A STUDY ON EMPLOYEE RETENTION IN AMARA RAJA POWER

SYSTEMS LTD, TIRUPATHI

Submitted By
S.LUKE NIREEKSHAN
(Reg. No. 11809631041)
Of
Department of Management Studies

VEL TECH MULTI TECH Dr. RANGARAJAN Dr. SAKUNTHALA ENGINEERING
COLLEGE
(ACCREDITED BY NBA & ISO 9001:2008 CERTIFIED INSTITUTION)
(Approved by AICTE, New Delhi & Affiliated to ANNA UNIVERSITY)
Avadi, Chennai-600 062

A PROJECT REPORT
Submitted To

Faculty of Management Studies
In Partial Fulfilment of the Requirement for the Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION
IN
HUMAN RESOURCE

ANNA UNIVERSITY, CHENNAI 25
JUNE - 2011
VEL TECH MULTITECH DR.RANGARAJAN DR.SAKUNTHALA
ENGINEERING COLLEGE
(ACCREDITED BY NBA & ISO 9001:2008CERTIFIED INSTITUTION)
(Approved by AICTE, New Delhi & Affiliated to ANNA UNIVERSITY)
Avadi, Chennai-600 062
___________________________________________________________________________
Date: ...../../2011
BONAFIDE CERTIFICATE
Certified that the project report titled A STUDY ON EMPLOYEE RETENTION has
been conducted in AMARA RAJA POWER SYSTEMS LTD,TIRUPATHI is a
bonafide project work of S.LUKE NIREEKSHAN, (Reg. No. 11809631041) who carried out
research under my supervision certified further, that to the best of my knowledge the work
reported here in does not form part of any other project report or dissertation on the basis of
which a degree or award was conferred on an earlier occasion on this or any other candidate.

INTERNAL GUIDE HEAD OF THE DEPARTMENT


ASSESSED BY


INTERNAL EXAMINER EXTERNAL EXAMINER
ACKNOWLEDGEMENT

First of all I take this opportunity to express my gratitude to our CHAIRMAN
PROF. Dr. R. RANGARAJAN, B.E (Elect), B.E (Mech), and M.S (Auto) PhD, and to the
PRINCIPAL Dr. SIDDHAPPA NAIDU, M.E., PhD, of VEL TECH MULTI TECH
DR.RANGARAJAN DR.SAKUNTHALA ENGINEERING COLLEGE, AVADI.
I would like to extend my sincere thanks to HOD Dr. N. VIJAY & My Internal
Guide Mrs. SATHYARTHI, MBA, M.PHIL and all my faculties.
I express my sincere gratitude from the depth of my heart to my respectful HR
Ms. M.L.RAMADEVI, of AMARA RAJA POWER SYSTEMS LTD, TIRUPATHI for
providing the valuable guidance and necessary facilities to me for completing this project work
successfully.
I thank all the employees of AMARA RAJA POWER SYSTEMS LTD,
TIRUPATHI for extending their useful co-operation and support to me during the course of this
project work.
I also thank my parents and my friends who had helped me in doing this project in a
successful manner.




(S.LUKE NIREEKSHAN)





ABSTRACT
The project work has been carried out at AMARA RAJA POWER
SYSTEMS LTD. This report is the outcome of the study conducted on the topic EMPLOYEE
RETENTION IN AMARA RAJA POWER SYSTEMS LTD. The tools used in the study for
analysing the collected data are Simple percentage analysis, chi square test and Pareto Analysis.
The study was done on a total of 120 respondents and analysis was conducted.
Employee retention management is a highly typical subject and an
important dilemma in many organizations which might face in the future. The concept of
retention management can both have a narrow and a broader significance.
Recent studies suggest that multinational companies are struggling to
retain employees. So the study on the employee retention is useful for the company in framing
strategies to retain the employees in the organization.
From the study it is found that the Stipend, welfare measures,
transport facilities and Duration of the training programmes are the major problems causing
dissatisfaction among most of the trainees which should be improved.



TABLE OF CONTENTS
CHAPTER
NO
CONTENTS PAGE NO
1
INTRODUCTION 1
1.1 Industry Profile 2
1.2 Company Profile 6
1.3 Product Profile 16
1.4 Statement of the Problem 17
1.5 Objective of the Study 18
1.6 Need & Scope of the Study 19
1.7 Limitations of the Study 20
2
LITERATURE SURVEY 21
2.1 Review of Literature 21
3
RESEARCH METHODOLOGY 27
3.1 Type of Project 28
3.2 Target Respondents 29
3.3 Proposed Sampling Methods 30
3.4 Data processing 31
3.5 Tools for Analysis 32
4
DATA ANALYSIS AND INTERPRETATION 34
4.1 Percentage Analysis 34
4.2 Chi-square test 50
4.3 Karl Pearson Correlation Analysis 56
5
CONCLUSION 58
5.1 Summary & Findings 58
5.2 Suggestions & Recommendations 61
5.3 Conclusion 62
APPENDIX

(i) Bibliography A1

(ii) Questionnaire A2

LIST OF TABLES
TABLE
NO
TABLE TITLES PAGE
NO
4.1.1 Table showing the classification of age groups of the respondents. 34
4.1.2 Table showing the satisfaction regarding the working conditions in this
organisation.
35
4.1.3 Table showing the satisfaction regarding the nature of the job. 36
4.1.4 Table showing the wheather the supervisors take care at work. 37
4.1.5 Table showing the wheather the job in this organisation is highly
secured.
38
4.1.6 Table showing the satisfaction level of respondents when prolonged
working hours.
39
4.1.7 Table showing the satisfaction level towards the welfare measures. 40
4.1.8 Table showing the satisfaction regarding salary. 41
4.1.9 Table showing wheather the management assign the tasks which
matches skills of the employees.
42
4.1.10 Table showing the satisfaction regarding the duration of the training
programme.
43
4.1.11 Table showing the level of communication from top management. 44
4.1.12 Table showing the interpersonal relationship in the organisation. 45
4.1.13 Table showing the recognition for work from the management. 46
4.1.14 Table showing the satisfaction level regarding the transport facilities. 47
4.1.15 Table showing the satisfaction level regarding the Safety measures in
the organization.
48
4.1.16 Table showing wheather they are conducting exit interviews for the
employees who are leaving the organisation.
49
4.2.1 Table showing observed frequency of Salary and Duration of training
programme.
50
4.2.2 Table showing expected frequency of Salary and Duration of training
programme.
51
4.2.3 Table showing calculated value of Salary and Duration of training
programme.
51
4.2.4 Table showing observed frequency of Job Security and Recognition for
Work.
53
4.2.5 Table showing expected frequency of Job Security and Recognition for
Work.
54
4.2.6 Table showing calculated value of Job Security and Recognition for
Work.
54
4.3.1 Table showing Analysis for Age and assigning tasks that matches
skills.
56

LIST OF CHARTS

TABLE
NO
CHART TITLES
PAGE
NO
4.1.1 Chart showing the classification of age groups of the respondents. 34
4.1.2 Chart showing the satisfaction regarding the working conditions in this
organisation.
35
4.1.3 Chart showing the satisfaction regarding the nature of the job. 36
4.1.4 Chart showing the wheather the supervisors take care at work. 37
4.1.5 Chart showing the wheather the job in this organisation is highly secured. 38
4.1.6 Chart showing the satisfaction level of respondents when prolonged working
hours.
39
4.1.7 Chart showing the satisfaction level towards the welfare measures. 40
4.1.8 Chart showing the satisfaction regarding salary. 41
4.1.9 Chart showing wheather the management assign the tasks which matches skills
of the employees.
42
4.1.10 Chart showing the satisfaction regarding the duration of the training programme. 43
4.1.13 Chart showing the recognition for work from the management. 44
4.1.14 Chart showing the satisfaction level regarding the transport facilities. 45
4.1.15 Chart showing the satisfaction level regarding the Safety measures in the
organization.
46
4.1.16 Chart showing wheather they are conducting exit interviews for the employees
who are leaving the organisation.
47














LIST OF ABBREVATIONS

1
ARPSL AMARA RAJA POWER SYSTEMS LTD
2
MPPL MANGAL PRECISION PRODUCTS PRIVATE LTD
3
AREL AMARA RAJA ELECTRONICS LIMITED
4
GFPL GALLA FOODS PRIVATE LIMITED
5
AIPL AMARA RAJA INFRA PRIVATE LIMITED
6 AISPL AMARA RAJA INDUSTRIAL SERVICES PRIVATE LTD
7
IPS INTEGRATED POWER SUPPLY SYSTEMS
8
SMR SWITCH MODE RECTIFIERS
9
UPS UNINTERRUPTED POWER SUPPLIES
10
NTPC NATIONAL THERMAL POWER CORPORATION
11
NHPC NATIONAL HYDRO-ELECTRIC POWER CORPORATION
12
NEEPCO NORTH-EASTERN ELECTRIC POWER CORPORATION
13
THDC TEHRI HYDRO DEVELOPMENT CORPORATION
14
NPTC NATIONAL POWER TRANSMISSION CORPORATION


1

CHAPTER-1
INTRODUCTION

Employee retention refers to policies and practices companies
use to prevent valuable employees from leaving their jobs. How to retain valuable employees is
one of the biggest problem that plague companies in the competitive marketplace.

