Employees Satisfaction and Attrition At Big Bazaar (Future Retail Group)

Submitted in partial fulfillment of the requirements for the award of The degree of Master of Business Administration Submitted to: Punjab Technical University Jalandhar By: Aysha Parveen Registration no-9212400077 Under the guidance of Prof. Aswathi Nair

#70, 2nd Main Road, 3rd Cross, Kanaka Nagar, Nagawara, BANGALORE 560 032 2009 - 11 GUIDE CERTIFICATE

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This is to certify that the Project titled Employees Satisfaction and Attrition is a bonafide work carried out by Ms. Aysha Parveen in partial fulfillment for the award of Degree of Master of Business Administration under Punjab Technical University, during the year _20010-2011. This Project Report has been approved as it satisfies the academic requirements in respect of project work prescribed for the award of MBA Degree. Name of the Guide: Prof. AswatTi Nair Signature of the Guide: Name of the Student: Aysha Parveen Signature of the Student: External Examiner Internal Examiner (Declaration by the student on Plain Paper)

DECLARATION

I hereby declared that this project titled Employees Satisfaction and Attrition , is submitted to the Punjab Technical University as a partial requirement for the award of Degree of Master of Business Administration, during the year 2010-2011.

It is the record of an original & independent study carried out by me, under the total guidance and supervision of Mr. Raghavendra poojari are HR of Big Bazaar BMTC. This project report has not been submitted earlier by me or by anybody else for the award of any other degree in

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any University in India or abroad.

Date: Place: Bangalore

Signature of the Student (Aysha Parveen)

ACKNOWLEDGEMENT
I would like to express my sincere thanks to the Director & Management of International Institute of Business Studies, Bangalore, for their valuable guidance & support. I am extremely thankful & grateful to Prof. Aswathi Nair for her constant guidance & encouragement throughout the study. I would like to express my sincere thanks & gratitude to Mr. Radhvendra Poojaray of (Big Bazaar BMTC), for her support & guidance during my stay in their organization. I would also like to express my devoted thanks to my beloved parents & my friends for their relentless support & assistance to make this project a reality. Last but not the least; I would like to thank all my respondents for their co-operation & participation in data collection, which has enabled me to complete the project successfully.

Date: Place: Bangalore

Signature of the Student (Aysha Parveen)

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EXECUTIVE SUMMARY
In spite of the theoretical knowledge gained through classroom and organization study in my project I got that the basic problem faced my organization means Big Bazaar is employees moral and attrition. I have work and search there more than 2 months as a HR trainee. To find the basic problem of employees satisfaction and attrition. To find the attrition rate for the current year at Big Bazaar in BMTC and competitions from how much percentage of attrition is increasing per annum. To ascertain the various reasons responsible for the attrition of staffs. Increase the productivity of the organization can achieve their organization goal. To bring out the strategies to retain manpower in the store. To attract more number of new employees and find ways to sustain them in the company. For my project I have done so many activities like direct interaction with employee, existing interview, HR help and some internet guide. The attrition rate was high in the Big Bazaar BMTC in the year of 2010. Because of lots of competition is here after inflation lots of opportunities are available here and each and every person want more and more salary than their ability. Every organization tries to negotiate with their employee so they give less salary/wages to their employees. Attrition have both good as well as bad effect according to employees when a prospective employees leave the organization than it has negative effective and when a non prospective employees leave the organization than it has positive effect so it is good under limitation but when it become more than it has only bad effect. I recommended that HR and CO of Big Bazaar shall increase the cost of company, and give some extra convenience to their employees like they can use their mobile in break time or company can provide telephone for emergency time so they can talk with their family. Organization decision is so sticky it should be little bit soft or polite.

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TABLE OF CONTENTS

CHAPTERS

CONTENTS

PAGE NOS.

1. INTRODUCTION 2. RESEARCH METHODOLOGY 3. REVIEW OF LITERATURE 4. PROFILE OF THE WORLD CLASS RETAIL BRAND SPAR (MAX) HYPERMARKETS 5. ANALYSIS & INTERPRETATION OF DATA 6. SUMMARY OF FINDINGS, CONCLUSIONS & RECOMMENDATIONS 7. BIBLIOGRAPHY 8. ANNEXURE
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9-20

20-25

25-38

39-57

58-95

95-100

100-106

106-110

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LIST OF TABLES

SL NO.

DESCRIPTION

PAGE NOS.

1.

FACTORS AFFECTING ATTRITION STRUCTURE

11

2.

ORGANIZATIONAL STRUCTURE

52

3.

EMPLOYE SATISFACTION SURVEY STRUCTURE

50

4.

CAPITAL STRUCTURE OF BIG BAZAR

66

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5.

ANALYSIS AND INTERPRETATION

68 - 86

CHAPTER: - 1

INTRODUCTION

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INTRODUCTION
1.1

INTRODUCTION TO THE STUDY

1.1.1. ATTRITION AND EMPLOYEES SATISFACTION

In Human Resources context, Attrition means a reduction in the number of employees through retirement, resignation or death is called Attrition. Attrition is also called total turnover or wastage rate. In another hand I can say that how long employees tend to stay on the job in a company that is called employees stability but when he leave that job or company for any reason that is called Attrition. Employees turnover is measured on for individual companies and for their industry as a whole. If an employer is said to have a high turnover relative to its competitors, it means that employees of that company have a shorter average tenure than those of other companies in the same industry. Low attrition is profitable for any company but high turnover can be harmful to a companys productivity if skills workers are often leaving and the worker population contains a high percentage of novice workers.

Employees satisfaction: the term satisfaction describes a positive feeling about a job, resulting from an evaluation of its characteristics. A person with a high level of job satisfaction holds positive feelings about his or her job, while a dis-satisfied person holds negative feelings. When people speak of employee attitudes, they usually mean job satisfaction. Employees satisfaction and employees turnover are inter related to each other. Employee satisfaction is a measure of how happy workers are with their job and working environment. Keeping morale high among workers can be of tremendous benefit to any company, as happy workers will be more likely to produce more, take fewer days off, and stay loyal to the company. There are many factors in improving or maintaining high employee satisfaction, which wise employers would do well to implement. To measure employee satisfaction, many companies will have mandatory surveys or face-to-face meetings with employees to gain information. Both of these tactics have pros and cons, and should be chosen carefully. Surveys are often anonymous, allowing workers more freedom to be honest without fear of repercussion. Interviews with company management can feel intimidating, but if done correctly can let the worker know that their voice has been heard and
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their concerns addressed by those in charge. Surveys and meetings can truly get to the center of the data surrounding employee satisfaction, and can be great tools to identify specific problems leading to lowered morale. Many experts believe that one of the best ways to maintain employee satisfaction is to make workers feel like part of a family or team. Holding office events, such as parties or group outings, can help build close bonds among workers. Many companies also participate in teambuilding retreats that are designed to strengthen the working relationship of the employees in a non-work related setting. Camping trips, paintball wars and guided backpacking trips are versions of this type of team-building strategy, with which many employers have found success. Of course, few workers will not experience a boost in morale after receiving more money. Raises and bonuses can seriously affect employee satisfaction, and should be given when possible. Yet money cannot solve all morale issues, and if a company with widespread problems for workers cannot improve their overall environment, a bonus may be quickly forgotten as the daily stress of an unpleasant job continues to mount. If possible, provide amenities to your workers to improve morale. Make certain they have a comfortable, clean break room with basic necessities such as running water. Keep facilities such as bathrooms clean and stocked with supplies. While an air of professionalism is necessary for most businesses, allowing workers to keep family photos or small trinkets on their desk can make them feel more comfortable and nested at their workstation. Basic considerations like these can improve employee satisfaction, as workers will feel well cared for by their employers.

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Environme Peer Culture No challenge Ambitions/Career OTHERS Role ORGANISATIONAL INDIVIDUAL FACTORS AFFECTING nt learning pressure Related aspirations Growth No Parental/Family and of boss Style mobility career Role clarity Personality paths Role stress factors Pay of Lack packets independence

ATTRITION

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1.1.2 JUSTIFICATION FOR CHOOSING THIS TOPIC?

Attrition in Big Bazaar:Attrition is very important for every organization. But high Attrition is big problem for industries basically in Retail and Information Technology industries. The attrition rate has been on the rise for the past 5 years in Retail industries basically in Big Bazaar. According to my information in year 2011.I have studies in Big Bazaar on Attrition and Satisfaction and I got the ration on employees attrition in BMTC Big Bazaar is 13% per months this is basic problem for company. And I recognize that is this basic problem and challenge for management. Attrition rate is very high in comparison with previous years. In most cases the employees who left were absconders- who did not attend the exit interview and follow proper exit policy. Following which the management had taken action by implementing employees engagement activities. Now, our research would help in comparing it with the current years attrition rate and thereby reduce it by analyzing the reasons contributing to it. After review of literature experts opinion (Store managers of Big Bazaar Bangalore BMTC and their HR managers), we have formulated the questionnaire base on these broad areas. The basic reason for Attrition is Employees dissatisfaction and there have various causes for dissatisfaction. Employees leave / quit the job basically for salary, employee satisfaction; low morale, work time is not so good or long works hours, high completion or it can be very low completion which is de-motivate the employees, nature of work it can be quiet dangerous or not good for health, best opportunity availed outside of organization, management of organization it also a part of Employees Satisfaction because some time employees are not avail to cope or manage their self with management they are dissatisfy with that or leave the organization, employees self steam and respect is very important for management if the salary of employees are low and they get more respect than also they want to continue their job. These are the basic reason for employees attrition. These are the basic reason for choosing this topic so easily I can understand the Human Resource Management because while this projects individually I meet most of employees and understand the Customer relation and employees value how to maintain this entire thing.

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1.1 SPECIFIC AREA OF THE TOPIC CHOSEN:The growth of retail industries are increases very rapidly, and Indian retail industries is the largest industry in world, with an employment of around 9% and contribution of Retail sector in Indian economy has been written bellow with bullets:-

Indian Economy: The 2nd fastest growing Economy in the world. The 3rd largest growing Economy in terms of GDP in nest 5 years. The 4th largest Economy in PPP terms after USA, China & Japan among the top 10 FDI

destinations. Fastest-growing Asia Pacific Market for international tourist spending 8% Economy growth- expected to exceed that of China by 2015 and Expected to become the 3rd biggest economy in the world after China and US by 2030.

Retail growth in Indian Economy: Retail Sector Total Consumer Spend : Rs. 20,00,000 cr ($ 445 bn) Retail : Rs. 12,00,000 cr ($ 270 billion) double digit growth expected Organized Retail : Rs. 55,000 cr ($ 12.4 bn) at current prices 40%+ annual growth expected Scope for Organized Retail: Rs. 2, 00,000 cr ($ 45 bn) by 2010. Average. Salaries hike of 15+ per cent: there will be lot more consumption. Leading retailers sales' growth: 50-100% in 2005-06 The Indian retail market, which is the fifth largest retail destination globally, has been ranked as the most attractive emerging market for investment in the retail sector by AT kearneys eighth annual Global Retail Development Index (GRDI), in 2009. The e Share of retail trade in the countrys gross domestic product (GDP) was between 8-10 % in 2007. It is currently around 12 %, and is likely to reach 22 % by 2010. A Mc Kinsey report the rise of India Consumer Market, estimates that the Indian consumer market is likely to grow four times by 2025. Commercial real estate service company, CB Richard Ellis findings state that Indias retail market is currently valued at US$ 5511 billion. Further, CB Richard Ellis stated that India has moved up to the 39th most preferred retail destination in the world in 2009, up from 44 last year. India continues to be among the most attractive countries for global retailers. At US$ 511 billion in 2008, its retail market is larger than ever and drawing both global and local retailers. Foreign direct investment (FDI) inflows as on July 2009, in single-b Rand retail trading stood at approx. US$ 46.60 million, according to the Department of Industrial Policy and Promotion (DIPP). The organized retail sector, which currently accounts for around 5% of the Indian retail market, is all set to witness maximum number of large format malls and branded retail market, is all set to witness maximum number of large format malls and branded retail stores in South India, followed by North, West and the East in the next two years.
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Current Target turnover in Rs. turnover in Rs. Crore Crore Pantaloon RPG** Shoppers Shop Life-style Westside Ebony Pyramid Globes 800 750 500 300 180 91 79 N.A. 1.200 1.600-1,700 N.A. 650 N.A. 150 190 N.A.

outlets

Projected outlets

31 1 13 7 13 8 3 7

74 (by 2009) 12 (by march 2010) 40 (by 2010) 15 (by 2010) 21.23 (by 2010) 14 (by 2010) 19 (next 4 years) 15-17 (by 2010)

Fig 1.2 Market share of Retailer

1.3 COMPANY PROFILE:Future Group believes in developing strong insights on Indian consumers and building businesses based on Indian ideas, as well as Wall mart concept. Kishore Biyani is chairman of future group. He always stays in consult with Wall Mart Chairman and accepts his business strategy. Main vision and Mission of Future Group has been written bellow,

Company Vision:
The Vision Statement is a sentence or a short paragraph providing a broad, inspirational image of the future. Big Bazaar wants to be no. 1 retail store in world. Now Big Bazaar is only in India but its target is serves most of the countries in world thats by Its delivering every things, everywhere, every time for every Indian consumer in the most profitable manner at chief cost.

