Final Soumik Dissertation As On 13. 11. 2009, Friday

A Critical Study Into Employee Staffing and Retention issues in Automobile Industry in Mumbai, India
ACKNOWLEDGEMENT
I am truly indebted to the Management Development Institute of Singapore and University of Wales, U.K. for giving me an opportunity to study masters and explore the various spectrum of the program Business Administration during the year 2008-2009. I would like to express my gratitude and special thanks to Mr. Allan Kwok, my research supervisor, without whose guidance and motivation, this research would not had been possible. I would also like to thank Mr. Han Kok Kwang, Mr. Frankie Lim, Dr. Ron Lim, Mr. Manek Mukesh, Mr. Manjit Singh, Mr. Stephen Jones, Mr. Brian Jones and all other lecturers whose ideas, comments, suggestion and constant motivation made my journey enriching. At the outset, I would like to express my thanks to Dr. Sally Young. Her comment on the research made it more enriching. Moreover, I would like to thank the management and employees of Toyota Kirloskar Motors, Skoda Auto, Maruti Suzuki, Volvo, Hyundai, Honda and Tata Motors, India for helping me to take the needed information from them and conducting a comprehensive survey in their company. I would also like to thank the dedicated staffs of Resource Hub, library of MDIS, student coordinators Ms. Joanna Han and Ms. Sakina Begum and Country Manager, International Business- Mrs. Sheila Devi Rajoo for supporting me in every endeavour and always giving me a helping hand. Last but not the least, my gratitude to my family; for supporting, guiding and encouraging me to reach this stage. My sincere thanks go to all my friends who have supported me from the beginning and made my journey interesting and memorable.
Choudhury Soumik 1st December, 2009. Singapore
By Choudhury Soumik
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EXECUTIVE SUMMARY
This research is conducted to identify and gain an in depth understanding about the various issues and concerns with respect to staffing and retention issues/system in automobile industry in Mumbai, India. The write up revolves around some of the top companies belonging to the automobile industry like Tata Motors, Hyundai, Honda and Toyota. For an automobile industry to survive in this competitive world it should properly address issues like selection procedures and retention techniques and constantly assist these levels from its employees and ultimately elicit the problem and its source. An effective staffing and retention strategy is needed for an organisation to survive in this dynamic and competitive environment which in turn calls for identification of the gaps or the loopholes and existing problems in the industry or company and then bringing about certain fundamental changes in the manner the company hires, develops and rewards its employees. Staffing and Retention, in spite of being the most fundamental requirement behind the industry or organisations success, still there are instances of it being neither well-defined nor properly understood or misunderstood by people. This study explores and analyse the various hiring and retention issues in the automobile industry in Mumbai, India by means of information and inputs collected through questionnaire, employee survey and interviews with the human resource department. After the analysis some recommendation has been put forward to serve the automobile industry well than before. Staffing and Retention is gaining a lot of importance in todays competitive world. Improper selection can lead to huge turnover rate which can be an expensive affair for the company. If the right talents are not identified at the right time, a company can face threat in the industry. Simultaneously retaining these employees is also very important. Since the performance of a company is directly related to the candidate that it selects, so if there is any slack in the recruitment and retention process it can directly impact organisations success or failure. Thus a person job fit is a must and retaining those right fit is equally a must for an organisation. My research keeps the fact in mind that the employment scenario is constantly undergoing change and coming up with new method of recruiting and retaining top performers, so in order to have a productive workforce and gain a competitive advantage it becomes very important for an industry to come out of its old traditional shell and get a bigger picture of the environment by identifying the current gaps and problems and then accordingly work and move towards feeling up those gaps. This study also concentrates on the literature relating to
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staffing, recruitment, retention and compensation. Thus, this literature review is aimed at scrutinising, criticising, analysing the various aspects related to selection and retention issues in the automobile industry in Mumbai, India. In this research, the data and information were collected through the means of employee survey, customer survey and potential employee survey. Direct interviews were also undertaken to understand the real problems in the automobile industry. The data(s) have been collected through three forms of questionnaires like present employee questionnaire, potential employee questionnaire and customer questionnaire to get a holistic and actual understanding of the staffing and retention related issues in the automobile industry as well as the companies chosen for this research. This research uses descriptive strategy which includes survey method to collect primary data and then quantitative analysis is done in order to analyse the data and present them in the form of charts, tables, diagrams, etc. After reviewing, the literatures, reports, Data analysis, findings and discussions, the problems stated came to be true in most of the cases. It is also seen and proved that the issues which were focussed and highlighted by the employees, are also highlighted by the customers which clearly means that these issues are present and needs to be resolved and revamped as early as possible. A better picture of the industry relating to retention and staffing came out. Finding the main issues relating to staffing and retention will not only help the organisation to attract best talents and retain them, it will also help them in earning more profits as employees can only earn profits for the company with the help of a given quality product. The recommendation for the automobile companies is that, though there is a systemic procedure of selection and staffing of staffs, yet they should be more strategic while staffing employees. The staffing process must be more strategic to get the right fit for the available vacancies and to attract and get best talents. The companies should follow a strategic approach in order to solve the current issues, as traditional methods of handling staffing may not be feasible in this fast paced world. In the case of retention, there are instances where employees are switching industries and companies in order to take better opportunities. Retention is the major issue in the automobile industry. Though the basic compensation to the employees are given, yet from the study we have found that basic salary is not enough to retain employees and motivate them. The companies should retain the employees through proper package which should consists Training and Development, bonus, incentives, stock ownership schemes, perks, retreats, etc. Career progression and development needs to be
strategically implemented so that the employees are promoted from one position to another according to their performances in regular intervals. The researcher also proposed a model which consists of strategic staffing and retention for improving the Staffing and Retention related issues in Automobile Companies in Mumbai. This model is flexible and can be adjusted according to company policies and culture. Little customisation of the model in different automobile companies can resolve many issues. Employees can make a real difference in the company. Talents must be identified and should be given room to excel. Without right people in the right job role a company cannot smell and attain success. Retention should be managed well to keep the right people and getting rid of unwanted ones. One can dream and create a great place for work but highly talented and motivated manpower is needed to make the dream touch reality The researcher hopes that this research will definitely help to understand the problems of the industry more deeply and the recommendation will be fruitful for the companies when implementing new strategies.
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CHAPTER ONE: INTRODUCTION
1.1. General Overview

Structure of this Chapter
1.1. 1.1.1. General Overview
This dissertation is conducted to identify and gain an in depth

Introduction to Staffing and Retention Introduction to Automobile Industry in Mumbai, India Introduction to India and Mumbai.
holistic understanding of the issues and concerns with respect to the staffing and retention issues/system in the automobile industry in Mumbai, India. The write up revolves around some of the well known companies belonging to the automobile industry. An effective staffing and retention strategy is a must for an organisation to survive in this dynamic and competitive environment which calls for a critical identification of the gaps or
1.2.
1.3.
1.4. Introduction to Company chosen 1.5. Problems and Issues 1.6. Significance of the Research Problem 1.7. Potential Application and Implication
existing problems in the industry or company and then bringing about certain fundamental changes in the manner the company hires, develops and rewards its employees. Staffing and Retention, in spite of being the most fundamental requirement behind an industry or an organisations success, still there are instances of it being neither well-defined nor properly understood or misunderstood by people.
1.8. Research Objectives 1.9. Statement of Purpose 1.10. Aims of the Study 1.11. Research Questions 1.12. Research Hypothesis 1.13. Limitations of the Study 1.14. Structure of the Report
Automobile Industry in India is one of the fastest growing markets in the world. This sector has also experienced a significant growth in the domestic market. The capacity of this sector to operate efficiently and effectively lies in having ideal candidates who would be a proper fit to the industry and the job. These fits or the employees should be properly trained, developed motivated and compensated so that these dedicated employees do not resort to job hopping and maintain a long term relation with the organisation which would ultimately add to the achievement of the corporate goals of the organization.
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The strength of the human resource department of the automobile industry rests on developing a healthy productive workforce who is effectively attracted, recruited and maintained in the organisation. This chapter revolves around introducing the automobile industry, Mumbai and India. The chapter then details on the problem statement and research objective, then it further moves on to discuss about the research question and the hypothesis. The chapter also discusses the significance and scope of the proposed research with the limitations involved in it. The research methodology and design chapter explains how the research has been carried out. This study explores and analyse the various hiring and retention issues in automobile industry in Mumbai, India by means of information and inputs collected through questionnaire, employee survey and interviews with the human resource department. After the analysis some recommendation has been put forward to serve the automobile industry well than before.
1.1.1. Introduction to Staffing and Retention

According to Cappelli (2002) selection and retention are the two sides of the same coin as it is interrelated and interconnected with one another. Both these process compliment and supplement each other. If this process is properly taken care of by companies then it leads to formation of human assets. According to ICMR, India, HRP is the process by which an organization ensures that it has the right number and kinds of people, at the right places, at the right time and that these people are capable of performing their tasks effectively and efficiently. This helps the organization to achieve its overall objectives. Two major ways in which societal trends affect employment is through consumer markets, which affect the demand for goods and services, and labour markets, which affect the supply of people needed to produce goods and services. (Introduction to Human Resource Management, ICMR, 2009) The process of recruitment and selection are closely interrelated. The objective of recruitment is to get hold of ideal qualified employees which forms the foundation for the selection procedure by presenting the range of applicants from the panel will select. Thus recruitment
can be defined as the activities that need to be carried out to identify the ideal candidate and then attract the right fit for the company. (Foot & Hook, 2002) Retention can be defined as the number of employees that remain with a business over a particular period of time. High levels of retention are seen to reflect good HR practices and employee relations. Retention means keeping the employees in the firm. 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 diverse needs.
Replacement costs usually are 2.5 times the salary of the individual. The costs associated with turnover may include lost customers, business and damaged morale. In addition there are the hard costs of time spent in screening, verifying credentials, references, interviewing, hiring, and training the new employee just to get back to where you started. (Workforce Planning for Wisconsin State Government, 2005) When it comes to retention several other factors plays an important role: Motivation Compensation Training and development Communication
1.2. Introduction to Automobile Industry in Mumbai, India:

The Indian automobile industry is considered as the tenth largest in the world which has an annual production of about 2 million units. It also promises to be the major automobile hub in the world in next few years. The major car manufactures in India includes Hyundai, Honda, Toyota, HM, Tata Motors, etc. the two heeler segment includes Honda, TVS, Yamaha, etc. and the heavy motors segment includes Tata-Telco, Bajaj, Volvo, etc. Tata is considered as the largest medium and heavy commercial vehicle manufacture. Hero Honda has a contribution of 50% motorcycle in which Honda has a share in Scooters. TVS has a contribution of 82% of mopeds towards the country and when it comes to three -wheeler PIAGGO has a market share of 40 percent in India and Bajaj leading it with 68%. In India the car manufacturers hold a significant 79% of the vehicle market, with Maruti-Suzuki being the
largest with 52% share and Mahindra with 42% share in utility vehicles. The second and the third largest car producer in India are Hyundai and TATA MOTORS respectively. (Automobile Industry, Automobile India, 2009) The Indian automobile industry is constantly innovating motor vehicles with updated design, constant development and growth, producing and manufacturing world class vehicles with constant market research and development and expanding the industry to new heights. There is a presence of global automotive giant that are undergoing constant expansion, collaboration and growth with some domestic players to manufacture and produce automotive in India. The Indian automobile industry is growing and doing well in terms of expanding their market both in domestic and international companies like Honda, Hyundai, Ford, and Skoda. The performance of the Indian automobile industry recorded recently showed a significant growth (25%). The Indian automotive industry is the second fastest growing industry worldwide. Many top automobile players of the world are setting their plants in India due to its resources and scope. The commercial vehicle of the automobile industry has been showing a remarkable growth in fast few years. This industry in India is proud of its attractive finance schemes, FDI in the form of JV, exports, etc. and also launch of the latest models. The total sales of some of the major car manufacturers shows a figure of 0.674 million units in 2007. The two wheeler segment considered as the second largest in the world on the other hand the commercial vehicle is considered as the fourth largest in the world and the passenger vehicle car is eleventh largest in the world. The future of automobile industry is on the positive side because it is constantly implementing innovative initiatives to market its product. It is expected that automobile market in India will grow at a CAGR of 9.5% which is expected to be Rs.13008 million by 2010. (Indian Automobile Market, MapsofIndia, 2008) The growth of the Passenger Vehicles segment in the year April 2007 to March 2008 showed a 12.17 %. Passenger Cars showed a growth of 11.79 percent and Utility Vehicles by 10.57 percent and Multi Purpose Vehicles by 21.39 percent. The Commercial Vehicles segment growth rate was 4.07 percent, while Medium & Heavy Commercial Vehicles decreased by 1.66 percent, Light Commercial Vehicles showed a growth of 12.29 percent. Three Wheelers sales decreased by 9.71 percent with sales of Goods Carriers decreased remarkably by 20.49 percent and Passenger Carriers declined by 2.13 percent during April- March 2008. Two
Wheelers segment recorded a negative growth rate of 7.92 percent during this phase, and motorcycles and electric two wheelers segments fell by 11.90 percent and 44.93 percent respectively. However, Scooters and Mopeds segment showed a growth of 11.64 percent and 16.63 percent respectively. (Industry Statistics, SIAM, 2008)
Figure: 1.1 Automobile Industries in India Source: Automotive Component Manufacturers of India Report.
Thus it is very important to have right kind of employees to manage this big and lucrative industry and maintain its excellent record. So the management and the HR department of these automobile companies should closely work towards their selection and retention system and make it more strategic and competitive in nature. One must not forget that employees are the backbone of a company and it is their efforts that help organisations attain and reach new heights.
1.3. Introduction to India and Mumbai

India is considered as the one of the worlds oldest civilization and is known for its rich heritage culture. This country has been achieving progress in both social and economical sphere since its independence. It is the tenth industrialized country in the world covering an area of 3287263 sq km. It is the seventh largest country in the world, and stands apart from the rest of Asia, marked off as it is by mountains and the sea, which give the country a
distinct geographical entity. The mainland of India stretches between latitudes 8 4' and 37 6' north, longitudes 68 7' and 97 25' east, and shows a measurement about 3,214 km from north to south between the extreme latitudes and about 2,933 km from east to west between the extreme longitudes. (Who is India, Maps of India, 2009) Thus it is definitely a good area and place to conduct this research as it has presence of some giant automobile companies and branches.
Figure: 1.2 Map of India
Mumbai lies on India's West Coast in the state of Maharashtra facing the Arabian Sea. The city occupies an area of 440 sq. Km. Mumbai is considered as the commercial capital of India. It is one of the most prime cities and has some of the major domestic and foreign MNCs including automobile giants. This city has the largest port and airport to handle a major portion of foreign trade in India. The total population of Mumbai is estimated to be around 10 millions. This place is considered to be the gateway to ones dream and opportunity, thus being the melting pot of all Indians having a cosmopolitan population with a strong financial grip, it shows evidences of many people leaving their own country and joining the top companies in Mumbai. (Mumbai, About Mumbai, 2008) The city contributes 10% in factory employment, 33% in Income tax collection, 60% in customs duty collections, 20% in central excise tax collections, 40% of India's foreign trade and Rs. 40,000 crore (US $9 billion) in corporate taxes.
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The city constitutes of a very high percentage of workforce including skilled, unskilled and semi-skilled. It is being experiencing growth and development in industry and economy and is called as the nerve centre of Indian economy. The largest city in India, the citys population is also one of the highest in the world with over 12.6 million people living in it. The density of this city is 28,834 per square kilometre. There are 811 females to every 1000 males. This figure is mainly due to the fact that many males with families in rural areas work in the city. Mumbai has a modest literacy rate of 77%, though much higher than the national average. (Economy and Industry, Mumbai online, 2008) Not only it is the financial & commercial capital, but also it has one of the largest cotton textile industries in the country. It has the largest source of oil and natural Gas. The largest stock exchange in India is situated in Mumbai. Mumbai is also the capital of India's Pharmaceutical Trade. Many multinationals & mega corporate head offices are located here, and the largest motion picture Industry in the world is located here. (Mumbai City Guide, Mumbai Space, 2008) As Mumbai employs maximum number of workforce from various parts of India and even expatriates, therefore it would serve as a potential area of study. All major automobile players of the world have their branches or subsidiaries located in Mumbai. So to get in touch with this industry and the employees would enable to get a clear picture of the HR issues in this industry. The main challenge would be investigating these automobile players in the context of Mumbai and to find the issues and problems which if solved or addressed may benefit the employees as well the companies.
Figure: 1.3 Partial Map of Mumbai (source: Lonelepnanet.com)
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1.4. Introduction to Company Chosen:
1.4.1. Toyota Kirloskar Motor Private Limited (TKM): The joint venture between Kirloskar Group and Toyota Motor Corporation, Toyota Kirloskar Motor Private Limited (TKM) has a major contribution in the growth of the automotive industry and the creation of employment opportunities, not only through its dealer network, but also through ancillary industries. TKM firmly believes in the slogan of putting customer first and believes in providing high quality products and services to all valued customers through the efforts of its team members. (About Us, Toyota Motors, 2009)
1.4.2. Honda Motors: Honda Siel Cars India Ltd., (HSCI) was formed in December 1995 and is a joint venture between Honda Motor Co. Ltd., Japan and Siel Limited, a Siddharth Shriram Group company. Hondas aim is to produce latest passenger car models and technologies, to the Indian customers. The Honda City, its first offering introduced in 1997, revolutionized the Indian passenger car market. It is known as an engineering marvel in the automobile industry. The total investment made by the company in India till date is Rs. 1620 crores. They invested further RS. 1000 crore recently invested for the second plant in Rajasthan. The company has a capacity of manufacturing 100,000 cars. (Profile, Honda, 2009)
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1.4.3 Tata Motors: Formed in 1945, TATA Motors is the largest Indian automotive company which has revenue of RS.35651.48 crores (USD. 8.8 billion) during the period 2007-08. It is the market giant in commercial vehicles and among the top three in passenger vehicles. It has bagged winning products in the compact, midsize car and utility vehicle segments. Tata Motors is the worlds fourth largest truck manufacturer, and the worlds second largest bus manufacturer. The company employs 23,000 employees whose vision is to be best in the manner in which we operate best in the products we deliver and best in our value system and ethics. It is the first Indian company from engineering sector to be listed in the New York Stock Exchange. (Our World, Profile, Tata Motors, 2009)
1.4.4. Hyundai Motor India Limited (HMIL): Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company, South Korea. It is considered as the second largest manufacturer in the car segment and is also largest passenger car exporter from India. It has 37 models of cars in Indian roads. The total sales of the company are 489,328 vehicles in 2008 and are increased by 49.6% since 2007. It has a fully integrated state-of-theart manufacturing plant near Chennai and known for its advanced production techniques, quality and testing capabilities in the country. It is committed to provide the customer with global technology. (About Us, Hyundai, 2009) Since the research which will be undertaken is an in-depth critical study therefore a good comparison will benefit the researcher to get a critical and holistic picture of the current scenario. It is because of this reason; the above companies have been chosen to focus on as an area of the study. Cases on these companies showed certain HR problems in recent years and as these players are big names in this industry, it would be better to research on these companies to gain a better understanding of the HR issues relating to recruitment and retention.
1.5. Problems and Issues

A problem statement is referred to as the gap that is present between the actual and the desired ideal state. A problem may also indicate an interest in an area where if the right answers are found would help to rectify the existing scenario. When defining the problem the symptoms should not be mistaken as the problem. (Sekaran, 2003) For an automobile industry to survive in a dynamic environment, it not only demand talented workforce but also a proper fit to the organization who would eventually becomes leaders of Tomorrow. But this Indian automobile industry is also facing some tough challenges and turbulence due to rapid changes around the world. The main issues faced by todays automobile industry centres around the selection and retention programs currently adopted by these companies. The best talents are switching from automobile industry to other industry constantly. Automobile industry facing greater turnover rate especially performers are not exposed to enough training and development and due to lack of learning environment and career opportunity. Other major problem is the deficiency in the selection strategy adopted by some of the companies in this industry to attract the right kind of candidate with relevant skills. Many top institutions like Indian Institute of Science has closed Internal Combustion Engineering Department which teaches the basic fundamentals of auto engineering including thermodynamics which led to the problem of getting right fit for the automobile company. There are also not enough vocational training institutions whose duty are to constantly deal with the challenges and the problem of the manpower and in long run create an improvised skilled labour force by means of constant training and development exposure. Number of cases and studies has shown another major area of problem in automobile industry in Mumbai is in having an inadequate motivated and inspiring workforce. The current workforce is not fully dedicated towards the company and hence resorts to switching of jobs and absenteeism. (Honda Motors). Some cases show that automobile companies like Hyundai in Mumbai recruits manpower more than they needs in the time of boom and ultimately fire them during recession in large
numbers. Thus overstaffing is a vital problem to be addressed carefully. Selection of employees in right time is an issue in this industry. Poor selection and recruiting manpower is common in many companies. Lack of wholesome selection process like behavioural based interview, psychometric test etc lack in many automobile companies in India. Employees are not taken care of properly, retention and selection strategies are not adequate which in turn is resulting in union intervention and chaos in the production process. Companies like HYUNDAI MOTORS AND TOYOTA KIRLOSKAR MOTORS faced and is facing these problems. Demands like higher wages and bonuses by staff associations and unions were also not taken care which resulted in frequent strikes and ultimately workers switch company and even industry. Volvo faced problems of absenteeism and turnover among its employee because there was not enough scope for job enrichment, job rotation to hold the performers in the company. Some companies fail to abolish the surplus employees thus limiting the chance of recruiting fresh minds. Industry is sometimes relaxed in laying standard while recruiting employees in its various departments. Thus there is a big question that these companies are confronting that is why the employees are leaving. The answer is quite simple. The companies are not coming up with effective retention programs to keep and sustain them for a longer period of time. Lack of Motivation, communication, compensation, feedback mechanism etc could be the reason behind such frequent employee turnover.
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1.6. Significance of the Research Problem:

Staffing and Retention is gaining a lot of importance in todays competitive world. Improper selection can lead to huge turnover rate and also can be an expensive affair for the company. If the right talents are not identified at the right time, a company can face threat in the industry. Retaining these employees is also very important. If employees switch companies then confidential data of the company can get circulated and the competitor can take the advantage. Since the performance of a company is directly related to the candidate that it selects, so if there is any slack in the recruitment and retention process it can directly impact organisations success or failure. Even when it comes to the whole selection and screening process it consumes a lot of time and money.
1.7. Potential Application and Implication:

The significance of this research problem is definitely productive. It will give us an idea about the various loopholes in staffing and retention policies of the companies and thus will be able to fill the gaps to make this industry more dynamic. It will also help to identify the various corrective methods that the company can use to reduce the turnover rate and cost of turnover as well as replacement cost in the automobile industry in Mumbai. This study will also help to determine as to what kind of retention methods these automobile companies can apply or implement to hold on to top performers and to have a documented evidence regarding the reasons of employee switching automobile industry. This dissertation hopefully will contribute to a wholesome staffing and retention strategy that the industry can adopt as it considers factors like motivation, compensation, staffing, feedback, employee participation and development, employee separation etc. Besides the above significance, it will also contribute to the researchers development of knowledge in these fields and can also act as a basic guide for individuals or other researchers who wishes to conduct further research in this field.
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1.8. Research Objectives:

For an automobile industry to survive in this competitive world it should properly address issues like selection procedures and retention techniques and constantly assist these levels from its employees and ultimately elicit the problem and its source. This researchs main objective is to: To find out the real reasons behind employees switching from the automobile industry to others.
To find out the employee expectation and their motivating elements that will help them to stay in the industry.
To identify the employees stake on the current system of staffing and retention programs offered by their respective companies.
This research is also aimed to get an idea about the differences, the major automobile players in Mumbai face with respect to staffing and retention problem. To identify the key drivers of retention in the industry and accordingly develop a strategy. Does a proper selection procedure and HR forecast play a significant role in selection strategy
To find whether companies are dedicated to have a learning environment that is committed towards growth and opportunity for the employees. To find out the disparity between labour supply and demand.
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1.9. Statement of Purpose:
My overall purpose is to suggest a strategy/model which might help the automobile companies to improve their staffing and retention process which will attract igniting minds and help them to stay in the industry for years being part of a learning environment. The strategy/model would be designed on the basis of employees and employers feedback, industry cases and research on these topics and also supporting it with relevant theories. Hopefully this new strategy could serve as a basic referral guide for the automobile industry in Mumbai to improvise their planning, recruitment, selection and retention process.
1.10. Aims of the Study:

My research keeps the fact in mind that the employment scenario is constantly undergoing change and coming up with new method of recruiting and retaining top performers, so in order to have a productive workforce and gain a competitive advantage it becomes very important for an industry to come out its old traditional shell and get a bigger picture of the environment identifying the current gaps and the problems and move towards feeling up the gaps. This study aims at identifying the key issues in areas of Staffing and Retention of the automobile industry in India and gets an inner view of the various existing strategies adopted by companies and find out the gaps and recommend accordingly. Thus it becomes very significant for an industry and company to find out ways and means of hiring and retaining the ideal candidates for getting long term results.
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1.11. Research Questions:
Is the staffing process adopted by the companies are strategically developed to compete with other industries?
Are the automobile companies efficient enough to maintain a balance between demand and supply for labour?
Are the selection processes in the automobile companies fair and transparent?
Do the automobile companies monetarily compensate adequately their employees in order to retain them for a longer period of time?
What is the reason behind the high turnover rate in automobile companies?
What are the key retention drivers for an automobile industry employee?
1.12. Research Hypothesis:
H1: It is likely that there are no strategically developed selection procedures which enable to attract right fit for the job in appropriate time in the company. H2: It is likely that there are overstaffing and understaffing issues present in the automobile companies. H3: It is likely that the selection process of the automobile companies lack transparency and is biased.
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H4: It is likely that inadequate compensation packages in the automobile companies are accelerating the retention problem. H5: Factors like lack of Management style, feedback mechanism, motivation, appreciation and recognition, communication, freedom and autonomy is likely to be the reason behind the high employee turnover rate. H6: Drivers like blend of financial and non financial rewards, equity and fairness, interesting work, job role and specifications, work life balance tend to act as retention drivers for an automobile industry employee.
1.13. Limitations of the Study:
TIME: Finishing the dissertation in 5 months was a tough challenge.
RESOURCES: As this research is conducted by a student without any company sponsorship, finance can be a limitation.
DATA COMPLETENESS: All the questionnaires collected may not have adequate information and data required to complete this dissertation. The feedback of the staff may not be accurate and real.
DISCLOSURE OF THE INFORMATION: The automobile companies may not disclose the selection and retention process due to their privacy policy.
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1.14. Structure of the Dissertation:
The structure and the outline of the dissertation report have been planned before proceeding with the research to guide the researcher complete the research on time. This section will help the readers to understand the detailed contain of the report and also will give them an idea about the key discussion in every chapter.
Chapter one (Introduction): Chapter one is written to introduce the topic to the reader and give them a basic idea of the whole report. The topics like overview of automobile industry, overview of company, research objectives, hypothesis, limitation, aims and problem statement will provide an insight to the whole dissertation to the reader. The readers will be able to understand the flow of the dissertation and will also be able to understand properly the recommendation for the problem.
Chapter two (Literature Review): The main idea of this chapter is to provide the reader with the theories relating to staffing and retention. This chapter will give the reader a comprehensive idea about human resource management, selection, staffing and retention processes and techniques which are commonly used by companies.
Chapter three (Research methodology): The aim of this chapter is to provide the reader the knowledge of various type of research and the methodology used to complete this report. Different methods of research, its advantages, disadvantages, different strategies of research and types of data used to complete the research is given in detail to provide an idea to the readers the various methods which have been used by the researcher to complete the research.
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Chapter four (Data Analysis): The data analysis chapter gives an idea of data analysis and how the data(s) are collected and then converted into information and used in the research. Various tables, charts, diagrams have been used to display the response rate to the reader.
Chapter five (Research findings and Discussion): This chapter aims at giving details of the findings of data. The chapter discusses the key findings from the research and highlights the main issues which are present in the automobile industry in Mumbai. The data(s) are analysed and critically discussed and interpreted.
Chapter six (Recommendation and Conclusion): This chapter aims in providing a suitable recommendation to the current problems after analysing the findings and gaps. This is more like an action plan. Recommendation given, has taken into consideration the literature review, objectives and hypothesis of the research. The last part of this chapter is formulated to conclude the research systematically and coherently taken into consideration other previous chapters. This last part aims in concluding the research and giving a summary of the whole report.
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CHAPTER TWO: LITERATURE REVIEW

2.1. GENERAL OVERVIEW
Structure of this Chapter 2.1. General Overview
An effective Staffing and Retention strategy is a must for an organisation to survive in this dynamic and competitive environment which calls for identifying the
2.2. Introduction to Human Resource Management
gaps or existing problems in the industry or company and then bringing about certain fundamental changes in the manner the company hires, develops and rewards its
2.3. Strategic Human Resource Management
employees. Selection and retention , in spite of being the most fundamental requirement behind the industry or organisations success, still there are instances of it being neither well-defined nor properly understood or
2.4. Review on Staffing
2.5. Review on Retention
misunderstood by people. This research or study endeavours to contribute towards a wholesome understanding of the staffing and retention issues in the automobile industry in Mumbai, India. A literature review discusses published information in a
2.6. Review on Training and Development 2.7. Review on Communication
2.8. Review on Motivation
particular subject area, and sometimes information in a particular subject area within a certain time period. This
2.9. Review on Compensation
write up offers a literature review of various topics. Literature review is a simple summary of the sources; it is a blend of both summary and synthesis. It gives a new interpretation of old study or combination of old and new analysis. It might trace the intellectual progression of the field, including major debates.
This chapter is mainly focussing on the literature review on the topics related to the research. Thus, this literature review is aimed at scrutinising, criticising, analysing the various aspects related to selection and retention. It critically discusses and presents the views of eminent authors, articles, journals and other research study that have been conducted in this area.
2.2. INTRODUCTION TO HUMAN RESOURCE MANAGEMENT:

The term human resource management describes a body of various activities by management and is also used to describe about the approach that is taken towards the management of people in the workplace. This field of study concentrate on the factors like whether an organization is effectively staffed, the selection, recruitment, the development of employees that is needed to perform various roles and most importantly the recruitment of the right kind of people with the right kind of skills to provide their services when the organization demanded. Human resource managers aim in motivating and making the staffs committed so that their services so that their performance can be maximised. (Armstrong, 2001) When it comes to retaining an employee factors like training and development programme, reward system plays an important role in order to get optimum performance from the workforce. Another objective of the human resource management is to ensure an efficient management of change so that continuous innovation can help the organization to overcome demands and pressures of environment. The administrative objective of human resource aims at gaining competitive advantage soothe factors like maintenance of records of performance of employees, attendance, track records, pay statements are taken care of to have a smooth running organization. (Torrington, et al, 2002) Human resource managements main objective is directed towards the needs of management for human resources that needs to be given and deployed. The central area of focus in this field is on demand rather than supply. It is a long term active integrated process of managing people. The main aim of Human Resource Management is as follows: Recruiting and selection of employees. Developing stable relationship with employees by means of motivation, communication, effective leadership, etc. Providing training and development programmes, career progression opportunities. Retaining the employees by means of financial and non financial rewards. The term human resource management showed its appearance in the 1980s but the application of the term grew in 1990s. The term human resource management emphasises on the aspect of developing and adopting a strategic approach by the organization. The line management plays a vital role in this aspect. (Nankervis, et al 2002)
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The process and the policies lay down by the companies needs to be unified and interrelated in order to support the organizations core mission, vision and goals. Human resource management stresses on managing people internally in order to gain a competitive advantage externally. Besides the hard side of HRM there is also soft side of it which states that all employees whether permanent or full-time needs to be nurtured continuously through proper education and they should be taken care of efficiently which in long run will help the organization to gain competitive advantage. (Foot & Hook, 2002)
HR ROLES AND OBJECTIVES:

HR GENERALISTS
PERFORM ANCE HUMAN RESOURCE STAFFING MANAGEMENT
CHANGE MANAGEMEN T
LINE MANAGER S CONSULTANTS / ADVISORS HR SPECIALISTS
ADMINISTR ATION
SUB CONTRACTORS
Fig.2.1. Various HR roles and objectives (Source: Torrington et al, 2002)
As it is known, humans are the asset of an organization, they need to be treated with respect and it is the duty of the organization to make them learn and earn. Hence human resource management and the mangers play a vital role in the organisation structure. Employees can
build a company or can ruin a company hence HRM plays a major role in tackling them and ensuring their success with the success of the company. Though HRM is very difficult to quantify and the success of the HRM department is difficult to measure yet we cannot ignore the fact that Human Resource Management is one of the four pillars without which an organization cannot stand. Even though human resources are backbone of every organization but it still lacks in appreciation for the value that it contributes because other departments do not consider HR as a strategic partner and their adversary rather than ally. Many people even perceived that HR is inflexible and policy oriented, but according to the researcher, its high time one should come out from these perceptions and should foresee HR in a bigger way and should appreciate human resource managements contribution.
2.3. STRATEGIC HUMAN RESOURCE MANAGEMENT:

Strategic Human Resource Management can be defined as a pattern of planned human resource deployments and activities intended to enable an organisation to achieve its goals. (Noe, et al, 2006 p.59) A strategic approach in human resource management tends to provide competitive advantage to the company through human assets. The human resource roles and function needs to involve in the overall strategy formulation of company to get the competitive advantage. Strategy refers to tactful and skilful employment and coordination of tactics. The strategy formulation is done in the top level of the management. The strategy is always related to company mission, vision, and goals. After the strategy is formulated, HRM has a strong impact on plan implementation by integrating HRM policies and practices to ensure that the organisation has highly skilled and motivated human assets. Strategic approach in HRM requires adopting a well planned selection, staffing, retention and performance measurement systems because only through these competencies can the HR professional take a strategic approach to HRM. (Noe, et al, 2006)
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2.4. STAFFING:
Staffing is a process of analysing and determining human resource needs in an organisation and securing proper fit to fill the vacancies. Staffing can be defined as a process to ensure right number of people at right time and in right place to achieve the goals of the organisation. (Caruth & Handlogten, 1997) Staffing process includes HR planning, job analysis, job description, recruitment and selection. Successful campaign is also a must to get the right fit suitable for the organization. According to Cappelli, (2002), selection and retention are the two sides of the same coin as it is interrelated and interconnected with one another. Both these process compliment and supplement each other. If this process is properly taken care of by companies then it leads to formation of human assets.
Figure 2.2. Human Resource Management System (Caruth & Handlogten, 1997) The entire human resource management system which also includes staffing as a vital element depends on the environment largely. The external and internal environment plays a vital role in determining the staffing practices. The external forces include the factors which are not controllable by an organisation where internal forces are the factors which can be controlled by an organisation to a large extent. The legal system, the economy, the labour market, competitors, customers, unions are beyond the control of a company. The external environment creates a pressure on the organisation and in the staffing process. There are various demands from the external environment which are needed to be dealt tactfully and
demands are need to be met. The companies should understand these pressures and staffing should be carried out accordingly to meet these external pressures, expectations, demands and requirements in a positive manner. Likewise, internal environment which consists of mission and objectives, goals, policies, organisational climate, functional areas and management philosophy shapes and moulds the staffing process in a company. It influences the importance that is attached to each staffing tasks and determines to a large extent the effectiveness with which staffing will be performed. (Caruth & Handlogten, 1997)
The Process of Staffing includes: 2.4.1. HR PLANNING:

According to ICMR, INDIA, HRP is the process by which an organization ensures that it has the right number and kinds of people, at the right places, at the right time and that these people are capable of performing their tasks effectively and efficiently. This helps the organization to achieve its overall objectives. Two major ways in which societal trends affect employment is through consumer markets, which affect the demand for goods and services, and labour markets, which affect the supply of people needed to produce goods and services. (ICMR, India, HRM, 2008) For an organization or a unit to operate successfully it demands an effective human resource planning and strategy which would comprise of a set of plans, polices, procedures which would be integrated in nature and act as an tool of managing workers. The development of strategies for matching the size and skills of the workforce to organizational needs is a must. Human resource planning assists organizations to recruit, retain, and optimize the deployment of the personnel needed to meet business objectives and to respond to changes in the external environment. The process involves carrying out a skill analysis of the existing workforce, carrying out manpower forecasting, and taking action to ensure that supply meets demand. This may include the development of training and retraining strategies. (Barber, 1998) An effective HR planning aims at preventing problems like overstaffing because it leads to loss of effectiveness in the working of the organization and there will be excessive payroll cost and surplus production. It would also solve the problem of understaffing as we know if there is too less employees in the organization it would not be able to meet the existing customer, products and services. An HR planning is must for an organization because it helps
to have the right kind of employees in the right place at the right time integrated with right skills.HR planning also creates the path for all other HR activities like staffing, training and development and compensation management. (Noe, et al, 2003) Thus it can be said, one of the challenges which HR department faces today is allocating right person at the right job. Ineffective HR planning at grass root level can create disaster. The companies should frame their future goals and plans of expansion and then they should get a picture of how much workforce they need in future. A correct use of multiple regression technique can help in estimating of future requirement of workforce. If the workforce is available within the company, then there is no need of recruiting new manpower but if the data shows that the current workforce is not sufficient due to reasons like retirement, transfers of present employees then planning regarding recruitment of new personnel is required.
2.4.2. JOB ANALYSIS AND DESCRIPTION:

Job analysis is a detailed process of getting comprehensive information about the job. The Job description and design refers to defining how the work will be preformed and the various tasks that will be required in a particular given job. Different jobs need different skills, aptitude, education. To get a competitive advantage the company must have comprehensive information about a particular job. There are two types of information which is needed in job analysis which are job description and job specifications. Job description refers to all responsibilities, duties, tasks that are needed for a particular job whereas Job Specifications refers to skills, educations, aptitude, knowledge, experience and other characteristics that are needed to perform a particular job. (Noe, et al, 2003) Job analysis is one of the main pillars of staffing process. There are many methods of job analysis like position analysis questionnaire, the task analysis inventory, the job analysis system, etc. The performance of the employee is measured and evaluated on the basis of the work performed in the job.
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2.4.3. JOB DESIGN:

Job design is the process of defining the way work will be performed and the tasks that will be required in a given job. It is a systematic approach where manager tells the employee what is expected from him in that particular job. Sometimes, due to the changes of the
environment, the task needs to be adjusted accordingly. The process of changing the tasks or the way work is performed in an existing job is referred to as Job Redesign. In the beginning, design principles needs to be developed. There need to be form a view among the top management regarding skills, abilities, needs and motivation of job incumbents. The team (top management) could comprise members of management and supervision. Work arrangement aimed at reducing or overcoming job dissatisfaction and employee alienation arising from repetitive and mechanistic work. Through job design, company try to increase the productivity levels by providing non-monetary compensation. (Employee Motivation, Accel, 2009)
2.4.4. RECRUITMENT:
The process of recruitment and selection are closely interrelated. The staffing process also includes a very important step that is recruitment. The objective of recruitment is to get hold of ideal qualified employees which forms the foundation for the selection procedure by presenting the range of applicants from the panel will select. Thus recruitment can be defined as the activities that need to be carried out to identify the ideal candidate and then attract the right fit for the company. (Foot & Hook, 2002) The major aim of recruitment can be summarised as follows: To search for suitable candidates for vacant positions in the company. To recruit through a fair policy without any discrimination. To ensure all the recruitment activities must comply with company objectives and goals. To conduct recruitment activities in an optimum and cost effective manner. (Mello, 2006)
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Recruitment can be summarised as the activity of employing workers to fill vacancies or enrolling new members. Employment recruitment is composed of several stages: verifying that a vacancy exists; drawing up a job specification; finding candidates; selecting them by interviewing and other means such as conducting a psychometric test; and making a job offer. Effective recruitment is important in achieving high organizational performance and minimizing labour turnover. Employees may be recruited either externally or internally. (Online Business Dictionary, Bnet, 2009)
2.4.4.1. METHODS OF RECRUITMENT:

Word of mouth/referrals Media Internal Candidates Job websites Networking Staffing agencies Job fairs Government Employment Services Campus interviews (Bechet,2002)
Some of the above mentioned recruiting methods are explained below. Word of Mouth: Sometimes word of mouth and referral process is used to recruit talents. It saves companys cost to a large extent. When an employee refers someone for a suitable position, the employee is awarded with some monetary compensation if that candidate is selected. Media: Radio, television, newspaper, magazines are used for recruitment. Media is the most common way to recruit talents. The coverage is huge and the catchment is also large. Media tends to increase the number of applicants but not their quality and suitability. (Billsberry, 2000)
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Staffing Agencies: There are various types of agencies which are specialised in different category of recruitment. Some agencies deals with skilled workers while other unskilled workers and so on. There are agencies who head hunt for companies to fill the top management positions. The advantages of these agencies are their speed and specificity. They provide candidates which will match the exact requirements of the employer in no time. Internal candidates: Most of the vacancies are filled up by internal candidates of the company. The HR department likes this method as the employees performance are known, training requirement are known, the employees are already well adapted to the companys culture and also they have working relationships and networks established. Campus interviews: The advantage of recruiting talents from schools and colleges are enormous. The labour costs are low, large pool of young talents, energy levels are high and the students can be useful for particular skills. Job Fairs: People who attend job fairs range from skilled to unskilled workforce. If many posts need to be filled than job fair is a good idea. In job fair all type of potential employees are seen and the company can choose according to their needs. The cost of each new recruit can be quite low. But job fair cannot give any guarantee of getting right people at the right position. (Billsberry, 2000)
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2.4.5. SELECTION:
Another vital step of the staffing process is selection. Selection involves the series of steps by which the candidates are screened for choosing the most suitable persons for vacant posts. Having conducted the recruitment process the next step for a company is to select the ideal candidate from the available number of people applying for it. (Erickson et al, 2005) The objective of a selection process:
GATHERING OF RELEVANT DATA.
ORGANIZE AND ANALYSE THE DATA
ACESS AND MEASURE EACH CANDIDATE FORECASTING FUTURE PERFORMANCE
PROVIDE RELEVANT INFORMATION TO THE CANDIDATE
CANDIDATE DECIDES WETHER TO ACCEPT /REJECT JOB OFFER
Figure: 2.3 Objectives of Selection Process (Self Created)
2.4.5.1. Selection Process:

Short listing: The first step involves decreasing the number of application to a number that can be easily sorted out and managed. This short listing is done depending on the data that has been written on the applicants and also supporting with a telephonic interview in some cases.
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Screening of applications: Screening refers to the filtration of the form that is submitted by the applicants and then relatively coming up or selecting smaller number of application to carry on with the further selection procedure. (Cook, 2004) This is a technique which is helpful in avoiding and eliminating the chances of getting influenced by irrelevant information. This step ensures best fit for the organisation. Human resources staff screens the applicants resume and selects the relevant one at oar with the job vacancy. However certain checklist must follow while short listing candidates for example like two HR personnel should be involved in short listing the candidates independently, favourable applications should be ranked and applications should be separated according to some agreed criteria. At last a manageable number needs to be selected to carry ahead with the interviewing process. (Lavesque, 1996) Telephonic interviewing: The CIPD (2001) states the telephonic interview is an initial step in the whole recruitment and selection procedure and is getting popular especially in case of call centre. It aims at testing the applicants mannerism, tone, voice and basic behaviour. It is more in practice for the applicants applying for senior level job. (Dessler, 2005) Face to face interview: Interview is a popular widespread selection method that is adopted by most of the organization in order to evaluate and assess the candidate and select the best fit. (Cappelli, 2002) The next set of critical decision that is involved in the selection procedure is the interviewing process of the applicants. The employer first need to decide that who should be part of the interviewing process. The process of interview involves factors like measuring and accessing the applicants educational qualifications and experience for the job, in doing so interpretation faults needs to be avoided by the interviewers. In this process the interviewer must access the knowledge of the interviewee and the competent skills which needs to be demonstrated by him. (Evans, 2002)
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There are various errors which can occur during the interview process, these are similarity error, contrast error, halo error, etc. Sometimes interviewing process can be in group form because then it leaves room for the interviewer to compare and weigh their interpretation of the same interview data. This helps in overcoming individualistic errors. Other criteria that comes into existence, whether the interview should be structured or unstructured. The structured interview involves a set of questions which is questioned to every interviewee with same kind of opportunity. This helps in making the job of the interviewer easy because different responses can be weighed to the same questions. The unstructured interview is unplanned and spontaneous in nature. In this kind of interview the answers and the responses can vary in large extent. In the semi structured interview questions the candidate on a set of standard questions. In todays world behavioural interview is getting popular. In some cases the interviewee is given a particular realistic scenario/case and asked how to solve the problem. (Leopold et al, 1999) Testing:
These forms of tests are also included in the selection procedure to get a more valid and reliable information about the candidate in terms of their intelligence, ability, personality and aptitude levels. (Armstrong, 2001)
Some other supplementary selection techniques:
Psychological Testing: This kind of technique is also called psychometric testing which aims at getting wide range of information about candidates ability and traits. Psychological testing is developed professionally and used to verify reliability and validity. The tests are measured, calculated and scored in a standardised manner. They are used to test the candidates maximum ability to perform and the result is then compared across all candidates. This kind of testing is added in the selection process because it can add on to the objectivity and validity of the selection process and decision and also help in evaluating certain criteria that cannot be possible through interview and application form. (Foot & Hook, 2002)
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Intelligence Test: This kind of test helps in evaluating and measuring a candidates variety of skills like reasoning, mathematical intelligence, diagrammatical, etc.
Ability Test: This test aims at checking certain mental ability and results in separate scores for the varied skills. (Brannick et al, 2002)
Personality Questionnaire: This method aims in measuring the personality characteristics of an individual. This test helps to find out whether the candidate can perform in a stable manner every time. This test helps in finding out the candidates performance track. (Foot & Hook, 2002)
Work Sample Test: The objective of the test is to make the candidate do work or perform certain tasks that form the part of the job which he will be doing. This test should be included in the selection process because it would give the employer some extra insight without having developed a large scale assessment centre approach. (Foot & Hook, 2002)
Group Exercise Method: This method is also called the Taylor method test which aims to assess the leadership quality of the candidate because such kind of information cannot be easily judged through form fills up and resumes. It is a round table interview in a group where many candidates sit together and interviewers judge them after giving a topic to discuss among themselves. (Foot & Hook, 2002) Checking References, Health Checkups and Criminal Record: The final short listed candidates are then have to go through this last stage where their references are checked, criminal record is being checked and health checkups in is done and then only the candidates are given final job offer. (Foot & Hook, 2002)
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As employee selection and staffing is the vital element for an organisation to grow, proper strategy influences the productivity in the workplace. There are various staffing arrangements like contractual staffing, flexible staffing, permanent staffing, etc. Flexible Staffing arrangements identified by Abraham (1990): (1) to gain more flexibility to adjust the quantity and skill mix of its labour inputs, (2) to save on compensation costs, and (3) to obtain specialized services or skills that are not available in-house. Thus if permanent staffing do not provide positive results, there is always option for organisation to go for flexible staffing arrangements to cater its need. (Gramm & Schnell, 2001)
As there are issues in selection process in automobile industry in Mumbai, it can be said that there should be a wholesome selection process where all the above stated recruitment method should be taken into consideration. Due to inefficient forecasting of manpower, understaffing and overstaffing issues and improper balance between demand and supply there are plenty of problems in the automobile sector. The reasoning suggests that employees should be hire for attitude and train for skill. The candidates must show and demonstrate the attitudes, behaviours and personality traits which will make them best fit for the company. Many Fortunes 200 company takes into account the above steps while recruiting to lessen job turnover and efficient running of the firm.
2.5. RETENTION:
Retention can be defined as the number of employees that remain with a business over a particular period of time. High levels of retention are seen to reflect good HR practices and employee relations. Retention means keeping the employees in the firm. 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 diverse needs. Replacement costs usually are 2.5 times the salary of the individual. The costs associated with turnover may include lost customers, business and damaged morale. In addition there are the hard costs of time spent in screening, verifying credentials, references, interviewing, hiring, and training the new employee just to get back to where you started. (Workforce Planning for Wisconsin State Government, 2005)
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Some views mentioned by Mckeown (2005), are Employee retention means stopping people, i.e. from leaving the organization and Employee retention is all about 'keeping good people. Frank et al (2004, p.13) states that Employee retention can be defined as the effort by an employer to keep desirable works in order to meet business objectives.
According to Pogorzelski & Harriot, (2008), Retention is all about holding those talented candidates that management had worked so hard to attract and acquire in the organisation. It is the third phase of engagement cycle and is consider as the make or the break issue for contemporary companies. In a recent Monster.Com study, it has been found out that 70 percent of the organisation considers employee retention as the foremost concern for the firm. As it has direct impact on company performance. Research shows that HR managers expect their workforce to remain in the organisation for a period of 3-5 years but on the other hand the employees anticipate staying in the organisation for 1-3 years. (Pogorzelski & Harriot, 2008) Retention can be considered as decisive test of good hiring. While employers think that retention is all about chasing money, with increasing salary and shortage of talents but many research shows other than salary and benefits the attachment of an employee with the organisation is a vital element of retention which comes from intangible rewards like pride, personal touch of the manager, prospects of professional growth, etc.
2.5.1. Importance of Employee Retention

Retention is a vital issue in todays competitive market. Retaining talents in the company is a major challenge faced by todays companies. Retention is not just only to save turnover cost but also to protect the talents of the company from getting poached. (Billsberry, 2000)
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2.5.2. RETAINING EMPLOYEES IN THE ORGANIZATION CAN BENEFIT THE COMPANY IN FOLLOWING WAYS:
Turnover cost : Turn over cost refers to the ratio of the number of workers that had to be replaced in a given time period to the average number of workers. (Thesaurus) The cost of employee turnover adds huge amount of money to a firms expenses. If the employees are retained then the company ccan save these costs and can make more profits.
Loss of Company Knowledge: When an employee leaves, he takes with him valuable knowledge about the company, customers, current projects and past history and various details of company strategies and policies which he can leak to the competitors. Often much time and money has been spent on the employee in expectation of a future return. When the employee leaves, the investment is not realized. (Lavesque, 1996) Interruption of Customer Service: Customers and clients do business with a company in part because of the people. Relationships are developed that encourage continued sponsorship of the business. When an employee leaves, the relationships that employee built for the company are severed, which could lead to potential customer loss. (Importance of Employee Retention, Naukri hub, 2009) Turnover leads to more turnovers: When an employee terminates, the effect is felt throughout the organization. Co-workers are often required to pick up the slack. The unspoken negativity often intensifies for the remaining staff. (Blasi, 2007), Goodwill of the company: The goodwill of a company is maintained when the attrition rates are low. Higher retention
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rates motivate potential employees to join the organization. Regaining efficiency: If an employee resigns, then good amount of time is lost in hiring a new employee and then training him/her and this goes to the loss of the company directly which many a times goes unnoticed. And even after this you cannot assure us of the same efficiency from the new employee. (Iain, 2003)
2.5.3. What Workers Want:

The utmost important thing for a worker is to get a lifelong economic security which will not only secure him but also his family. The workers need opportunity and rooms for developing skills that will enable them to get decent or high salary. They want to make use of technology for their own advantage without making them sound job solute. They desire to have a balance between their work and family and flexible schedule. They also want enough earning, pension benefit, same and protected environment working, and discrimination free environment. Workers want to work in an environment which supports diversity, multicultural environment, challenges, etc. but the most important thing that the employee demands from the employer is the combination of financial and nonfinancial compensation package. For example things like thanking note from manager, promotion for their hard work, praise by management, retreats, etc. this helps in building morale of an employee and they gain self accomplishment, satisfaction which helps them to perform well. They also want constant evaluation from their supervisor so that they can find out ways of improving themselves and then develop self actualization, self accomplishment, etc. Todays worker need challenges, career advancement programme, good fit with their managers, differentiated pay package, chance to work for a company with inspiring leader and with organization which has dynamic vision, mission and goals. (Arthur, 2001)
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2.5.4. Why Employees Leave:

Employees leave an organization for many reasons. Diane Arthur, quitting is undesirable, that bailing out too soon could mean missed opportunities or, at the very least, negate the chance to prove to ourselves that we can persevere adversity. (Arthur, 2001, p.218).
The most common reasons can be:
Job is not what the employee expected to be:
Most of the times, the job responsibilities do not come out to be same as expected by the employees. Unexpected job responsibilities lead to job dissatisfaction. Job and person mismatch:
A candidate may be fit to do a certain type of job which matches his personality. If he is given a job which does not fits his personality and attitudes then performance will not be up to the mark and he will leave the job.
No growth opportunities: Minimum learning and growth opportunities in the current job will make candidates job and career stagnant. All employees want growth and learning environment. If the employer fails to provide them with these elements then they will be force to leave the job.
Lack of appreciation:
Employees want that their work must be appreciated and suggestion should be given for improvement. If the work is not appreciated by the supervisor, the employee feels demotivated and loses interest in job.
Lack of trust and support in co workers, seniors and management: Trust is the most important factor that is required for an individual to stay in the job.
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Sometimes colleagues, seniors shows distrust and can make office environment unfriendly and difficult to work in.
Stress from overwork and work life imbalance:
Stress related to work can cause an imbalance which ultimately many times leads to employee leaving the organization. Hence stress needs to be addressing efficiently and stressors need to be identified and removed.
Compensation:
Inadequate compensation or poor compensation package or equity issues makes an employee frustrated and leave job. Better compensation packages being offered by other companies may attract employees towards themselves. (Arthur, 2001)
New job offer:
An attractive job offer which an employee thinks is good for him with respect to job responsibility, compensation, growth and learning etc. can lead an employee to leave the organization. (What Makes Employee Leave, Naukri hub,2009)
2.5.5. MANAGING RETENTION

Managing retention is a vital issue as nowadays many companies are finding it difficult to maintain the minimum staffing requirement due to competitive market. First the employers need to identify the cost of turnover then should understand the reasons behind employees leave the company and at last should implement a strategy which will help them to reduce turnover cost. The above ways are the best ways according to the researcher, to sustain employees in this dynamic world. (Arthur, 2001) High profits and fast-paced growth dont tell the full story about many companies in Indias economy. The flip side of the coin shows a continuing struggle with talent management, namely sky-high rates of employee turnover. (Nancharla, 2009, p.20)
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2.5.6. Techniques Used to Retain Employees:

Organization today is realising the importance of retention as one of their major objective in order to be competitive and survive in this environment. Companies like Bank of America, DELL, UPS, views talent retention as one of their strategic business objective and goals. (Dibble, 1999)
1. Open work environments: Companies with this kind of environment makes the employee understand the situation and work in the business and also makes them participate in the decision making process and also while deciding upon the strategic goals of the company. In this kind of environment hierarchical lines, authority, titles get abolished and elements like reviews by the peer, colleague, management games, training, literacy and seminar programmes, bonus scoreboards gain importance and is considered as reinforcing.
2. Innovating working environment: In order to survive in this tight and rigid labour market flexibility becomes key word for organisations success. Therefore a need for creative and a non tradition work situation comes into existence. Companies like 3M Corporation established innovation and learning centre to enable their employees to think creatively. Companies like Sun Microsystems supports informal and social gatherings, brainstorming sessions and created rooms in the office called sun rooms where employees can relax and take break from their work. (Michel, 2006) 3. Employee Suggestions: This kind of programme encourages views and ideas from the employees from every level and then quickly provides them with feedback on their ideas. This helps the company to improve on customer service, operations, etc.
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4. Mentoring: According to Diane Arthur (2001) mentoring can be defined as a developmental, helping relationship whereby one person invests time, ability, and effort in enhancing another persons growth, knowledge and skills in preparation for greater productivity or future achievement. This helps to attract and retain employees who are talented and can help the company with its contribution and thus reducing on turnover rate and enhance productivity. 5. Recognition: Both public and personal recognition is interlinked with retaining employee because it helps the employees stay happy, satisfied about their job since their efforts are getting appreciated. This kind of programmes makes the workers feel that they are getting valued for their work they are providing thus they are convinced to stay in the firm and not switching jobs. 6. Rewards: Rewards in the form of cash, certificates, travel, gifts, shopping spree, and debit cards are some of the incentives that are given to employees that are given to the employees as reward and help the employee to remain emotionally attached to the company and not leave them. (Downey et al, 2001), 7. Deliver a balanced work place: Critics believe that when demand of an employees job conflict with the gratification of their personal life, then employees runs the difficulty of adjustment and sometimes leave the company. So organisations which give importance to work life issues can save both the companys objective and values as well as help the employees to fulfil his/ her own personal satisfaction. (Pogorzelski & Harriott, 2008)
8. Proactively manage Succession: The challenge lies in how the Hr managers focus on succession planning as a way to reduce the worker turnover rate. It is obvious that when the employees are in knowledge of the fact that they are working towards a rewarding position, they are more likely to stay in that position for a longer period of time. It is the duty of HR manager of an organisation to promote inclusive succession plan in order to ensure that employees know what is expected
from them and what they expect from HR manager to stay in the company for a longer period. Hence, if the succession plan is formulated strategically then it will help both the parties to remain effective in the company. (Pogorzelski & Harriott, 2008)
9. Reward internal mobility: It is the duty of the management to train managers to think holistically about the organisation and its keepers. Mangers should be motivated and rewarded if they grow employees into new job, promote them or give them a bigger opportunity internally. Employees will be effectively retained in the company if they are rewarded for their hard work promoted internally in regular intervals. (Pogorzelsk & Harriott, 2008)
10. Social Ties: Employees may lose loyalties towards companies but certainly loyalty towards their colleagues and friends in the office are not loosing. By encouraging the development of social ties among key employees can reduce turnover rate to a great extent. Creating bonds and social ties among key employees can positively affect the work. These social ties also help in the success of teamwork or a project work. (Cappelli, 1999)
2.5.7. Job Sculpting:

Job sculpting is an art of retaining best people in the company for a longer period of time. Hiring best people is tough and retaining them is the toughest job a company faces in todays environment. Butler & Waldoop (2001) introduced the concept of job sculpting which is defined as the art of matching people to various jobs that resonate with the activities that makes them motivated and happy. It is the art of coinciding the employees interest with the job. If the job coincides with the real interest of the employee then he will never leave it and thus retaining will be much more easier. Job sculpting begins when the mangers identify the actual interests of the employee and then place them in suitable position. This process includes a lot of observation and the manager needs to play the role of a psychologist. But there are challenges and is time consuming, but it is definitely worth the effort. If job sculpting is taken into consideration, then retention issues can be overcome to a great extent.
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2.5.8. Job Customisation:

Job customisation can help in retaining employees. Companies can tailor jobs to the needs of individual to match their interest. Jo customisation can be done through formal and informal assessments. Though few companies allow employees to design their own job, managers can take initiative to customise job according to employees interest and career goals. Monetary reward cannot satisfy employees all the time. They need something meaning relating to their aims and goals. Hence if job is customised according to the employees vision then retaining them will not be an issue and the productivity level will also be high in this case. (Butler & Waldoop, 2001)
2.6. TRAINING AND DEVELOPMENT:

Training and development is a process which enables an employee to acquire and enhance themselves with knowledge and learning skills which they would be use immediately in their work which would ultimately help the organization and also their career. (Mello, 2006) According to Mello, (2002), training in todays worlds undergoes two main steps, firstly planning and then strategising the training. This whole process involves four main stages which include need assessment, developing of the objectives and measures, design and delivery and evaluation.
1 2 3
ASSESSMENT- ORGANIZATION, TASK AND INDIVIDUAL OBJECTIVES AND MEASURES DESIGN AND DELIVERY- INTERFACE AND TRANSFER
EVALUATION
Fig. 2.4 Strategizing Training (Mello, 2006)

If a company wants to retain the employees, especially top performers they need to constantly come up with growth, learning opportunities, educational programmes, seminars, so that the employees can improve and upgrade their skill. Most of the companies try to manage their expenditure by cutting on these development programmes which ultimately results in higher turnover rates. Thus an effective, interactive development programme can help the employer and employees mutually analyse and identify the present situation, come up with a gap analysis and ensure that needs to be done that will lead to individual and organizational success. Thus programmes like mentorship, job rotation, task based assignment, classroom based training, computer based training, coaching, strategic training etc, should be incorporated by every organization to put a check on turnover rate. They can incorporate degree programmes and skill workshop to equip the employees with more skills and knowledge which will make them more competitive. (Nilson, 2004)
2.7. COMMUNICATION:
A vital ingredient to a retention environment is communication. The various ways to communicate within the organization are: Open forums: This kind of sessions helps the employees to come up and talk about various kinds of issues and concerns that they consider to be important. This kind of session is important because not just the issues and problems get solve but also help them to feel that their voices are being heard and they feel that they are important and wanted by the organisation. (Vecchio, 1995) Improve credibility: in this process the management asks the employees about their needs and they promise them to provide their needs at a particular date. The top management also approves their need thus the communication channel becomes clear between the senior level and the junior level. Communicate on a regular basis: The employees should be constantly updated about the various happenings of the organization in times like mergers, acquisition, downsizing, promotions, social gatherings, etc. this would make them feel that they are wanted in the organization and communication becomes easy at all levels.
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Abolish fear of reprisal: suggestion boxes can be set up in the organization where employees can drop in their views, observation, their criticism, etc without fear of management. (Rollinson, 2005)
2.8. MOTIVATION:
According to Susan Velez, Motivation is the characteristic that is required in order to achieve anything in life; without it one will give up at the first sign of adversity. It means to inspire, instigate and encourage a person to do their best. (What is Motivation, Velez, 2008) Motivation is an internal process that makes a person move toward a goal. Motivation, like intelligence, cant be directly observed. Instead, motivation can only be inferred by noting a persons behaviour. (Collis, & Hussey, 2003)
2.8.1. Herzberg's Theory of Motivators and Hygiene Factors

Herzberg (1959) constructed a two-dimensional paradigm of factors affecting people's attitudes about work. He concluded that such factors as company policy, supervision, interpersonal relations, working conditions, and salary are hygiene factors rather than motivators. According to the theory, the absence of hygiene factors can create job dissatisfaction, but their presence does not motivate or create satisfaction. (Plotnik, 2005) In contrast, he determined from the data that the motivators were elements that enriched a person's job; he found five factors in particular that were strong determiners of job satisfaction: achievement, recognition, the work itself, responsibility, and advancement. These motivators (satisfiers) were associated with long-term positive effects in job performance while the hygiene factors (dissatisfiers) consistently produced only short-term changes in job attitudes and performance, which quickly fell back to its previous level. (Mezia, et al, 1998) In summary, satisfiers describe a person's relationship with what she or he does, many related to the tasks being performed. Dissatisfiers, on the other hand, have to do with a person's relationship to the context or environment in which she or he performs the job. The satisfiers
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relate to what a person does while the dissatisfiers relate to the situation in which the person does what he or she does. (Gawel, 1997)
2.8.2. Maslow's Hierarchy of Needs