Nowadays, businesses often find that they spend considerable
time, effort, and money to train an employee only to have them develop into a valuable
commodity and leave the company for greener pastures.
In order to create a successful company, employers should
consider as many options as possible when it comes to retaining employees, while at the same
time securing their trust and loyalty so they have less of a desire to leave in the future.

Employee retention involves taking measures to encourage
employees to remain in the organization for the maximum period of time. Corporate is facing a
lot of problem in employee retention these days. Hiring knowledgeable people for the job is
essential for an employer. But retention is even more important than hiring. There is no dearth of
opportunities for talented person. There are many organizations which are looking for such
employees. If a person is not satisfied by the job hes doing, he may switch over to some other
more suitable job. In todays environment it becomes very important for organizations to retain
their employees.
DEFINITION
According to Get Les McKeons employee retention is define as effective
employee retention is a systematic effort by employers to create and foster an environment that
encourages current employees to remain employed by having policies and practices in place that
address their divers needs.
2

1.1 INDUSTRY PROFILE
Historical
The Electric Century
Even true visionary even like Thomas A.Edision could not have imagined the level of
sophistication that would be required of equipment used for the transmission and distribution of
electronic power a little more than a century after its invention. Nor could he have anticipated all
of the complex issues facing the electrical industry as it moves into the twenty-first century.
With the only research and development lab in the industry still named after this
prodigious inventor. The Thomas A.Edision technical centre. Cooper power systems are proud to
trace its heritage back to this industry pioneer. Thomas A.Edision. Incorporated, one of Thomas
Edisons original companies. Combined with McGraw electric company in 1957 to from
McGraw-Edison became part of cooper power systems.
Since its formation in 1985. A Cooper power system has continued to commitment of its
forebears to invention. The Thomas A Edison technical centre embodies Edisons philosophy of
finding a better way.
Cooper power systems roots. Like any family tree, come from multiple sources: Kyle,
line material, McGraw-Edison. RTE and Kearney. Each company played a key role in the
development of modern distribution systems. Many of the common pieces of equipment and
practices in use today were developed by these companies. Here is a brief overview of cooper
power systems heritage.
The power electronics is the application of electronic circuit to energy conversion i.e.,
encompasses the use of electronic components, the application of circuit theory and design
techniques and the development of analytical tools towards electronic conversion, control and
conditioning of electronic power. The power electronic market comprises of uninterrupted power
supplies (UPS), AC/DC power supplies. Battery chargers and inverters. In 2003, the total
worldwide power
3


Electronics market was $6351 million, which is expected to grow at a compound annual
growth rate of 6.1% to reach $7203 million by 2006 power electronics is used in computers,
automobiles, military,
The major manufactures in the power electronics industry (India) are:
Exide industries
Hyderabad Batteries Limited.
Amara Raja Power Systems Private Limited.
Tudor Indian limited.
Standard Batteries.

Introduction:
The power sector has registered significant progress since the
process of planned development of the economy began in 1950. Hydro -power and coal based
thermal power have been the main sources of generating electricity. Nuclear power development
is at slower pace, which was introduced, in late sixties. The concept of operating power systems
on a regional basis crossing the political boundaries of states was introduced in the early sixties.
In spite of the overall development that has taken place, the power supply industry has been
under constant pressure to bridge the gap between supply and demand.
Growth of Indian power sector:
Power development is the key to the economic development. The
power Sector has been receiving adequate priority ever since the process of planned development
began in 1950. The Power Sector has been getting 18-20% of the total Public Sector outlay in
4

initial plan periods. Remarkable growth and progress have led to extensive use of electricity in
all the sectors of economy in the successive five years plans. Over the years (since 1950) the
installed capacity of Power Plants (Utilities) has increased to 89090 MW (31.3.98) from meager
1713 MW in 1950, registering a 52d fold increase in 48 years. Similarly, the electricity
generation increased from about 5.1 billion units to 420 Billion units 82 fold increases. The per
capita consumption of electricity in the country also increased from 15 kWh in 1950 to about 338
kWh in 1997-98, which is about 23 times. In the field of Rural Electrification and pump set
energisation, country has made a tremendous progress. About 85% of the villages have been
electrified except far-flung areas in North Eastern states, where it is difficult to extend the grid
supply.
Structure of power supply industry
In December 1950 about 63% of the installed capacity in the Utilities was in the private sector
and about 37% was in the public sector. The Industrial Policy Resolution of 1956 envisaged the
generation, transmission and distribution of power almost exclusively in the public sector. As a
result of this Resolution and facilitated by the Electricity (Supply) Act, 1948, the electricity
industry developed rapidly in the State Sector.
In the Constitution of India "Electricity" is a subject that falls within the concurrent jurisdiction
of the Centre and the States. The Electricity (Supply) Act, 1948, provides an elaborate
institutional frame work and financing norms of the performance of the electricity industry in the
country. The Act envisaged creation of State Electricity Boards (SEBs) for planning and
implementing the power development programmes in their respective States. The Act also
provided for creation of central generation companies for setting up and operating generating
facilities in the Central Sector. The Central Electricity Authority constituted under the Act is
responsible for power planning at the national level. In addition the Electricity (Supply) Act also
allowed from the beginning the private licensees to distribute and/or generate electricity in the
specified areas designated by the concerned State Government/SEB.
During the post independence period, the various States played a predominant role in the power
development. Most of the States have established State Electricity Boards. In some of these
5

States separate corporations have also been established to install and operate generation
facilities. In the rest of the smaller States and UTs the power systems are managed and operated
by the respective electricity departments. In a few States private licensees are also operating in
certain urban areas.
From, the Fifth Plan onwards i.e. 1974-79, the Government of India got itself involved in a big
way in the generation and bulk transmission of power to supplement the efforts at the State level
and took upon itself the responsibility of setting up large power projects to develop the coal and
hydroelectric resources in the country as a supplementary effort in meeting the countrys power
requirements. The National thermal Power Corporation (NTPC) and National Hydro-
electric Power Corporation (NHPC) were set up for these purposes in 1975. North-Eastern
Electric Power Corporation (NEEPCO) was set up in 1976 to implement the regional power
projects in the North-East. Subsequently two more power generation corporations were set up in
1988 viz. Tehri Hydro Development Corporation (THDC) and Nathpa Jhakri Power
Corporation (NJPC). To construct, operate and maintain the inter-State and interregional
transmission systems the National Power Transmission Corporation (NPTC) was set up in
1989. The corporation was renamed as POWER GRID in 1992.
The policy of liberalization the Government of India announced in 1991 and consequent
amendments in Electricity (Supply) Act have opened new vistas to involve private efforts and
investments in electricity industry. Considerable emphasis has been placed on attracting private
investment and the major policy changes have been announced by the Government in this regard
which are enumerated below:




6

1.2 COMPANY PROFILE
AMARA RAJA GROUP OF COMPANIES
RAMACHANDRA N GALLA
Chairman
Amara Raja Batteries Ltd.
Dr. Ramachandra N. Galla is the Patriarch of an illustrious business family of Andhra Pradesh,
Gallas, who have established a name for themselves by successfully setting up Amara Raja
Batteries. Born in 1938, Dr. Ramachandra Galla is an Electrical Engineer from S.V. University,
Tirupati and has to his credit Masters degrees in Applied Electronics, Roorkee, India and
Systems Sciences, Michigan State University, USA.

Dr. Galla started his career as an Electrical Engineer in US Steel Corporation, USA moved on to
Sargent & Lundy, USA as a Consulting Engineer for the Designing of Nuclear & Coal Fired
Power Plant. He initiated various projects in these corporations & mastered the ropes of this
competitive business in a very short time. However, he soon discovered that his natural
inclination was serving his country and as a logical sequel he gravitated towards Chittoor his
native place in India. Dr. Galla laid the foundation of Amara Raja batteries in 1985 in Chittoor.
With his intense zeal and highly focused approach, he propelled Amara Raja Batteries in the top
league of battery companies in India.