Company mission:
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Mission Statements are sentences or short paragraphs written by companies, corporations or businesses which reflect their core purpose, identity, values and principle business aims. Big Bazaar mission like, Role clarity and lack of ambiguity Realistic aspirations, achievable Alignment with organizational values and culture, Rational Time bound about achieving any goal or objective.

We share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development. We will be trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments for classes and for masses.

History of Big Bazaar:The worldwide country chain, Big Bazaar, is formed by CEO of Future Group, Mr. Kishore Biyani. The group do not promises more than what it delivers. Their basic attraction associated with reasonable prices is their Unique Selling Price. Though, the products Big Bazaar stores stocks might not be advanced, but the customers are assured to avail the worth of the money spent by them. In 2001, the group opened its first store on the VIP Road, Calcutta, which was the primary departmental store offering regulated services of parking, steel vessels, apparel, electronics etc under the one roof at the competitive prices. Big Bazaar has become a massive hit with lower middle-class and middle class people as a major client base. At present, the Future Group comprises various formats and brands like Pantaloons, F123, Copper Chimney, Etam, Staples, One Mobile, Urbana, Brand Factory, LootMart, HomeTown and Central. The Big Bazaar has several stores located all over the India, among that Chennai, Hyderabad, Ahmedabad, Bangalore, Kolkata, Pune, Mumbai and Delhi is those metro cities where the stores of Big Bazaars are located. Big Bazaar is a chain of hypermarket in India, which caters to every familys needs and requirements. This retail store is a subsidiary of Future group, Pantaloons Retail India Ltd. and is an answer to the United States Wal-Mart. Big Bazaar has released the doors for the fashion world, general merchandise like sports goods, cutlery, crockery, utensils, and home furnishings etc. at best economical prices. Big Bazaar group offers more than 100 stores all over the country with an amalgamation of Indian bazaars feel and touch with a convenience and choice of the modern retail facilities. The retail format of the Big Bazaar group includes Andhra, Rural & Home-Town retail chain, Ezone home-improvement chain, sportswear retailer, depot and music chain is few among others.
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Facilities offered by Big Bazaar:Online shopping: Big Bazaar has an official website, FutureBazaar.com, which is one of the most favorite sites among people of India for online shopping. FutureBazaar is an online business venture of Future Group, which sells an assortment of products such as fashion, which includes merchandise for men and women, mobile accessories, mobile handsets and electronics like home theatres, video cameras, digital camera, LCD TVs, kitchen appliances and many more. Discounts: Hfte ka sabse sasta din was introduced by the Big Bazaar, wherein extra and special discounts were offered on Wednesday every week, to attract the potential buyers into their store. Security check: At each exit of Big Bazaar, they use alarm systems or Electronic Article Surveillance system, which detects the products that has attached tags or not

Big Bazaar:Type Industry Founded Headquarters Area served Key people Products Parent Website Public (BSE: 523574) Retailing India Mumbai India Kishore Biyani, (MD & CEO) Discount Stores Supercenters Future Group Pantaloon.com

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1.3.1 ABOUT BIG BAZAAR:

Big Bazaar, the flagship retail chain of the Future Group, is on the verge of achieving a unique milestone in the History of World Retail by being the first hypermarket format in the globe to rollout fastest 101 stores in a short span of seven years. Big Bazaars journey began in October 2001. Mr. Kishore Biyani said, We initially decided to name the format as Bazaar because we had designed the store keeping the Indian mandi style in mind. Since the size of the hypermarket was big than an average mandis, the thought came to name it as Big Bazaar. However, we had freezed on the punch line Isse Se Sasta Aur Achha Kahi Nahi much before we met the creative agency to design the final logo of Big Bazaar. Though, Big Bazaar was started purely as a fashion format including apparel, cosmetics, accessory and general merchandise, the first Food Bazaar format was added as Shop-InShop within Big Bazaar in the year 2002. Today, Big Bazaar, with its wide range of products and service offering, reflects the aspirations of millions of Indians. Says Rajan Malhotra, President, Strategy & Convergence, Big Bazaar, What is important in our journey is not the number of stores, but the customers faith in us. Its the India and the Indians, which have helped us, reach this feat in such a short time span and today our country is creating a history in the World organized Retail. Every Big Bazaar is a small family by its own and the head of the family Karta is the store manager. Kishore Biyani, the CEO of the Future Group, has a vast understanding of the consumers insight, has inculcated the habit of observing, understanding customers behavior, in every employee of the group. Big Bazaar is a chain of hypermarket in India, which caters to every familys needs and requirements. This retail store is a subsidiary of Future group, Pantaloons Retail India Ltd. and is an answer to the United States Wal-Mart. Big Bazaar has released the doors for the fashion world, general merchandise like sports goods, cutlery, crockery, utensils, and home furnishings etc. at best economical prices. Big Bazaar group offers more than 101 stores all over the country with an amalgamation of Indian bazaars feel and touch with a convenience and choice of the modern retail facilities. The retail format of the Big Bazaar group includes Andhra, Rural & HomeTown retail chain, E-zone home-improvement chain, sportswear retailer, depot and music chain is few among others.

In Big Bazaar there have 4th floor and six departments are which are dealing with the following products in the respective departments.

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1.

Food Bazaar:

As this department is the soul of the store, Big Bazaar has several categories within this department itself. This department has a surface area is approximate 800 square feet. This department is further divided into,
1.

Non-food International Food Staples Food Fruits and Vegetables

General Merchandize:
Home Fashion Home Section

The home section has two major sections Plastics and Crockery (PC) amount to one section and Utensils (U) and New Business Development (NBD) from the other major part. The new Business Development section have items that are more affluent in nature and are part of Kishore Biyanis Indian one customers segment. This section sells luxury products like watches, sunglasses, auto accessories, and in Home Fashion Furniture, luggage, stationeries goods. Etcetera will come.
1.

Apparels:

The apparels department is divided into three segments Mens wear- Casual and Formal wear Kids wear-Infants, boys and girls Ladies wear-Ethnic wear (Saris, Kurthas, and Dress Materials) and Western wear.

1.

Wellness department:

This department comprises of cosmetics and a pharmacy-Fit and healthy. Fashion and Fashion shy

2.

Additional Business:

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Star & Sitara Food court South Indian Food Nawarash Kala-mandir Music world

CHAPTER -2

RESEARCH METHOLOGY

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2.1.Objective of studies
There have basically two types of Objective for which purpose I have chosen this topics.

2.2 . Primary Objectives

To find the basic problem of employees satisfaction and attrition Recruit right people at right time, and at right place To find the attrition rate for the current year at Big Bazaar in BMTC and competitions from how much percentage of attrition is increasing per annum. To ascertain the various reasons responsible for the attrition of staffs.

2.3. Secondary objectives:

To solve the managerial problem of organization so they can achieve their organizational goal. Increase the productivity of the organization can achieve their organization goal. To bring out the strategies to retain manpower in the store. To attract more number of new employees and find ways to sustain them in the company.

2.1.

Scope of Studies

To find out Employees satisfaction and attrition rate in Big Bazaar. What are problems Big Bazaar facing, how much is it good/bad for any organization. To check the level of satisfaction, high moral/ low morale, communication, internal relationship and cooperation of employees in organization. How can improve moral and reduce Attrition rate in organization so they can achieve their performance. To keep update with new and enthusiastic employees in organization according to time and situation.

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2.3: RESEARCH METHODOLOGY:

2.3.1.

Observation: Survey through Questionnaires To the help of HR manager and managing Directors To direct interaction with employees and leaders

2.3.2

Limitation of the studies:The research had several limitations in the data collection phase since left employees were taken as the population for the study. Since the questionnaire involved the collection of responses from the assistant department managers and leaders on the reasons of their subordinates exit, the reliability of this reach was less as it proved to be a perspective of secondary data. Some or the team leaders feared giving responses pertaining to career growth, as they felt that their information might reach their superiors. However on promising their confidentiality of their views and responses, open and candid opinions poured up Some of the respondents felt difficult in comprehending the questionnaire especially those rotated to ordinal scale, which involve raking factors as per the importance, thereby, it had to be reworked upon which time was a consuming. As the figures and data of attrition, given by the company involved Staff transfers within the internal departments, the list had to be re-checked and worked with the store HR. Since the HR manager of one of the branches had just five months experience, he had difficulty in collecting the past records viz. as the headcount of various departments in different months.

Research design:In this project I am basically used descriptive research design and black and white graphs / tables.

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2.3.3. Method of data collection:I have used both kind of data Primary data and Secondary data. Which is more than enough for this project? The method and mode used for collecting these data are explained below.

Primary Data: For primary data I have direct survey/contract with Employees and taken support from management so employees of organization help me for this project and I have questionnaire.

Secondary Data:The secondary data I have collected from Internet, books and Journal, office web sites, and HR portals for the project work.

RESEARCH INSTRUMENT:
The research instrument used for collecting the data is questionnaire

Questionnaire:
The Questionnaire is prepared in an organized and thorough manner and reframed accordingly after considering all the required aspects of the attrition analysis, using last years data. The scale ranges from a score of 1 for Strongly Agree to a score of 5 for Strongly Disagree.

Parameters used for the Survey:

The factors which were taken into consideration for the attrition analysis survey are as follows; Employee moral Overall Satisfaction of the company Communication Training and developmental activities Grooming stander Company policy and code and conduct Career Growth and Opportunist Work Environment and Working Condition Saturday Meeting etc.