In 1954, Maslow first published Motivation and Personality, which introduced his theory about how people satisfy various personal needs in the context of their work. He postulated, based on his observations as a humanistic psychologist, that there is a general pattern of needs recognition and satisfaction that people follow in generally the same sequence. He also theorized that a person could not recognize or pursue the next higher need in the hierarchy until her or his currently recognized need was substantially or completely satisfied, a concept called prepotency. Maslow's hierarchy of needs is shown in Table 1. It is often illustrated as a pyramid with the survival need at the broad-based bottom and the self-actualization need at the narrow top. (Ciccarelli & Meyer, 2006) Maslow's hierarchy of needs Level 1 2 3 Type of Need Physiological Safety Love and Examples Thirst, sex, hunger Security, stability, protection To escape loneliness, love
Belongingness and be loved, and gain a sense of belonging 4 Esteem Self-respect, the respect others 5 Selfactualization Fig. 2.5 Maslows Hierarchy of Needs To fulfil one's potentialities
According to various literatures on motivation, individuals often have problems consistently articulating what they want from a job. Therefore, employers have ignored what individuals say that they want, instead telling employees what they want, based on what managers believe most people want under the circumstances. Frequently, these decisions have been based on Maslow's needs hierarchy, including the factor of prepotency. As a person advances
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through an organization, his employer supplies or provides opportunities to satisfy needs higher on Maslow's pyramid. (Gawel, 1997)
Managers continue the behaviourist strategy of offering rewards and punishments to motivate workers to behave in a prescribed manner. Many researches showed that although using various forms of operant conditioning can deliver short-term results in the workplace, but in future these strategies hamper relations and productivity in the workplace. It also creates and encourages internal competition for rewards, and destroys intrinsic motivation by reducing work to an economic transaction. Before motivating employees to retain them in the organisation, employers must create an environment to motivate not only employees but themselves too. Organisations need to become a value driven organisation where a safe environment encourages everyone to do his/her best in the work. (Strickler, 2006)
All types of motivation do not instigate all employees in the workplace. Different levels and types of motivation is needed by different employees. Organisations need to tailor the little extras for employees to make them productive. It's certainly not necessary to be the shop that offers the most benefits just the benefits that mean the most to employees. (Eber, 2006)
2.9. COMPENSATION
According to Foot & Hook (2002) compensation can be defined as payment to be given to the employees for their work in the company. Mello, (2006) states that compensation is a strategic area which directly impacts employees in terms of selection and retention. He further states that the most important component of compensation is basic salary, then incentives and at last other perks and benefits. According to Mello (2006), when designing a compensation system the organizations must understand the concept of equity which means fairness of pay. Equity can be of three types like external, internal and individual. Internal equity means fairness of pay differentials among the various jobs within a company. External equity refers to comparison of compensation with employees working with other companies and individual equity refers to pay differentials comparison that holds same kind of jobs in the firm.
According to Jeffrey Pfeffer (1998), compensation is practiced mostly in flux and it is becoming more variable as business firms are offering more stock options than basic salary not only to top executives but also to junior managers.
Internal equity PERCEPTION External equity OF FAIRNESS
Motivation
Commitment
Individual equity
Performance
Figure: 2.6 Equity and Work Related Outcomes. (Mello, 2006)
2.9.1. Forms of Pay:

There are various forms of payment to an employee for his or her work. They can be categorised into two forms- total compensation and relational compensation. Total compensation includes cash compensation and benefits. Cash compensation include pay which are directly received in the form of cash like merit, base, incentives, bonus, etc whereas indirectly as benefits like income protection, work/life balance, allowances etc. Base Pay: Base wage is the compensation that is paid by the employer to its employee for the work he/she has performed. It is the most important element to retain an employee because it reflects that the employer is valuing the works skills of the employee. Merit Pay: This kind of pay act as an increment to actual base pay as it aims to recognise the past work behaviour of the employee. It also acts as a mean of top up to retain an employee.
Incentives: It is directly linked with the performance of the employee. However they are variable in nature as they are one time payments and do not leave an impact on the labour cost. Allowances: Allowances are part of pay package offered to an employee for his/her work in the company. Allowances often grow out of whatever is in short supply. In many countries housing allowance, transportation allowance is common. It helps to boost the morale of an employee and acts as a motivator. Insurance: Evidences show that income protection acts as a very significant factor when it comes to retaining an employee for a longer period of time in an organisation. Employers make use of medical insurance, life insurance, accident insurance to protect the employees from financial risk and give them an income security. (Milkovich & Newman, 2008)
2.9.2. Compensation Linked with Performance Management:

According to Mello, 2006, performance related pay can be defined as paying employees according to their work in the company. If they reach their targets in time and provide quality work then they are given more incentives. Performance can be individual or group based and according to the performance one is given extra commission. According to Alfred Rappaport, the top management will not be given stock options and the below average performers will also not be rewarded. The superior performers will be paid more than anyone else. The basic concept behind performance related pay is to increase the quality of the work and to reward the achievers. In this process companies also get benefited and so does the employees. Performance management is also linked with training. If the employees performance is not up to the mark then they should be given training to achieve the targets.
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PERFORMANCE MANAGEMENT TRAINING COMPENSATION
Figure: 2.7 Compensation linked with Performance Management. (Mello, 2006) Thus we can see there are so many elements which a company needs to consider retaining an employee and making the business growing. Thus, if the retention package is not dynamic and comparative then retaining employees will be a challenging issue. Right compensation package helps in selecting and recruiting best talents and retaining them over long period. Retention of employees is the toughest job for a HR department. To adopt a new strategy in order to retain employees, the companies have to first accept the new reality, the changing environment, the market and not the company. The employers should understand that shielding employees from recruiters and opportunities is not possible if a holistic and realistic retention strategy is not adopted. According to Peter Cappelli (2000), Traditional strategies for employee retention are unsuited to a world where talents run free. Its time for some fresh thinking.
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CHAPTER THREE: RESEARCH METHODOLOGY
Structure of this Chapter Research can be defined as an organised and systematic 3.1. 3.2. 3.3. 3.4. General Overview Research Design Pilot Study Sampling investigation which is undertaken to provide solutions for a problem or issue. Research gives us more insight of a problem and takes us to a solution. Research can also be defined as expansion of the boundaries of knowledge or to check the acceptability of a theory. (Zikmund, 2003) This chapter is based on the research methodology that the researcher has used to complete the research. It provides a comprehensive idea about the process of research undertaken 3.6. Data Analysis to complete this report. The methodology is of vital importance as wrong methodology can hamper the results of a research. This chapter details about research design, sampling, data analysis, methods of data collection, strategy, etc. In this research, the primary data and information were collected through the means of employee survey, customer survey and potential employee survey and also interview. Direct interviews were also undertaken to understand the real problems in the automobile industry. The researcher also depended and made use of secondary data sources like books, journal and articles. Thus in a nutshell it can be said that the researcher aims to provide detail understanding of the research methodology to the readers which will ease their understanding of the topic.
3.5. Sources and Methods of Data Collection
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3.2. Research Design:

Research design is a blueprint for gathering, measuring and analysing of data. It is a plan for data collection and analysis of the data. Research design expresses both the structure of the research problem- the framework, organization, or configuration of the relationships among variables of a studyand the plan of investigation used to obtain empirical evidence on those relationships. (Donald & Shindler, 2008, p.140) There are many types of research. It can be basically segregated according to its function. The main types of research are exploratory research, causal research, descriptive research, explanatory research, etc.
3.2.1. Choosing the Research Design:

Every research varies from one another. Research can be identified according to the objective, purpose, methods used and data analysis. All research has some specific purpose and this purpose leads the researcher to choose the particular research design which will compliment his or her study. The research types can be explained as below: 3.2.2. Explanatory Research: It can be defined as study which goes beyond description and attempts to explain the reasons for the phenomenon that the descriptive study only observed. The researcher goes beyond merely describing the characteristics, to analyse and explain why or how something is happening. . (Donald & Shindler, 2008)
3.2.3. Descriptive Research: The descriptive research aims in discovering answers to critical questions. Descriptive research goes beyond exploratory research in examining an issue as it is undertaken to ascertain and describe the characteristics of the issue.
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3.2.4. Exploratory Research: Exploratory Research is conducted when there are few or no earlier studies to which references can be made for information. The aim is to look for patterns, ideas or hypotheses rather than testing or confirming a hypothesis. In exploratory research the focus is on gaining insights and familiarity with the subject area for more rigorous investigation later. (brent.tvu.ac.uk, 2009) This study or research mainly focuses on descriptive research and explanatory research, using face to face conversations and telephonic interviews with the employees, survey questionnaires to understand employee issues and the specific factors and their association with the automobile organisation. This research also focuses on explanatory study to establish a new solution or a model at the end to improve the current scenario of staffing and retention in the automobile industry in Mumbai.
3.3. Pilot Study

According to Sekaran, (2003), Pilot study can be defined as a trial study that is conducted in order to find out the potentiality and the usefulness of the questionnaire which will be distributed to masses at a later stage. Pilot study is used in various kinds of researches in order to avoid any kind of errors at the latter half of the study. The confusing elements, the language error, problems with any statement are rectified through this study. Pilot study has been undertaken to find out whether the questionnaire is understandable and reasonable for the employees and the employer. In this dissertation report, the researcher took the advice of the supervisor, to formulate a questionnaire which had been sent to 30 respondents to understand whether the questionnaire is understandable by the respondents. Pilot study helped in getting the actual response from the respondent. The pilot study had been done in organisations like Skoda Auto, Maruti Suzuki and Mitsubishi. It was definitely of great help to the researcher. But the fact that it is a bit time consuming cannot be overlooked.
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3.4. Sampling:
Sampling involves any procedure that uses a small number of items or a portion of population to make a conclusion regarding the whole population. (Zikmund, 2003) There are mainly two types of sampling- probability sampling and non- probability sampling. Probability methods include random sampling, systematic sampling, and stratified sampling. In non-probability sampling, members are selected from the population in a nonrandom manner. These include convenience sampling, judgment sampling, quota sampling, and snowball sampling. Sampling process is used in this research as it is impossible for a student researcher to collect and analysis every available data due to limited time and other resources. Hence the researcher focused on sampling technique to ease the process of the research. In this research, probability sampling has been used where methods like random sampling, systematic sampling and stratified sampling have been used. Probability sampling techniques has been used to justify the survey based research. This research has been conducted to find out main staffing and retention related issues in automobile industry. Hence data has been collected from the present employees of some top automobile companies in Mumbai like Toyota, Hyundai, Honda, Tata Motors, etc. The data has also been collected from prospective employees and customers to get a holistic picture. 196 present employees, 56 customers and 62 prospective employees were taken into consideration while collecting data.
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3.5. Sources and Methods of Data Collection

Collection of data is a vital task in research. There are mainly two types of data, primary data and secondary data. Research is basically done by both types data to make it more comprehensive. In this research researcher used both primary as well as secondary data to make the report more comprehensive.
3.5.1. Primary Data:

According to Sekaran, (2003) primary data can be defined as the data collected firsthand for further analysis to find out solution of the problems. These kinds of data are raw in nature and have never been collected by any researcher. For example, survey, interview. In this research, Primary Data has been collected from email interviews, surveys, questionnaires and telephonic and face to face conversations.
3.5.2. Mail Questionnaires/e-mail:
A mail questionnaire survey is self administered
questionnaire set send to various respondents through mail. (Zikmund, 2003) Nowadays traditional mail is sometimes replaced with e-mails. Its advantage lies in geographic flexibility, cost effectiveness, convenience to respondents and easy to approach. In this research around 350 questionnaires were sent through post/e-mail. Three types of separate questionnaires were made to cater the need of this research. One was for present employees; another was for customers who visit automobile showrooms and lastly the prospective employees. The three types of questionnaires gave an in-depth insight into the current situation of the industry. The questionnaires were circulated with a cover letter and instruction page to help the respondents to fill up more accurately and relevantly.
3.5.3. Telephonic Interviews: Telephonic interviewing can be defined as contacting respondents through telephone to understand their instant reaction about certain questions. (Zikmund, 2003) Their emotions can be captured and real reactions can be judged by the researcher. This method is also very convenient for researcher as well the interviewee. In this
research around 12 telephonic interviews were made. 3.5.4. Face to Face Interviews: Method of administering a questionnaire that involves face-to-face interaction with the participant. In this research around 15 employees, 5 customers were interviewed face to face while the researcher made a field visit and to personally collect the post mail. (Bordens & Abbott, 2009)
3.5.5. Secondary Data:

According to Saunders, these are the data that is use in the research but have already been originally collected by someone for other purpose or objective. They are found in journals, may be in the organization itself, books, magazines, reports etc. The secondary data can be internal to an organisation and can be accessed through website, published reports or other documents. It can also be defined as data collected and possibly processed by people other than the researcher in question. In this type of data collection, data can be collected in following ways: Different automobile companys websites. Reports submitted my automobile association of India. Journals Newspapers and Magazines articles Government publications. Statistics submitted by the industry Books Census Cases on selection and retention in automobile industry in Mumbai, India. Internet.
In this research, the researcher used external secondary sources like books, journals, articles, published reports, industry statistics, literature from professional associations, automobile associations in India and companys public reports.
3.6. Data Analysis:

Data analysis refers to transferring data into information and makes it logical and meaningful. In this research data has been analysed through MS Excel and other software. Different types of data need to be analysed in different methods. After data has been collected, the next step is to analyse them to test the hypotheses. Before analysing the data it is needed to perform and undergo certain stages which ensure whether the analysis is reasonably good and productive. The stages are: Getting data ready for analysis Getting a feel for the data Testing the goodness of the data Testing the hypotheses.
(Sekaran, 2003)
3.6.1. Analysing Quantitative Data:

Quantitative research is research which includes the use of structured questions where the response options have been predetermined and a large number of respondents are taken into considerations. The sample size is evaluated by statisticians using various formulas to understand how big a sample size will be wanted for a particular population. Quantitative research is defined as the measuring of the frequency in which events occur. (Sanghera, 2008) Quantitative analysis is based on the results that are collected in numerical form and standardised data and the meaning of the results derived from numbers. This method involves diagrams and statistics to analyse the data which is collected. This method helped the researcher to find out the frequency behind particular problem that had been received from the sample. It is the analysis of numerical data. Such kind of data is displayed in the form of chart, diagrams, graph, pie-chart, etc.
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In this research, the researcher used descriptive as well as ranked categorical data for the purpose of analysis. Quantifiable data has also been used and displayed in the form of charts, bar graphs, etc.
3.6.2. Analysing Qualitative Data

Qualitative Research can be defined as collecting, analysing, and interpreting data by analysing and observing the activities of people. . Qualitative research indicates the summary, observations, meanings, concepts, definitions, characteristics, metaphors, symbols, and descriptions of things. (Saunders et al, 2007) Qualitative analysis is subjective in nature and uses varied method of collecting data and information, mainly individual, in-depth interviews and focus groups. The nature of this type of research is exploratory and open-ended. Small numbers of people are interviewed in-depth and/or a relatively small number of focus groups are conducted. (Lancaster, 2005) This type of research is less expensive than surveys and is extremely efficient in terms gaining information about individuals communications needs and their responses to and views about specific communications. It is referred to as a method of research in which the information gathered is narrative (non numerical in nature/form). This method had been adopted because helped and described what is naturally leading to the staffing and retention problem. The researcher analysed the qualitative data with the help of following stages: Categorisation:
Identifying appropriate and meaningful categories. Unitization:
Attaching useful and relevant information to categories. Recognizing and proving relationships:
This step included understanding relationship between data and proving them to solve research problem.
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Basically, the qualitative data had been analysed through summary of observation (participant), answers received through interview, questionnaire and description. At the end, the findings and the information had been summarised through software like MS Excel. In this research, personal interview, researchers personal notebook and telephonic conversation had been used. This section has provided the meaning and importance of research and the research methodology that has been used for this research. It is very important to choose the right kind of research approach and strategy and then systematically plan and design the research. The researcher has used questionnaires and interviews for collecting data, probability sampling has been used and the responses have been classified into sets and categories and analysed both quantitative and qualitatively.
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CHAPTER FOUR: DATA ANALYSIS

Structure of This Chapter
Data analysis is a process which involves gathering, modelling

4.1. General Overview 4.2. Demographic Divisions of Participants 4.3. Educational Background of participants 4.4. Automobile Company, Department, Position 4.5. Employee Management (Present Employees) 4.6. Recruitment and Selection (Present Employees) 4.7. Employee Retention 4.8. General Overview 4.9. General View of Staffing and Retention among Potential Employees 4.10. General View of Staffing and Retention among Customers 4.11. Analysis of Data from Pilot study 4.12. Overview of Data Collected Through Telephone and Face to Face Interviews.
and then transforming the data and highlighting the important information and then recommending accordingly. Analysis of data is the most important part of a research. If data are not interpreted and analysed tactfully then collection of data is of no use. In order to fulfil the objective of the research, data must be analysed relevantly to get the ultimate results. In this chapter, the researcher has analysed the data which has been collected from the survey questionnaire. The data has been collected through three questionnaires namely present employee questionnaire, potential employee questionnaire and customer questionnaire to get an in depth and holistic understanding of the staffing and retention related issues in the automobile industry as well as the companies chosen for this research. This research uses descriptive strategy which includes survey method to collect primary data and then quantitative analysis is done in order to analyse the data and present them in the form of charts, tables, diagrams, etc. There are mainly three types of questions category which has been used to collect data through questionnaire which are categorical questions, ranking questions and open-ended questions. This chapter mainly revolves in discussion of the findings from the survey questionnaire. The data has been analysed and presented strategically in this chapter to project the real issues in the automobile companies and the industry. The chapter is analysed in 4 parts- demographics, present employee, potential employee and customer to get a holistic view of the industry.
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Part A-Demographics 4.2. Demographic Division of Participants

The table 4.1 details about the total number of present employees from the four research automobile companies who have participated in the survey. Out of 196 present employees surveyed 49 employees were from Honda, 56 were from Hyundai, 49 were from Tata Motors and 42 employees were from Toyota Kirloskar Motors. Organisation Honda Hyundai Tata Motors Toyota (TKM) Total Present Employees Present Employees 49 56 49 42 196 Percentage 25% 28.57% 25% 21.43% 100%
Table 4.1: Division of Present Employees Surveyed.
Division of Employees
21% 25% Honda Hyundai Tata Motors 25% 29% Toyota
Figure 4.1: Division of Present Employees Surveyed. The table 4.2 given below explains the various categories of participants who were surveyed to get a detailed understanding of the companies and industry. Out of total sample of 314 participants, 62.42% were present employees, 19.74% were potential employees and 17.84 percent were customers/stakeholders. Category of Participants Present Employees Potential/Prospective Employees Customers/Stakeholders Total Number of Participants Nos. of People 196 62 56 314 Percentage 62.42% 19.74% 17.84% 100%
Table 4.2: Division of Total Participants Who Were Surveyed
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Division of Participants Present Employees Potential/Prospective Employees + Total (Present +Potential)
Number of Participants 196 62
258 = 56 Customers/ Stakeholders + Grand Total = 314 Table 4.3: Segregated Division of Total Participants Who Were Surveyed
Total Number of Participants

Present Employees Potential/Prospective Employees 18% Customers/Stakeholders
20% 62%
Figure 4.2: Division of Total Participants Surveyed.
Table 4.3 and Figure 4.2 above details a more comprehensive division of the total participants surveyed. Out of 314 participants, 196 were present employees, 62 were potential employees which give a total of 258 participants and the rest 56 were customers/stakeholders. The Table 4.4 below details about the male and female population segregation. Out of a total of 314 respondents 174 were male and 140 were female. Thus, it can be seen male participants were more than the female participants.
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Gender Present Employees Honda 16 33 49 Hyundai 35 21 56
Potential/Prospective Employees Tata Toyota Total 32 19 40 17 23 22 49 42 62
Customers/ Total Stakeholders Total 32 24 56 174 140 314
Male Female Total
Table 4.4: Segregated Division of Total Participants Gender Wise Who Were Surveyed
Division of Participants by Gender

Male Female
45%
55%
Figure 4.3: Division of Total Participants Gender-Wise.
Below provided table 4.5 details about the distribution of age group. This takes into account the total participants involved in the survey, the present, the potential employees and the customers. The major population of age group is between 21 years-30 years which is followed by 31 years-40 years. The age group between 41-50 years represents 12.74% and 51-60 years represents 15.29 percent. Age (Years) Present Employees Prospective/ Potential Employees Total 4 24 19 8 4 3 62 Customer/ Stakeholder Total 3 13 18 6 9 7 56 Total
Below 21 21-30 31-40 41-50 51-60 >60 Total
Honda 0 21 14 6 8 0 49
Hyundai 1 13 15 7 14 6 56
Tata 0 28 8 7 6 0 49
Toyota 0 16 12 6 7 1 42
8 115 86 40 48 17 314
Table 4.5: Segregated Division of Age group of the Participants
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Division of Participants by Age Group

5% 3% 15% 37% 13% Below21 21-30 31-40 41-50 51-60 >60 27%
Figure 4.4: Segregated Division of Age group of the Participants.
4.3. Educational Qualification of Present and Prospective Employees:

Highest Educational Qualification Attained Diploma Bachelors Degree Masters Doctorate Professional Certification Others Total Present Employees Potential/Prospective Total Employees
Honda 0 20 21 7 1 0 49
Hyundai 0 0 30 5 21 0 56
Tata 12 11 23 3 0 0 49
Toyota 14 7 6 0 14 1 42
Total 6 26 20 2 8 0 62
32 64 100 17 44 1 258
Table 4.6: Segregated Division of Educational Qualification of Present and Potential Employees.
The above table details about the educational qualification of present and potential employees. Out of 258 potential and present employees surveyed 38.76 percent holds a master degree whereas 24.80% holds a bachelor degree. The percentage of diploma holder, doctorate and professional certification were 12.40%, 6.59% and 17.05 percent respectively. Thus it can be interpreted that automobile industry employs qualified persons to handle its
operation as majority of the present employees fall under higher category of education attained like Masters.
Division of Participants( Present + Potential Employees) by Educational Qualification

0% 17% 12% Diploma 7% 25% Bachelors Masters Doctorate Professional Certification Others 39%
Figure 4.5: Segregated Division of Educational Qualification of Present and Potential Employees.
4.4. Automobile Company, Department and Position

Table 4.7 shows the division of participants who are currently employed in various departments and who are currently searching for jobs in these departments in the automobile companies. It can be analysed that maximum number of current employees and potential employees centred on marketing and sales followed by manufacturing/production, operations, Advertising/PR, Finance. Similarly, Figure 4.6 indicates that Research and Development and Human Resource departments have the lowest percentage of participations. Thus it can be interpreted that marketing department is the most lucrative among other departments followed by production and operations. It was little difficult to get the employees from the research & development and Finance department to be involved in the survey because of their busy schedule and protective zone.
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Department
Present Employees
Prospective Total Employees/ Potential Employees Tata 0 7 12 0 9 7 6 0 8 49 Toyota 5 9 12 7 0 0 7 2 0 42 Total 9 8 14 8 11 3 4 3 2 62
Human Resource Finance Marketing/Sales Manufacturing/Production Operations International Business Advertising/PR Research and Development Others Total
Honda 0 1 6 14 7 5 16 0 0 49
Hyundai 7 6 14 11 12 3 0 3 0 56
21 31 58 40 39 18 33 8 10 258
Table 4.7: Segregated Division of Present and Potential Employees in various departments.
Division of Participants (Present+Potential Employees) By Department

3% 13% 7% 15% 16% 22% 4% 8% 12% HR Finance Marketing Manufacturing Operations IB Advertising/PR R&D
Figure 4.6: Segregated Division (percentage) of Present and Potential Employees in Various Departments.
Table 4.8 and Figure 4.7 below explain the segregation of present and potential employees in different job position in the organisation. It can be analysed that 22% of the respondents are currently managers or have potential and experience to be a manager which is followed by
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SR. Executive which is 18% and Jr. Executive which is 17 %. Among the total participants technician and clerical level were the lowest. The researcher selected the population in this manner to get the correct information as far as possible. The population has been selected in the below give manner to get an overall representation of all departments and job positions. In some organisations, some levels are not surveyed due to unavailability of personnel. Department Present Employees Prospective Employees/ Potential Employees Total
Honda Hyundai Tata Toyota Total Manager 14 12 10 2 20 58 Sr. Management 5 2 10 0 5 22 Sr. Executive 8 14 7 5 12 46 Jr. Executive 6 7 14 5 10 42 Technician 0 5 1 7 2 15 Professional 0 9 1 6 7 23 Supervisor 14 7 6 14 3 44 Clerk 0 0 0 2 0 2 Others 2 0 0 1 3 6 Total 49 56 49 42 62 258 Table 4.8 Segregated Division of Present and Potential Employees in various Job Positions.
Division of Participants (Present+Potential Employees) By Job Position

1% 2% 17% 9% 6% 16% 18% 22% Manager Sr. Management Sr. Executive 9% Jr. Executive Technician Professional Supervisor Clerk Others
Figure 4.7 Segregated Division (percentage) of Present and Potential Employees in various Job Positions.
Part B- Present Employees 4.5. Employee Management (Present Employees)
4.5.1. The Policies, Rules and Regulations The policies, rules and regulations of the company are adopted and implemented in fair and consistent manner is analysed through the participants from four automobile organisations and is displayed via below given figure 4.8. Thus it can be seen that in Honda, out of 49 employees, 21 agrees and 7 strongly agrees, in Hyundai, 26 agrees out of 56 employees. In the case of Tata Motors, 13 employees strong agree and 21 employees agree out of 49 employees and in Toyota 28 employees agree and 6 employees strongly agree. Thus it can be seen that in Honda, the favourable response rate is 57.14%, in Hyundai, it is 46.42%, In Tata it is 69% and lastly in Toyota it is 80.95%. Hence it can be interpreted that in general employees are satisfied with the implementation of policies, rules and regulation in companies like Honda, Tata and Toyota. But in case of Hyundai more than 50% of employees are not satisfied with the implementation of policies. Thus the companies should continue to maintain this standard when it comes to their implementation and planning of policies, rules and regulation.
60 50 40 30 20 10 0 Honda Hyundai Tata Motors Toyota (TKM) Neutral Not Agree Agree Strongly Agree
Figure 4.8 The Policies, Rules and Regulations of the Company are adopted and implemented in a fair and consistent manner.
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4.5.2. Company Rewards Performers
Figure 4.9 describes whether the company rewards the employees who show excellent performance or not. It can be interpreted that in Honda and Toyota, employees agree to the fact that the excellent performers are rewarded appropriately whereas in Hyundai and Tata Motors, employees are not agreed. In Tata motors 57.14% of employees think that company do not reward appropriately top performers. In Hyundai, the data indicates that a mixed response where 20 employees agreed and 22 employees disagreed. Thus it can be interpreted that the fluctuation in Hyundai may be due to different opinions in various departments. In general, it can be said Honda and Toyota rewards appropriately the top performers whereas Hyundai and Tata need to improve in this category to retain top performers. Thus Hyundai and Tata need to come up with some more reward programs and benefits especially to retain their top performers as they are the assets of the company. Losing them can be a great loss for the company too.
60 50 40 30 20 10 0 Honda Hyundai Tata Motors Toyota (TKM) Neutral Not Agree Agree Strongly Agree
Figure 4.9 The Company Rewards Top Performers Appropriately.
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4.5.3. Feedback Mechanism Figure 4.10 explains whether the feedback mechanism in these automobile companies is given importance and is well managed by the HR department or not. In general it can be seen that employees are not agreed to the fact that feedback mechanism is well managed. Hence improvements are needed in all these companies in regard to feedback mechanism. Out of 49 employees surveyed in Honda, 49% thinks that feedback mechanism is not well managed. In Hyundai, out of 56 employees, 28% do not agree to the fact that feedback mechanism is well managed. 57.14% of employees surveyed in Tata Motors and 31% of employees surveyed in Toyota think that feedback mechanism in the company is an important area which is not well managed. Thus it can be interpreted that apart from Toyota, all other three companys feedback mechanism is not sufficient enough to deal with present employees. This is definitely an important area as it is closely related to the performance appraisal, commitment and motivational level of the employees.
30 25 20 15 10 5 0 Honda Hyundai Tata Motors Toyota (TKM) Strongly Agree Agree Not Agree Neutral
Figure 4.10 The Companys Feedback Mechanism is well managed.
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4.5.4. Satisfaction level of employees with the HR department in terms of Cooperation
It can be interpreted from the below given figure that employees in general are satisfied and thinks that HR department is cooperative in handling employee issues. In Honda, out of 49 employees 31 employees, in Tata, 15 out of 49 employees, in Toyota, 25 out of 42 employees and in Hyundai 34 out of 56 employees thinks that employee issues solved properly by HR department and the HR department is also very cooperative in handling employee issues. Though the level of satisfaction is low in Tata motors, yet it can be concluded that in general, this area is efficiently managed by the companies.
Figure 4.11 The Human Resource Department is Cooperative in handling Employee Issues.
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4.5.5. Conflict Resolution Mechanism Figure 4.12 explains whether conflict resolution mechanism is efficient enough to resolve employees issue or not. In can be analysed that in Honda favourable response came from 31 employees, where 6 employees strongly agrees and 25 agrees to the fact. In Hyundai, 5 employees strongly agree and 29 agree. In Tata, 2 employees strongly agree and 29 employees agree. In Toyota, 11 employees strongly agree and 20 employees agree to the fact that conflict resolution mechanism is efficient. Out of 49 employees each in Honda and Tata, negative response came from 14 and 13 employees respectively. In the case of Hyundai and Toyota out of 56 and 42 employees respectively, 12 and 10 employees respectively were not satisfied with the conflict resolution mechanism in the company. The remaining employees from the sample in all four companies gave their response neutral. Thus it can be said that though the general response is favourable yet if we interpret the data more deeply, the companies should take this parameter more seriously and should improve on it to make the conflict resolution process smoother. It is also closely connected with the feedback mechanism where employees have also showed negative responses and resentment towards the current system. So a little bit of improvement is advised.
Figure 4.12 Efficiency of Conflict Resolution Mechanism.
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4.6. Recruitment and Selection. (Present Employees)
4.6.1 Recruitment Methods
Fig. 4.13 elaborates about, from where the present employees came to know about the vacant positions. It can be seen that in Honda 30.61% of respondents came across their vacancy from print media whereas 8.92% of employees in Hyundai came across the vacancy of the position from print media. In Tata, 42.85% and in Toyota, 33.33% of employees came across their position from print media. In comparison to all other sources, after print media, company website is the most nearer parameter which is followed by employment agency, jobsite, referrals, campus placement, walk-ins and others. Thus we can see employers in the automobile industry recruit candidates mostly from company website and print media. Though they take help from employment agencies and jobsites, yet these companies mostly recruit from print media and company website. Out of 196 employees surveyed in the four organisations, 16.32 percent of employees came across their position from jobsite, 11.73 percent were referred by know persons, 1.53% came across their position through walk-ins and 4.59% of employees came across through campus placements. Thus it can be said that print media and company website are more effective and famous among employers and employees. It most commonly practised.
Toyota (TKM) Others Campus Placements Tata Motors Walk-ins Employment Agency Hyundai Referrals Company Website Job Site Honda Print Media 0 5 10 15 20 25
Figure 4.13 Recruitment Methods (vacancy of the position).

4.6.2. Efficiency in Filling up Vacancies
In Honda Motors, 16.32% of employees strongly agree, 51% agree, 32% do not agree that the company is efficient in filling up the vacancy, whereas in Hyundai, 12.5% strongly agrees, 25% agrees, 62.5% do not agrees. In the case of Tata Motors, 42.85% agrees and 57% disagrees. In Toyota, 26.19% strongly agrees, 38.09 percent agrees, 23.80% disagrees and 11.90% was neutral in their answer. Thus it can be interpreted that in Honda and Toyota, vacancies are efficiently filled whereas in Tata motors and Hyundai vacancies are not efficiently filled which makes the staffing process disruptive. Thus time management and labour Forecast and fill up is a significant factor as it directly affects the companys performance, success and operation.
Strongly Agree 40 35 30 25 20 15 10 5 0 Honda 8 0 7 16 14
Agree 35
Not Agree
Neutral
28 25 21 16 11 10 5 0 Hyundai 0 0 Toyota (TKM)
Tata Motors
Figure 4.14 Efficiency in Filling up Vacancies.
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4.6.3. Overstaffing and Understaffing Issues.
Figure 4.15 indicates that there are overstaffing and understaffing issues in the company. It can be seen that 59.18% employees in Honda agrees that there are overstaffing and understaffing issues. 38.77% in Honda do not agree to this fact at the same time. In Hyundai, 50% employees agree and 37.5% disagrees and rest opines neutral. In case of Tata Motors, 12.24% strongly agree, 61.22% agrees, 18.36% do not agree and rest opines neutral. In Toyota, 4.76% strongly agrees, 33.33% agrees, 45.23% do not agree and the rest gave their opinion as neutral. This suggests that there are overstaffing and understaffing issues in these automobile companies. In general, it can be said that though Toyota is in a better position, yet this parameter needs to be resolved to get right people at right time. Appropriate balance between demand and supply of labour is a must in todays organisation and the above companies needs to relook into this matter.
Toyota (TKM)
Tata Motors
Neutral Not Agree
Hyundai
Agree Strongly Agree
Honda
10
20
30
40
Figure 4.15 Overstaffing and Understaffing Issues.
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4.6.4. Efficiency of the organisation in filling the vacancy to the right people at the right job. The below given figure explains whether the organisation is efficient in filling the vacancy to the right people at the right job. 7.65% strongly agreed that organisation fills up the vacancy at the right time to the right people at the right job. 33.16% agrees to this fact while 39.28% thinks organisation is not efficient. 19.89% gives neutral as their answer. After analysing the below given figure, it is obvious that Hyundai and Tata Motors are not efficient in filling the vacancies whereas Toyota is more efficient than Honda. Thus, to conclude, it can be said, in general there are issues related to filling up vacancies to the right people at the right job. The HR needs to re look into this matter as person job fit is the key to a successful organisation.
Toyota (TKM)
Tata Motors
Neutral Not Agree
Hyundai
Agree Strongly Agree
Honda
10
20
30
40
Figure 4.16 Efficiency of the Organisation in Filling the Vacancy to the Right People at the Right job.
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4.6.5. Opinion of the Employees regarding the best Recruitment method. Figure 4.17 demonstrates the best recruitment method according to the employees. Though, earlier we have seen that the company prefers print media and company website to recruit employees, the employees think print media, company website and job site are the best medium to recruit employees. Hence, we can say that both the parties are giving importance in these mediums. Thus it can be interpreted that companies are doing right job in this parameter. 30.61% favours print media, 16.32% favours job site, 26.53% favours company website while rest favours other medium like referrals, employment agency, walk-ins, campus placements, etc.
Toyota (TKM)
Others Tata Motors Campus Placements Walk-ins Employment Agency Referrals Hyundai Company Website Job Site Print Media Honda
10
15
20
25
Figure 4.17 Opinion of the Employees regarding the best Recruitment Method.
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4.6.6. Strategic Approach of Selection Process. Figure 4.18 demonstrates whether the automobile companies use strategic approach in the staffing and selection process or not. In general we can say the companies are not using strategic approach in staffing and selection. If they use strategic approach of human resource then many issues relating to staffing can be minimised and the process can be more effective. 22.44% of Honda employees strongly agree that the company uses strategic approach when it comes to selection and staffing. 32.65% agrees, 34.70% disagrees and rest answered neutral. In the case of Hyundai Motors, 12.5% strongly agrees, 14.28%agrees, 50% disagrees and 23.21 percent neither agrees nor disagrees. In case of Tata, 43% do not agree and in case of Toyota only 14.28% do not agree. Hence we can further say that in Tata strategic approach are not given much importance whereas Toyota and Honda gives it importance. So the management of Tata should make their entire staffing procedure more strategic and competitive in nature.
30 25 20 Strongly Agree 15 10 5 0 Honda Hyundai Tata Motors Toyota (TKM) Agree Not Agree Neutral
Figure 4.18 Strategic approach of selection process.
4.6.7. Modern tests help in attracting and selecting best fit for the job. The below given figure shows the opinions of the current employees where they have been asked that whether modern tests like psychometric tests, behavioural tests help in attracting and selecting best fit for the job. 22.45% strongly agrees, 38.77% agrees, 13.26% do not
agrees and rest gave their opinion as neutral. Hence it can be analysed that these modern test do help in attracting and selecting talents for automobile industry which may not be in use in a large scale in these companies.
Figure 4.19 Modern tests help in attracting and selecting best fit for the job.
4.6.8. Selection of employees is fair and not biased The below given figure 4.20 displays the response rate regarding the employees opinion in relation to transparency and fairness of the selection process. The employees of Tata, Honda, Hyundai and Toyota in general opine that the selection process in their respective work place is fair and not biased. 69.38 percent of employees in these entire organisations thinks the selection process is fair and not biased whereas only 15.30% thinks it is biased and rest of the respondents neither agrees nor disagrees with this statement. Hence it can be concluded by saying though there may be some cases of unfair incidents yet in majority time the selection process is fair and not biased. Thus majority of the employees feel that the selection process is well managed by the management and it does not run the chance of inequality and unfair methods. .
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35 30 25 20 15 10 5 0 Honda Hyundai Tata Motors Toyota (TKM) Strongly Agree Agree Not Agree Neutral
Figure 4.20 Selection of Employees is Fair and not Biased. 4.6.9. Reason behind Applying in the Current Organisation. The below given figure states the reason behind employees joining their present organisation. The employees were given chance to indicate more than one reason, hence the total percentage will be more than 100. In case of Honda and Toyota, employees joined mainly because of the brand name, company ethics, training and development and career progression and job security whereas in case of Hyundai and Tata, the main reasons were brand name. Company ethics, job security and balanced work life. Thus it can be interpreted that employees want to work in an organisation which has a brand image, gives competitive salary, have strong ethics and values and career progression, gives training and development, job security and a balanced work life.
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30 25 20 15 10 5 0 Honda Hyundai Tata Toyota
Figure 4.21 Reason behind Applying in the Current Organisation.
4.7. EMPLOYEE RETENTION (CURRENT EMPLOYEES)
4.7.1 Adequate Compensation for Retention. Figure 4.23 below describes whether the automobile companies compensate adequately the employees in order to retain them for a longer period of time or not. 8.16% of employees in Honda surveyed strongly agree with the statement. 57.15% agrees, 20% of the employees do not agree and rest opines neutral. In Hyundai 10.71% strongly agrees with the statement, 66.07% agrees, 16% do not agree and rest opines neutral. In case of Tata Motors, 20.40% strongly agrees, 57.14% agrees, 28.57% do not agree and rest opines neutral. Lastly, in case of Toyota, 23.80% strongly agree, 45.23% agree, 19.04% do not agree and rest opines neutral. Hence we can say, 67.85% of surveyed employees are satisfied with the monetary compensation of the company. This parameter is well managed by automobile companies to retain employees for a longer period of time. This is definitely a good percentage. The percentage of respondents who did not agree may fall in different category of workers where
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the pay package itself is not very high due to position they hold. But monetary compensation is not an issue with the automobile industry in Mumbai.
Toyota (TKM) Tata Motors Hyundai Honda 0 10
Neutral Not Agree Agree Strongly Agree
20
30
40
Figure: 4.22. Adequate Compensation for Retention
4.7.2 Actions are taken by the management against the non-performers. In the below given figure, it has been described that whether actions are taken by the management against non-performers or not. If we combine the positive responses (strongly agree and agree), we can see that, in Honda, 69.38% opines that actions are taken and only 26.53% states action are not taken while rest neither agree nor disagree with the statement. In case of Hyundai, 39.28 persons gave positive response while 26.78% disagree with the statement. Around 33.92% of employees in Hyundai neither agrees nor disagrees with the statement. In Tata Motors, 59.18% thinks that actions are taken against non performers. 32.65% opines negative and rest opines neutral. In case of Toyota 61.90% approves the statement while rest opines either negative of neutral. Hence we can interpret that in most of the cases actions are taken against non performers. We can say employee compensate monetarily good performers but are also in the same time strict with the non-performers and actions are taken against them.
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Toyota (TKM) Tata Motors Hyundai Honda 0 10
Neutral Not Agree Agree Strongly Agree 20
30
Figure: 4.23. Actions are taken by the management against the non-performers.
4.7.3 Satisfaction Level of the Employees in Training and Development Segment. Figure 4.24 displays whether the employees are satisfied with the training and development programme of the organisation or not. Rank 1 state they are very satisfied and so on. Though earlier we have seen that many employees joined these organisations for good Training programmes, yet from the below figure it can be seen that they are not satisfied to a large extent with Training and Development programme of the company. In Honda, 12.24% are highly satisfied, 28.57% are satisfied, 57.14% are not satisfied and rests opines neutral (Rank-4). In Hyundai, 7.14% are very satisfied, 17.85% are satisfied and 73.21% are not satisfied with the Training aspect. In Tata, 67% are not satisfied and in Toyota 54.76% are not satisfied. In Tata motors and Hyundai, the issue is of more concern than Toyota and Honda. Hence we can see though some employees are satisfied with the training and Development programme of the company yet majority is not satisfied with the programme. Thus, there is a mixed response in for this question. It is suggested that organisation who have a good facility of training and development should continue to maintain that standard and the ones that do not provide this facility, should immediately work into this matter. Rank 1, Rank 2, and Rank 3 has been considered as fairly satisfied.
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50 40 30 20 10 0 Honda Hyundai Tata Motors Rank 1 Rank 2 Rank 3 Rank 4 Toyota (TKM)
Figure: 4.24 Satisfaction levels of the employees in Training and Development segment.
4.7.4 Constant Motivation is Provided by the Company. Figure 4.25 displays whether the employees are satisfied with the constant motivation provided to them by the company or not. Rank 1 state they are very satisfied and so on. From, the below given figure it can be seen that they are not satisfied to a large extent with constant motivation provided to them except for employees in Toyota. In Honda, 14.28% are highly satisfied, 38.77% are satisfied, 57.14% are not satisfied and rests opines neutral (Rank-4). In Hyundai, 8.92% are very satisfied, 25% are satisfied and 62.5% are not satisfied with the constant motivation aspect. In Tata, 63% are not satisfied and in Toyota only 16.66% are not satisfied. Thus, it can be analysed that in companies like Honda, Hyundai and Tata, constant motivation is not provided at par employees satisfaction level whereas in Toyota, employees are satisfied with the constant motivation provided to them by the company.
35 30 25 20 15 10 5 0 Honda Hyundai Tata Motors Toyota (TKM)
Rank 1 Rank 2 Rank 3 Rank 4
Figure: 4.25 Satisfaction levels of the employees in constant motivation segment.
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4.7.5 Career Progression and Promotions. Figure 4.26 shows whether career progressions and promotions are provided to the employees in the organisation or not. In general, it can be seen that employees are satisfied, if not very satisfied with the career progressions and promotions in these automobile companies. If we combine, Rank- 1and Rank-2 which shows positive response, it can be seen that in Honda, 93.87% are satisfied with career progression and promotions. In Hyundai, 62.5% gave positive response, in Tata, 65.30% approves the statement and in Toyota, 88.09% approves it. Hence, it can be concluded that automobile companies provide good career progression and promotion plans in Mumbai. The result may vary from department to department as implementation plans are not always done by all departments which makes the employees unsatisfied. Inj overall. This area is well managed by the respective companies.
40 30 20 10 0 Honda Hyundai Tata Motors Rank 1 Rank 2 Rank 3 Rank 4 Toyota (TKM)
Figure: 4.26 Career progression and promotions.
4.7.6. Action taken by the company to retain productive and top performers. Figure 4.27 states the various measures and incentives provided to the employees who are top and productive performers to retain them. From the graph below, it can be seen that mostly all these four automobile giants provide good pay package, career advancement and promotion and job security to retain them. When the employees were asked this question, they have been given choice to mark more than one element. We can see elements like equity and fairness, appreciation, freedom and autonomy are not given much to the employees which can be a negative point for the company.
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35 30 25 20 15 10 5 0
Honda Hyundai Tata Toyota
Figure: 4.27 Action taken by the company to retain productive and top performers.
4.7.7. Reasons behind lack of commitment and attachment towards the Company.
25 20 15 10 5 0 Honda Hyundai Tata Toyota
Figure: 4.28 Reasons behind lack of commitment and attachment towards the company. The above figure describes why sometimes employees do not feel attached and committed towards their respective automobile companies. In all of these companies it can be seen that
poor communication, no opportunity to express grievances, inadequate freedom and autonomy, inadequate appreciation and recognition, improper management style, inadequate training and development, equity and fairness issues are the most relevant one. These element ranges from 25-40%. Hence it can be said that the above mentioned parameters needs to be taken care as one must keep in mind that progression is not enough to retain employees. only monetary compensation and career
4.7.8. Factors for Retention or the reasons behind employees leaving automobile companies Gap Analysis.
This section provides a comprehensive overview of what is needed to retain employees in the organisation. It also discusses why employees leave the organisation. It further discusses the difference between satisfaction level and importance level of all the below mention factors to an employee. The importance and satisfaction level were measured on a four-point rating scale where rank 1 indicates low importance or dissatisfaction and rank 4 indicates high importance or dissatisfaction. All the factors above mean value of 1.50 were considered to be important. This analysis has been done to understand whether these factors are implemented up to the perceived employees satisfaction level or not. The difference between the mean scores on satisfaction and importance is the gap. The below provide table shows the mean satisfaction and importance level as well as the gap. For the purpose of analysis, researcher segregated the factors according to the response. Factors with positive gap means employees are more than satisfied and factors with negative gap indicates that the employees are not satisfied up to the importance level. Factors with Positive Gaps: Table 4.9 provides data on positive gap. This means all the factor below shows high satisfaction level among employees of these four automobile companies. The employees are satisfied more than their importance level. The employees are more than satisfied with the companys measure regarding the factors like monetary compensation, career advancement and promotion, Training and development, job security, working environment, health and safety and lastly companys reputation and image which shows a positive gap of 0.06, 0.08, 0.22, 0.28, 0.29, 0.29, 0.32 respectively. Job security, Working Environment, Health and Safety and Companys Brand Image has been seen as most satisfied in comparison to other
satisfied factors. Though we have seen previously that majority employees are not satisfied with Training programmes in Tata and Hyundai, this factor shows positive gap over here due to mixture of responses from other two companies. Hence, it can be concluded by saying that companies must maintain these factors and should give more concentration on the negative gaps.
Factors Monetary Compensation Career Advancement and Promotion Training and Development Job Security Working Environment Health and Safety Organisations Brand Name and Image
Satisfaction (Mean Score) 3.28 3.34 3.36 3.36 3.19 3.04 3.26
Importance (Mean Score) 3.22 3.26 3.14 3.08 2.90 2.75 2.94
Gap 0.06 0.08 0.22 0.28 0.29 0.29 0.32
Table 4.9 Factors with Positive Gaps
Factors with Negative Gaps Table 4.10 below analyses factors with negative gaps. The below factors indicates that though employees give utmost importance to these factors in connection to retention, yet they are not satisfied with these factors provided by the company. The gap column leads with Appreciation and Recognition followed by Job Role and Specification and Management Style with gaps of -0.77, -0.73 and -0.66 respectively. Work life balance, Equity and Fairness, Non- monetary compensation are also very important according to the employees of Tata, Toyota, Honda and Hyundai which are not up to the satisfaction level of the employees. Factors like Communication, Interesting work, Opportunity to Express Grievances, Freedom and Autonomy are also important to the employees which are satisfied by the companies at the moment. Thus we can interpret that the automobile companies should improvise their system and policies in relation to these factors and try to reach up to the satisfaction level of the employees to retain them.
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Factors
Satisfaction (Mean Score) 2.80 2.57 2.53 2.76 2.60 2.91
Importance (Mean Score) 3.33 3.34 3.11 3.23 3.26 3.30
Gap
Non- Monetary Compensation Appreciation and Recognition Equity and Fairness Freedom and Autonomy Management Style Opportunity to Express Grievances Interesting Work Communication Timely Feedback Work Life Balance Job Role & Specification
-0.52 -0.77 -0.57 -0.46 -0.66 -0.39 -0.31 -0.25 -0.38 -0.50 -0.73
2.87 3.18 2.51 2.76 2.53 2.91 1.89 2.39 2.31 3.04 Table 4.10 Factors with Negative Gaps
4.8. GENERAL OVERVIEW
4.8.1. HR related issues and problems in the Company The current employees were asked, whether in general there are HR related issues present in their company or not. It can be seen from the below given figure that Toyota and Honda generally has less than 30% HR related issues whereas Tata and Hyundai in Mumbai has more than 70% HR issues.
100% 80% 60% 40% 20% 0% Honda Hyundai Tata Motors No Yes
Toyota (TKM)
Figure: 4.29 HR related issues and Problems in the Company
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4.8.2. Current HR related Issues and Problems in the Company. From the below given chart table, it can be said that 11% issues are related to selection and recruitment related followed by Balance between demand and supply of workforce which is 10%, followed by balanced work life, equity and fairness, management style, training and development, compensation, all amounts to 9% approximately. The responses may be more than the total number of employees surveyed as they were given chance to tick multiple option in this particular question. In Hyundai and Honda most significant problem is equity and fairness whereas in Tata, lockout and strikes is more significant. Toyota has issues more relating to balanced work life. Current HR Related Issues Honda Hyundai Tata Toyota Total
13 21 29 11 Selection and 74 Recruitment Related 13 25 9 Monetary Compensation 10 57 16 14 21 12 Non Monetary 63 Compensation 9 19 23 10 Career Advancement 61 and Promotion 7 13 6 4 Safety and Security 30 18 15 14 17 Balanced Work Life 64 8 19 29 3 Lockout and Strikes 59 11 27 21 8 Balance between 67 Demand and Supply of Workforce 4 10 15 2 Management Style 31 13 15 17 11 Training and 56 Development 8 7 11 4 Appreciation and 30 Recognition 5 13 3 7 Job Security 28 1 3 14 1 Company Reputation 19 and Brand Image 19 22 9 11 Equity and Fairness 61 1 0 2 0 Others 3 Table 4.11 Current HR related issues and problems in the company.
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Selection and Recruitment Related Monetary Compensation Non Monetary Compensation Career Advancement and Promotion Safety and Security Balanced Work Life Lockout and Strikes Balance between Demand and Supply of Workforce Management Style Training and Development Appreciation and Recognition Job Security Company Reputation and Brand Image Equity and Fairness Others 3% 9% 0% 11% 8% 9% 9% 4% 10% 8% 9% 4%
4%
4%
8%
Figure 4.30 Current HR related Issues and Problems in the Company.
4.8.3. Solving of the Above Issues. Below given figure demonstrates whether the above issues are addresses by the company efficiently and promptly. It can be clearly seen that 67.43% in Honda thinks that these issues are addressed properly by the company. 71.42% states positive in case of Toyota Motors whereas in Hyundai 51.78% and Tata 42.85% states the issues are efficiently solved. Thus in general we can say that if there are issues in the companies in Mumbai, the management tries to solve them as early as possible. But according to the employees companies need to be more strategic and prompt in addressing these issues.
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100% 80% 60% 40% 20% 0% Honda Hyundai Tata Motors No Yes
Toyota (TKM)
Figure 4.31 Solving of the above issues.
Part C- Potential Employees

