A major research project On

A Study on factors effecting employee retention in Pharmaceutical Industry

Submitted in partial fulfillment of the requirements of the course

MASTER IN BUSINESS ADMINISTRATION

(Session: 2009-2011)

Project Guide Prof. Deepesh Mamtani Faculty VIMR, Indore

Submitted By Shikha paliwal MBA 4.Semester

VINDHYA INSTITUTE OF MANAGEMENT ANR RESEARCH INDORE (M.P.)

Submitted To

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DEVI AHILYA VISHWAVIDYALAYA, INDORE 2011

DECLARATION

This is to certify that Miss. Shikha paliwal student of MBA III Semester program has here with proposing to choose the Major Research Project titled as A Study on factor effecting retention in Pharmaceutical Industry and prepared this Synopsis report under my guidance and supervision.

Guided By Prof. Deepesh Mamtani Faculty VIMR Indore

Submitted By Shikha paliwal MBA III Semester

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CERTIFICATE

This is to certify that MISS. SIKHA PALIWAL student of Vindhya Institute of MANAGMEANT & rechrch, Indore pursuing MBA 4th Sem. has prepared Major Research Project Report on Topic A Study on factors effecting employee retention in Pharmaceutical Industry

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Acknowledgement
First, I am thankful to Almighty God for giving us the strength and courage to complete this project.

Secondly, I would like to thank my project instructor, Mr. DEEPESH MAMTANI for guiding me and for providing encouragement and much needed moral support. I am also thankful to him for assigning us such an interesting project with a lot of learning involved in it. The development of this project has enabled us to understand the contents of practical work in a better way. The project has given us a practical experience, which will prove to be very beneficial in our forth-coming practical life. And I would like to thanks whole staff of which gave me a A Study on
factors effecting employee retention in Pharmaceutical Industry

great support for completion this project. I am grateful to all of them.

Date Place: Indore

SIKHA PALIWAL

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DECLARATION
I, hereby declare that this research project which is being presented on the topic A Study on factors effecting employee retention in Pharmaceutical Industry submitted as major project for partial fulfilment of Masters in Business Administration is an authentic record of my own work carried under the Guidance of Mr. DEEPESH MAMTANI I hereby declare that above statement is correct to the best of my knowledge. The research as per my knowledge is the original and genuine work. The Research is not published in any research Journal Previously

Date: Place: Indore 2nd Year

SHIKHA PALIWAL MBA (VIMR)

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INDEX
CHAPTERS CONTENTS PAGE NO.

CHAPTER 1

INRODUCTION

CHAPTER 2

Conceptual Framework Rationale of Study Objective of Study Literature Review. Methodology y The Design.(Hypothesis ) y The Sampling. y Data Collection Methods. The Tools

1 2 3 4

CHAPTER 3

CHAPTER 4

CHAPTER 5

Result y Findings and Discussion y Summary of Result

CHAPTER 6

CHAPTER 7

Conclusion and Suggestion y Conclusion y Suggestion

9

Future Implications of the Study CHAPTER 8 Limitation

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CHAPTER 9
BIBLIOGRAPHY

WEBLIOGRAPHY REFERENCES

Appendices. CHAPTER 10
(Questionnaire, Sample, Statistical tables, and any other additional relevant material)

CHAPTER 11

CHAPTER 12

CHAPTER 13 CHAPTER 14

CHAPTER 15 CHAPTER 16

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Executive Summary
The main focus of my project was on EMPLOYEE RETENTION STRATEGIES. In this project I highlighted on new strategies of Unicon Real Estate Pvt. Ltd. For employee retention.

Employee retention is main important issue in every organization. Higher attrition rate increases the cost of turnover and reduces the efficiency. Satisfaction of employees can be the solution for the increase employee retention. To make strategies first prepare one questionnaire and then takes the opinion of 80 to 100 people. Another way to make strategy is by doing survey of retention rate in other companies. For employee satisfaction these techniques are useful. Higher employee retention rate enhance goodwill of company.