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2.5. SAMPLING DESIGN :2.5.1. Population:Population taken for the study is the Assistant Department Managers (ADM)s and team leader of Big Bazaar. 2.5.2. Sample Size:Since the company required responses from all the ADMs and team leaders, the sample size for individual branches were as follows, Big Bazaar BMTC : - 50 Big Bazaar Banashankari: - 10 Big Bazaar Hebal: - 10 Big Bazaar Puttenahalli: -20

2.5.3

STATISTICAL TOOLS USED FO ANALYSIS:-

After data collection, statistical tools are used for analyzing the data and results are obtained. From the obtains results, findings and suggestions can be done. The statistical tools used in this project for analysis are Friedman Test Simple percentage analysis

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CHAPTER-3

REVIEW OF LITERATURE

REVIEW OF LITERATURE
3.1 Problems faced by Big Bazaar: BOTTLENECKS in infrastructure can play a spoilsport in an otherwise booming retail sector cautioned industry experts at a retail conference organized recently by the Indian Retail Forum. Experts emphasized on companies first concentrating on supply chains and logistics before going ahead with expansion plans.
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Retail is not about making money, its about creating consumer choices benefiting them and finally ensuring consumer satisfaction. India has tremendous potential and it is up to the retailers to leverage upon it which can only be achieved by understanding the consumer and the market, said Vikram Bakshi, MD, Mc Donalds. Bakshi further said that high attrition rate is a cause of concern among the retailers as they are not making enough investments for providing proper training to the employees. "McDonalds faces as high as 83 per cent attrition rate but the company manages the problem through proper training modules," he added. Human capital management is a challenge for any IT manager or line of business manager in today's troubled economy. Acquiring, maintaining and promoting key talented employees is especially difficult in today's marketplace, where financial and corporate resources are stretched thin. Yet managers who think they can take key employees for granted usually learn this isn't the case--and they learn this lesson the hard way. Ziff Davis Enterprise Senior Vice President of Community & Content Stephen Wellman speaks with Bill Larkin, Principal at Executive Alliance, about the challenges of human capital management in today's market. On the fast food chain's expansion plans in India, Bakshi said McDonald's will open close to 45 new restaurants by the end of 2007. It presently has 113 restaurants. It may be mentioned that a study released by realty consulting firm Jones Lang Lasalle Meghraj early last week had warned of a shakeout in the retail industry due to problems faced by players in areas such as infrastructure, logistics and manpower. The conference witnessed participation from as many as 250 CEOs of major retail chains that discussed issues faced by industry players in the domestic market. The event also saw participation from retailers like the Future Group, Shoppers' Stop, Spencer's, Lifestyle, Trent, Globus and Pyramid among others. The conference focused on various issues regarding the existing retail and distributional channels, which can be synergized with the expansion in organized retail. India's retail sector is likely to create 2 million jobs by 2010, according to an Associated Chamber of Commerce and Industry study. 3.2 Literature Search:

3.2.1Business Definition for: attrition

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Normal and uncontrollable reduction of a work force because of retirement, death, sickness, and relocation. It is one method of reducing the size of a work force without management taking any overt actions. The drawback to reduction by attrition is that reductions are often unpredictable and can leave gaps in an organization. 3.2.2. American Heritage Dictionary

Noun:1. A rubbing away or wearing down by friction. 2. A gradual diminution in number or strength because of constant stress. 3. A gradual, natural reduction in membership or personnel, as through retirement, resignation, or death. 4. Repentance for sin motivated by fear of punishment rather than by love of God.
5. We believed the decline in attrition is a result of the current economic conditions, as well

as timing of our annual bonus pay-offs. 3.2.3. Attrition (-tr sh n) 1. A rubbing away or wearing down by friction. 2. A gradual diminution in number or strength because of constant stress. 3. A gradual, natural reduction in membership or personnel, as through retirement, resignation, or death. 4. Repentance for sin motivated by fear of punishment rather than by love of God. 3.2.4. Attrition [trn] 1. The act of wearing away or the state of being worn away, as by friction 2. Constant wearing down to weaken or destroy (often in the phrase war of attrition). 3. (Business / Industrial Relations & HR Terms) also called natural wastage a decrease in the size of the workforce of an organization achieved by not replacing employees who retire or resign 4. (Earth Sciences / Physical Geography) Geography the grinding down of rock particles by friction during transportation by water, wind, or ice Compare.

3.2.5. World English Dictionary

Attrition (trn) -N

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1. the act of wearing away or the state of being worn away, as by friction 2. constant wearing down to weaken or destroy (often in the phrase war of attrition ) 3. Also called: natural wastage a decrease in the size of the workforce of an organization achieved by not replacing employees who retire or resign 4. geography abrasion Compare corrosion the grinding down of rock particles by friction during transportation by water, wind, or ice 5. theol sorrow for sin arising from fear of damnation, esp. as contrasted with contrition, which arises purely from love of God [C14: from Late Latin attrti a rubbing against something, from Latin atterere to weaken, from therere to rub] 3.2.6. Attrition From Wikipedia, the free encyclopedia

Attrition may refer to:

Physical wear Loss of personnel by Withdrawal (military) Attrition (medicine, epidemiology), the loss of participants during an experiment Attrition (dental), the loss of tooth structure by mechanical forces from opposing teeth Attrition (weathering), the wearing a way of rocks in the sea Imperfect contrition, also known as attrition, in Catholic theology Attrition warfare, the military strategy of wearing down the enemy by continual losses in personnel and material Customer attrition, a business term used to describe loss of clients or customers Language attrition, the loss of a first or second language or a portion of that language by either a community or an individual War of Attrition, a limited war fought between Egypt and Israel from 1968 to 1970

3.2.7. Attention to Attrition is Key to Success:Attrition is one of the most serious concerns of the organizations today, irrespective of the industry in which they are operating. Attrition is all about people leaving organizations with the slightest provocation and having no respect and commitment to the company in which they are working. This article is aimed at analyzing the employee attrition and on how to combat the same in the organizations.
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Ten reasons on why attrition arises?

1. Internal networking of employees must be encouraged to create team spirit across the organization. Lack of this kind of approach leads to attrition. 2. Performance goals must be defined clearly with updated job description. Resourceful employees must be encouraged to create an atmosphere of collaboration and cooperation. 3. Professional development is always aimed at future. As Indians are natural learners, the organizations should take advantage of this trait and help them for overall development of their professional as well as personal development. 4. Managers must try to manage relations with their subordinates at personal level to get the things done and to enhance productivity of each employee. At the same time, they have to maintain 'detached attachment' with the employees and not to indulge in any kind of emotional relationship. 5. How rewards are awarded? The Rewards Policy must be transparent and this should be announced across the organization to avoid misunderstanding and miscommunication. 6. Employees are bound to discuss their salaries with their colleagues. If there is any inequality among them, then there is an issue for HR. 7. Goals are not realistic to explore the latent talent of the individuals and to leverage their competencies for the benefit of the organization. This is another potential problem HR has to face from the employees. 8. If the succession planning is not in place, then one has to inevitably go for external talent hunt when there is a need of senior positions to be filled. If they are valued high, then you will have another issue to resolve. 9. You have to communicate monetary benefits to the employees, offered from time to time. The importance of non-monetary rewards should not be ignored and managers have to be trained in offering these to employees to enhance their performance levels. 10. People have to be made aware of their career path and how they can grow within the organization? People have understood the competencies which they have to acquire to move ahead in the organization at various levels.

Attrition - Why people leave?

People leave for two reasons 1) Compensation: If the compensation is not maintained and managed in relation to the employees KSAs (Knowledge, Skills and Attitude), people may leave without notice. 2) Management: Employee relations management is most important function, which has to help the people to concentrate more on their task on hand and to become result oriented.

How to calculate attrition rate?

Closing employee Balance of last month = x Closing employee balance of current month = y x + y = average head count
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Average head count divided by resigned employees of current month X 100 = attrition rate Conclusion

How to manage Attrition?

1. Compensation and Management: Compensation and Management must be managed based on the KSAs (Knowledge, Skills, Attitude and Experience) of the employees. 2. Create opportunities for employees: The Company has to create growth opportunities for employees to enhance their learning experience and earning abilities. 3. Engaging employees: Employees must be engaged on continuous basis and they should not get bored with their work, which can be managed through internal transfers and training from time to time. 4. Review recruiting practices: Selection and Recruitment policies must be reviewed to suit the growing needs of the organization. 5. Technology opportunities: Leveraging technology to manage the organization and enhancing the technical expertise of the employees will help organization grow without much problem of attrition. 6. Career Path for employees: Employee career path must be declared during the recruitment process and should be explained to the recruited people. 7. Feel Valued in Organization: Non-financial rewards, a pat on the back in time and celebrating small achievements with great fan-fare will help employees feel valued in the organization. 8. Contact with Senior Management: Senior Management should address employees periodically and should make them feel like a family. 9. Feel Part of the Company's Mission: The Company's mission must be reiterated from time to time to reinforce the learning and experience of the people. 10. Attendance: Policies with regard to attendance must be creative and flexible. 11. Educate employees on their impact: Educate employees regularly on what kind of impact they are creating on organization through their contribution. 12. Flexibility: Immediate bosses, middle level managers must be flexible and act as Chief Happiness Officers to avoid triggers of attrition. The author is a HR Professional and trainer and at present he is associated with imam consul trainers, Hyderabad as Chief Consul trainer.

3.3 Employees satisfaction: According to P Subba Rao Job satisfaction refers to a persons feeling of satisfaction on the jobs, which acts as a motivation to work. It is not self-satisfaction, happiness or self-contentment but satisfaction on the job. The term relates to the total relationship between an individual and the employer for which he is paid. Satisfaction does mean the simple feeling state accompanying the attainment of any goal;
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the end-state is feeling accompanying the attainment by an impulse of its objective. Job dissatisfaction does mean absence of motivation at work. Research workers differently described the factors contributing to job satisfaction and job dissatisfaction. Hoppock describes the factors contributing to job satisfaction of Psychological, physiological and environmental circumstances that cause any person truthfully to say that I am satisfied with my job.

In another hand
Job satisfaction is defined as the pleasurable emotional state resulting from the appraisal of ones job as achieving or facilitation the achievement of ones job values. In constant, Job dissatisfaction is defined as the unpleasurable emotional state resulting from the appraisal of ones job as frustration or blocking the attainment of ones job values or as entailing disvalues. However, both satisfaction and dissatisfaction were seen as a function of the perceived relationship between what one perceives it as offering one entailing.

3.3.1. Factors of Job satisfaction

Job satisfaction refers to a general attitude which an employee retains on account of many specific attitudes in the following areas: 1) job satisfaction, 2) Individual characteristics, and 3) Relationships outside the job. There are different factors on which job satisfaction depends. Important among them are discussed hereunder. (1) Personal factors: They include workers sex, education, age, marital status and their personal characteristics, family background, socio-economic background and the like. (2) Factors Inherent in the Job:-

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These factors have recently been studied and found to be important in the selection of employees. Instead of being guided by their co-workers and supervisors, the skilled workers would rather like to be guided by their own inclination to choose jobs in consideration of what they have to do. These factors include: the work itself, conditions, influence of internal and external environment on the job which are uncontrolled by the management etc. (3) Factors Controlled by the Management:They include the nature of supervision, job security, kind of work group, wage rate, promotional opportunities, transfer policy, duration of work and sense of responsibilities. All these factors greatly influence the workers. Their presence in the organization motivates the workers and provides a sense of job satisfaction. Though performance and job satisfaction are influenced by different set of factors, these two can be related if management links rewards to performance. It is viewed that job satisfaction is a consequence of performance rather than a cause of it. Satisfaction strongly influences the productive efficiency of an organization whereas absenteeism, employee turnover, alcoholism, irresponsibility and uncommmitments are the result of dissatisfaction. However, job satisfaction or dissatisfaction forms opinion abuts the hob and the organization which results in employee morale. 3.4. Data Evaluation: Examples SeekingAlpha.com: Home Page

Unfortunately for them, the attrition is all on their side. Domine, da mihi hanc aquam! The inclusion of the latter group in the definition of attrition is somewhat problematic, though. Durangoherald.com This means that in a 500 agent center with 50 percent attrition is losing $1.4 million per year in turnover costs. http://news.tmcnet.com In spite of my general skepticism of Wars on X, I think that the goal is a worthy one; a certain attrition rate for public universities is healthy and necessary, but the reasons for that attrition should be related to academics and maturity rather than to economics.