Potential employees has been surveyed to understand the need of the employees and to get a holistic view of current staffing process of the automobile industry in Mumbai. As these candidates are currently looking for a suitable opening in this industry, they will know the industrys staffing process better.
4.9. General view of Staffing and Retention among Potential Employees
4.9.1. The Organisation, Potential Employees Desire to Work. From the figure below, it can be said that potential employees desire to work for Toyota (46.77%) and then Honda (30.64%) followed by Hyundai, Tata Motors and other companies. The respondents were given opportunity to select multiple organisations, if necessary. Hence the total percentage may amount to more than 100%. Thus we can interpret; Toyota and Honda can be employees choice of organisation due its staffing and retention strategy. We have seen earlier that Honda and Toyota has fewer pitfalls in comparison to other two companies.
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Others Toyota Hyundai Honda Tata Motors 0 5 10
10 29 12 19 10 15 20 25 30 35
Figure 4.32 The Organisation, Potential Employees Desire to Work.
4.9.2. Vacancy of the Position The respondents were given opportunity to select multiple options, if necessary. Hence the total percentage may amount to more than 100%. The below give figure demonstrates that print media (42.32%) and company website(35.48%) is the medium from where the potential employees came across the current vacancies of the company which is followed by referrals (25.80%)and employment agency (19.35%). Thus it can be seen that referrals and employment agency also plays a vital role in todays staffing scenario apart from tradition media like print and websites.
Others Campus Placement Walk-ins Employment Agency Referrals Company website Jobsite Print Media 0
1 4 2 12 16 22 10 25 5 10 15 20 25 30
Figure 4.33 Vacancy of the Position.
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4.9.3. The Recruitment method which the potential employee thinks best. The respondents were given opportunity to select multiple options, if necessary. Hence the total percentage may amount to more than 100%. 54.83% thinks company website is the best source for recruitment as they can directly communicate with the company in seconds which is followed by print media (38.70%). Employment agency, Jobsite and Referrals are also has been shown more or less equal importance. Figure 4.34 elaborately describes the actual data. Hence these medium can be explored in innovative ways to attract talents. Hence these medium can be explored in innovative ways to attract talents.
Others Campus Placement Walk-ins Employment Agency Referrals Company website Jobsite Print Media 0
0 8 6 14 20 34 12 24 5 10 15 20 25 30 35 40
Figure 4.34 The recruitment method which the potential employee thinks best.
4.9.4. Automobile Industry in Mumbai is the best place to work. The figure 4.35 describes whether the potential employees think automobile industry in Mumbai is best place to work or not. 41.93% agrees with the statement, 16.12% strongly agrees and 33.87% disagrees with the statement. Hence it can be said that automobile industry is still a lucrative place to work for. Around 58% in average, of the respondents agree with the statement. Thus in general, it can be said that the problem is not really with the industry and the place. It is has more to do with the respective companies belonging to this industry.
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30 25 20 15 10 5 0 Strongly Agree 10
26 21
5 Agree
Not Agree
Neutral
Figure 4.35 Automobile Industry in Mumbai is the best place to work.
4.9.5. The factors for which the potential employees want to apply in Automobile Industry. From the below given table, it can be said that most potential employees want to apply in this industry because of company reputation and brand image, monetary compensation and job security which has percentage rate like 85.48%, 50%,33.87% respectively which are followed by other factors like balanced work life, career advancement, etc. Thus it is again proved that brand name; monetary compensation and job security are managed very well by all the automobile companies. The respondents were given opportunity to select multiple options, if necessary. Hence the total percentage will amount to more than 100%. Factors/Main Reasons Response
Monetary Compensation 31 Non Monetary Compensation 19 Career Advancement and Promotion 16 Training and Development 15 Appreciation and Recognition 18 Job Security 21 Proper Job Fit 9 Equity and Fairness 14 Freedom and Autonomy 13 Balanced Work Life 17 Company Reputation and Brand Image 53 Others 5 Table 4.12 The factors for which the potential employees want to apply in Automobile Industry.
4.9.6. Training and Development is important to me. Below given figure shows how important training and development is with the prospective employees. It can be seen 29.03% thinks it is very important (Rank-1), 48.38% thinks it is fairly important (Rank-2) and rests opine either neutral or not important. Hence we can conclude that training and development is very important for the employees. Automobile companies should maintain their training efforts or should improve wherever and whenever necessary to satisfy employees. Training is directly related to performance level of an employee which in turn is related to the incentives provided to the employee by the company and finally affects the retention of the employee.
30 25 20 15 10 5 0 Rank 1 18
30
Rank 2
Rank 3
Rank 4
Figure 4.36 Importance of Training and Development.
4.9.7. Constant Motivation is important for me to perform better. Figure 4.37 elaborates how important constant motivation is for performing better. The potential employees state that constant motivation is very important for them. 35.48% states it is very important (Rank-1), 50% (Rank-2) states it is fairly important and rests opine either neutral or not important. Thus it can be interpreted that automobile companies should constantly motivate to make the employees perform better. As we have seen earlier, this segment is lacking in respect to employees satisfaction level and needs to be more strategized.
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40 31 30 20 10 0 Rank 1 Rank 2 Rank 3 7 2 22
Rank 4
Figure 4.37 Importance level of constant motivation to potential employees.
4.9.8. Importance level of Career Progression and Promotions. According to potential employees, 71% states that career progression and promotions are very important to them (Rank -1) while 21% (Rank-2) states it is fairly important and rests gave opinion as neutral and not important. Thus we can say 92% of the respondents think it is important for them to join a company which will provide them career progressions and promotions. This segment is already been well managed by automobile companies in Mumbai. The companies should maintain this standard.
50 40 30 20 10 0
44
13 3 Rank 1 Rank 2 2
Rank 3
Rank 4
Figure 4.38 Importance levels of Career Progression and Promotions to potential employees.
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4.10 General view Customers/Stakeholders
of
Staffing
and
Retention
among
Customers and stakeholders play a vital role in automobile companies in Mumbai. Customer analysis is done as customer visits car showrooms and service centres and directly deals with employees over there. Hence, then can give more detail whether these employees are well groomed and trained and motivated enough to handle customer queries and issues.
4.10.1. Ownership of Brand of Vehicle. Below provided pie-diagram shows the brand of the vehicle customer owns and visits the showroom/service centre. The response percentage may be more than 100% as a single customer can buy more than one vehicle of same company or different companies. It can be seen that 32% of the customer owns Tata Motors vehicle followed by Honda. 17%, and Toyota which is 15%. This indicates that customers visit these car companies directly or indirectly in some point of time and deal with the employees.
Brand of Vehicle Customer/Stakeholder Owns

5% 5% 13% 17% 15% Tata Motors 13% 32% Toyota Honda Hyundai Maruti SuzuKi Mercedez Benz Others
Figure 4.39 Brand of vehicle customer/stakeholder owns.
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4.10.2. Motivation Level. The customers were asked about their opinion regarding motivation level of employees when they visit these automobile companies. Out of 56 respondents, 4 thinks they are very much motivated, 22 thinks they are motivated. 14 respondents think they are little motivated while 16 of them thinks they are not motivated. In general, the response is mixed. Overall, 50% opines favourable while rests think little motivated or not motivated. Hence we can conclude by saying that motivation should be given more importance to boost up employees morale.
25 20 15 10 5 0 Very Much Motivated Motivated Little Motivated Not Motivated 4 14 22 16
Figure 4.40 Motivation levels of employees.
4.10.3. Working Environment. From the below given figure, it can be said that 19.64% of customers think the working environment is excellent, 26.78% thinks it is good, 42.85% thinks it is average while rest thinks it is poor. (10.71%) it can be analysed that though majority thinks that the working environment is proper, yet a major portion thinks it is average. The companies should improve on creating a healthy working environment as it boosts morale of the employees. This segment needs to be improved.
30 25 20 15 10 5 0
24 15 11 6
Excellent
Good
Average
Poor
Figure 4.41 Working Environments.

4.10.4. Satisfaction of Needs. The figure 4.42 describes the satisfaction level of the customers in regard to employees. The respondents were asked whether they think the employees are well qualified and trained to satisfy their needs or not. 21.42% strongly agrees with the statement, 39.28% agrees, 28.57% disagrees and rest opines neutral. Hence it can be said that majority of the respondents think that the employees are well trained and qualified to satisfy customer needs. Previously, we have seen that adequate Training and Development is given to employees to work properly. Thus it can be again said that there is little or no problem in these companies in regard to Training and development. .
25 Percentage 20 15 10 5 0 Strongly Agree Agree Opinion Not Agree Neutral
Figure 4.42 Satisfactions of Needs.
4.10.5. Right Fit for Job. The respondents were asked whether they think that the employees are rightly fit for the job that they are assigned to in the office/showroom or not. Figure 4.43 describes the result. If we combine strongly agree and agree, 48.21% thinks they are well fit for their job while 41.07 disagrees and 10.71% opines neutral. Thus it can be analysed that though majority thinks the employees are right fit for the job yet, a major portion of customer thinks they are not fit for the job they currently doing. Hence the selection and recruitment process must be altered or look into to get right employee for the right job. It needs to be more wholesome, detailed and strategic in nature.
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25 20 Percentage 15 10 5 0 Strongly Agree Agree Opinion Not Agree Neutral
Figure 4.43 Right Fit for the Job.
4.10.6. Complains. The customers were asked whether any employees ever complained to them about the company issues or not. From below given diagram it can be seen that 61% customers has never experienced any situation where employees discussing or complaining company issues with them while 39% has experienced this kind of situation though majority response indicates that employee do not discuss company issue with outsiders yet a major portions discuss, may be due to frustration or other reasons, we can say complaining nature can be seen when employees are not adequately motivated or compensated.
39% 61%
Yes No
Figure 4.44 Complains.
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Customers were then asked that if they have ever complained, what the issues they have complained about are. It can be seen that mostly, monetary and non-monetary compensation were focussed in their complains. As the customers deals with various type of employees, there may be different responses from them. Though non-monetary factor can be a nature of complaint but monetary issues are not a problem in this industry that we have seen earlier. Employees can complain if they are not satisfied with the below mentioned factors. But as customers deal with even a technician or clerk or a cleaner, they might not express their views properly to them. But there is problem regarding, freedom and autonomy, feedback, job fit etc, which needs to be attended. Figure 4.45 below elaborates the nature of complain.
40 35 30 25 20 15 10 5 0
Figure 4.45 Types of Complains.
4.10.7. Employee Empowerment. Figure 4.46 explains customers opinion regarding employee empowerment. The surveyed customers were asked to answer whether employees they deal with are empowered to a certain extent to satisfy customer needs or not. It can be analysed that 61% thinks that they are not empowered while only 39% thinks they are empowered. It is a very common scenario where we see employees often discuss various matters or negotiations regarding purchase and servicing of cars with their superior before giving an answer to the customer. This indicates that they are not empowered adequately to give an answer to the customers. Employees need
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to be empowered as it directly linked with motivation level. The automobile companies should improve on this segment.
39% 61%
Yes No
Figure: 4.46 Empowerment.
4.11 Analysis of Data from Pilot Study
In this dissertation report, the researcher took the advice of the supervisor, to formulate a questionnaire which had been sent to 30 respondents to understand whether the questionnaire is understandable by the respondents. Pilot study helped in getting the actual response from the respondent. The pilot study had been done in organisations like Skoda Auto, Tata Motors, Maruti Suzuki and Mitsubishi. From the pilot study, the researcher understood that the questionnaire is quite understandable by the respondents and the respondents answered appropriately. The data collected from pilot study is not included in the data analysis as this pilot study has been done to understand whether the respondents are able to understand the questionnaire or not. It has been found, the questionnaire was easily understandable by the respondents. Hence the researcher finally dispatched the main questionnaire to the respondents.
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4.12 Overview of Data Collected through Telephonic Interview and Face to Face Interview
In this research 15 face to face interviews were conducted with the employees of automobile companies like Tata Motors, Hyundai, Toyota and Honda and 5 face to face interviews were conducted with the customers. The researcher mainly conducted face to face interview to understand the behaviour and reaction of the employees and customers. It has been found in general, that the employees were less motivated and they always mentioned that their worklife balance is not at par their satisfaction level. They also mentioned repeatedly, that they could perform better if they are empowered. They are also not satisfied with the non-financial rewards. Though they think that selection process is fair and strategic to a certain extent yet, in general, they think it should also be improved. All the employees feel proud working in these top automobile companies and they also do not have any complaints regarding basic salary. Customers also pointed out that sometimes their issues are not resolved as the employees are not empowered to solve a critical situation. In general customers think the automobile companies are doing well in relation to staffing and retention. The researcher conducted telephonic interview with 12 employees and the answers are tabulated in the main analysis as they were very comprehensive. From, the telephonic interview, the researcher came to know that though in general, employees are happy working in the company yet they consider that if retention issues and unionisation issues are resolved strategically, then they would feel more committed towards their respective companies. Thus it can be seen that though some segments are quite well management by these automobile companies, yet some segments relating to Human Resource needs to revamp in order to get productive and talented employees and retain them for longer period of time.
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CHAPTER FIVE: RESEARCH FINDINGS AND DISCUSSIONS