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INTRODUCTION
Indian Pharmaceutical Industry today is in the front rank of Indias science-based industries with wide ranging capabilities in the complex field of drug manufacture and technology.A highly organised sector,the Indian pharma industries is estimated to be worth $4.5 billion,growing at about 8-9% annualy.It ranks very high in the third world,in terms of technology,quality and range of medicines manufactured.From simple headache pills to sophisticated antibiotics to complex cardiac compounds,allmost every type of medicine is now made indigenously. The Indian pharmaceutical sector is highly fragmented with more than 20,000 registered units.It has expanded drstically in the last two decades.The leading 250 pharmaceutical companies control 70% of the market leaser holding nearly 7% of the market share.It is an extremly fragmented market with severe price compitition and government price control. The pharmaceutical industry in India meets around 70% of the countrys demand for bulk drugs,Drug inter mediate,pharmaceutical formulations,chemicals,tablets,capsules,orals and injectibles.There are about 250 large units and about 8000 small scales units,which form the core of the pharmaceuticals industry in India (including 5 central public sector units).These units produce the complete range of pharmaceutical formulations i.e. mediciens ready for consumption by patients and about 350 bulk drugs,i.e. chemicals having therapeutic value and use for production of pharmaceutical formulations. Retention is the key to economic success. Success of Biotech and pharmaceutical companies are determined by the technical competence of their workforce.And we all know,the cost to hire,train,manage and develop these personnel is staggering.

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Unicon Real Estate Pvt. Ltd. is introducing new strategies of employee retention for retaining to the employee. The real estate sector in the country is one of great importance. According to the report of the Technical Group on Estimation of Housing Shortage, an estimated shortage of 26.53 million houses during the Eleventh Five Year Plan (2007-12) provides a big investment opportunity. India leads the pack of top real estate investment markets in Asia for 2010, according to a study by PricewaterhouseCoopers (PWC) and Urban Land Institute, a global non-profit education and research institute, released in December 2009. The report, which provides an outlook on Asia-Pacific real estate investment and development trends, points out that India, in particular Mumbai and Delhi, are good real estate investment destinations. Residential properties are viewed as more promising than other sectors. While, Mumbai, Delhi and Bangalore top the pack in the hotel 'buy' prospects as well. The study is based on the opinions of over 270 international real estate professionals, including investors, developers, property company representatives, lenders, brokers and consultants. Further, real estate companies are coming up with various residential and Commercial Projects to fulfill the demand for residential and office properties in Tier-II And Tier-III Cities. According to the data released by the Department of Industrial Policy and Promotion (DIPP), housing and real estate sector including Cineplex, multiplex, integrated townships and commercial complexes etc, attracted a cumulative foreign direct investment (FDI) worth US$ 8.4 billion from April 2000 to April 2010 wherein the sector witnessed FDI amounting US$ 2.8 billion in the fiscal year 2009-10. Retention is defined as the continuous process through which employees are encouraged to remain with an organization for a maximum period of time. People tend to leave organisations for a variety of reasons. I have explained those reasons and solutions for employees dissatisfaction. There are some strategies which Unicon is using for retaining to the employees. These strategies are going very successfully in this company. Employees are satisfied with these strategies and making profit for company.

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I have used some techniques for employee retention and made some strategies for employee retention. There are some objectives and scope of employee retention. On the basis of these objectives company try to retain employees for longer period of time. 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.

Basic Concept of Topic

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Reasons for leaving organizations:

People tend to leave organizations for a variety of reasons. The most common amongst them are: Job and person mismatch If there is a selection fault that has occurred and if the job and the person are not matching to each other, then it is likely the candidate will leave the organization. The expectations problem could be on either side the candidate as well as the organization. This problem could also come from there being a mismatch in terms of experience and qualifications of the person and the job analysis No growth opportunities Some organizations do not grow at the rate they are expected to grow neither do they go downwards. People who like to function in challenging environments and are more effective in companies which offer them rapid growth opportunities, tend to leave companies which are slow-growing. Also, some organizations do not enhance skills of people through good training programs. People actually like to develop themselves and if they are not provided opportunities to do so, they might leave. Lack of appreciation If the feedback system of the organization does not allow appreciation of work, or commendations, people tend to get frustrated with the company. By nature, a human being wants to hear good things about himself. When he knows that he is performing well, but does not get timely appreciation from the company, he looks out for other opportunities. Lack of trust and support If the culture of the company is not transparent, and the management lacks trust in employees, and does not support its people, then people look out for other opportunities. When people give their full efforts to a company, they expect that the company should also trust them and support them wherever required. If that does not happen, people start thinking negatively about the company. Work life imbalance If the company does not encourage a positive balance between personal and professional life of the employee, people will not be happy.

Personal issues There could be personal issues for people leaving a company, especially for women relocation of spouse, childbirth, emergency in the family requiring their presence at home etc. Once women move away from mainstream work-life, it becomes difficult for them to come back into it.
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Compensation The last but not the least salary and compensation can be a factor for leaving an organization if a person thinks he is not paid enough by the organization, he will look out for another job with higher salary

Retention myths:
There are some myths associated with retention. Some of them are: Employees leave for pay Employees are not interested in additional responsibilities Adopting retention measures is expensive Actually, in reality, companies leave for many other reasons than pay. Salary at times, takes a backseat, if other things in an organization are good. Employees are also keen to take on additional responsibilities, as it shows that the company has confidence in them and considers them capable of handling more work and responsibilities. This actually builds self-confidence in an employee. Retention measures are more of an investment than expenditure as doing more things for employees will ensure that employees will give more back in terms of productivity. It depends on how the organization views it.

What should organizations offer?

As retention measures, organizations can utilize some of the following things in combination or isolation:

Growth and career:

Role clarity Ensure that the organizations an employee, both, are clear about the role, so that there is no mismatch.

Literature Review

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Employee retention is one of the hottest management topics in the United States for good reason; it is impacting employers on a daily basis. The number of qualified applicants available for vacant positions is currently in decline and employers are finding it difficult to hire new employees and to keep employees over the long run. Let Us see what Employee Retention used to mean This entails understanding just a little history. The term employee retention First began to appear with regularity on the business scene in the 1970s and early 1980s. Until then, during the early and mid 1900s, the essence of the relationship between employer and employee had been a statement of the status quo: You come work for me, do a good job, and, so long as economic conditions allow, I will continue to employ you. It was not unusual for people who entered the job market as late as the 1950s and 1960s to remain with one employer for a very long time sometimes for the duration of their working life. If they changed jobs, it was usually a major career and life decision, and someone who made many and frequent job changes was seen as somewhat out of the ordinary. As a natural result of this status quo Employer-employee relationship, an employee leaving his or her job voluntarily was seen as an aberration, something that shouldnt really have happened. After all, the essence of status quo is just that little or nothing should change in the relationship and leaving was a pretty big change!

What is Employee Retention Today?

According to The HR Priorities Survey from ORC Worldwide an HR consulting and data services firm, nearly 62 percent of respondents to their survey opined that talent management will be the most pressing strategic issue they face in year. The findings of the survey also indicated that 33 percent of talent management programs include workforce acquisition, assessment, development, and retention as areas that will consume most of the survey respondents' time this year 2007. Retention has emerged as the focus of much time and attention in recent years, particularly as part of talent management programs, and so much is known about it that the HR practitioner who tries to integrate it into a talent program may grow bewildered by the huge volume of research about it. Employee retention is more than just keeping employees on the job. It is also about sustaining employees, primarily by enhancing their job satisfaction. Job satisfaction, in turn, can increase productivity and keep employees energized and motivated to give their best. Job satisfaction can equate to employees who stick with their current employer and strive to perform at or above expectations and standards. Employee retention is commonly considered to mean the ability to maintain a stable workforce. It is often linked to morale and to organizational productivity. Retention is thus the opposite of turnover, a well-known concept. In addition the perception of having a job for life in a public sector role no longer exists. The trend for the younger generation of workers is to shift from job to job and this is becoming a norm of society.