Lawyers, Guns and Money

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Brokerage combinations often result in attrition, and the joint venture will need to focus on retaining brokers, according to Paul Tramontano, CEO of Constellation Wealth Advisors and a Smith Barney broker for 17 years. Financial Technology Network Between recruitment and re-training, attrition is not good for the city. News from www.pantagraph.com Outsourcing buyers have wizened up by choosing nontraditional outsourcing destinations where attrition is kept at a level pace and salary expectations are competitive. http://www.globalservicesmedia.com Agent attrition is reduced because they have a better feeling of competency and success. Web Wire Forcing the Liberals into a war of attrition is my own view of strategy, not that of anyone else. Top Stories - Google News If Merrill's thought here is that cutting bonuses won't have any affect in attrition, they're wrong. Deal breaker Outsourcing buyers have wizened up by choosing nontraditional outsourcing destinations where attrition is kept at a level pace and salary expectations are competitive. http://www.globalservicesmedia.com Notice how that changed after wiping out the little guy cheap products with built in attrition, contaminated food and toys, fraudulent bank deals. Lone Star Times "While development pipeline attrition is normal ... the attrition rate normally approximates 50 percent of projects planned," according to a statement from Marvel, who has consulted in the area hotel market for 35 years. Kansas City Business News - Local Kansas City News | Kansas City Business Journal In the fan aspect, you're seeing a lot of cars and teams where the part attrition is up when you can see the cars run hard to a thousand foot without hitting the rev limiter. Motorsport.com: news As I previously mentioned, despite the slight increase in attrition, the U.S. residential business continues to perform well. Gadgets Sector and Stocks Analysis from Seeking Alpha In terms of the pickup in attrition, what are you hearing about the driver of that? Gadgets Sector and Stocks Analysis from Seeking Alpha

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But, yes, bringing the perks on par with other bigwigs will bring down the attrition level to some extent, thou we all do understand that attrition is not a big problem for Tech Crunch As far as voluntary attrition is concerned, I think our own assessment is that going forward we would see the downward trend on voluntary attrition, and at least our guess is that it should be in high single digits very soon. Software Sector and Stocks Analysis from Seeking Alpha The authors contend that professional bodies and veterinary schools could consider providing training in dealing with work-related distress to improve the psychological well-being of veterinarians and possibly reduce the attrition from the profession. http://www.pr-inside.com

This way I can say that employee attrition and satisfaction both are enter related to each other.

3.5. Analyze and Interpret Findings:

I would like say that Employees satisfaction mean when organizational product and productivity will increase, there should be effective relationship, better co-ordination, and co-operation and proper engagement in the work and responsibility that means there have high employees satisfaction and moral. Employees attrition is related with Employees Satisfaction, Employees moral, Motivation theory, and organization culture, employees welfare, and Opportunist. Employees Attrition means when employee of organization leave there companies or organization for any reason that is called employees attrition. Employees attrition and satisfaction is very important for any organization because Organization and company get right and proper Manpower at the right time who have more enthusiasm and who are so motivate for their individual goal and Organization goal. They have massive knowledge and confidence for their achievement.

3.5. Turnover cost for Employees Attrition:Method 1:-

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While there are many techniques for calculating the cost of turnover, the following is one of the best. It takes into account expenses involved to replace an employee leaving an organization.

A. Recruitment cost:

the cost to your business when hiring new employees includes the following six factors plus 10 percent for incidentals such as background screening: Time spent on sourcing replacement Time spent on recruitment and selection Travel expenses, if any Re-location costs, if any n Training/ramp-up time Background/reference screening. Additionally, for the positions that are billable, there is a lost opportunity cost. This can be done using the revenue factor.

B. Training and development cost:-

To estimate the cost of training and developing new employees, start off by looking at the cost of new hire orientation. This will mean direct and indirect costs, and can be largely classified under the following heads: Training materials Technology Employee benefits Trainers time.

C. Administration cost:

additionally, you may want to measure the per-employee cost to: Set up communication systems Add employees to the HR system Set up the new hires workspace Set up ID-cards, access cards, etc.

On the softer side, to estimate the learning curve or productivity cost, estimate the average amount of time it takes an employee in a new position to get up to speed and produce at the average rate for the organization. If it takes a new employee six months to reach average productivity, the average productivity loss is 50 percent. Use your annual revenue factor result and multiply it by the productivity loss. The result of these costs (and an additional 10 percent to cover other hiring costs such as background checks, credit checks, drug screening, and other administrative costs) can give you fairly accurate calculation of turnover cost.
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The ideal methodology is: Cost of hiring employees (hard and soft costs) + Cost of training and developing new employees (hard and soft costs) = Total Cost of Voluntary Turnover Source: Bristlecone India

Method 2:Some organizations calculate it at 150 percent of the yearly salary of the exiting employee. For managerial and sales positions, the cost can go up to 200-250 percent of the yearly salary of the employee.

Method 3 :Another way to estimate the cost impact of turnover on companies is to look at the total compensation costs as a proportion of a firms revenue. According to one study, corporate on an average spend 36 percent of their revenue on human capital expenses. Again, using conservative estimates, for a company with the total compensation costs at this average, an average rate of employee turnover of 25 percent and the cost associated with turnover equivalent to one-time salary.

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CHAPTER- 4

PROFILE OF COMPANY

PROFILE OF THE COMPANY/ORGANISATION/SYSTEM

Pantaloon Retail (India) Limited
Pantaloon Retail (India) Limited, is Indias leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market. Headquartered in
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Mumbai (Bombay), the company operates over 10 million square feet of retail space, has over 1000 stores across 61 cities in India and employs over 30,000 people. The companys leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and Central, a chain of seamless destination malls. Some of its other formats include, Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station, aLL, Top 10, mBazaar and Star and Sitara. The company also operates an online portal, futurebazaar.com. A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a large-format home solutions store, Collection i, selling home furniture products and E-Zone focused on catering to the consumer electronics segment. Pantaloon Retail was recently awarded the International Retailer of the Year 2007 by the Usbased National Retail Federation (NRF) and the Emerging Market Retailer of the Year 2007 at the World Retail Congress held in Barcelona. Pantaloon Retail is the flagship company of Future Group, a business group catering to the entire Indian consumption space. Pantaloon is not just an organization - it is an institution, a centre of learning & development. We believe that knowledge is the only weapon at our disposal and our quest for it is focused, systematic and unwavering. At Pantaloon, we take pride in challenging conventions and thinking out of the box, in travelling on the road less traveled. Our corporate doctrine Rewrite Rules, Retain Values is derived from this spirit. Over the years, the company has accelerated growth through its ability to lead change. A number of its pioneering concepts have now emerged as industry standards. For instance, the company integrated backwards into garment manufacturing even as it expanded its retail presence at the front end, well before any other Indian retail company attempted this. It was the first to introduce the concept of the retail departmental store for the entire family through Pantaloons in 1997. The company was the first to launch a hypermarket in India with Big Bazaar, a large discount store that it commissioned in Kolkata in October 2001. And the company introduced the country to the Food Bazaar, a unique 'bazaar' within a hypermarket, which was launched in
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July 2002 in Mumbai. Embracing our leadership value, the company launched aLL in July 2005 in Mumbai, making us the first retailer in India to open a fashion store for plus size men and women. Today we are the fastest growing retail company in India. The number of stores is going to increase many folds year on year along with the new formats coming up. The way we work is distinctly "Pantaloon". Our courage to dream and to turn our dreams into reality that change peoples lives, is our biggest advantage. Pantaloon is an invitation to join a place where there are no boundaries to what you can achieve. It means never having to stop asking questions; it means never having to stop raising the bar. It is an opportunity to take risks, and it is this passion that makes our dreams a reality.Come enter a world where we promise you good days and bad days, but never a dull moment!

Future Group
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Future Group is one of the countrys leading business groups present in retail, asset management, consumer finance, insurance, retail media, retail spaces and logistics. The groups flagship company, Pantaloon Retail (India) Limited operates over 10 million square feet of retail space, has over 1,000 stores and employs over 30,000 people. Future Group is present in 61 cities and 65 rural locations in India. Some of its leading retail formats include, Pantaloons, Big Bazaar, Central, Food Bazaar, Home Town, eZone, Depot, Future Money and online retail format, futurebazaar.com. Future Group companies includes, Future Capital Holdings, Future Generali India Indus League Clothing and Galaxy Entertainment that manages Sports Bar, Brew Bar and Bowling Co. Future Capital Holdings, the groups financial arm, focuses on asset management and consumer credit. It manages assets worth over $1 billion that are being invested in developing retail real estate and consumer-related brands and hotels. The groups joint venture partners include Italian insurance major, Generali, French retailer ETAM group, US-based stationary products retailer, Staples Inc and UK-based Lee Cooper and India-based Talwalkars, Blue Foods and Liberty Shoes. Future Groups vision is to, deliver Everything, Everywhere, Every time to Every Indian Consumer in the most profitable manner. The group considers Indian-ness as a core value and its corporate credo is- Rewrite rules, Retain values.

Company History
YEAR
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EVENTS

1987
- The Company was incorporated on the 12th October, under the name of Manz Wear Private Limited.

1991
- The Company was converted into a Public Limited Company under the name of Manz Wear Limited on 20th September. - The Company name was changed to Pantaloon Fashions (India) Limited vide certificate of incorporation dated the 25th September. - The Company is engaged in the manufacture and marketing of quality Ready-made Garments for men, including Trousers, Shirts, Denims, Blazers and Sleep Suits, at its units located at Andheri in Bombay. - The Company's Products are being marketed under the brand name PANTALOON and BARE NECESSITIES through a network of over 300 dealers spanning the Metro and Class l cities in the country. - The Company is promoted by Shri Kishore Biyani, friends and associates.

1992
- The Company has successfully launched the Pantaloon Trousers, Shirts, Denims, Sleep Suits and other ready-made garments. - The Company recently made a Public Issue of 25,55,000 equity shares of Rs.10/- each for cash at par in May. The Company has allotted 36,57,100 Equity Shares on 28th July in consultation

1994
- The Company is launching a new brand of shirts called `John
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Miller' at affordable prices.

1995
-Pantaloon Fashions (India) Limited has launched John Miller shirts

1996
-Pantaloons Fashions (India) Ltd. has launched the Yorker to concede with the world cup

1997
- The Company has launched women's wear, children's wear and household products in the last few months. - The Company has issued 10,00,000 Non-Cumulative Preference Share Rs. 10/- each aggregating Rs. 1,00,00,000/- on Private Placement basis.

1998
- The Company has introduced Shrishti range of Salwaar Kameez. The Company has also added Knitted T-shirts to its range of products.

1999

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- The Company opened a state-of-art family store at prestigious Crossroads, Haji Ali, Mumbai, spread over an area of 4,500 sq. ft. - The name of the Company was changed with the approval of the Members to Pantaloon Retail (India) Ltd. - The company has recently set up a state-of-the-art trouser manufacturing plant in Mumbai with a capacity of 1,200 pieces per day. - Entrepreneurial Jadeja is setting up a joint venture sports wear company with the promoters of Pantaloon Retail (India) Ltd.

2000
- The company share transfer committee, have allotted 10,00,000 No. of equity shares of Rs. 10/- each at a premium of Rs. 33/- per share on private placement basis to ICICI Ltd. A/c. Structured Products Fund. - The total paid up capital of the company is 1,25,19,413 No.of equity shares of Rs. 10/- each, ICICI Ltd. A/c Structured Products Fund will be holding 7.99% of the enhanced share capital. - Pantaloon Retail (India) Ltd. has launched stainfree with Scotchgard, a new range of formal shirts and trousers.

2001
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-Retail major Pantaloons has forged an alliance with Arvind Mills for the supply of fabric and apparel for its in-house brands. -Finalised a leasing deal to occupy 50,000 sq ft of space for Rs 25lakh -Issue of 4 million equity shares of Rs.10/- each to the Promoters of the company on a preferential basis at a price as per SEBI Guidelines. -Tied up with Andhra Pradesh Handloom Weavers Co-operative Society and National Institute of Fashion Technology

2002
-Pantaloon Retail India Ltd has informed that the Board of Directors of the company has allotted 40 lac equity shares to the promoters and their associates on preferential basis at a price of Rs.31.50 per share. -Promoters sell 584098 shares -Pantaloon has launched a range of the movie-specific merchandise such as notebooks, folders, pens, mouse pads etc. -Incidence of fire occurred at one of ATM centre in Maheshwari Plaza Mall/Big Bazaar at Abids, Hyderabad. - Preferential Issue of 8,65,000 Equity shares of Rs.10 each at a premium of Rs.40 per share to Promoters & Associates.