In his capacity as the Chairman, Dr. Ramachandra Galla has promoted and established the
following companies from the conceptual stage which are now well established and profit
making:





7

BRANCHES:

Chandigarh
Ghaziabad
Delhi
Jaipur
Lucknow
Guwahati
Ahmedabad
Indore
Patna
Ranchi
Coimbatore
Calcutta
Jamshedpur
Nagpur
Mumbai
Pune
Hyderabad
Vijay Wada
Bangalore
Chennai
Cochin.






8

AMARA RAJA GROUP OF COMPANIES:

AMARA RAJA POWER SYSTEMS PRIVATE LTD. (APRSL),
Karakambadi, Tirupati.

MANGAL PRECISION PRODUCTS PRIVATE LTD 1., (MPPL1),
Karakambadi, Tirupati.

AMARA RAJA ELECTRONICS LIMITED (AREL),
Dighavamgham, Chittoor.

GALLA FOODS PRIVATE LIMITED (GFPL), Puthalapattu Mandal,
Chittoor.

AMARA RAJA INFRA PRIVATE LIMITED (AIPL),Tirupati karakambadi.

AMARA RAJA INDUSTRIAL SERVICES PRIVATE LIMITED (AISPL),
Tirupati.


Dr Galla's finest hour as a businessman came in 1998 when he was presented
BEST ENTERPRENEUR OF THE YEAR 1998 by Hyderabad Management Association,
Hyderabad. He has been bestowed with honorary doctorate degrees from Jawaharlal Nehru
Technical University in 2008 at Hyderabad & Sri Venkateswara University in 2007 at Tirupati.
He has also been conferred with THE SPIRIT OF EXCELLENCE award by Academy of Fine
Arts, Tirupati, and various other prestigious awards.


He is passionate about a corporates responsibility to society as well as
championing eco-friendly business practices. Dr. Galla has established various charitable trusts
9

like Krishna Devaraya Educational & cultural association (KECA), Rajanna Trust, Mangamma
& Gangul Naidu Memorial Trust. He is dedicated to rural development and improving the
economic conditions of the farmers in Chittoor District, Andhra Pradesh, India. KECA which
was established in 1975 provides scholarship to the poor and needy students to pursue their
higher education. While Rajanna Trust that was established in 1999 to construct check dams and
deepening the tanks to improve the ground water levels. MANGAL TRUST was established in
2003 to provide drinking water facilities, constructing check dams & providing infrastructure
facilities to Petamitta and surrounding villages.

A committed family man with wife, two children & grand children, he loves spending time with
his family and participating in society development project.

JAYADEV GALLA
Managing Director
Amara Raja Batteries Ltd.

Core Purpose:
To transform our spheres of influence and to enrich the quality of life by
building institutions that provides better access to better opportunities. Good and services to
more people all time.







10

AMARA RAJA POWER SYSTEMS LIMITED (ARPSL):
LOGO OF AMARA RAJA POWER SYSTEMS LIMITED (ARPSL)


Amara Raja power systems are a member company in Amara Raja group of companies. Which
has become a leading business, group in India going ahead with its innovative and collaborative
technology and emphasis on human resource development.
BOARD OF DIRECTORS OF ARPSL

Mr.U.V.Warulu Scientist

Dr.Upendranath Naimmlagadda NRI

Mr.P.Lakshman rao Charted accountant

Mr. Arthur F.Nening Jr. Johnson Controls inc. USA

Mr. Douglas C.Brown Johnson Controls inc. USA

Mr.james T.Luke Jonson Controls inc. USA


11

INCORPORATION:
Amara Raja Power Systems Private limited was incorporated in 1984 and
was co promoted by A.P. ELECTRONIC DEVELOPMENT CORPORATION (APEDC). By
virtues of APEDCs equity participation, ARPSL has become a deemed public limited company
as per section 43 (a) of the companies Act, ARPSLis engaged in the manufacture of
uninterruptible power systems (UPS) Battry charges (BC) and inventers. The company had a
technical collaboration with H.D.R. power systems inc. USA. The company has entered into a
new collaboration with M/s.Rectifier Technologies, Australia for manufacturing the advanced
switch mode power supply units [SMPS] for battery charging purpose.

An Rs.2 crore unit Amara Raja power Systems ltd. For the manufacture
of uninterrupted power supply systems (UPS), battery chargers, D.C.power supplies and static
inventers. For the year ending 31
st
march, 2002 this unit achieved a sales turnover of Rs.188
crores and earned cash profit of Rs.18 crores.
Total employee strength of ARPSL is around 505.
CULTURE AND ENVIRONMENT:
Amara Raja is putting in place a number of HRD initiatives to foster a
spirit of togetherness and a culture of meritocracy. Involving employees at all levels in building
organizational support plans and in evolving vision for the organization.
Encouraging initiative and growing young talent allows the organization
to develop innovative solutions.
Amara Raja has now secured the ISO-14001 certification in the year 2002
(evidence of our concern for the world around us and in which our children will live).
Organization network is spread all over the India:


12

CUSTOMER SATISFACTION:
Effective employee selection, employee development, motivation and
recognition improvement and innovation in every element of our business.

QUALITY POLICY:
Our aim is to achieve customer satisfaction through the collective commitment of
our employees in design, manufacture and marketing of reliable power systems, batteries, allied
product and services.

MANGAL PRESSION PRODUCTS PRIVATE LIMITED (MPPL1):

MPPL1 was started in the year (1996-1997) to produce battery components like copper
connectors, copper inserts, hardware required by ARBL and ARPSL.

It is having all the sheet metal processing machinery it starts from sheet cutting to
final painting, bending, welding, phosphate and power coating processes.

The plant is locating Karakambadi village, Renigunta Mandal, Tirupati and is registered
as an ancillary unit to ARBL and ARPSL. The operations of the company are brisk and
satisfactory.

MANGAL PRESSION PRODUCTS PRIVATE LIMITED (MPPL2):

MPPL1 was started in the year (1996-1997) to produce battery components like copper
inserts, hardware required by ARBL and ARPSL.

The unit located at Petamitta Village, Talapulapalli Mandal, and chittoor at a distance of
65 kms. From Amara Raja group of companies, Karakambadi.
13


In this the aim is to develop backward villages. It will also produce quality hardware for
Automobile Manufacture Company up near Chennai.

AMARA RAJA ELECTRONICS LIMITED:

AREL was established in 2000. It was located at Diguvamagham.

AREL manufactures populated printed circuit board assembly for sale to original
equipment manufacturers (OEM).


GALLA FOODS PRIVATE LIMITED (GFPL):

GFPL was incorporated in 11
th
March 2004 and having its registered office at Rangampet,
Puthalapattu Mandal, Chittoor District, Andhra Pradesh.

It is in the process of standards for extracting natural fruit concentrates from Tropical fruits and
export to USA, Europe and other advanced International Markets.

The company belongs to the Amara Raja Group, which is a pioneer in industrial and automotive
batteries in India.
Amara Raja Group to hire 3,000 in 5 yrs; aims USD 2bn revenue:
New Delhi, Aug 15, (PTI):

Diversified business house Amara Raja is planning to hire 3,000 people in the next five years as
part of its strategy to become a USD 2 billion (over Rs 9,300 crore) entity by 2015.

The group, better known for its automotive battery brand -- Amaron, currently has about 5,000 staff

14

across verticals with a combined turnover of Rs 2,000 crore.

"We have set our vision for 2025 and it is to become a Fortune500 company. As part of this strategy,
we are aiming for a total turnover of USD 2 billion in the next five years," Amara Raja Group Vice
President (Human Resources) Jaikrishna B told PTI.

The group has expanded at 55-60 per cent during the last five years and the growth rate is expected to
continue for some more time, he added.

"To meet our target, we will also have to increase our manpower. From the current 5,000 employees,
it will expand to about 8,000 people in next five years," Jaikrishna said.

Established in 1985, the Amara Raja Group has seven entities. It has presence in packaged foods and
beverages, electronics products manufacturing, infrastructure sector, power system production and
fabrication of sheet metal products and fasteners.

"Besides expanding our existing businesses, we are contemplating to enter into a couple more areas,
he said.

The group is planning to foray into providing private security guards to big installations.
"We are targeting to have strength of 500 security officials and aiming a revenue of Rs 125 crore from
this business in the next five years," Jaikrishna said.

The conglomerate is also setting up a 500-acre digital city for electronics goods manufacturing at
Chittoor in Andhra Pradesh, entailing a total investment of Rs 1,700 crore in the next 10 years.

