost of turnover

81 b) Develop retention strategies c) Plan for some expected turnover d) Plan for a changing workforce culture e) Recognize quality of work life

12. What initial steps can be taken to reduce turnover? a) Hire the right people and continue to develop their careers b) Most companies with low turnover rates are very employee oriented c) Develop an overall strategic compensation package 13. What are the various ways to reduce employee turnover? a) Challenge the Employee b) Recognize Employee Success c) Create a Career Path d) Offer Competitive Pay and Benefits 14. What suggestions should be given to the organization in order to avoid employee turnover? a) Be fair and consistent in establishing compensation b) Promote from within if possible c) Attempt to avoid bringing new people on board at a higher rate than current employees d) Policies to prevent discussion of wages simply do not work

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