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2003
-Allotment of 8,65,000 equity shares to the promoters and their associates on preferential basis at a price of Rs.50/- per shares as approved by the members of the company at their meeting held on December 20, 2002 -Change of Registered Office from 'Pantaloon House', G-11, MIDC, Cross Road A, Andheri (East), Mumbai - 400 093 to 'Knowledge House', Off. Jogeshwari-Vikhroli Link Road, Shyam Nagar, Jogeshwari (E), Mumbai - 400 060 w.e.f. January 31, 2003. -Acquires the trademark and exclusive licensing rights for apparel brand Norules in India, from US-based Norules Inc -Forged an alliance with ICICI Lombard to offer one year free insurance cover to customers acquiring gold from Gold Bazaar. -Teams up with Italian apparel behemoth Moda & Musica to market its casual sportswear brand UMM in the domestic market -Received a letter from ICICI Venture Funds Management Company Limited, in which they have stated that they have sold 2,71,083 shares aggregating to 2.04 % of the total paid-up capital of the Company as on September 12, 2003. -ICICI Venture Funds Management Company Ltd. sells 279900 equity shares of the company, bring down the stake in the company to 3.37 % (449017 shares) -Board approves a proposal to allot 9.5 lakh shares (of Rs 10 each) to promoters and associates at premium of Rs 102 per share. -Promoters sell 4.6% stake of the company -Pantaloon Industries Ltd. acquires 3,00,000 shares aggregating to
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1.57% of the paid up equity share capital of the company -American Funds Insurance Series Global Small Capitalization Fund have acquired 2,09,500 shares of Pantaloon Retail India Ltd. representing 1.152% of the total paid up capital of the Company

2004
-Pantaloon Retail (I) Ltd. enters into Strategic alliance with Arvind Brands Ltd. -Pantaloon Retail calls off strategic alliance with Arcus Ltd -Appoints Mr. Ved Prakash Arya as Chief Operating Officer. Mr. Arya will take charge of the retail operations of the company. -Ties up Arvind Brands Ltd for Ruf & Tuf brand at its Big Bazaar outlets across the country -Pantaloon Retail (India) Ltd has signed a memorandum of understanding (MoU) with K.J. Somaiya Institute of Management & Research Studies to offer a specialised course in retail management -Pantaloon join hands with Unitech for home stores chain

2005
-The Pantaloon Retail has made an offer under Regulation 10 of the SEBI (SAST) Regulations to the Public shareholders of Galaxy Entertainment Corporation Ltd (Target Company) to acquire upto 2,542,400 fully paid equity shares of Rs 10/- each, representing in
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the aggregate 20% of the Post issue voting capital at a price of Rs 51/- (Rupees Fifty One only) per share (the Offer price) payable in cash subject to the terms & conditions mentioned. -Pantaloon sets up restaurant at Bangalore Central Hall

2006
-Pantaloon Retail enters into an agreement with CapitaLand Singapore -Pantaloon Retail join hands with management schools across the country -Pantaloon Retail India Ltd has launched its newest retail venture `Depot' -Pantaloon Retail - Strategic alliance agreement with Ruchi Soya Industries -Pantaloon Retail signed MOU with Blue Foods on July 31, 2006 -Pantaloon Retail signs MOU with Manipal Health Systems on August 05, 2006.

2007
-Pantaloon Retail India Ltd has entered into a 50:50 joint venture (JV) with Axiom Telecom LLC, UAE, to do sourcing and wholesale distribution of mobile handsets, accessories and setting up service centres and Authorised After Sales Service Centres for mobile
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handsets in India.

Hierarchy of Pantaloon (Future Group)

Mr. Kishore Biyani, Mr. Gopikishan Biyani, Mr. Rakesh Biyani, Mr. Ved Prakash Arya, Mr. Shailesh Haribhakti, Mr. S Doreswamy, Dr. D O Koshy, Ms. Anju Poddar, Ms. Bala Deshpande, Mr. Anil Harish, Rakesh Biyani Anshuman Singh Damodar Mall Hans Udeshi, Hemchandra Javeri, Kailash Bhatia, Madhumati Lele, Rajan Malhotra , Sadashiv Nayak,
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Managing Director Whole time Director Whole time Director Director Independent Director Independent Director Independent Director Independent Director Independent Director Independent Director CEO - Retail CEO - Value Fashion CEO - Incubation & Innovation CEO - General Merchandising CEO - Home Solutions Retail (India) Ltd. CEO - Integrated Merchandising Group CEO - Services CEO - Big Bazaar CEO - Food Bazaar

Sanjeev Aggarwal, Vishnu Prasad ,

CEO - Pantaloons CEO - Central & Brand Factory

FOUNDER: Mr. Kishore Biyani

P & L Account: Profit & Loss account ------------------- in Rs. Cr. -------------------

Jun '05

Jun '06

Jun '07

Jun '08

Jun '09

12 mths

12 mths

12 mths

12 mths

12 mths

Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses 844.18 21.95 50.75 15.53 159.89 35.02 0.00 1,127.32 1,502.30 37.41 112.72 21.55 313.11 55.65 0.00 2,042.74 2,601.65 61.51 207.74 16.64 556.70 93.40 0.00 3,537.64 4,170.62 78.20 275.78 22.46 724.18 175.64 0.00 5,446.88 4,835.06 98.97 275.94 16.94 878.27 237.10 0.00 6,342.28 1,084.39 0.28 1,084.11 8.10 127.70 1,219.91 1,960.86 0.00 1,960.86 3.68 234.15 2,198.69 3,393.47 0.00 3,393.47 95.85 362.12 3,851.44 5,295.88 0.00 5,295.88 17.05 614.41 5,927.34 6,661.42 0.00 6,661.42 1.79 353.11 7,016.32

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Capital Structure: Capital Structure From Period To Instrument Authorized Capital

(Rs. cr)

Issued Capital
(Rs. cr)

-PAIDUPShares (nos) 190320673 159291521 146751365 26884621 21997736 19137413 18184413 17319413 13319413 12519413 9264413 7090500 4727000 4727000 1069900 7000 12519413 Face Value 2 2 2 10 10 10 10 10 10 10 10 10 10 10 10 100 10 Capital 38.06 31.86 29.35 26.88 22 19.14 18.18 17.32 13.32 12.52 9.26 7.09 4.73 4.73 1.07 0.07 12.52

2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1992 1991 1990 1905

2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1992 1991 1905

Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share

60 35 35 35 25 25 25 18 14 14 10 10 7 8 5 0.1 14

38.07 31.86 29.35 26.89 22 19.14 18.18 17.32 13.32 12.52 9.26 7.09 4.73 4.73 1.07 0.07 12.52

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Big Bazaar is a chain of hypermarket in India, which caters to every familys needs and requirements. This retail store is a subsidiary of Future group, Pantaloons Retail India Ltd. and is an answer to the United States Wal-Mart. Big Bazaar has released the doors for the fashion world, general merchandise like sports goods, cutlery, crockery, utensils, and home furnishings etc. at best economical prices. Big Bazaar group offers more than 140 stores all over the country with an amalgamation of Indian bazaars feel and touch with a convenience and choice of the modern retail facilities. The retail format of the Big Bazaar group includes Aadhar, Rural & Home-Town retail chain, Ezone home-improvement chain, sportswear retailer, depot and music chain is few among others.

4.4.

Organization Structure:

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Assistant Department manager (paragraph TeamTeam Assistant store manager (prism Sales Operation manager Store leader manager Department member (Sarthi) manager merchandising manager Kartha

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Fig: - 1.3 Big Bazaar (organization) Internal Structure

Store Manager Kartha Sales and Machinery Assistant Assistant Manager store Store Ladies Live Kitchen Manager hand bag Manager

Assistant Structure MensManager wear

Plastic Utensils Crockery

Assistant Store

Ladies wear Kids wear Home Fashion

Foot wears Toy & sports NBD Electronic Furniture

Fruits and Vegetable Food Noon food Staple Fit and Health Shringar (Beauty)
Hari Babu

Navar Dakshin Others

Home Dcor

Watch and Sunglas Luggage Sagar

Kamalkh anna

Manjunat h

Typical store Structure for Employees in Big Bazaar

4.5.

Competitors:-

Big Bazaar group offers more than 100 stores all over the country with an amalgamation of Indian bazaars feel and touch with a convenience and choice of the modern retail facilities. The retail format of the Big Bazaar group includes Andhra, Rural & Home-Town retail chain, Ezone home-improvement chain, sportswear retailer, depot and music chain is few among others.
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Big Bazaar is big Retail Company in India and it has so many business competitors. Like

Reliance Retail shop Spencer Brand Factory Star Bazaar S M Food Plaza and Some other company

As above is mention must Big Bazaar have lots of small or big competitor but it is not that much affected by their competitor. The basic reason is that there is no any big retail who can competitor Big Bazaar in BMTC because

Spence is very small and there are selling only Fruits and vegetable. Brand Factory is only for mens wear, ladies wear, kids wear and traditional dress and latest fashion. Star Bazaar: Star Bazaar is a big shopping mall but it is not near to Big Bazaar BMTC its out off 5 KM from Big Bazaar BMTC thats why not a issue is for it. S M Food Plaza is a big shopping mall but it is only for staple, Fruits and Vegetable not for all goods and services which is available in Must Big Bazaar in BMTC Reliance Store in BMTC : Reliance store in BMTC is also a small store there has limited service and product he is not completely able to compete Big Bazaar. These are the basic reason by which Big Bazaar is getting success continuous without any obstacle.

4.8.

Number of Branches:-

Big bazaars have so many branches in India most of branches are all ready discussed above. In chapter no 1. Like branches Bangalore, Delhi, Chennai, Coaching, Kolkata, Bihar, Jharkhand, Punjab, Sri Nagar, Andhra Pradesh, Uttar Pradesh ect, All of these states have so many branches of Big Bazaar and all Branches are handling by Kishor Biyani and Kartha.

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Format of Retail Sector in India:-

Fig: - 1.1 Big Bazaar store in India

CHAPTER 5
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ANALYSIS AND INTERPRITATIONS OF DATA

ANALYSIS AND INTERPRETATION OF DATA:1.1.1. Preliminary Analysis:The Preliminary analysis comprises of analysis of attrition from secondary data which was obtained from the SAP Database, which was then classified based on three factors: 1. Last 3 months attrition analysis an indicator of infant attrition, a predictor of improper implementation of recruitment practices and may be external factors such as improvement of job market after the recessionary effects. 2. Last six months attrition analysis (Aug09 to Feb10) was done as per company requirements. 3. Yearlong attrition analysis (Jan09 to Feb 10) was done to get an overall perspective of the trend in attrition rates per month. Attrition formula: Common methodology in calculating Attrition Rate
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The approach to this calculation might vary from organization to organization. While a few techniques are common, there are no proven theories. The most commonly used formulae are : Total Number of Resigns per month (Whether voluntary or forced) X 100 ----------------------------------------------------------------------------------------(Total Number of employees at the beginning of the month + total number of new joinees - total number of resignations) Total Terminations in a month ------------------------------------------------------------------------------------(Total Head Count at the beginning of the month) + (Total New Hires) Total No. of employee left X 100 ------------------------------------------Total No .Of employees present Number of employee separations-involuntary separations X 100 ------------------------------------------------------------------------------------*Average employee count (*Avg. employee count = January month strength + December month strength) 5.1.1. Attrition Rate Analysis in Big Bazaar BMTC: 132.78 Attrition Year (2010) January February March April May June July August September
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Head count

Newly Joined

Attrition%

27 23 23 28 30 18 32 28 29

200 210 222 240 245 252 259 261 267

10 9 12 23 11 23 24 22 25

13.50 % 10.95 % 10.36 % 11.67 % 12.24 % 7.140 % 12.36 % 10.72 % 10.86 %

October November December

35 40 43

246 245 270

27 23 26

14.22 % 16.33 % 15.93 %

Average Attrition rate (Monthly): 12.19 Table 5.1.1: Attrition Analysis in Big Bazaar BMTC

Inference:From the above calculation we have determined that the current monthly attrition rate is 12.19%, these amounts to approximately 50% annually. 5.1.2.Attrition Rate Analysis In Jayanagar: Year to 10) September October November December January February March April May June July August 14 10 9 14 9 10 10 8 13 19 13 8 117 187 117 111 153 142 133 118 116 120 145 178 17 18 16 20 10 9 12 14 23 21 19 17 11.96 5.35 7.69 12.61 5.88 7.04 7.52 6.78 11.20 15.83 8.97 4.49 (09 Attritions Head count Newly Joined Attrition %

Average Attrition Rate in Jayanagar (Monthly): 13.07

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Table: 5.1.2 Monthly Attrition Analysis at Big Bazaar at the Jayanagar Inference: From the above calculation we have determined that the current monthly attrition rate is 13.07%, this amount to approximately 50% annually. This is very high for the retail sector and thus the study is conducted. This validates the need for the study.