The economic activity in the digital city project is expected to be over Rs 10,000 crore per annum,
besides providing employment to more than 20,000 people.
Amara Raja Group is also planning to foray into the health drink and frozen food category as part of
its plan to become a pan-India FMCG player.
15

AWARDS:
The spirit of Excellence- Awarded by academy of fine arts, Tirupati.
Best Entrepreneur of the year 1998-awarded by Hyderabad Management Association.
Industrial Economist Business Excellence Award-1991-Awarded by the industrial
economist, Chennai.
Excellence Award-by institution of economic studies (ES), New Delhi.
Excellence in Environmental Management in June 2002 by Andhra Pradesh Pollution Control
Board.
Amara raja received 5 Awards at the Mumbai Advertising club Awards 2003 for the Amaron
Hi-Life advertising campaign including campaign including campaign of the year Award,
Advertiser of the year Award and 2 silver and 1 Gold Abby in other categories.
Amara raja received Best 5s Practices Implementation award from CII, southern Region.
MPPL received award in recognition of excellence in cleaner production technologies and
adoption of climate change mitigation measures from AP Pollution Control Board.
Employee Branding Awards: Awards for best HR strategy in line with business and Award
for continuous innovation in HR Strategy at Work.










16

1.3 PRODUCTS PROFILE:
1. Conventional chargers
Applications:
Power process industries
Power Generating Stations
Oil and Natural gas plants
Sub-Stations
Sea-shore platforms
2. Switch mode rectifiers (SMR)
Applications:
EPBX
Telecom exchanges
Scabbier systems
3. Integrated power supply systems (IPS)
Applications:
Signalling
Telecoms
Axile counter
Traction
Customers: BSNL, VSNL, SIEMENS, RELIANCE, LG
17

1.4 STATEMENT OF THE PROBLEM
The problem in the study is to know why employee retention is low in Amara Raja
Power Systems Ltd. In this competitive world retention of valuable employees is very important
for all the companies as it decreases the rate of employee turnover and increases efficiency and
good working environment. So this project guides the company in order to know the factors
regarding low employee retention in their organization and so that the company can improve the
satisfaction of the employees in the organisation.














18

1.5 OBJECTIVE OF THE STUDY

PRIMARY OBJECTIVES:
To study the employee retention in Amara Raja Power Systems Ltd.


SECONDARY OBJECTIVES:
To study reasons why employees are leaving the organisation.

To find various factors that influences the retention of employees.

To identify what employees look from their jobs in their organisation.

To give suggestions to reduce retention in the organization.








19

1.6 SCOPE OF THE STUDY
1. It is confined to employees of Amara Raja Power systems Ltd only.
2. Employee retention helps to create organization welfare and job satisfaction among the
employees.
3. This helps the company to reduce the employee turnover rate which would in turn
increase the efficiency of the organization.
NEED FOR THE STUDY
In the present scenario, world is turning into
global village and the whole globe is reachable from any destination. In this small world
even companies are reachable to the people and vice versa. And so their jobs are easily
accessible for everyone. In this situation, the biggest challenge for a company is to retain
workforce intact especially the knowledge banks (valuable employees).
The study of employee retention is useful for the
company to prevent employees from leaving their jobs. By this research its more useful
to know the policies & practices companies use to prevent the valuable employees from
leaving their jobs.
It also helps in understanding how to retain valuable
employees which is one of the biggest problems that plague the companies in the
competitive market place.






20

1.7 LIMITATIONS OF THE STUDY

The project duration is considered as a major limitation to collect data from all the
trainees.
The respondents may have some bias in answering the questions.
The sample size being limited to trainees in ARTS may not accurately represent the entire
organization.


DELIVERABLES

The research focuses on the employee retention in the Organization. The
Study will show the areas that are causing problems for less employee retention and also to
provide suggestions to the Organization for retaining the employees. It will provide ideas for
improving the retention of employees through our survey which helps in developing strategies to
retain employees for the Organization.










21

CHAPTER-2
2.1 REVIEW OF LITERATURE
1. The organizational culture values varied significantly among the firms. The
variation in cultural values had a significant effect on the rates at which the newly hired
employees voluntarily terminated employment. The relationship between the employees job
performance and their retention also varied significantly with organizational culture values.
The cultural effects were stronger than the combined exogenous influences of the labor
market and the new employees demographic characteristics. The cultural effects are
estimated to have resulted in over six million dollars differences in human resources costs
between firms with different cultural values.
1



2. The author says that retaining employees is much cheaper than replacing
them. The two important themes he said in his book were First retention matters. A
continual effort to replace departing workers-keeping the revolving door full, instead of
stopping it altogether-is bleeding business dry. Its expensive to constantly replace people.
The cost of attracting, recruiting, hiring, training and getting new people up to speed is
tremendously more costly and more wasteful than most realize. Second, Productivity is
directly tied to retention.
Companies with high turnover are at risk for low productivity. Employees who
have an above average attitude towards their work will generate 38% higher customer
satisfaction scores, 22% higher productivity, and 27% higher profits for their companies.
And he says lower the expense of continually hiring and training new people.
2



1
John E. Sheridan-Organizational culture and Employee Retention- Academy of Management- December, 1992
2
Gregory P. Smith- Here Today, Here Tomorrow- Dearborn Trade- October, 2001
22

3. He stated eight steps for retaining the most talented employees. The eight steps
given by him are
1. Measure and monitor turnover and retention data.
2. Develop fully loaded costs of turnover.
3. Diagnose causes and needs for retention improvement.
4. Explore range of solutions.
5. Match solutions to need.
6. Forecast value of retention solutions.
7. Calculate ROI of retention solutions and
8. Make adjustments and continue.
3



4. They underlined that employee retention is a process in which the employees
are encouraged to remain with organization for the maximum period of time or until the
completion of the project. Employee retention is beneficial for the organization as well as the
employee.
Employees today are different. They are not the ones who dont have good
opportunities in hand. As soon as they feel dissatisfied with the current employer or the job,
they switch over to the next job. It is the responsibility of the employer to retain their best
employees. If they dont, they would be left with no good employees. A good employer
should know how to attract and retain its employees. Retention involves five major things
such as Compensation, Good Environment, Good Relationship and Support.
4


5. In his review the author says that Employee retention involves being sensitive
to peoples needs. Employee attrition is running wild in todays tight labour market. However,

3
Jack J.Philips-Managing Employee retention: A Strategic Accountability Approach (Improving Human
Performance)- Butterworth-Heinemann- June, 2003
4
Beverly Kaye, Sharon Jordan Evans- Love Employees or lose Employees: Getting Good People to stay- Berrett-
Koehler Publishers- January, 2008
23

the companies that keep their employees have found that what matters most is not the pay,
benefits, or perks, but the quality of the relationship between employees and their direct
supervisors. The bottom line is people leaves managers, not companies.
5


6. The authors underlined that Hiring Knowledgeable people for the job is
essential for employer. But retention is even more important than hiring. There is no dearth of
opportunities for a talented person. There are many organizations which are looking for such
employees. If a person is not satisfied by the job hes doing, he may switch over to some other
more suitable job. In todays environment it becomes very important for organizations to retain
employees.
6


7. Retaining and motivating valuable employees requires employers to evaluate
their situation and work environment. The extrinsic rewards are the most tangiblesalaries,
benefits, promotionsyet these incentives alone are not enough. Employees judge the quality of
their job on the intrinsic satisfaction (the personal reward they reap from their work), and on
whether they feel their work environment is supportive.
7


8. Dr. Saurabh Gupta in his study entitled employee retention has underlined
that, the cost employee turnover is from 40-100% of an employees annual salary, when we
consider lost productivity, recruiting costs, training costs, reduced efficiency in transition and
time. Workers shortage continues to escalate. Each and every day good employees quit their
employers for better jobs elsewhere.
Todays labour force is different. Supervisors must take responsibility for
their own employee retention. If they dont, they could be left without enough good employees.

5
Roger Herman- Keeping Good People- Academy of Management Review
6
Ed Michaels, Helen Handfield-Jones, Beth Axelrod- The War for Talent- Harvard Business School Press-
September- 2001
7
Robin Thompson- Secrets to Keeping Good Employees
24

A wise employer will learn how to attract and keep good employees, because in the long run, this
workforce will make or break a companys reputation.
New supervisors must be trained to be collaborative, Supportive, and
nurturing of their people and make them understand what it really takes to retain employees.
8


9. Employers have a need to keep employees from leaving and going to work for
Other companies. This is true because of the great costs associated with hiring and
retraining new employees. The best way to retain employees is by providing them with
job satisfaction and opportunities for advancement in their careers. The saying, good
help is hard to find, is even truer these days than ever before because the job market is
becoming increasingly tight (Eskildesen 2000, Hammer 2000).
Eskildsen and Nussler (2000) suggest that employers are fighting to get talented
employees in order to maintain a prosperous business. Ray Hammer (2000) as well as
many other researchers/authors agree. Mark Parrott (2000) believes that, there is a
straight line between employee satisfaction and customer satisfaction. He believes that
todays employees pose a complete new set of challenges, especially when businesses
are forced to confront one of the tightest labor markets in decades. Therefore, it is
getting more difficult to retain employees, as the pool of talent is becoming more-andmore
tapped-out. The research below, which focuses primarily on employee retention
through job satisfaction, supports this contention.
Employees that are satisfied and happy in with their jobs are more dedicated to
doing a good job and taking care of customers that sustain the operation (Hammer
2000; Marini 2000; Denton 2000). Job satisfaction is something that working people
seek and a key element of employee retention.