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Companies that can recruit the best talent and retain them will have an edge in the long run. Today talented persons are like frogs in a wheelbarrow, which can jump at any point of time when they sense opportunities.

Reasons for its Increasing Relevance:

Average employee turnover is 14.4% annually, according to the Bureau of National Affairs. And, turnover rates are on the rise, the Bureau now reports; turnover also varies widely among different industries. The blow to morale and increased job stress when remaining employees are burdened with the distribution of the departed employees workload, the negative impact on customer service is a direct result of their high turnover. Replacement costs for a departing employee are estimated at one-third of his or her salary. Even at the former minimum wage, the cost to replace an employee is $3,700. The US Department of Labors Bureau of Labor Statistics estimates average costs to replace a worker in private industry at $13,996. This also leads to future turnover of employees who are lured to other organizations by their friends who have departed. Estimates have determined that lost knowledge that leaves with the departing employee can be as high as 50% of the exiting employees salary for one year of service; and, this figure grows by 10% for each year of employment. On average, 30% of a financial advisors clients will move with their advisor if he or she changes firms. Taking a fairly conservative estimate that the financial loss from one employee is equal to his or her annual salary, the negative financial impact of turnover to the bottom line can be substantial. In-depth interviews by the Gallup Organization of over 80,000 managers in over 400 organizations and offers the following finding: <It tells us that people leave managers, not companies. So much money has been thrown at the challenge of keeping good people in the form of better pay, better perks, and better training when, in the end, turnover is mostly a manager issue. If you have a turnover problem, look first to your managers.

Most of the HR functions of IT organizations spend more than 50 % their time and energy in hiring new resources without investing much time in the way their human

Objective of the Study:

y y To identify the factor that helps the organization to retain the employee in the organization To identify the factors that negatively affects the retention I

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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. Not too long ago, companies accepted the revolving door policy as part of doing business and were quick to fill a vacant job with another eager candidate. 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. There are some objectives of employee retention. Those are as follo

OBJECTIVE OF THE PROJECET

The main objective of doing this study was to understand the nature of work, employment, and labour relationships in call centres (BPO) and its impact on workers. This effort aims at identifying and exploring the shared interests to counter the preexisting belief that employees (the human resource) and the human resource management bodies in both the developing and developed world are divided.

One of the biggest challenges companies are facing is the attraction and retention of good employees and top performers. The purpose of this project study was also to prove how employee retention is essential in this day and age, and if the organizations are not awake to the situation and immediate actions are not taken to that effect, what repercussions lay ahead and how they would affect the organization and the industry.

Rationale of the Study:

With the help of this study we can find out many things like y y y y The culture of organization Job satisfaction level Opportunities for person growth Organization direction

Reorganization of work/life.

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RESEARCH METHODLOGY

Sample:
The study will be conducted on randomly selected 100 employees of different department companies.

THE TOOLS
Data Collection: Self Design questionnaire which would be designed with the help of mentor shall be administrated on foresaid employees. The scale would be developed on liker scale. Data Analysis: y y y y Tables Charts Associated T-Test to determine the significance if difference between the mean values. Standard statistical tools are proposed to be applied during the study.

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Research Methodology
Research methodology is considered as the nerve of the project. Without a proper wellorganized research plan, it is impossible to complete the project and reach to any conclusion. The project was based on the survey plan. The main objective of survey was to collect appropriate data, which work as a base for drawing conclusion and getting result. Therefore, research methodology is the way to systematically solve the research problem. Research methodology not only talks of the methods but also logic behind the methods used in the context of a research study and it explains why a particular method has been used in the preference of the other methods.

Research Design:
Research design is important primarily because of the increased complexity in the market. In fact, it is the key to the evolution successful of companies. It is an important tool to study the employee retention strategies. A research design specifies the methods and procedures for conducting a particular study. According to Kerlinger, research design is a plan, conceptual structure, and strategy of investigation conceives as to obtain answers to research questions and to control variance. Research Design specifies methods and procedures for study. In this study the company designs new strategies for employee retention.