1.1.1. Attrition Rate Analysis in Putenhalli

Year (2010) January February March April May June July Attrition 3 3 2 6 3 1 1 Head count 29 32 37 33 34 33 33 Newly Joined 18 17 18 16 20 9 16 Attrition % 6.38 6.12 3.64 12.24 5.56 2.38 2.04

Monthly Average is 5.48%

Table: 5.1.3. Monthly Attrition Analysis-Putenhalli

Inference: The Attrition Rate for Putenhalli unit is 5.48%. From the trend we can see that attrition is on a decline. But this inconclusive as more data from ensuing months are required. Since this store was inaugurated only in June the date from August is furnished above.

5.2.1. Detailed Analysis: -

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My analysis is basically base on the Questionnaire and Interview, from where I got enough information. Apart from this my HR MS. Yoggesh and my friends who were in another Big Bazaar branch also gave me his precious time for complete this project in very effective way.

Conceptual Framework:The sample population of Big Bazaar was given the Questionnaire; they were then required to fill it after due consideration from their sub-ordinate and according to their experience in the matter regarding attrition. The fundamental determinants of organizational behavior (Schneider, 1987). Thus the Questionnaire was framed to include such parameters such as employee morale, career growth, work environment, communication, company policies, training and compensation. The above mentions factors were framed in the 5 point interval scale. According to literature review People leave the organization because of their superiors/supervisors and not the organization. Therefore we have included in our study the managerial aspects that influence a person from leaving the organization. 5.2.2. Employees satisfaction:

Employees satisfaction in Big Bazaar BMTC

Employee satisfaction surveys help employers measure and understand their employees' attitude, opinions, motivation, and satisfaction.

Measuring Employee Satisfaction

because satisfaction is basically a psychological state, care should be taken in the effort of quantitative measurement, although a large quantity of research in this area has recently been developed. The usual measures of employee satisfaction involve an employee satisfaction survey with a set of statements using a Likert Technique or scale. The employee is asked to evaluate each statement in term of their perception on the performance of the organization being measured

The following are a few typical Questions asked in Employee Satisfaction Survey: Please describe your position with the company.

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How long have you worked for this company? I have ready access to the information I need to get my job done. I am familiar with the mission statement put forth by my department. I agree with the mission statement put forth by my department. I am involved in decision making that affects my job. Management has created an open and comfortable work environment. I know my job requirements and what is expected of me on a daily basis. I have received the training I need to do my job efficiently and effectively. Training is provided to enable me to do my job well. Management recognizes and makes use of my abilities and skills. I am treated with respect by management and the people I work with. I am encouraged to develop new and more efficient ways to do my work. Employees work well together to solve problems and get the job done. Management is flexible and understands the importance of balancing my work and personal life. I would recommend others to work for this company. What changes, if any, do you feel need to made in your department to improve working conditions? What changes, if any, do you feel need to be made in the company to improve working conditions?

The surveys of this type provides an understanding how the employee perceives the organization. Employee satisfaction surveys measure your employee's opinions on most of the aspects of the workplace including: Overall satisfaction Management/employee relations Corporate culture Career development Compensation Benefits Recognition and rewards Working conditions Training Staffing levels Safety concerns

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Policies and procedures

How to conduct Employee Satisfaction Survey :-

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5.3 Percentage Analysis of Employee Attrition across Critical Units Question 1: In General, they are satisfies with the organization Store Name Strongly agree Agree Neutral Disagree Strongly disagree Mallashwara m 12 34 20 25 9 Banashankari 2 32 44 22 Jayanagar 17.6 70.6 11.8 100 Puttenhalli

Table: 5.3.1 Percentage analysis of employee attrition across critical Units In general they are satisfied with the organization Inference: According to graph 12% employee of Mallashwaram is strongly agree, 34% only agree with organization, 20 % neutral and 25% disagree and only 9% employee of Big Bazaar Mallashwaram is strongly disagree.

5.3.1 Do you feel that your Sub-ordinates are a valued part of the office? Frequency Strongly agree Agree Neutral Disagree Total
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Percent 24 42 14 20 100

Valid Percent 24 42 14 20 100

Cumulative percent 24 66 80 100

12 21 7 10 50

Table: 5.3.1 in Percent for sub-ordinates value

Inference: From the total respondents 42% of respondent agreed that there sub-ordinates are a valued part of the office, 12% strongly agree to this, and 7% neutral and dont have an idea and the remaining 10% disagree that there sub-ordinates are a valued part of the office.

5.3.2. Do you feel that your Sub-0rdinates are respected and fairly treated in the organization? Frequency Valid Strongly agree Agree Neutral Disagree Total 10 20 9 11 50 percentage 20 40 18 22 100 Valid Percent 20 40 18 22 100 Cumulative Percent 20 60 78 100

Table: 5.3.2. Sub-ordinates are respected in Percentage

Inference: From the total respondents 40% respondents agree that there sub-ordinates are respectable and fairly treated in the organization 22% strongly disagree to this 18% are neutral and dont have an idea and the remaining 40% are strongly agree that sub-ordinates are respected and fairly treated in the organization.

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2.3.3.

Morale in the office is High

Frequency Strongly agree Agree Neutral Strongly disagree Total 4 12 24 10 50

Percent 8 24 48 20 100

Valid percent 8 24 48 20 100

Cumulative percent 8 32 80 100

Inference:From the total respondents 8% are strongly agree, 24% are agree and 48% are neutral and 20% respondents are strongly disagree with the office satisfaction.

2.3.4.

Do they career goals and future prospects? Frequency Percentage 16 40 20 24 100 Valid Percent 16 40 20 24 100 Cumulative percent 16 56 76 100

Strongly agree Agree Neutral Strongly disagree

8 20 10 12 50

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5.3.3 Career goals and Future prospects in Percentage

Inference:From the total respondents 16% are strongly agree that they have career goals and future prospects and 40% and agree if they effort strongly than organization give chance for career and 20% are neutral they do not have any idea for that and 24% employees are strongly disagree they said their theyre do not have such kind of opportunities for career oriented person.

2.3.5.

Do they know how their job fits into large picture of the organization? Frequency Percentage 8 40 30 22 100 Valid percentage 8 40 30 22 100 Cumulative percentage 8 48 78 100

Strongly agree Agree Neutral disagree

4 20 15 11 50

Table: Large picture of organization

Inference: From the total respondents 8% who are strongly agree with organization and 40% agree, 30% Neutral who do not have any idea about Job, and 22% employees of organization who are disagree with it they say there have no any large picture of the organization in Job.

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2.3.6.

Do they have a clear understanding of how their job performance id measured? Frequency percentage 8 42 26 24 100 Valid percentage 8 42 26 24 100 Cumulative percentage 8 50 76 100

Strongly agree Agree Neutral Disagree total

4 21 13 12 50

Table: Measurement of job performance in percentage

Inference: From the total respondents 8% are strongly agree that they are understanding of how their job performance is measured 42% are agree with that and 26% do not have a clear idea about their performance appraisal and 24% are disagree with all this.

2.3.7.

Do they know how exactly of what is being expected out of them? Frequency percentage 10 40 32 18 Valid percentage 10 40 32 18 Cumulative percent 10 50 82 100

Strongly agree Agree Neutral Disagree

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5 20 16 9

Total

50

100

100

Table: Employee expectation in organization in percentage

Inference: From the total respondent 10% of respondent strongly agree that they know how exactly of what is being expected out of them and 20%agree with them and 32% neutral in this way and only 18% employee who are not agree with it.

2.3.8.

The organization accommodates their personal needs. Frequency Percentage 10 30 30 16 14 100 Valid percentage 10 30 30 16 14 100 Cumulative percentage 10 40 70 86 100

Strongly agree Agree Neutral Disagree

5 15 15 8

Strongly disagree 7 Total 50

Chart: organization accommodates their personal needs

Inference: From the total respondents 10% of respondents are agree that the organization accommodates their personal needs and 30% only agree with that and 30% respondents do not any proper idea for that and 16% disagree with that but 14% strongly agree with that they say organization not giving any convenience to its employees.

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2.3.9.

The work environment in the store is friendly frequency percentage 28 54 14 4 100 Valid percentage 28 54 14 4 100 Cumulative percentage 28 82 96 100

Strongly agree Agree Neutral

14 27 7

Strongly disagree 2 Total 50

Table: Friendly work environment in Percentage Inference: From the total respondents 28% are strongly agree with organizational environment and 54% are just agree with their working environment and, 14% do not have proper idea for that they are neutral with this question and 4% employees are strongly disagree with that.

2.3.10.

Do they a positive relationship with their supervisor? Frequency Percentage 20 30 24 26 Valid percentage 20 30 24 26 Cumulative percent 20 50 74 100

Strongly agree Agree Neutral Disagree

10 15 12 13

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Total

50

100

100

Table: Employees relationship in Percentage

Inference: From the total respondents 20% of the respondents are agree that they have a positive relationship with their supervisor and 30% only satisfied with them and 24% neutral with organizational relationship and 26% employee are disagree with their supervisors.

2.3.11.

There is a spirit of co-operation among staffs. Frequency Percent 16 30 24 30 100 Valid percent 16 30 24 30 100 Cumulative percent 16 46 70 100

Strongly agree Agree Neutral Disagree Total

8 15 12 15 50

Table: Co-operation in organization in Percentage

Inference:From the total respondents 8% of the respondents are agreeing that. There are a spirit of cooperation among staffs and 15% are only agree with that concept, and 12% employees are neutral with their idea because they do not interest in this aspect and15% of employees are strongly disagree with their concept about co-operation.

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2.3.12.

The workload and work targets are reasonable Frequency percent 8 42 26 16 100 Valid percent 8 42 26 16 100 Cumulative percent 8 50 76 100

Strongly agree Agree Neutral Disagree Total

4 21 13 8 50

Interference: From the total respondents 22% respondents are agree with target which is given by company because it motive organization employees and force them to perform well, 4% respondents are strongly agree and 14% respondent have not any idea for this and 8% respondents are strongly disagree with target.

2.3.13.

The workload is distributed fairly. Frequency Percent 14 50 20 16 100 Valid percent 14 50 20 16 100 Cumulative percent 14 64 84 100

Strongly agree Agree Neutral Disagree Total

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7 25 10 8 50

Table: The distribution of workload in percent

Inference:

From the total respondents 14%respondents are strongly agree with workload distribution, and t 50% respondents are just agree with this concept they say is helpful for organization and as well as employee but 20% of respondents do not have clear idea about that and there are neutral with this concept and 16% respondents are strongly disagree with that and they say it just increase respondents stress for their jobs.