Every person will have his or her own definition of what it means to be satisfied
With a job. Studies show that employees who are satisfied with their jobs are more
productive, creative and be more likely to be retained by the company (Eskildsen &

8
Dr.Saurabh Guptha- Employee Retention Needs a Proper Strategy-
www.retentionconnection.com/articlesretention.php - November, 2005
25

Dahlgaard 2000; Kim 2000; Kirby 2000; Lee 2000; Money 2000; Wagner 2000).
Research has shown that there may be many environmental features that can be
created and maintained to give employees job satisfaction. Pay and benefits,
communication (Brewer 2000; Employee 2000; Money 2000; Wagner 2000), motivation,
justice (Kirby 2000; Tristram 2000) and leisure time (Rabbit 2000; Wilson 2000) all
seem to play a part as to whether employees are satisfied with their jobs, according to
studies.
The second goal of this research is to help readers find his or her definition of job
satisfaction. I believe that this compilation of data will educate and inform the working
masses to see the benefits of creating workplaces that derive more job satisfaction,
retaining employees and in turn, keeping our economy healthy and our society happier.
There is a definite need to analyze the elements of employee retention through
job satisfaction. Considering the positive effects on the economy that can be derived
from satisfied-happy employees. Promotional materials for presentation can be
created, highlighting these recommendations for employee satisfaction practices for
both employers and employees.
9


10. Key employee retention is critical to the long term health and success of your business.
Managers readily agree that retaining your best employees ensures customer satisfaction, product
sales, satisfied coworkers and reporting staff, effective succession planning and deeply imbedded
organizational knowledge and learning. If managers can cite these facts so well, why do they
behave in ways that so frequently encourage great employees to quit their jobs?
Employee retention matters. Organizational issues such as training time and investment; lost
knowledge; mourning, insecure coworkers and a costly candidate search aside, failing to retain a
key employee is costly. Various estimates suggest that losing a middle manager costs an
organization up to 100 percent of his salary. The loss of a senior executive is even more costly. I
have seen estimates of double the annual salary and more.

9
Paul L. Gerhardt Jr- Employee Retention through Job Satisfaction
26

Employee retention is critically important for a second societal reason, too. Over the next few
years while Baby Boomers (age 40 to 58) retire, the upcoming Generation X population numbers
44 million people (ages 25-34), compared to 76 million Baby Boomers available for work.
Simply stated: there are a lot fewer people available to work.
Employee retention is one of the primary measures of the health of your organization. If you are
losing critical staff members, you can safely bet that other people in their departments are
looking as well. Exit interviews with departing employees provide valuable information you can
use to retain remaining staff. Heed their results. Youll never have a more significant source of
data about the health of your organization.
10
















10
http://humanresources.about.com/od/retention/a/more_retention.html
27

CHAPTER-3
RESEARCH METHODOLOGY

Research is a growing need in any organization of the present world. It is helpful in
identifying the consumer needs and wants so as to launch a product or to bring about
improvements in the existing products. This is done to gain competitive edge over others.
Success of the research depends upon the methodology adopted. The study was based on
descriptive research.

The research methodology deals with the
1. Data collection
2. Research technique
3. Sampling methods
4. Analysis and Interpretation of research work.

RESEARCH DESIGN:

A research design is purely and simply the frame work of
plan for a study the guides the collection and analysis of data. It is a blue print for a complete
study. It resembles the architects blue print map for a constructing a house.







28

3.1 TYPE OF PROJECT
DESCRIPTIVE REASEARCH DESIGN

A descriptive research is undertaken in order to
ascertain and be able to describe the characteristics of the variable of interest in a situation.
Descriptive research is also undertaken to understand the characteristics of organizations that
follow certain common practices. The goal of a descriptive research is to offer to the researcher a
profile or to describe relevant aspects of the phenomena of interest from an individual,
organizational, industry-oriented, or other perspective.


SAMPLING TECHNIQUE:
A sample is a subset of population and it comprises some
members selected from it. Sampling is the process of selecting a sufficient number of elements
from the population.
SAMPLE SURVEY:
A survey which is carried out using a sampling method, i.e.,
in which a proportion only and not the whole population, is surveyed.
SAMPLING DESIGNS:
There are two types of sampling designs. They are probability
and non- probability sampling.
PROBABILITY SAMPLING:
In probability sampling the elements in the population have
some known chance or probability of being selected as sample subjects.
NON- PROBABILITY SAMPLING:
The elements in the population do not have any probability
attached to their being chosen as sample subjects. This means that the findings from the study
of the sample cannot be confidently generalized to the population.
29

3.2 TARGET RESPONDENTS
SAMPLE
A sample is a finite part of a statistical population whose properties are studied
to gain information about the whole. When dealing with people, it can be defined as a set of
respondents (people) selected from a larger population for the purpose of a survey.
A population is a group of individuals persons, objects, or items from which
samples are taken for measurement.
SAMPLING
Sampling is the act, process, or technique of selecting a suitable sample, or a
representative part of a population for the purpose of determining parameters or characteristics of
the whole population.
POPULATION: KARAKAMBADI (TIRUPATHI)

SAMPLE SIZE: 120
The sample size taken is 120.










30

3.3 PROPOSED SAMPLING METHOD

Convenience sampling:
It refers to the collection of information from members of the population who
are conveniently available to provide it. The most easily accessible members are chosen as
subjects. Convenience sampling is the best way of getting some basic information quickly and
efficiently.
















31

3.4 DATA PROCESSING:
Data is collected from two sources:
1. Primary Data
2. Secondary Data

1. Primary Data :
The primary data are those, which are collected afresh and for the first time and thus
happen to be original in character.

2. Secondary Data:
o The Secondary data consists of information that already exists somewhere having
been collected for another purpose and researcher begins the research work by
first going through the secondary data.
o Here Secondary data is collected from the COMPANY, Companys website.


COLLECTION OF DATA THROUGH QUESTIONNAIRE:
This method of data collection is quite popular. In this method a set or a series of
questions in logical order is asked to the respondents and the researcher collects the desired
information. The questions may be asked verbally or in writing and the responses may be either
form and it is mainly constructed for the purpose of mailing.
Questionnaires need to be carefully developed, tested and debugged before they are
administered on a large scale.

ANALYSIS AND INTERPRETATION
After collecting data we have arranged and managed it on a SPSS sheet and analysed it
using various tool of this software. The basic research techniques used are:
32

3.5 TOOLS FOR DATA ANALYSIS:
Analysis techniques are used to obtain finding and arrange information in a logical
sequence from the raw data collected. After the tabulation of data the tools provide a scientific
and mathematical solution to a complex problem.
Statistical tools adopted for the study
The statistical tools adopted in the research are:
Percentage analysis
Chi-square test
Karl Pearson Correlation analysis

1. CHART
Bar Charts, Pareto Chart are used for analysis to get a clear idea about the
tabulated data.

2. PERCENTAGE ANALYSIS
Percentage analysis shows the entire population in terms of percentages. It reveals
the number of belonging is a particular category or the number of people preferring a
particular thing, etc., in terms of percentage. In this study, the number of people who
responded in a particulars manner is interpreted in the form of percentages.

Each table has been calculated on the basis of percentage.


33

No of respondents
Percentage = ------------------------------ * 100
Total respondents
Cross tabulations cross tabs give the relation between the two variables in a tabular form.
It is a very effective tool for data analysis as we can simultaneously study two or three variables
are draw conclusions based on it.


Chi square test it is done to understand if there is any significant relation between the
variables which have been used in the cross tabs.


O = Observed frequency of the event
E = Expected frequency of the event.