Source of data:
Research design specifies the method and procedures for the collection and analysis of the data in the manner that aims to combine relevance to the research purpose.

Data collection:
The data for the proposed study was collected from one source Primary data.

Primary Data:
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It includes collection of first hand information from the response who is concerns with the market research. E.g. Survey, Questionnaire.

Secondary Data:
It includes collection of data from other source which is concerned with the market research. E.g. Books.

Analysis method:
The analysis and the interpretation have been done using the questionnaire, survey and interview method.

Research technique:
y Conclusive research: This type of research helps in reaching certain conclusions and also in taking decisions.

Research Analysis:
I have prepared one questionnaire and take opinion of 50 employees in Unicon Real Estate Pvt. Ltd. The data is as follows: Sr. No. 1 2 3 4 5 6 Questions Opinions Yes Are you satisfied with your salary package? Are you fully aware about job responsibilities? Is there adequate communication between departments? Working environment is good in Unicon company or not? Will you achieve your career goals by working in this company? Your colleagues are helpful or not? 30 35 40 37 25 32 No 13 13 4 3 10 6 No Comments 7 2 6 10 15 12

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7 8 9 10

Is there any partiality with employees? Is there team working towards common goals? Do you require any contest or tour for entertainment? Are you satisfied with your job?

41 45 50 39

5 1 0 5

4 4 0 6

The above data is presented in charts: Ar ti fi it r l r ?

No Comments 14%

Yes No 26% No Yes 60% No Comments

y y y

According to survey I come to know that; 26% employees are not satisfied with salary package. 14% employees are not commenting on this question. 60% employees are satisfied with the salary package. Means company is providing appropriate packages to employees.

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Ar

f ll

tj

i iliti

No Comments 4% No 26% Yes No No Comments Yes 70%

y y y

This sample of question is showing that: 26% employees are not aware about their job responsibilities. 4% employees are not commenting on this question. 70% employees are aware about their job responsibilities So we can say that most of the employees are aware about their job responsibilities.

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I t

t rt

i ti t ?

No Comments 12% No 8% Yes No No Comments Yes 80%

According to survey: y y y 8% employees are saying that there is no adequate communication between departments. 12% employees are not commenting. 80% employees are saying that there is adequate communication between departments. So we can say that organization providing better communication between departments to employees.

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Wor i

ironment i

ood in ni on ompany or not?

No Comments 20% No 6% Yes No No Comments Yes 74%

Sample of questions showing that: y y y 6% employees are not happy with working environment of Unicon Company. 20% employees have not given their opinion. 74% employees are happy with working environment of Unicon Company. So, we can say that working environment of Unicon Company is good for employees.

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Will you achieve your career oal company?

or ing in thi

No Comments 30% Yes Yes 50% No No Comments No 20%

According to survey, I come to know that: y y y 20% employees are saying that they will not achieve their career goals by working in this company. 30% employees have not given their opinions. 50% employees are saying that they will achieve their career goals by working in this company. So, we can say that company is providing career platform for employees.

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Your colleagues are helpful or not?

No Comment 24% Yes No No 12% Yes 64% No Comment

As per survey, y y y 12% employees are saying that, their colleagues are not helpful. 24% employees have not given their opinion. 64% employees are saying that their colleagues are very cooperative and helpful. So we can say that, there are helpful employees. As per survey the opinions of employees are: y y y 10% employees are saying that there is no partiality done by manager. 8% employees have not given their opinion. 82% employees are saying that managers do partiality for giving lead of customers.