Percen

2.3.14.

The sub-ordinates feel that the work timings are flexible. Frequency percent 6 24 16 54 100 Valid percent 6 24 16 54 100 Cumulative percent 6 30 46 100

Strongly agree Agree Neutral Disagree Total

3 12 8 27 50

Table for Sub-Ordinates feel flexible with time

Inference: From the respondents only 6% respondents are strongly agree with working time, 24% are just agree with that but 16% respondents do not have proper idea with that and 54% respondents are disagree with working time they want some manipulation in it.

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Do you think attrition is influenced by their difficulty in adapting to the organization?

Frequency Strongly agree Agree Neutral Disagree Total 20 20 4 6 50

percentage 40 40 8 12 100

Valid percentage 40 40 8 12 100

Cumulative percentage 40 80 88 100

Inference: From the total respondents 40% of the respondents are strongly agree that attrition is influenced by their difficulty in adapting to the organization and 40% are just agree with them and out of 80% only 8% respondents are neutral with this concept and 6% respondents are not agree with this they say in attrition organization difficulty is not play any role.

2.3.16.

Communication amongst the staff and the floor manager in this is effective? Frequency percentage 30 16 40 14 100 Valid percentage 30 16 40 14 100 Cumulative percent 30 46 86 100

Strongly agree Agree Neutral Disagree Total

15 8 20 7 50

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Inference: From the total respondents 30% of the respondents strongly agree that communication amongst the staff and floor manager in this store is effective and 40% are neutral and 14% are disagree with this.

2.3.17.

The policies in the company are clearly articulated to the staffs. Frequency percent 14 30 38 Valid percent 14 30 38 Cumulative percent 14 44 82 100 100 100

Strongly agree Agree Neutral Disagree Total

7 15 19 9 50

Inference: From the total respondent 7% respondents are strongly agree with company policies and only 15% respondents are agree with their company policies and 19% respondents are neutral with company they say they do not have any idea with policies and 9% respondents are disagree with company policies.

2.3.18.

The Office has policies supportive to the staff. Frequency percent Valid percent Cumulative percent

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Strongly agree Agree Neutral Disagree Total

5 24 10 11 50

10 48 20 22 100

10 48 20 22 100

10 58 78 100

Inference: From the total respondents 48% respondents are agree that the office has policies supportive to the staff and 20% are neutral and 11% of respondents are disagree with the policies and only 10% respondents are strongly agree with office polices.

2.3.19.

The sub-ordinates received a thorough orientation about their job and office when they joined. frequency percent 20 40 20 20 100 Valid percent 20 40 20 20 100 Cumulative percent 20 60 80 100

Strongly agree Agree Neutral Disagree agree Total

10 20 10 10 50

Inference:
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From the total respondents 20% of respondents are strongly agree that there sub-ordinates received a through orientation about job and office when they joined and 20% are neutral on that and 20% are strongly agree for that and 20% are disagree for that.

2.3.20.

The training programs were effective in improving their productivity. Frequency percent 24 30 26 10 10 100 Valid percent 24 30 26 10 10 100 Cumulative percent 24 54 80 90 100

Strongly agree Agree Neutral Disagree Strongly disagree Total

12 15 13 5 5 50

INFERENCE: From the total respondents 24% of the respondents are strongly agree that the training program were effective in improving productivity and 30% respondents are only agree with training program is effective and important but out of 100% respondents 26% respondents are neutral with that they say they do not have exact idea regarding it and 20% respondent are not agree with training program.

2.3.21.

The compensation paid to me is fair when compared to the companies in the same industry. Frequency percent 8 Valid percent 8 Cumulative percent 8

Strongly agree

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Agree Neutral disagree Strongly disagree Total

11 13 16 6 50

22 26 32 12 100

22 26 32 12 100

30 56 88 100

Inference: From the total respondents 8% of the respondents are agree sub-ordinates received a through orientation about their job and office when they joined and 22% are only agree with compensation which is paid to them and 26% neutral they say they do not have proper idea regarding their compensation, 32% respondents are disagree with it and 12% respondents are strongly disagree with company compensation.

2.3.22.

In General, They are satisfied with the organization. Frequency Percent 2 32 44 22 100 Valid percent 2 32 44 22 100 Cumulative percent 2 34 78 100

Strongly agree Agree Neutral Disagree Total

1 16 22 11 50

INFERENCE:

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From the total resonances 2% strongly agree of the respondents and 32% of respondents are just agree with organizational satisfaction and 44% respondents are neutral with that they say their do not have clear idea regarding that and 22% of respondents are disagree with organizational satisfaction.

2.4.

Major reasons for attrition-Freidmans Test:

By means of Friedmans test we have determined the top 5 reasons for attrition and the following are the results of this test. The top reason cited for attrition has been selected as the independent variable for the study. Reasons for attrition Better opportunity Marriage Long working hours Less salary Sickness Company policies Work pressure Leave Friedmans Test result 2.78 6.34 3.05 1.85 6.34 6.37 3.95 5.32 Table: 4.4.1. Reasons for attrition using Freidmans Test 5.5 Reduce Employee Turnover

Employee attrition is a costly dilemma for all organizations. Control attrition with effective communication - build strong, high-performance teams. 5.5.1. Is ATTRITION important to your organization? Employee attrition costs 12 to 18 months salary for each leaving manager or professional, and 4 to 6 months' pay for each leaving clerical or hourly employee. According to a study by Ipsos-Reid, 30% of employees plan to change jobs in the next two years. Do the math and discover how much your company may pay for attrition. Although employee turnover can help organizations evolve and change, an American
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Management Association survey showed that four out of five CEOs view employee retention as a serious issue for organizational success. If managers know the real causes of attrition, managers can control attrition and retain employees. Each retained employee can save money and lead to better

5.5.2. Why Employees Leave?

Most employees leave their work for reasons other than money and your organization can correct these reasons. Most leaving employees seek opportunities that allow them to use and develop their skills. Leaving employees want more meaning in their work. They often indicate that they want to use their qualities and skills in challenging teamwork led by capable leaders. Managerial staff cite career growth and leadership as the major factors that influence attrition and retention, together with opportunities for management ability of top management use of skills and abilities and work/family balance Professional employees cite concerns about supervisory coaching and counseling, company direction and interesting work Clerical employees voice concerns such as type of work, use of skills and abilities and opportunities to learn Hourly employees notice whether they are treated with respect, have capable management and interesting work

5.5.3. Employee Orientation:New employees who attend a positive orientation program are 70% more likely to be with the company three years later (Corning Glass).

5.5.4. Mergers/Acquisitions
Lee Hecht Harrison, a HR consulting firm, advises, "Far more employees will leave following a restructuring than are laid-off or terminated as a result of downsizing. This lost talent, and cost can be minimized through good communication."

5.5.5. Exit Interviews

Exit interviews provide an excellent source of information of internal problems, employees' perceptions of the organization, underlying workplace issues, and managers' leadership abilities.

5.5.6. Ineffective Managers

High employee turnover can be recognized and properly attributed to poor managerial performance, emotional intelligence and ineffective leadership. Poorly selected or improperly trained managers can be expensive... A Workforce Magazine article, "Knowing how to keep your best and brightest," reported the results of interviews with 20,000 departing workers. The main reason that employees chose to leave was poor management. HR magazine found that 95 percent of exiting employees
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attributed their search for a new position to an ineffective manager.

5.5.7. Hire attitude; Train skills

We can help you hire and inspire appropriate employees ... Build positive, friendly, teamwork attitudes and commitment to customer services Help new employees feel comfortable as they participate as valued team members Provide periodic refresher courses to maintain team purpose and functionality Apply Expert Modeling to rapidly transfer expert skills within a workforce

5.5.8. Reduce Attrition: Managers and Professional

Employees

We can help you adjust your company vision and manager's performance reviews to reflect employee turnover, and provide mentoring and interpersonal training to inexperienced managers. Develop and communicate a strong strategic vision Provide relationship coaching and help people develop to their potential Reward managers for their relationship skills - not only on technical know-how and financial results People dont leave jobs, they leave managers! Replace managers who will not develop relationship skills

5.5.9. Reduce Attrition: Clerical and Hourly Employees

We can help you communicate. Most employees want to know more about their work. We can explain each process and help employees understand the importance of their work. Your employees will become more knowledgeable about their effectiveness. Here are a few ways ... Compliments and thanks cost little and can bring great benefits Let employees know that their opinions are valuable Keep employees informed - don't let them hear important news through rumors Update employees with technical information Address staff by their first names Publicly praise what the employee has accomplished and say why it was important Criticize privately about what the employee can do better and explain how to do it better Create community with activities such as informal meals or events outside work Involve employees in organizational planning Titles cost little and remind employees that they are valuable

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How to Calculate Employee Turnover:

Costs of Employee Turnover -

In our first post on the costs of employee turnover, you learned why hanging onto your employees is important to the financial well-being of your organization, as long as those employees are a good fit. In part 2, I will show you some twists and variables on those calculations that you must make to see the full picture that employee turnover in your organization is telling you. I will also cover a few of the many variables that can affect your turnover rate and affect how you choose to interpret results of your employee turnover calculations.

Beyond just looking at your overall employee turnover rate, taking the time to look closely at certain segments of your organization will provide you even more insights into your organizations health. For example, you could focus on employees who leave in the first-year of employment. From hiring to firing to replacement, losing employees in the first year can be costly. Some employee replacement costs include: sourcing (how you find applicants and how they find you) interviewing hiring expenses training the new employee acculturation of the employee to the organizations culture and expectations

On-boarding costs include:

Employee separation costs include: unemployment compensation COBRA benefit continuation costs conducting exit interviews

As a side note, effective orientation programs in the first several months after a hire have been proven to have a direct, positive impact on the employees choice to stay with the organization.
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Qus. How to Calculate Employee Turnover by Month?

Lets revisit an employee turnover calculation I explained in my previous blog: monthly turnover. This turnover calculation can be used to learn more when employees leave in their first year. To calculate monthly employee turnover rates, divide the number of employee separations in one month by the average number of active employees at the worksite during the same period. Well say we have one site of operations.

For example, lets say we lose four employees out of 200.

That gives us an employee turnover rate of 20 percent. What if we repeated this employee turnover calculation to highlight the turnover rate just in the new hires, not in the whole company, over the course of a year?

Qus. How to Calculate Employee Turnover Rates within the First Year?
Have you wondered if employees leaving in less than 12 months have a bearing on your business? What about on your business practices? You can learn both by learning about first year employee turnover. To compute this, divide the total number of employees who leave in less than one year by the total number of employees who leave in the same period. Heres what the formula looks like:

Now to pull numbers into our formula for first year employee turnover:

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Qus. What Can Employee Turnover Calculations Tell You About Your Organization?
How do 26.7 percent first-year employee turnover rates compare to the industry standard, or to your local area? If it is consistent with those measures, your organization may be fine. The following questions and answers will be important to note and act on, regardless if 26.7 percent is a good number or a bad one. If 26.7 percent is higher than your overall employee turnover rate, the industry standard, or the standard turnover in the area, you might want to review your selection or onboarding process.

For instance, what questions were asked when the employee was hired? Did the questions relate to the job? If not, they may have set up the application for the job to be quite different than the job really is. If so, why was that done? Did those who sorted applicants by their responses understand what skills the job required? Did they end up looking for or finding the wrong things? Did the employee get an orientation? Was the employee made to feel comfortable in the organization after the orientation? Why or why not? How did the employees supervisor interact with the employee? How did the existing workforce interact with the new employee? With acceptance and assistance, or with a cold shoulder? How did the supervisor react to that? Did the supervisor take any steps in response to the workforce interaction with the new employee?