34

CHAPTER-4
DATA ANALYSIS AND INTERPRETATION
4.1 Percentage Analysis:
Table-4.1.1: AGE

Table shows the classification of age groups of the respondents.
AGE

NUMBER OF RESPONDENTS IN PERCENTAGE
20 and below

28 23%
20-29

42 35%
30-39

39 32%
40 and above

11 10%
TOTAL

120 100%
(Source: - primary data computed)
Chart-4.1.1:
CHART 1
23
35
32
10
0
5
10
15
20
25
30
35
40
20 n below 20-29 30-39 40 n above
AGE
I
N

%

INFERENCE: From the above table, total number of respondents is 120.From that 23% of
the respondents are 20yrs and below, 35% of the respondents are 20-29yrs, 32% of the
respondents are 30-39yrs ,and 10% of the respondents are 40yrs and above.
35

Table-4.1.2: WORKING CONDITIONS

Table shows the satisfaction regarding the working conditions in this organisation.
WORKING CONDITIONS

NUMBER OF RESPONDENTS IN PERCENTAGE
Highly Satisfied

33 28%
Satisfied

69 58%
Dis Satisfied

14 11%
Highly Dis Satisfied

4 3%
TOTAL

120 100%
(Source: - primary data computed)
Chart-4.1.2:

CHART 2
28
58
11
3
0
10
20
30
40
50
60
70
HS S DS HDS
WORKING CONDITIONS
I
N

%


INFERENCE:
From the above table, total number of respondents is 120.Out of which 28% of
the respondents are Highly Satisfied, 58% are satisfied, 11% are Dis Satisfied, and 3% are
Highly Dis Satisfied.
36

Table-4.1.3: NATURE OF JOB

Table shows the satisfaction regarding the nature of the job.
NATURE OF JOB

NUMBER OF RESPONDENTS IN PERCENTAGE
Highly Satisfied

20 17%
Satisfied

73 61%
Dis Satisfied

15 12%
Highly Dis Satisfied

12 10%
TOTAL

120 100%
(Source: - primary data computed)
Chart-4.1.3:
CHART 3
17
61
12
10
0
10
20
30
40
50
60
70
HS S DS HDS
NATURE OF JOB
I
N

%

INFERENCE:
From the above table out of 120 respondents, 17% of the respondents are highly
satisfied, where as 61% of the respondents are satisfied, 12% are Dis Satisfied, and 10% of the
respondents are Highly Dis Satisfied.

37

Table-4.1.4: SUPERVISORS TAKE CARE AT WORK

Table shows wheather the supervisors take care at work.
SUPERVISORS TAKE CARE AT
WORK

NUMBER OF
RESPONDENTS
IN
PERCENTAGE
YES 87 73%
NO 33 27%
TOTAL 120 100%
(Source: - primary data computed)

Chart-4.1.4:

CHART 4
73
27
0
10
20
30
40
50
60
70
80
YES NO
SUPERVISORS TAKE CARE AT WORK
I
N

%


INFERENCE:
From the above table out of 120 respondents, 87 respondents i.e., 72.5% said
YES and the remaining 33 respondents i.e., 27.5% said NO.



38

Table-4.1.5: JOB SECURITY

Table shows wheather the job in this organisation is highly secured.
JOB SECURITY

NUMBER OF RESPONDENTS IN PERCENTAGE
YES 81 68%
NO 39 32%
TOTAL 120 100%
(Source: - primary data computed)

Chart-4.1.5:
chart 5
68
32
0
10
20
30
40
50
60
70
80
YES NO
JOB SECURITY
I
N

%


INFERENCE:
From the above table out of 120 respondents, 81 respondents i.e., 67.5% said
YES and the remaining 39 respondents i.e., 32.5% said NO.




39

Table-4.1.6: PROLONGED WORKING HOURS

Table shows the satisfaction level of respondents when prolonged working hours.
PROLONGED WORKING HOURS

NUMBER OF RESPONDENTS IN PERCENTAGE
Highly Satisfied

7 6%
Satisfied

13 11%
Dis Satisfied

63 52%
Highly Dis Satisfied

37 31%
TOTAL

120 100%
(Source: - primary data computed)
Chart-4.1.6:
CHART 6
6
11
52
31
0
10
20
30
40
50
60
HS S DS HDS
PROLONGED WORKING HOURS
I
N

%


INFERENCE:
From the above table out of 120 respondents, 6% of the respondents are highly
satisfied, where as 11% of the respondents are satisfied, 52% are Dis Satisfied, and 31% of the
respondents are Highly Dis Satisfied.
40

Table-4.1.7: WELFARE MEASURES
Table shows the satisfaction level towards the welfare measures.
WELFARE MEASURES NUMBER OF RESPONDENTS IN PERCENTAGE
Highly Satisfied

5 4%
Satisfied

23 19%
Dis Satisfied

64 54%
Highly Dis Satisfied

28 23%
TOTAL

120 100%
(Source: - primary data computed)
Chart-4.1.7:
CHART 7
4
19
54
23
0
10
20
30
40
50
60
HS S DS HDS
WELFARE MEASURES
I
N

%


INFERENCE:
From the above table out of 120 respondents, 4% of the respondents are highly
satisfied, where as 19% of the respondents are satisfied, 54% are Dis Satisfied, and 23% of the
respondents are Highly Dis Satisfied.

41

Table-4.1.8: SALARY
Table shows the satisfaction regarding salary.
SALARY NUMBER OF RESPONDENTS IN PERCENTAGE
Highly Satisfied

4 3%
Satisfied

21 18%
Dis Satisfied

38 32%
Highly Dis Satisfied

57 47%
TOTAL

120 100%
(Source: - primary data computed)
Chart-4.1.8:
CHART 8
3
18
32
47
0
10
20
30
40
50
HS SALARY DS HDS
SALARY
I
N

%


INFERENCE:
From the above table out of 120 respondents, 3% of the respondents are
highly satisfied, where as 18% of the respondents are satisfied, 32% are Dis Satisfied, and 47%
of the respondents are Highly Dis Satisfied.

42

Table-4.1.9: ASSIGNING TASKS THAT MATCHES SKILLS

Table shows wheather the management assign the tasks which matches skills of the
employees.
ASSIGNING TASKS THAT MATCHES
SKILLS

NUMBER OF
RESPONDENTS
IN
PERCENTAGE
YES 87 73%
NO 33 27%
TOTAL 120 100%
(Source: - primary data computed)
Chart-4.1.9:
CHART 9
73
27
0
10
20
30
40
50
60
70
80
YES NO
ASSIGNING TASKS THAT MATCHES SKILLS
I
N

%



INFERENCE:
From the above table out of 120 respondents, 87 respondents i.e., 73% said
YES and the remaining 33 respondents i.e., 27% said NO.


43

Table-4.1.10: DURATION OF THE TRAINING PROGRAMME
Table shows the satisfaction regarding the duration of the training programme.
DURATION OF THE TRAINING
PROGRAMME
NUMBER OF
RESPONDENTS
IN
PERCENTAGE
Highly Satisfied

3 3%
Satisfied

11 9%
Dis Satisfied

47 39%
Highly Dis Satisfied

59 49%
TOTAL

120 100%
(Source: - primary data computed)
Chart-4.1.10:
CHART 10
3
9
39
49
0
10
20
30
40
50
60
HS S DS HDS
DURATION OF THE TRAINING PROGRAMME
I
N

%


INFERENCE:
From the above table out of 120 respondents, 3% of the respondents are
highly satisfied, where as 9% of the respondents are satisfied, 39% are Dis Satisfied, and 49% of
the respondents are Highly Dis Satisfied.

44

Table-4.1.11: COMMUNICATION FROM TOP MANAGEMENT
Table shows the level of communication from top management.
COMMUNICATION FROM TOP
MANAGEMENT
NUMBER OF
RESPONDENTS
IN PERCENTAGE
Very Good

63 53%
Good

49 41%
Bad

5 4%
Very Bad

3 2%
TOTAL

120 100%
(Source: - primary data computed)
Chart-4.1.11:
CHART 11
53
41
4
2
0
10
20
30
40
50
60
Very Good Good Bad Very Bad
COMMUNICATION FROM TOP MANAGEMENT
I
N

%



INFERENCE:
From the above table out of 120 respondents, 53% of the respondents said
Very Good, where as 41%% of the respondents said Good,4% said Bad, and 3% of the
respondents said Very Bad.
45

Table-4.1.12: INTERPERSONAL RELATIONSHIP

Table shows the interpersonal relationship in the organisation.
INTERPERSONAL RELATIONSHIP

NUMBER OF RESPONDENTS IN PERCENTAGE
Very Good

57 48%
Good

49 41%
Bad

9 7%
Very Bad

5 4%
TOTAL

120 100%
(Source: - primary data computed)
Chart-4.1.12:
chart 12
48
41
7
4
0
10
20
30
40
50
60
Very Good Good Bad Very Bad
INTERPERSONAL RELATIONSHIP
I
N

%


INFERENCE:
From the above table out of 120 respondents, 48% of the respondents said
Very Good, where as 41%% of the respondents said Good,7% said Bad, and 4% of the
respondents said Very Bad.
46

Table-4.1.13: RECOGNITION FOR WORK
Table shows the recognition for work from the management.
RECOGNITION FOR WORK NUMBER OF RESPONDENTS IN PERCENTAGE
YES 61 51%
NO 59 49%
TOTAL 120 100%
(Source: - primary data computed)
Chart-4.1.13:
CHART 13
51
49
48
48.5
49
49.5
50
50.5
51
51.5
YES NO
RECOGNITION FOR WORK
I
N

%





INFERENCE:
From the above table out of 120 respondents, 61 respondents i.e., 50.8% said
YES and the remaining 59 respondents i.e., 49.2% said NO.