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Is t ere team

r i

ar s c mm

als?

o 2%

Yes 90%

As per survey of data: y y y 2% employees are saying that there is team working towards common goals in this organization. 8% employees have not given their comments. 90% people are saying that there is team working towards common goals in this company. So we can say that companys goals and employees goals are match to each other.

o o ents 8%

Yes o o o ents

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Are y

satisfie

it y

rj

o o ents 12%

o 10%

Yes 78%

Conclusion

From the above study I want to conclude that employees are the capital of the every organization. So to retain employee organization has to satisfy to employee. By offering many facilities, events, incentives, appraisal programs, transparent communication company can retain to employees. The strategies which Unicon Real Estate Company made for employees those are successfully going on and company is making profit on basis these strategies. Employee retention not only reduces the attrition rate but also increases the goodwill of a company in a market. This shows a good culture of the organization. The study gave a clear picture about the employees and their areas of dissatisfaction, the outcome of the study will help the organization to spot out the areas of dissatisfaction, there by the organization can take effective steps to improve the employees satisfaction level towards their job and to implement various policy implications, Most of the employees are satisfied with their jobs and most of them are satisfied with the policies of the organization and also towards

Yes o o o ents

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the other aspects taken in to account for measuring the level of job satisfaction among the employees in the organization and there are some of the employees who are not satisfied with their jobs due to some of the aspects, also some of the suggestions can be taken in to account to make those employees feel better about their jobs so if the suggestions are taken in to account and done there is chance for making the unsatisfied employees to change their attitude towards their respective jobs.

Recommendation

The strategies of Unicon real estate has to use every organization. These strategies are useful for making profit. If employees are not satisfied with the job then companies can use these strategies. By using these strategies employee will get motivated and do the sincere work. For employee retention there should be good communication between team leader and employee, timely motivation and feedback makes confident to employee towards the work. Training programs helps in enhancing knowledge and skill so, these programs helps in achieving career goals of employees. Performance appraisal programs enhance employees salary; employees got incentives and bonus in this program. These programs should have to be two times in year because some employees work for these programs. Weekly meeting should have to be taken. In this meeting team leader individually has to ask problems to every employee and he has to give suggestions and information to

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Bibliography

Websites:

Books:
y y y Ashwat thapa, L.M. Prasad. Research Methodology, Wishwa Prakashan Publishes, and second edition 2002.

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REFERENCES
www.scribd.com www.google.com www.wikipedia.com www.orcworldwide.com www.humanresource..com www.hrworld.com www.managementhelp.org.com

www. retention.naukrihub.com www.hrindia.com

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QUESTIONNAIRE 0N EMPLOYEE RETENTION

Designation Name of the organization Age group: a) 18-25 d) 46-55 Gender: a) Male b) Female b) 26-35 e) Over55 c) 36-45

1. If you look for a new Job, (in a new company) what will be your preference? a) Career plan b) Flexible Timings c) Not improvement in position (Increase in other benefits) d) Improvement in position 2. How much are you satisfied with the current job? a) Very high c) Moderate b) Fairley enough d) Very less e) Not at all 3. To what extent do you feel that quitting the present job will give you a satisfied job. b) Fairley enough c) Moderate a) Very high

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d) Very less e) Not at all 4. Do you have Rewards and recognition for your achievements? b) No a) Yes If no, Please specify the reason.. 5. Is it important that appreciation for your work by your coworkers and supervisors is necessary? b) No a) Yes No7. How do you rate the infrastructure and equipment provided? b) Very good a) Excellent d) Poor e) Worst c) Good

8. Does the retention bonus have any impact on the motivation levels and performances of an associate? a) Yes b) No Please specify the reason,. 9. Does Fun at work have any impact on Motivation levels of employees? b) No a) Yes Please specify the a) 10. Do you feel provides reason opportunities that the company . Please specify the reason. 11. Did any company policies or procedures (or any other obstacles) make your job more difficult? b) No a) Yes Please specify the reason. 12. Do you think that the implementation of three Rs (recognition, reward, respect) will increase employee retention? a) Never d) All the time b) Sometimes c) Most of the times

13. What is your opinion on the working environment? a) Highly Dissatisfied b) Dissatisfied e) Highly Satisfied d) Satisfied

c) Neutral

14. Express your level of satisfaction regarding the welfare measures provided by the Company. a) Highly Dissatisfied b) Dissatisfied c) Neutral

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