Inference:
From the Freidmans ranking method, the top 5 reasons for employees leaving the company, as per the order are; 1. Less salary 2. Better opportunity outside 3. Long working hours 4. Nature of work and working condition 5. Lack of co-operation 6. Conflict inside of organization and 7. Work pressure and leave
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It is also critically important to recognize that, when employees indicate the intention to leave, they generally do- this means that attrition can be predicted through survey measurement, which gives employees an important window of opportunity to foresee and address talent loss within specific departments so as change the environment that is causing employment that is causing employees to leave.

CHAPTER 6

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FINDING, CONCLUSION AND RECOMMENDATION

FINDING
BMTC Branch:
The attrition rate was high in the Big Bazaar BMTC in the year of 2011. Because of lots of competition is here after inflation lots of opportunities are available here and each and every person want more and more salary than their ability. Every organization tries to Negotiate with their employee so they give less salary/wages to their employees. The Attrition rate for the year is approximate 13%. In general, the staffs selected for job roles viz. Salespersons, Cashiers, beauticians, Insurance marketing personnel, Maintenance personnel require a PUC graduation or lesser, their need for change to a different job role. So. They have a lot of options and opportunities to choose within and outside the industry. So, it was found that in this store staffs had work experience of a completely different job role in the past and therefore they so not mind shifting to a different one as wider options exist.

My learning from Big Bazaar

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Draw the organization structure for People Office in Big Bazaar and write in brief about the roles and responsibilities at each level? Reflect & learn Human capital is considered to be the most valuable asset in any organization. People need to be nurtured, developed, motivated and rewarded so as to ensure business growth. Therefore the People Office department should ensure that they attract, develop and retain the kind of people.

Organization structure of Big Bazaar and roles and responsibilities are discuss above in Chapter no. 4. To learn and understand the function of People office in Big Bazaar People Office in Big Bazaar is most important part for both like employer and as well as employees because both are internally related by each other. Each and every work, responsibility, deities, and their activities are completely controlled by employer and Executives. All code and conduct is followed by employees and employee but its handle by People Office and employees discipline, grooming stander, Doctor visiting, pay role, absent sum, Saturday meeting, uniform, leave card, and comp-of slips, attendance register, recruitment and placement, performance appraisal, key result area (KRA), Performance Evaluation Review key (PERK), Birthday card, reward and recognition, punishment, and after these activities there have some other so many small activities, which is very important and help full for organization.

Manpower planning and Budgeting Conceptual understanding:

The aim behind manpower planning and budgeting is to have the right number of people to work so as to improve productivity and reduce cost.
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To understand the role of manpower planning and budgeting in an organization.

You decide on the manpower for a store.

Manpower for a store is decided according to area of store and department of store. Which is planned by Kishor Biyani and Kartha of Big Bazaar and they follow the concept of Wall mart. Some department of Big Bazaar like Fruits and vegetable, Grosser, Fast consuming products and international product are so mush important and crowded area there so there have large number of employee and in jewelers and beauty field there have less number of employees. Big Bazaar also follow some latest formula for manpower planning which is already discuss above.

The recruitment done in a store.

Recruitment done by Big Bazaar: Basically Human resource management in Big Bazaar like internal recruitment they call all employees and inform they have some such types of vacancy and post. The basic salary is that. If any employees have any friend, relative or colleagues they call for interview. And some time when they did not get a right employee or candidates then only they go for outside of recruitment like advertisement They call their employee and give pamphlet to distribute it or posted in on the wall They leave some advertisement on net who ever are interests they can come for interview or apply for those jobs. Big Bazaar have some consultancy who give direct employees to them and Big Bazaar is not giving a single rupees to them they have some management strategy and they are getting money from them. And supply manpower to Big Bazaar.

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Draw a typical store structure for employees in Big Bazaar?

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General Merchandise DM leaderDepartment Manager Trainee ApparelsFashions Assistant Food Home solutions DM HomeDM DM Team Members Department Manager Team Operations Assistant (Store Head)

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How many times in a week does the doctor visit the store.

Doctor in Big Bazaar is basically visit in one times in a week and is in Saturday. After check up they give full information to Human Resource manager regarding employees health status like Bode pressers, weight, Stress, and some health related information which is helpful in management for salary and insurance.

The uniforms and other accessories that are issued to an employee when he/she joins Big Bazaar.

Big Bazaar has some different uniform for each department like Fruits and vegetable, crockery, cloths, beauty and health, insurance persons, For Fruits and Vegetable: orange tops, black trouser, belt, shoes, socks, Health and beauty: Black tops, Black trouser, Belt, Shoes, Socks Cosmetics: white tops, Black trouser, Belt, Shoes, Socks, some cosmetics and some makeup pack etc.
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Garments: Yellow tops, Brown Trouser, belt, shoes, and socks Insurance: only Red top Every employees get 2pairs of uniform for daily use

Process of issuing Employees Identity cards for staff in a store

For employees Identity cards when an employee is going Gurukul training or any training than Big Bazaar provides their own photo id with grew color belt. And when an employee join the company than Big Bazaar provide only ID that is not Photo ID and not original one just for formality with red or orange belt but most necessary for every employees of organization.

The grooming standards on the floor and how are they monitored.

When new candidates join the company than HR of organization inform them to hand over their mobile in basement and maintain daily register for attendance. After that they say you are in this or that department he or she is your team leader and that person is your Directing manager he/she will guide and you have to deal with customer and be polite while dealing with them. Their shoes must be police and uniform in proper way and ID is most important.

Fun zone and what are facilities are provided there?

Fun zone is a big size of room and there have some convenience which is given by Organization to their employees so they can take rest when they feel tired or ill. They have their breakfast, lunch there in Fun zone. After that there have some extra activity like some game and motivational program. All employees have their tea and coffee in fun zone. In side of Fun zone they have some lock or locker room so they can keep their good or lunch whatever they want and there have a lock in the hand of employees.

The weekly are offs managed at stores for employees.

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Weekly offs in Organization is decided by Human resource manager and Managing Director of the department. Every employees get a day off and there is planning for weekly off which employees will get which day offs and who will work so organization will not be affected by them and their work.

The policy for store staff for working for extra hours and on holidays?

For each day extra work they are getting some extra money when an employees work some more hours they are also getting some money which is decided by Organization Human Resource Manager, Kishor Biyani and Kartha of Big Bazaar according to time and according festival. They give monetary convenience to them. So they can get proper value for their work.

The incentives (PERK) given to employees for target achievement?

Every organization has some target which is decided by organization management and CO of organization. If any department will get more than their target than they will get PERK and each employee are getting PERK according to their salary. Whatever is given by organization to them as a PERK? PERK is given by employee to department according to their profit and department.

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CONCLUSION
From our detailed analysis, the attrition rate was determined to be (11.26%) respectively. From our analysis we have determined the current average attrition rate to be 13% per month. The Major reasons responsible for attrition were sees salary (when compared with the market standers), better opportunity elsewhere in the market place, long working hours, work pressure in various departments and string leave policies. Some of the primary data collected through interview with the store managers of individual units revealed information such as termination due to integrity issues, in disciplinary attitude of staffs, harassment issues.

Attrition have both good as well as bad effect according to employees when a prospective employees leave the organization than it has negative effective and when a non prospective employees leave the organization than it has positive effect so it is good under limitation but when it become more than it has only bad effect.

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RECOMMENDATIONS

After my project I would like to recommend that Big Bazaar is really big organization and their have need some improvement so they can get success like little bit change in their discipline and give some convenience to their employees. Cost the company is very less and when some employee performing well they do not give some reward to them thats why the good and prospective employees always like to leave their company and go for another Organization and another job so they can understand their value and they can use their talent and hummers they always expecting more and more salary and responsibility and competition in their carrier.

They can provide the best opportunities to each and every one so they think like they are a part of organization and the organization always take care about them.

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BIBLIOGRAPHY: References and bibliography:

Big Bazaar BMTC Executive. Employees of Big Bazaar and HR Manager IT MNCs maintain R&D expansion spree in India Global IT majors in contest over $1 billion Bharti Aortal outsourcing deal Over 30 IT, BPO govt. contracts face cancellation, renegotiation risks in the UK Amazons proposed call centre to enhance Cape Towns economy Leading Indian tech firms to revise stratagem for European market Philippines BPO sector attains 50% target, revenues touch $4.7 billion TCS decides to step into Peruvian market Infosys shuts down BPO unit in Bangkok, shifts work to India, China ILO stresses on need to ensure decent job conditions in BPO industry Insurance broker Aon to acquire Hewitt for $4.9 billion Unprofitable Contracts/Market Consolidation to Push 25% of BPO Vendors Out of Business. Uma Sekaran, Research methods for business, (4th edition; Wiley publications) R. Nanda Gopal ET. Al. Research methods in business, (1st edition; New Delhi; excel books). Charles R. Green, Strategic Human Resource Management, (2nd Edition; New Delhi; Pearson education) V S P Ray, Human Resource Management, (2nd edition; New Delhi; Excel Books).

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ANNEXURE

Questionnaires: The following are a few typical Questions asked in Employee Satisfaction Survey:-

I am Aysha Parveen student of IIBS, conducting a study on Employee satisfaction and attrition viz., Big Bazaar. Please fill in the following questionnaire to help me in my survey. Personal Profile
Customers Name: Gender: Male Female Ph No: Email: -

Age

:-

Below 16

16-25

26-35

36-45

Above 45

Monthly Income Level:

None

Below Rs.10000

Rs.10000 Rs.20000

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Rs.20000 Rs.30000

Above Rs.30000

Educational Qualification:

SSLC

PUC

Degree

PG

PhD

Occupation:

Student Academician

Working in Pvt. / Govt. Company Housewife

Business Man

Self Employed

1) How long u r working in Big Bazaar?

Once year Five year

Two year Above five year

2) What is the reason for come to join Big Bazaar?

Salary Opportunity Near to your House

Carrier growth

Brand

Others (Please specify)___________

3) Do you think that Big Bazaar is really a good organization?

Yes

No

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4) What is that part that distinguishes Big Bazaar from other retail stores? Quality Offers Price Location Convenience Others (Please specify)___________

5)

How do you find the salary in Big Bazaar? Very High High Reasonable Low Very Low

6)

Do you compare the salary of Big Bazaar with other retail stores? Yes No

7) Do you think your subordinate is a valued part of the organization?

Yes

No

8) Do you wait for the offers to other organization?

Yes

No

9) Do you feel your sub ordinate are respected and fairly treated in organization? Yes No

10) What is the morale in the office?

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Low

High

Average

11) Do they career goals and future prospects? Yes No

12) Do they career goal and future prospects? Yes No

13) Do they know how their job fits into large pictures of the organization? Yes No

14)Are you satisfied with your job in Big Bazaar?

Yes

No

15) The work environments in store are friendly?

Yes

No

16) The subordinate feel that the work timing is flexible? Yes No

17) There is a spirit of co-operation among staff? 99 | P a g e

High

low

No

18)Do they have positive relation with their supervisior? Yes No

19) The Work load and work target are reasonable?

Yes No

20) Do they have a clear understanding of how their job performance is measured?
Yes No

Thank you

Articles:
Turnover, retention, and employment relationship in future group. Team Development, Aylin and Webber, Vol. 7 pp, 161-171. ,A conceptual model of labour turnover retention and, international human resource development Jonathan winterton 7:3 (2004), pp.371- 390. Miles M. Finney and janet E. Kohlhase, The effect of urbanization on labour turnover, Journal of Regional Science, Vol, 48, No. 2, 2008, pp, 311-328.
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Muhammad sani Umar, None work Factors and labour Turnover among Female Employees in Kebbi state civil service, Bangladesh e-journal of Sociology. Volume 4, Number 2, July 2007. Smith et al, labor turnover and management retention strategies, international Journal of human Resource Management 15:2 March 2004. 371-396 Life story of Kishor Biyani: which is written by Kishore Biyani it is Biography. Where he has written is basic concept and idea about Indian Retail sector.

WEBSITES: www.futurebytes.com www.search.ebscohost.com www.citehr.com www.futuregroup.com www.pantalooneretail.com

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