47

Table-4.1.14: TRANSPORT FACILITIES
Table shows the satisfaction level regarding the transport facilities.
TRANSPORT FACILITIES NUMBER OF RESPONDENTS IN PERCENTAGE
Highly Satisfied

3 3%
Satisfied

15 12%
Dis Satisfied

43 36%
Highly Dis Satisfied

59 49%
TOTAL

120 100%
(Source: - primary data computed)
Chart-4.1.14:
CHART 14
3
12
36
49
0
10
20
30
40
50
60
HS S DS HDS
TRANSPORT FACILITIES
I
N

%


INFERENCE:
From the above table out of 120 respondents, 3% of the respondents are
highly satisfied, where as 12% of the respondents are satisfied, 36% are Dis Satisfied, and 49%
of the respondents are Highly Dis Satisfied of Transport Facilities.

48

Table-4.1.15: SAFETY MEASURES
Table shows the satisfaction level regarding the Safety measures in the organization.
SAFETY MEASURES NUMBER OF RESPONDENTS IN PERCENTAGE
Highly Satisfied

8 7%
Satisfied

19 16%
Dis Satisfied

52 43%
Highly Dis Satisfied

41 34%
TOTAL

120 100%
(Source: - primary data computed)
Chart-4.1.15:
CHART 15
0
10
20
30
40
50
HS S DS HDS
SAFETY MEASURES
I
N

%


INFERENCE:
From the above table out of 120 respondents, 7% of the respondents are
highly satisfied, where as 16% of the respondents are satisfied, 43% are Dis Satisfied, and 34%
of the respondents are Highly Dis Satisfied of Safety Measures.

49

Table-4.1.16: CONDUCTING EXIT INTERVIEWS
Table shows wheather they are conducting exit interviews for the employees who are
leaving the organisation.
CONDUCTING EXIT INTERVIEWS NUMBER OF RESPONDENTS IN PERCENTAGE
YES 00 0%
NO 120 100%
TOTAL 120 100%
(Source: - primary data computed)

Chart-4.1.16:
CHART 16
0
100
0
20
40
60
80
100
120
YES NO
YES
I
N

%



INFERENCE:
From the above table out of 120 respondents, all the 120 respondents said NO
i.e., 100% and nobody said YES.


50

4.2 CHI-SQUARE TEST
SALARY AND DURATION OF THE TRAINING PROGRAMME
AIM:-
To know whether there is any relationship between Salary and Duration of training programme.
STEP 1
Null hypothesis
There is no significant relationship between the Salary and Duration of training programme.
Alternative hypothesis
There is a significant relationship between the Salary and Duration of training programme.
STEP 2
Table no: 4.2.1
Table showing observed frequency: (Oi)
SALARY

DURA OF
TRAINING
PROG

HS S DS HDS TOTAL
HS
1 2 0 0 3
S
1 4 3 3 11
DS
1 9 18 19 47
HDS
1 6 17 35 59
TOTAL
4 21 38 57 120

HS: HIGHLY SATISFIED S: SATISFIED DS: DIS SATISFIED HDS: HIGHLY
DISSATISFIED

51

STEP-3
Expected frequency = row total * column total
Grand total
Table no: 4.2.2
Table showing expected frequency: - (Ei)
SALARY

DURA OF
TRAINING
PROG

HS S DS HDS
HS
0.1 0.52 0.95 1.42
S
0.37 1.92 3.48 5.23
DS
1.57 8.23 14.89 22.33
HDS
1.97 10.33 18.68 28.03

Table no: 4.2.3
Table showing calculated value:-
Observed
value(Oi)
Expected value
(Ei)
(Oi- Ei) (Oi Ei)^2 (Oi Ei)^2

Ei
8 5.28 2.72 7.4 1.4
6 8.71 -2.71 7.34 0.84
10 9.8 0.2 0.004
0.004
18 14.89 3.11 9.67 0.65
19 22.33 -3.33 11.09 0.5
7 12.3 -5.3 28.09 2.28
17 18.68 -1.68 2.82 0.15
35 28.03 6.97 48.58 1.73
TOTAL 7.554

52

Degrees of freedom = (R-1) * (C-1)
= (4-1) * (4-1)
= 9
Level of significance = 0.05%
Table value = 16.919
Calculated value = 7.554
RESULTS:-
Table value > calculated value
Since calculated value of chi-square is less than the table value, null hypothesis is accepted and
alternate hypothesis is rejected
Hence Accept Ho
INFERENCE:-
There is no significant relationship between the Salary and Duration of training programme.










53

JOB SECURITY AND RECOGNITION FOR WORK


AIM: - The analysis is done to know whether there is significant relationship between
the Job security and recognition for work.
STEP 1:-
NULL HYPOTHESIS:
There is no significant relationship between the Job security and recognition for
work.
ALTERNATE HYPOTHESIS:
There is a significant difference relationship between the Job security and
recognition for work.

STEP 2:-
Analysis for Job Security and recognition for work

Table no: 4.2.4
Table showing observed frequency: (Oi)
RECOGNITION FOR
WORK

JOB SECURITY

YES

NO

TOTAL
YES 43 38 81
NO 18 21 39
TOTAL 61 59 120


54

Table no: 4.2.5
Table showing expected frequency: - (Ei)
RECOGNITION FOR
WORK

JOB SECURITY

YES

NO
YES 41.17 39.82
NO 19.82 19.17

STEP-3
Expected frequency = row total * column total
Grand total

Calculation for Job Security and recognition for work
Table no: 4.2.6
Observed (o) Expected(E) O-E (O-E)2 (O-E)2/E
43 41.17 1.83 3.34 0.08
38 39.82 -1.87 3.49 0.09
18 19.82 -1.79 3.20 0.16
21 19.17 -1.91 3.64 0.18
Total 0.51
Calculated value of chi-square was found to be 0.51
DEGREE OF FREEDOM =(R-1) (C-1)
= (2-1) (2-1)
=1*1
=1
55

Table value at 5% level of significance at degree of freedom 1 is 3.841
3.841>0.51

Since calculated value of chi-square is less than the table value, null hypothesis is
accepted and alternate hypothesis is rejected.

RESULT:
Table value > calculated value
Hence Accept Ho
INFERENCE:
There is no significant relationship between the Job security and recognition for work.
















56

4.3 KARL PEARSON CORRELATION ANALYSIS

The analysis is done to know whether there is significant relationship between the Age
and Assigning tasks that matches skills.

NULL HYPOTHESIS:
There is no significant relationship between the Age and Assigning tasks that matches
skills.

ALTERNATE HYPOTHESIS:
There is a significant difference relationship between the Age and Assigning tasks that
matches skills.

Table no: 4.3.1

Table showing Analysis for Age and assigning tasks that matches skills:
ASSIGN
TASKS
THAT
MATCHES
SKILLS

AGE

YES
x
NO
y

xy

X2

Y2
20 and below

17 11 187 289 121
20-29

29 13 377 841 169
30-39

32 7 224 1024 49
40 and above

9 2 18 81 4
TOTAL

87 33 806 2235 343


57

Standard deviation of x = x2/n (x/n)2
=2235/4 (87/4)2
=23.17
Standard deviation of y=y2/n-(y/n)2
=343/4-(33/4)2
=8.80
Cov (x, y) =xy/n-(x/n)(y/n)
=806/4-(87/4) (33/4)
=201.50-179.44
=22.06
Coefficient of correlation r =Cov (xy)/x*y
=22.06/203.89
=0.1081
Since the r value exist between -1 and +1 the correlation is present

Result:
There is a significant relationship existing between the Age and Assigning tasks that
match skills.











58

CHAPTER-5

5.1 FINDINGS:


According to the analysis out of 120 respondents 23% of the age of the respondents are
20yrs and below, 35% of the respondents are 20-29yrs, 32% of the respondents are 30-
39yrs, and 10% of the respondents are 40yrs and above.

According to the analysis, 28% of the respondents are Highly Satisfied, 58% are satisfied,
11% are dissatisfied, and 3% are Highly Dissatisfied of the working conditions in the
organisation.