This chapter aims to provide a comprehensive discussion of data
Structure of This Chapter 5.1. General Overview
and findings which has been derived for the purpose of this research. The data analysis and literature review chapter will be focussed to discuss the findings of this research. Data collection has no meaning if it is not interpreted and analysed relevantly.
5.2. Discussion and Findings on Human Resources Management
This chapter aims in discussion of the findings and to get an overall scenario of Staffing and Retention Issues in Automobile Industry in Mumbai, India.
5.3. Discussion and Findings on Staffing
5.2. Human Resources Management

5.4. Discussion and Findings on Retention
Armstrong, (2001) stated that Human resource managers aim in motivating and making the staffs committed so that their services
5.5. Discussion and Findings on Potential Employees Data
and performance can be maximised. Strategic approach in HRM requires adopting a well planned selection, staffing, retention and
5.6. Discussion and Findings on Customers Data
performance measurement systems because only through these competencies can the HR professional take a strategic approach to HRM. (Noe et al, 2006)
The Human Resources policy and regulations are formulated by headquarters of the respective automobile companies. The question lies whether these policies are implemented and looked after effectively by the Mumbai Office or not. The discussion here is about the practice of these regulations in Mumbai offices. All these writings by eminent authors in books and reports shows that the companies generally have an effective human resource policy formulated but the question lies whether these policies are implemented effective and strategically in Mumbai offices. For the practiced, the researcher conducted questionnaire survey and interviews. The data analysis obtain from the survey shows that most of the employees in Honda, Tata and Toyota
are satisfied and agreed in general, that the policies, procedures and regulations are fairly implemented. Only in case of Hyundai, the response is mixed. 50% of the employees do not agree in general. Thus it can be interpreted that except Hyundai, all the other three companies manages this segment up to employees perceived level. The Human Resource department is also fair and effective in resolving conflicts. The conflict resolution mechanism is also strong to resolve conflicts effectively. The findings also show that there is less opportunity; in general, to express grievances for the employees and also feedback mechanism is poor in general. If employees are not allowed to express grievances, then their morale becomes very low. Feedback helps the employee to improve in his/her work or to get motivated. In general, feedback mechanism is also poor in these organisations. Hence, these two segments are not managed up to employees perceived satisfaction level and should be re strategized. The findings also show that apart from Tata Motors, HR department and personnel are cooperative with fellow employees in resolving individual HR related issues. In Tata Motors only 15 out of 49 employees opines positive. In general, it can be said that most of the time HR department and personnel are cooperative in handling employee issues. Thus, in general it can be said that these macro level HRM are well managed and well developed in automobile companies in Mumbai and also practiced effectively. The rest of this chapter will show how well staffing and retention issues are managed in these organisations at a micro level.
5.3. Staffing
As mentioned in Literature Review, Staffing is a process which ensures right number of people at right time and in right place to achieve the goals of the organisation. Staffing process includes HR planning, job analysis, job description, recruitment and selection. Successful campaign is also a must to get the right fit suitable for the organization. According to Cappelli (2002) selection and retention are the two sides of the same coin as it is interrelated and interconnected with one another. Generally, HR planning and job analysis is not very much effective in these automobile companies. Findings and data analysis shows that 45% of employees in these organisations are not satisfied with the effectiveness of HR department in filling up vacancies. In Tata
Motors and Hyundai the problem is severe than Honda and Toyota. There are also major issues present in these companies relating to overstaffing and understaffing. 59.18% agrees in Honda that there are overstaffing and understaffing issues, 73.46% of employees agrees in Tata, 50% agrees in Hyundai and 38% agrees in Toyota. Thus it shows that overstaffing and understaffing issues are not well managed by the companies. This also indicates that there are vacancies and employees are not recruited in proper time. In general, it can be said that though Toyota is in a better position, yet this parameter needs to be resolved to get right people at right time. The findings also show that Hyundai and Tata Motors are not efficient in filling the vacancies to the right person in right job in right time whereas Toyota is more efficient than Honda. Thus, to conclude, it can be said, in general there are issues related to filling up vacancies to the right people at the right job. . A correct use of multiple regression technique can help in estimating of future requirement of workforce. As said in the literature review that Job analysis is one of the main pillars of staffing process. There are many methods of job analysis like position analysis questionnaire, the task analysis inventory, the job analysis system, etc. The performance of the employee is measured and evaluated on the basis of the work performed in the job. So these factors need to be integrated to avoid this deficiency in future.
5.3.1 Recruitment Method and Approach

Now, we will check the recruitment method and style of these automobile in relation to recruitment and selection. From the findings, it can be seen that the recruitment method adopted by the automobile companies focuses mainly on recruitment through company website and advertisements in print media. The employees also think that these methods are more effective than others. Though some employees think new methods of recruitment like jobsite, referrals, employment agency plays a vital role in todays recruitment scenario, yet in general employees think traditional methods are better than modern ones. According to responses adopted, the print media and company website are the best way to reach the employee and employer effectively. The companies also prefer these methods. Employees were asked also about how strategic their company is when selecting employees. Apart from Toyota, majority employees of other companies stated that the companies do not adopt or practice a strategic approach in selection process.
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In literature review, we have seen that Selection involves the strategic series of steps by which the candidates are screened for choosing the most suitable persons for vacant posts. Having conducted the recruitment process the next step for a company is to select the ideal candidate from the available number of people applying for it. (Erickson et al 2005) From the analysis and findings it has been found the automobile companies in Mumbai do not follow a strategic approach while conducting selection and recruitment of employees. Hence this segment needs to be strategized and revamped in order to attract best talents. It has also been found that in general, selection is fair and not biased in the automobile companies in Mumbai. But there are some few instances where due to political and union pressure, management were forced to recruit certain candidates who are not competitive enough. Even if the recruitment and selection is not that strategically managed, however it is very much transparent, fair, equitable and biased free in nature. The objectives of the selection process is well stated by the management and is clear and the various steps of interview, tests and other selection procedures is followed and managed in a transparent manner. Thus the hypothesis, It is likely that the selection process of the automobile companies lack transparency and is biased proved to be null and void. From the data analysis, it has been found that most of the employees joined automobile companies in Mumbai due to its brand name, career progression plans, job security and company ethics and values. We will test all these factors in this chapter.
5.3.2 Training and Development

In the segment of training and development, it data shows that in Tata motors and Hyundai, the issue is of more concern than Toyota and Honda. Hence we can see though some employees are satisfied with the Training and Development programme of the company yet majority is not satisfied with the programme.
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5.3.3 Overstaffing and Understaffing Issues

Some previous cases also show that automobile companies like Hyundai in Mumbai recruits manpower more than they needs in the time of boom and ultimately fire them during recession in large numbers.
In general, recruitment and selection of these organisations can be improved by dealing with overstaffing and understaffing issues, strategising the selection and recruitment process and moreover strategizing the whole staffing process in more innovative ways to attract best talents. As the HR department is not very efficient in filling vacancies in right time, this issue must be resolved in an effective manner to attract talents as well as in retaining them. Hence it can be further interpreted that Hr planning and job analysis should also be improved to a large extent. In todays competitive world, if vacancies are not filled in time and if the right person for the right job is not selected then there will be performance and motivation related issues in these organisations. This calls for an immediate improvement and strategised selection and staffing process with proper interviews, tests, checks. As already mentioned in the literature review, organisations needs to focus on future forecast and accordingly plan and estimate the number of staffs needed. The hypothesis which mentioned, It is likely that there are no strategically developed selection procedures which enable to attract right fit for the job in appropriate time in the company, and It is likely that there are overstaffing and understaffing issues present in the automobile companies are hence proved.
5.4. Retention
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 diverse needs. Replacement costs usually are 2.5 times the salary of the individual.... (Workforce Planning for Wisconsin State Government, 2005) High profits and fast-paced growth dont tell the full story about many companies in Indias economy. The flip side of the coin shows a continuing struggle with talent management, namely sky-high rates of employee turnover. (Nancherla, 2009. p.20)
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5.4.1 Compensation
Thus from literature review we can see that retaining employees is the toughest job for a HR department. The following paragraphs will discuss how efficient the HR department of automobile companies in Mumbai is in retaining employees. Previously, in the problem statement we have seen retaining employees in automobile industry is one of the biggest challenges. Compensation plays a vital role in retaining employees. After the data analysis, we have seen that monetary compensation is not an issue in automobile companies as these companies are big multinationals. 67.85% of surveyed employees are satisfied with the monetary compensation of the company. This parameter is well managed by automobile companies to retain employees for a longer period of time. Monetary compensation is adequate and the employees have not really highlighted any issues regarding the basic pay. However to make the compensation package more competitive, non monetary benefits, allowances, incentives, rewards and other forms of pay needs to be integrated and included. Thus the hypothesis, It is likely that inadequate compensation packages in the automobile companies are accelerating the retention problem proved to be null and void.
5.4.2 Motivation
Motivation is another pillar in retaining employees. From the analysis, it can be said that in companies like Honda, Hyundai and Tata, constant motivation is not provided at par employees satisfaction level whereas in Toyota, employees are satisfied with the constant motivation provided to them by the company. Thus motivation strategy needs to be revamped as it is not at par employees satisfaction level in comparison to importance level. Though, in general, career progression and promotions are well managed by these companies in order to retain employees yet the result may varied from department to department as implementation plans are not always done by all departments which makes the employees unsatisfied. From the findings of data, it has been proved that elements like equity and fairness, appreciation, freedom and autonomy are not given much to the employees which can be a negative point for the company. These above factors are vital for an employee to retain in a company. Only monetary benefits are not enough in todays competitive world.
It can be interpreted that, factors like autonomy and freedom, equity and fairness, appreciation and recognition are not given to employees at par to their satisfaction level. Employees also sometimes do not feel attachment to the company because of inadequate nonmonetary compensation, improper job fit, inadequate freedom and autonomy, improper management style etc. We have seen that monetary compensation, career advancement and promotion, training and development, job security, working environment, health and safety, are well managed by the automobile companies but the problem lies in managing nonmonetary compensation, autonomy and freedom, equity and fairness, appreciation and recognition, interesting work, communication, feedback, management style, work life balance etc. Companies like Toyota and Honda though successful to a large extent in managing these severe problems yet companies like Hyundai and Tata Motors failed to implement proper strategy in the above mentioned parameters and hence their employee turnover rate is high. We have further seen that Toyota and Honda generally has less than 30% HR related issues whereas Tata and Hyundai in Mumbai has more than 70% HR issues. Balanced work life, equity and fairness, management style, training and development, compensation, all amounts to 9% individually for the current issues relating to retention. Retention should be the main objective of a company irrespective of the brand name. A company cannot run for a long time without retaining best talents across departments. Managing retention is a vital issue as nowadays many companies are finding it difficult to maintain the minimum staffing requirement due to competitive market. As mentioned in the Literature Review that Todays worker need challenges, career advancement programme, good fit with their managers, differentiated pay package, chance to work for a company with inspiring leader and with organization which has dynamic vision, mission and goals. (Arthur, 2001), we have seen that many of these factors are not well managed by the automobile companies in Mumbai. The researcher also stated in literature review that Retention can be considered as decisive test of good hiring. While employers think that retention is all about chasing money, with increasing salary and shortage of talents but many research shows other than salary and benefits the attachment of an employee with the organisation is a vital element of retention which comes from intangible rewards like pride, personal touch of the manager, prospects of professional growth, etc.
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Though tangible rewards are well managed by Tata, Toyota, Honda and Hyundai, yet intangible rewards are not well managed. Employees are not empowered; they lack in freedom and cannot take decision independently. They also are not satisfied with the communication and feedback channel of the company. Also these factors have been proved in data analysis. Researcher also conducted a gap analysis where the important factors for retention were tested. It has been seen from the gap analysis that monetary compensation, career advancement and promotion, training and development, job security, working environment, health and safety, are well managed by the automobile companies but the problem lies in managing non-monetary compensation, autonomy and freedom, equity and fairness, appreciation and recognition, interesting work, communication, feedback, management style, work life balance etc. Thus the hypothesis, Factors like lack of, motivation, appreciation and recognition, communication, freedom and autonomy Management style etc is likely to be the reason behind the high employee turnover rate and Drivers like blend of financial and non financial rewards, equity and fairness, interesting work, job role and specifications, work life balance tend to act as retention drivers for an automobile industry employee proved to be true.
Number of cases and studies previously has also shown that major area of problem in Honda Motors and also in automobile industry in Mumbai is having an inadequate motivated and inspiring workforce who is not fully dedicated towards the company and hence resorts to switching over of jobs constantly. Employees are not taken care of properly and retention and selection strategies are not adequate which results in union intervention and chaos in production process. Companies like HYUNDAI MOTORS AND TOYOTA KIRLOSKAR MOTORS faced these problems.
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5.5. Discussion on Potential Employees Data

The researcher has also conducted a survey on potential employees and customers to get a holistic view of these companies and also automobile industry in general. Potential employees has been surveyed to understand the need of the employees and to get a holistic view of current staffing process of the automobile industry in Mumbai. As these candidates are currently looking for a suitable opening in this industry, they will know the industrys staffing process better. In general, the potential employees also came to know about the vacancies mostly from company website and print advertisements. The respondents were given opportunity to select multiple options, if necessary. Hence the total percentage may amount to more than 100%. 54.83% thinks company website is the best source for recruitment as they can directly communicate with the company in seconds which is followed by print media (38.70%). Employment agency, Jobsite and Referrals are also has been shown more or less equal importance. The potential employees applied in companies like Honda, Hyundai, Tata and Toyota mainly due to brand name; monetary compensation and job security. Thus it is proved once again that these segments are well managed by the companies. Potential employees thinks that promotions and career advancement, Training and Development and Constant Motivation is very much important to them for retention. We have discussed earlier though career advancement and promotions are well managed by the automobile companies, yet motivation and communication and performance appraisal still needs to be revamped. Thus the researcher can suggest that as potential and current employees thinks that motivation and related intangible rewards needs to be given adequately to them, hence they should improvise on it immediately. Non- financial rewards need to be considered strategically as researches and studies show, todays employees emphasize on non-financial rewards more than financial rewards. However monetary compensation is adequate and satisfactory.
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5.6. Discussion on Customers Data

As mentioned earlier, the researcher has done a customer survey as Customers and stakeholders play a vital role in automobile companies in Mumbai. Customer analysis is done as customer visits car showrooms and service centres and directly deals with employees over there. Hence, then can give more detail whether these employees are well groomed and trained and motivated enough to handle customer queries and issues. When customers were surveyed regarding motivation level of employees, overall, 50% opines favourable while rests think little motivated or not motivated. Hence we can conclude by saying that motivation should be given more importance to boost up employees morale. Customer also thinks that the companies should improve on creating a healthy working environment as it boosts morale of the employees. Though employees were satisfied with the environment yet customers thinks it needs to be improved. Customers were also interviewed to find whether the employees are fit for their job or not. Though majority thinks the employees are right fit for the job yet, a major portion of customer thinks they are not fit for the job they are currently doing. Hence the selection and recruitment process must be altered or look into to get right employee for the right job. Customer also faced situations where employees complained about their non-monetary compensation and other HR issues to them. Customer also thinks employees need to be empowered in order to satisfy their needs instantly. Thus it is again proved that the issues which were focussed and highlighted by the employees, are also been highlighted by the customers and hence these issues need to be resolved and revamped as early as possible. Finding the main issues relating to staffing and retention will not only help the organisation to attract best talents and retain them, it will also help them in earning more profits as employees can only earn profits for the company with the help of a give quality product. The issues highlighted must be corrected as early as possible to manage a well productive team of employees.
Based on the analysis and discussion, the next chapter moves on to recommend the Automobile Industry in Mumbai, India on the issues related to Staffing and Retention.
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CHAPTER SIX: RECOMMENDATION AND CONCLUSION

Structure of This Chapter
This chapter aims in providing a comprehensive recommendation to the main issues that are faced by Automobile Companies in
Mumbai, India. The chapter will also provide a proposed model which can be useful to solve the issues. The recommendation will
6.2. General Recommendation
followed by the conclusion and thus the readers will get a comprehensive view on the industry, the issues and the
6.3. Recommendation Related to Staffing Issues
recommendation to overcome the issues.
6.4. Recommendation Related to Retention Issues
6.2 General Recommendation

The general and overall recommendation for the automobile companies is that, though there is a systemic procedure of selection
6.5. The Proposed Staffing and Retention Model
6.6. Conclusion
and staffing of staffs, yet they should be more strategic while staffing employees. The staffing process must be more strategic to get the right fit for the available vacancies and to attract and get best talents. The companies should follow a strategic approach in order to solve the current issues as traditional methods of handling staffing may not be feasible in this fast paced world.
In the case of retention, we have seen that, employees are switching industries and companies in order to take better opportunities. Retention is the major issue in the automobile industry. Though the basic compensation to the employees are given, yet from the study we have found that basic salary is enough to retain employees, however problem is with the non financial factors as these equally play an important role in motivation and retaining employees for a longer period of time. The companies should retain the employees through proper package which should consists Training and Development, bonus, incentives, stock ownership schemes, perks, retreats, etc. Career progression and development needs to be more strategically implemented so that the employees are promoted from one position to another
according to their performances in regular intervals. Communication process should be made smooth by introducing methods like open forums and suggestion boxes, as it helps to improve credibility, communicate on a regular basis and most importantly abolish the fear of reprisal. Social ties should be strengthened as it helps to reduce the turnover rate to a large extent. A balanced workforce and environment who is time to time recognised, appreciated and mentored by its management is the key to success and survive in this fast paced world. The following pages of this report are aimed to recommend specific solutions in the area of staffing and retention along with a strategic model.
6.3. Recommendation Related to Staffing Issues

Staffing and selection is a rationale and a proper set of rules and procedures by which employers indentify the most qualified individual for a specific job role. The current staffing issues can be overcome to a large extent if the following recommendation is taken into consideration. (Berry, 2003)
6.3.1 Strategically Integrate Staffing Strategy with Company Objectives:

Before starting with selection, the company should integrate the company objectives with the staffing process. The problem arises when there is no integration. Successful campaign is also a must to get the right fit suitable for the organization. External and internal environment plays a vital role in determining the staffing practices, therefore it needs to be scanned before developing any particular process. The staffing process should start with: Development of Selection Measurement and Criteria Plan: The Company should develop selection measures at par their need and company objectives and policies which assess various attributes which are specific for the job and from there they should find candidates who matches those attributes. Test of Ability and Knowledge: This step involves testing employees in the areas of expertise, ability, knowledge, skills through various methods like interview, Differential Aptitude tests, personality tests, Wonderlic Personnel Tests, etc. The testing will give detailed information about the potential candidates and then the employer can choose the best fit from it.
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Development of Assessment Procedure: The final stage is to evaluate the candidates and finally selecting them for the job. The assessment procedure must integrate with the company policies and objectives and according to that employees should be recruited. (Dibble, 1999)
6.3.2 Improve Human Resource Planning:

The automobile companies need to revise and revamp the current system of human resource planning as there are issues relating over staffing and understaffing. Environmental scanning must be done before planning. The HR department should scan the internal and external environment and then estimate the employee requirement and then finally plan their staffing and selection procedure.
6.3.3. Develop a Strategic Job Analysis and Job Design Procedure:

The automobile companies need to strategically develop recruitment and selection procedure in order to get the best talent and right fit for the job. The recommendation in following areas can solve issues to a great extent. Improved Job Analysis and Job Design: Before starting the recruitment method, the HR department must get a comprehensive view about the job and how the job will be performed. Job description and specification must be analysed strategically to get a comprehensive overview of the job. The below mentioned methods are recommended to have a comprehensive job analysis: Task Inventory Analysis: This method will help in finding the essential tasks of a job. By specifying tasks, the method grounds the job analysis in the realm of observable work behaviour. This analysis will help in job study and thus the results will indicate what kind of candidate is needed for the particular job. Questionnaire Development: the questionnaire should be formed where rating scales are constructed according to the kind of information needed. The questionnaire then should be distributed internally, and the analyst should get a comprehensive view of the job.
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In this way, the companies should come to know about whom to target and recruit, and the potential employees will also come to know what is expected from them and what the exactly the job position requires. (Berry & Wadsworth, 2003) A correct use of multiple regression technique can help in estimating of future requirement of workforce. If the workforce is available within the company, then there is no need of recruiting new manpower but if the data shows that the current workforce is not sufficient due to reasons like retirement, transfers of present employees then planning regarding recruitment of new personnel is required.
6.3.4 Improve Recruitment Style:

After analysing whom to target for a specific position, the challenges lie in deciding which source of recruitment is to use to get the right kind of people. In this report we have seen various recruitment methods which can be used. Though print media, company website and job sites are mostly used in the automobile companies, yet they are recommended to explore other channels which are more productive. The various sources of recruitment which automobile companies can explore: 1. Referrals: Many researches show that word of mouth and referrals gives best talents to the company. This method also saves lots of time and cost for the company yet giving best talents. The companies should adopt Refer- a- Friend scheme where employees can recommend deserved candidates to company and in return they can get a commission.
2. Head hunting: Head hunting is recommended as best of the potential candidates can be searched by this method. Not only for senior employees but to recruit fresher also, is head hunting a good source.
3. Use of Specialised Agencies: Use of specialised recruitment agencies can help in getting good talents. There are recruitment agencies which are specific and specialised in getting talents like IT recruitment, Marketing Professional Recruitment, Banking
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Recruitment, etc. These agencies can provide exact requirement for the company to fill a vacancy. (Berry & Wadsworth, 2003) 4. Internal candidates: Most of the vacancies are filled up by internal candidates of the company. This method is recommended as the employees performance is already known by HR department, training requirement are known, and the employees are already adapted to companys culture and also they have working relationships and networks established. This method will help the company to fill up vacancies in emergency and also it saves time and cost.
The researcher recommended these mentioned sources as they are not been explored much by the automobile companies.
6.3.5 Improve Selection and Recruitment Process

The selection process needs to be improved as there are issues relating to attract right fit for the job in appropriate time in the company. A comprehensive and strategically developed selection process can help to overcome the current issues. The following 6-stage selection process is recommended by the researcher: Stage One Screening and sort listing of Application: A sizeable pool of applicants indicates that the company have choices in the hiring process. Screening ensures best fit for the organisation. When screening applications, the HR should focus on potential red flags like employment gaps, lengthy description of education which indicates less job experience; too much personal information which indicates less education and experience, etc. HR personnel should be involved in short listing the candidates independently, favourable applications should be ranked and applications should be separated according to some agreed criteria. Sometimes, telephonic conversation can also help in screening of application in the first stage for any clarification purpose.
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Stage Two Job Ability Test: Before face to face interview which is common, the researcher recommends an ability test for the potential candidates which should include psychological testing, job ability testing, intelligence testing and personality testing. These testing will evaluate whether the candidate is fitting in every aspect of the job. It is highly recommended that all testing are given importance and done without missing anyone as these testing have their own merit and results which at last can be evaluated through ranking or score system. Stage Three Face to Face Interview: The candidates, who meet the requirement of the above tests, then should be called for an interview. We often see there are many rounds of interview. But according to the researcher, the automobile companies should arrange one interview where department heads and HR personnel will evaluate the candidate simultaneously. This will save time as well as unnecessary delay. Both structured and unstructured interviews need to be performed. Stage Four Group Exercise Method: This method aims to assess the leadership quality of the candidate because such kind of information cannot be easily judged through form fills up and resumes. It is a round table interview in a group where many candidates sit together and interviewers judge them after giving a topic to discuss among themselves. (Foot and Hook, 2002)
Stage Five Reference Check and Health Checks: After the potential candidates pass all the above stage, finally reference and health checks are needed to evaluate the criminal records, health condition, etc.
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Stage Six Final Assessment and Job offer: The result of each of the above mentioned stages needs to be finally integrated and then decision needs to be taken. The assessment should be done according to the integrated result and not on one particular parameter. the measurement must be done according to ranking and scales like ration scales, nominal scales, score ratings, etc. After tabulating all the scores, final job offer needs to be given to the deserving candidates. This six stage selection process will overcome selection and recruitment related issues to a great extent. As we have seen that there is no strategically developed selection procedures which enable to attract right fit for the job in appropriate time in the company, these comprehensive stages will overcome the issue. The issues relating to selection and recruitment starts with Hr planning and employee forecast for future. If there is adequate employees in the organisation then hiring more employees will result in overstaffing, hence in this case the employees should be trained more frequently and they should compensated and motivated from time to time, so that they do not leave the company. If the numbers of employees are shortage, then the company should recruit more employees according to the recommendation given above. And in case there is overstaffing in the company, then strategic approach like early retirement, transfer can be adopted. The company can also in this situation retrench non-performers giving them a notice. When hiring new employees, the employer should first do job analysis by analysing the task and duties of the job and then find suitable candidate who have the necessary skills to fill that vacancy. The potential candidates also need to be informed about the job description and specification. Job analysis and specifications are important as it helps in attracting right talent for the job. The recruitment sources like referrals, head hunting should be given more emphasis apart from print and web media as they help in searching right talent and avoid unnecessary applications. If the above mention solutions are followed in the automobile industry, then problem relating to overstaffing and understaffing, no strategically developed staffing procedure can be overcome. The reasons why the above steps are recommended as the response rate from data analysis showed that the main areas of issues in staffing was the lack of strategically
developed selection process, poor HR planning and outdated recruitment methods. The recommended four steps in HR Planning, Job Analysis and Design, Recruitment and Selection, if integrated can provide a strategic Staffing style.
6.4. Recommendation Related to Retention Issues

Retention is a challenge faced by many worlds renowned companies in todays world. If retention and selection are managed properly then the companies will get first class human assets for doing the business. (Harvard Business Essentials, 2002) Retention starts with job description, recruitment, selection and orientation. It begins long before an employees first day on the job. (Dibble, 1999) In the findings and analysis we have seen various retention related issues which are present in the automobile companies in Mumbai, India. The challenge lies in managing retention and keeping the best talents in the company for a longer period of time. The following recommendations are suggested by the researcher to keep the best talents in the company. We have seen that employees do get good basic salary in these companies. Hence basic salary or basic compensation is not an issue. Factors like lack of motivation, appreciation and recognition, communication, freedom and autonomy is likely to be the reason behind the high employee turnover rate. Drivers like blend of financial and non financial rewards, equity and fairness, interesting work, job role and specifications, work life balance which are important to retain an employee are also not adequately present in the automobile companies.
The following recommendations are suggested by the researcher to keep the best talents in the company.
6.4.1. Facilitate more Training and Development:

The automobile companies should emphasize more on training and development process as they are instances where employees cannot handle customer issues. The training process must be integrated with the performance management and compensation schemes to motivate the employees and encourage them. Continuous learning must be incorporated at all levels of management so that change management, if needed can be handled with ease. Training can
help to undertake specific roles, tasks and duties by the employees. Skill Training will definitely improve capabilities and efficiencies in the long run. To have a better and more equipped workforce, programmes like mentorship, job rotation, task based assignment, classroom based training, computer based training, coaching, strategic training etc, should be incorporated by every organization to put a check on turnover rate. They can incorporate degree programmes and skill workshop to equip the employees with more skills and knowledge which will make them more competitive.
6.4.2. Improved Work Life Balance:

Work life balance is the vital element to retain an employee. Enable employees to pursue personal interest along work is utmost needed. The following measures are suggested to maintain a good work life balance. 1. Flexible Timings: For many job roles, work can be performed at any place with any people. Giving employees flexibility yet accountable for results can be the best way to retain employees. (Dibble, 1999)
2. Holidays and Recreation: if employees are given chance to go for vacations and spend time for their family, they get good motivation as they are provided with paid time off to spend with their families.
6.4.3. Improved Communication:

Communication between various levels of the organisation is vital to retain employee. Employees want good communication between colleagues and also all levels of management. Hence, automobile companies must improve their communication channels through various means. Researcher suggests the following means by which communication barrier can be minimised. Feedback Session/Forms: The companies must hold feedback sessions where employees are free to give their opinions and also discuss their problems with supervisors or colleagues or higher authorities. This will definitely help in reducing the bridge between management and employees and also employees will be able to come closer to fellow colleagues. This kind of
session is important because not just the issues and problems get solve but also help them to feel that their voices are being heard and they feel importance in the organization. (Vecchio, 1995) Communicate on a regular basis: The employees should be constantly updated about the various happenings of the organization in times like mergers, acquisition, downsizing, promotions, social gatherings, etc. this would make them feel that they are wanted in the organization and communication becomes easy in all levels. Company Newsletter: The organisations are recommended to issue company newsletters to all employees. Newsletter should contain all relevant information regarding new hiring, promotion options, company achievements, employee achievements, interviews, etc. This can be a good platform to reduce the communication barrier. Speak Easy programs: The employee should not feel restricted to talk to management. This would help companies to break the ice between employer and employee. Management wants to hear what you have to say.. So speak easy. Bulletin Boards: Another challenging yet simple strategy which automobile companys HR managers can use to enhance the employees performance and to overcome communication barrier is to post their current performance data in the bulletin boards and compare it with the external competitors or the internal teams within the company. This will help to reduce the gap between the top-level management and the employees.
6.4.4. Increase Freedom and Autonomy:

The analysis shows the employees are not given much freedom and autonomy in their work place. Freedom and autonomy if given in a big scale yet controllable by management can help to retain employees as they will think that they are valued and given responsibility to perform more. Freedom and autonomy, if given can also solve many customer related issues instantly. The employees should be given power to decide about particular matters without consulting the higher authority when not needed. Employee empowerment helps to retain employees for longer period of time as they feel important in the organisation.
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6.4.5. Increase Motivation:

If employees are not motivated, they will not stay in the organisation at any cost. Motivation management is the vital element to retain employees. Employee needs to be motivated in order to perform. Motivation is an issue in automobile industry. The researcher recommends the following the overcome motivation related issues in the organisation. Maintain Healthy Competition and create high standards to motivate others: Automobile companies should create rooms for their employees to excel. They should compete against the goals and not with each other. Employees always wants to get a picture about what company wants from them, the ways of measuring their performance, and what they will get after achieving those. The companies should create a transparent policy of measuring performance and rewarding the employees. As each plateau is reached, they should set new goals.
Retreats: The human resource team of automobile companies can take their employees to relaxing places and discuss about their business projects along with entertaining activities like various games, music, ice-breaking sessions, etc. which will help the employees to come close to their superior and also will help to form a bond among their colleagues. Retreats are effective form of communication and motivation. This will help in bringing employees and management together so that both can perform well to achieve organizational goals without any disruptions. Establishing a Healthy Working Environment: Working environment plays a vital role in motivating employees. A healthy working environment like hygienic environment, safe and secured environment motivate employees. There should be various services for employees in the workplace like automated teller machines (ATM), fitness facilities, library, health clinic, and canteen etc, where employees can use these facilities to make work more enjoying. (Mello, 2006) Appreciation and Recognition: All employees need appreciation and recognition for them to get motivated. We have seen previously that there is less appreciation and recognition given to employees in automobile companies. If appreciation and recognition is given then
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employees feel more motivated and work harder for the organisation. The employees can be recognised and appreciated by the following ways: Employee of the month: Top performers can be given employee of the moth award where employer can post the employees name and photo in notice board, newsletter etc. Simple Thank You or Well Done praise: A simple thank you or well done praise by the manager to his employees can motivate employees to a great extent. This simple appreciation can help employees to stay longer in the company. Certificates/Gift Cards: Certificates: if given to top performers can motivate them. Gift cards also are a good tool to motivate employees. They will feel the attachment and feel recognised for their work. Promotions: Promotions of employees in regular intervals will recognise them for their efforts and hard work in the company. If they are promoted, they will think that they are needed by the company and they will feel the belongingness towards the company. They will also in this way satisfy their career goals and objectives.
6.4.6. Retention through Monetary and Non Monetary Measures:

Money plays the vital role in retaining employees. In case of automobile companies, we have seen though basic salary is not an issue, yet the companies are orthodox in providing other monetary compensation like perks, insurance, incentives, bonus, profit sharing options, and etc. The researcher recommends the following to retain employees through monetary measures apart from basic pay. When they formulate a pay package they should make fair use of: Internal equity External equity Individual equity.
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The compensation package should be according to: The job ranking Job classification
The employees should be given a wholesome compensation package to retain them. Mere high basic pay is not enough. The compensation package should consist:
1. Bonus: Employees should be given bonus when companies make high profits or at least in festive seasons.
2. Insurance: All employees want them to get protected from health related issues. Hence providing them good medical insurance, accident insurance can help them to retain in the company. 3. Perks/Incentives: Various incentives like shopping vouchers, gift vouchers, and performance based incentives are very much needed in a wholesome compensation package.
4. Allowances: Allowances often grow out of whatever is in short supply. In many countries housing allowance, transportation allowance is common. It helps to boost the morale of an employee and acts as a motivator. 5. Stock Ownership: Stock ownership is an innovative way to retain employees. According to the performance, if stocks or shares of the company are given to employees, then they can gain good amount of money according to market situation in future. They will also feel as owner of the company. 6. Profit Sharing: When companies make profit with the collective efforts of the employees, the management should share a portion of profit amongst employees as employees work hard to run a business. Profit sharing options should be incorporated to the junior employees also as they also plays a vital role in making organisation success. (Martocchio, 2008)
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We have seen from analysis that employees do not get a wholesome compensation package. This make employees leave. Thus the researcher in previous paragraphs suggested certain compensation techniques which if provided can make employees happy and help them to retain the organisation. Though some automobile companies give good compensation package or some elements of it, but from the analysis it has been found that potential employees and current employees gives utmost importance to above given recommendation. Hence if the researchers recommendation is taken into consideration, many staffing and retention related issues can be overcome.
6.5 The Proposed Staffing and Retention Model

The researcher also proposes a model which consists of strategic staffing and retention for improving the Staffing and Retention related issues in Automobile Companies in Mumbai. This model is flexible and can be adjusted according to company policies and culture. Little customisation of the model in different automobile companies can resolve many issues.
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Scanning of the Environment

Company Policy Company Objectives and Mission HR Policy HR Strategy HR Goals HR Roles
INTEGRATION
STRATEGIC STAFFING PROCESS
Development of Selection Measurement and Criteria Plan Development of Assessment Procedure Human Resource Planning Strategic Job Analysis and Job Design Procedure
EMPLOYEE SHORTAGE
EMPLOYEE SURPLUS
RECRUITMENT THROUGH VARIOUS SOURCES PROMOTION TRANSFER SCREENING JOB ABILITY TEST
RETRENCHMENT EARLY RETIREMENT SCHEMES TRANSFER
INTERVIEW
GROUP EXCERCISE
JOB OFFER
OTHER CHECKS AND TESTS
RETENTION AND EMPLOYEE MANAGEMENT STRATEGIC COMPENSATION PACAKAGE PERFORMANCE MANAGEMENT TRAINING AND DEVELOPEMENT MOTIVATION MANAGEMENT
FIG. 6.1 STAFFING AND RETENTION MODEL FOR AUTOMOBILE INDUSTRIES IN MUMBAI (SELF CREATED)
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The above model describes the solution to the current staffing and retention issues in the Automobile Industry in Mumbai, India. This model can be customised according to company needs and specifications and also provides a base to further studies by other researchers. The model suggests that before implementing any strategy, the companies must conduct an internal and external environment scanning. Company policies and objectives must be integrated with HR policies relating to staffing and retention. After environment scanning and integration of company policies with HR policies, a strategic staffing process must be adopted where HR planning and forecasting is a vital element. According to the HR planning and forecast, if there is manpower shortage, then new recruitment should be undertaken according to above model and if there is excess of manpower, then appropriate actions like early retirement, transfer, etc, must be adopted. To retain employees, the company must integrate strategic compensation package with performance management, motivation and training and development. Overall, the model is at par with the previous recommendations and is self explanatory. With all these recommended steps, automobile companies can have best talents working for them for a longer period of time and also have a highly motivated and productive workforce.
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6.6 Conclusion
This research mainly covered the issues and problems relating to staffing and retention in the automobile industry in Mumbai, India. Further research can be done to improve this research and to get new insights. The problem which automobile industry is facing today is much similar to other industries. After basic study and ground work, the researcher collected data from various sources and analysed it. After getting the insights of the issues the researcher provided recommendation with a model. These researched organisations generally have an effective Human Resource policy in relation to staffing and retention of manpower. There are also gaps in their strategy and hence these gaps were pointed out with appropriate recommendation so that these companies can improve on that. Though the policies are quite strategic in nature, yet implementation of those strategies in branch offices in a Mumbai were not adequate. There are no strategically developed selection procedures which enable to attract right fit for the job in appropriate time in the company and there are overstaffing and understaffing issues present in the automobile companies. Factors like lack of management style, motivation, appreciation and recognition, communication, freedom and autonomy is likely to be the reason behind the high employee turnover rate. These problems were causing various issues in the organisations. On retention, researcher suggested that the companies should retain the employees through proper package which should consists Training and Development, bonus, incentives, stock ownership schemes, perks, retreats, etc. Career progression and development needs to be strategically implemented so that the employees are promoted from one position to another according to their performances in regular intervals. On staffing, the researcher suggested that the staffing process must be more strategic to get the right fit for the available vacancies and to attract and get best talents. The staffing and retention process must be integrated with company policies else the implementation will never be possible. It can be said that money is not the answer while dealing with retention issues. Poor morale, low productivity and high turnover rate cannot be compensated with money. Employees wants something beyond money. They need opportunity, safety, challenge and motivated work environment. Retention of employees begins with staffing process. Staffing and retention is interrelated. Recommendations are made so that improvement can be done in the areas of staffing and retention management.
Hope this study found and analysed successfully some of the real issues highlighted by the employees. Based on those findings, hope the researcher has recommended relevantly in order resolving these issues. To conclude, it can be said that employees are the most valuable asset of any automobile company. Employees can make a real difference in the company. Talents must be identified and should be given room to excel. Without right people in the right job role a company cannot smell and attain success. Retention should be managed well to keep the right people and getting rid of unwanted ones. One can dream and create a great place for work but highly talented and motivated manpower is needed to make the dream touch reality.
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By Choudhury Soumik
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A Critical Study Into Employee Staffing and Retention issues in Automobile Industry in Mumbai, India

Choudhury Soumik 1st December, 2009. Singapore

CHAPTER ONE: INTRODUCTION

1.1. General Overview

This dissertation is conducted to identify and gain an in depth

1.1.1. Introduction to Staffing and Retention

1.2. Introduction to Automobile Industry in Mumbai, India:

1.3. Introduction to India and Mumbai

Figure: 1.2 Map of India

Figure: 1.3 Partial Map of Mumbai (source: Lonelepnanet.com)

1.4. Introduction to Company Chosen:

1.5. Problems and Issues

1.6. Significance of the Research Problem:

1.7. Potential Application and Implication:

1.8. Research Objectives:

1.9. Statement of Purpose:

1.10. Aims of the Study:

1.11. Research Questions:

1.12. Research Hypothesis:

1.13. Limitations of the Study:

TIME: Finishing the dissertation in 5 months was a tough challenge.

1.14. Structure of the Dissertation:

CHAPTER TWO: LITERATURE REVIEW

2.2. Introduction to Human Resource Management

2.3. Strategic Human Resource Management

2.4. Review on Staffing

2.5. Review on Retention

2.6. Review on Training and Development 2.7. Review on Communication

2.8. Review on Motivation

2.9. Review on Compensation

2.2. INTRODUCTION TO HUMAN RESOURCE MANAGEMENT:

HR ROLES AND OBJECTIVES:

PERFORM ANCE HUMAN RESOURCE STAFFING MANAGEMENT

LINE MANAGER S CONSULTANTS / ADVISORS HR SPECIALISTS

Fig.2.1. Various HR roles and objectives (Source: Torrington et al, 2002)

2.3. STRATEGIC HUMAN RESOURCE MANAGEMENT:

The Process of Staffing includes: 2.4.1. HR PLANNING:

2.4.2. JOB ANALYSIS AND DESCRIPTION:

2.4.3. JOB DESIGN:

2.4.4.1. METHODS OF RECRUITMENT:

GATHERING OF RELEVANT DATA.

ORGANIZE AND ANALYSE THE DATA

ACESS AND MEASURE EACH CANDIDATE FORECASTING FUTURE PERFORMANCE

PROVIDE RELEVANT INFORMATION TO THE CANDIDATE

CANDIDATE DECIDES WETHER TO ACCEPT /REJECT JOB OFFER

Figure: 2.3 Objectives of Selection Process (Self Created)

2.4.5.1. Selection Process:

Some other supplementary selection techniques:

2.5.1. Importance of Employee Retention

2.5.3. What Workers Want:

2.5.4. Why Employees Leave:

The most common reasons can be:

Job is not what the employee expected to be:

Stress from overwork and work life imbalance:

New job offer:

2.5.5. MANAGING RETENTION

2.5.6. Techniques Used to Retain Employees:

2.5.7. Job Sculpting:

2.5.8. Job Customisation:

2.6. TRAINING AND DEVELOPMENT:

Fig. 2.4 Strategizing Training (Mello, 2006)

2.8.1. Herzberg's Theory of Motivators and Hygiene Factors