From the analysis, 17% of the respondents are highly satisfied, where as 61% of the
respondents are satisfied, 12% are Dis Satisfied, and 10% of the respondents are Highly
Dis Satisfied regarding the nature of the job.

From the data analysis 87 respondents i.e., 72.5% said YES and the remaining 33
respondents i.e., 27.5% said NO regarding supervisors take care at work in the
organisation.

According to the study, 81 respondents i.e., 67.5% said YES and the remaining 39
respondents i.e., 32.5% said NO regarding the job security in the organisation.

According to the analysis of satisfaction level of respondents towards the welfare
measures, 4% of the respondents are highly satisfied, where as 19% of the respondents
are satisfied, 54% are Dis Satisfied, and 23% of the respondents are Highly Dis Satisfied.

59

From the analysis, salary is one of the major problems causing dissatisfaction among the
respondents 3% of the respondents are highly satisfied, where as 18% of the respondents
are satisfied, 32% are Dis Satisfied, and 47% of the respondents are Highly Dis Satisfied.

From the data analysis we have analyzed that the management assign the tasks which
matches skills of the employees in that out of 120 respondents 87 respondents i.e.,
72.5% said YES and the remaining 33 respondents i.e., 27.5% said NO.

From the data analysis we have analyzed that duration of training programme is one of
the major problems causing dissatisfaction. Out of 120 respondents, 3% of the
respondents are highly satisfied, where as 9% of the respondents are satisfied, 39% are
Dis Satisfied, and 49% of the respondents are Highly Dis Satisfied.

From the data analysis regarding the level of communication from top management we
have analyzed that out of 120 respondents, 53% of the respondents said Very Good,
where as 41%% of the respondents said Good,4% said Bad, and 3% of the respondents
said Very Bad.

From the data analysis we have analyzed that out of 120 respondents regarding the
interpersonal relationship, 48% of the respondents said Very Good, where as 41%% of
the respondents said Good,7% said Bad, and 4% of the respondents said Very Bad.

From the data analysis we have analyzed that out of 120 respondents regarding the
recognition for work from the management, 61 respondents i.e., 50.8% said YES and the
remaining 59 respondents i.e., 49.2% said NO.

From the data analysis we have analyzed that Transport Facilities is one of the major
problems causing dissatisfaction. Out of 120 respondents, 3% of the respondents are
highly satisfied, where as 12% of the respondents are satisfied, 36% are Dis Satisfied,
and 49% of the respondents are Highly Dis Satisfied.
60


From the data analysis we have analyzed that Safety Measures is one of the major
problems causing dissatisfaction. Out of 120 respondents, 7% of the respondents are
highly satisfied, where as 16% of the respondents are satisfied, 43% are Dis Satisfied,
and 34% of the respondents are Highly Dis Satisfied.

From the data analysis regarding exit interviews, we have analyzed that out of 120
respondents, all the 120 respondents said NO i.e., 100% and nobody said YES.
















61

5.2 SUGGESTIONS:
It is suggested to the management to increase the salary, as its one of the major problems
causing dissatisfaction among majority of the employees in the organisation.

It is suggested to the management that majority of the respondents showed dissatisfaction
regarding the duration of the training programme. So the management should reduce the
duration of training programme.

It is suggested to the management to reduce the training programme to 2months and
conduct the exam for the freshers.

The company should also focus more on working hours of the employees to reduce it
from 10hrs to 9hrs.

The company should focus more on encouraging the employees by recognizing their
work by giving benefits to the employees as it motivates them to perform even better.

It is suggested to the management to improve the transport facilities especially for the
rural area employees by increasing bus facilities.

The company should focus more on improving safety measures by setting up fire alarms
and fire extinguishers etc.

It is suggested to the management to conduct exit interviews to the leaving employees to
know why they are leaving so that it will be helpful to the organisation.




62

5.3 CONCLUSION:
A study on retention in AMARA RAJA POWER SYSTEMS LTD
was conducted to find out the factors leading employees leaving the organisation. This research
conducted will provide a framework for evolving future decisions regarding how to retain the
employees in ARPSL. For retaining employees the company needs to understand the
requirements of the trainees which we have collected through our questionnaire.
From the findings of our study, it would enable the management to
enhance the appropriate determinants and factors of employees expectations. So it would
increase the satisfaction level among the employees.
If the suggestions given are implemented, it may give positive result
in retaining the employees inside the organisation.








63



















A1

APPENDIX- I
BIBILIOGRAPHY
REFERENCES:
S.P.Guptha-Statistical Methods-New Delhi.
John E. Sheridan-Organizational culture and Employee Retention- Academy of
Management.
Gregory P.Smith-Here Today, Here Tomorrow.
Robin Thompson-Secrets to Keeping Good Employees.
Managing Employee retention: A Strategic Accountability Approach (Improving Human
Performance)- Jack J.Philips- Butterworth-Heinemann.
Love Employees or lose Employees: Getting Good People to stay- Beverly Kaye, Sharon
Jordan Evans- Berrett-Koehler Publishers.
Keeping Good People- Roger Herman-Academy of Management Review.
The War for Talent- Ed Michaels, Helen Hand field-Jones, Beth Axelrod-Harvard
Business School Press.
Employee Retention Needs a Proper Strategy-Dr.Saurabh Guptha.
C.R.Kothari, Research and methodology, second edition New Age International
Publication.
Journals and Publications of Robin Thompson.
Company records

Websites:
www.retentionconnection.com/articlesretention.php

www.citeHR.com/articles

http://www.managerwise.com/articlecat.phtml?c=Employee%20Retention

http://humanresources.about.com/od/retention/a/more_retention.html

A2

QUESTIONNAIRE
A STUDY ON EMPLOYEE RETENTION IN AMARA RAJA PVT LIMITED,
KARAKAMBADI
1. Name:

2. Age: [ ]
a) 20 and below [ ]
b) 20-29 [ ]
c) 30-39 [ ]
d) 40 and above [ ]
3. Qualifications:

4. Designation:

5. Experience:

6. Are you satisfied with the working conditions in this organization? [ ]
a) Highly Satisfied [ ]
b) Satisfied [ ]
c) Dissatisfied [ ]
d) Highly Dissatisfied [ ]


A3

7. Are you satisfied with the nature of your job in Amara Raja Power Systems Ltd?
a) Highly Satisfied [ ] [ ]
b) Satisfied [ ]
c) Dissatisfied [ ]
d) Highly Dissatisfied [ ]
8. Does your Supervisor take care of you at work? [ ]
a) YES [ ]
b) NO [ ]
9. Do you think that the job at Amara Raja Power Systems Ltd is highly secured?
a) YES [ ] [ ]
b) NO [ ]
10. Are you satisfied with working hours? [ ]
a) Highly Satisfied [ ]
b) Satisfied [ ]
c) Dissatisfied [ ]
d) Highly Dissatisfied [ ]

11. What is your satisfaction level towards the welfare measures? [ ]
a) Highly Satisfied [ ]
b) Satisfied [ ]
c) Dissatisfied [ ]
d) Highly Dissatisfied [ ]

A4

12. Are you satisfied with your stipend / salary? [ ]
a) Highly Satisfied [ ]
b) Satisfied [ ]
c) Dissatisfied [ ]
d) Highly Dissatisfied [ ]

13. Does your management assign the task which matches your skills and
qualification? [ ]
a) YES [ ]
b) NO [ ]

14. Are you satisfied with the duration of your training program? [ ]
a) Highly Satisfied [ ]
b) Satisfied [ ]
c) Dissatisfied [ ]
d) Highly Dissatisfied [ ]

15. How is the communication level from the top management? [ ]
a) Very Good [ ]
b) Good [ ]
c) Bad [ ]
d) Very Bad [ ]

A5

16. How is the Inter Personal relationship among peers in the organization? [ ]
a) Very Good [ ]
b) Good [ ]
c) Bad [ ]
d) Very Bad [ ]

17. Is there recognition for your work from the management? [ ]
a) YES [ ]
b) NO [ ]

18. Are you satisfied with the transport facilities? [ ]
a) Highly Satisfied [ ]
b) Satisfied [ ]
c) Dissatisfied [ ]
d) Highly Dissatisfied [ ]

19. Are you satisfied with the Safety measures in the organization? [ ]
a) Highly Satisfied [ ]
b) Satisfied [ ]
c) Dissatisfied [ ]
d) Highly Dissatisfied [ ]

A6

20. Are they conducting exit interviews for the employees who are leaving the
organization? [ ]
a) YES [ ]
b) NO [ ]

21. In your opinion, why your colleagues are leaving the organization?
Ans:









22. Can you suggest any changes that need to be done by the organization
regarding the training period?
Ans:




A7