A Study of Employee Attrition and Retention

at Fenesta Building Systems (DCM Shriram

Ltd.)

DISSERTATION PROJECT (Synopsis)

AS A PART OF COMPLETION OF DEGREE OF

MBA

UNDER THE SUPERVISION OF:

SUBMITTED BY:
Dr. Akshay Kumar Satsangi
Singh

Tripti
MBM
137645

DEPARTMENT OF MANAGEMENT
FACULTY OF SOCIAL SCIENCES

DAYALBAGH EDUCATIONAL INSTITUTE

(DEEMED UNIVERSITY)
A Study of Employee Attrition and Retention at Fenesta Building Systems (DCM Shriram Ltd.)

DAYALBAGH, AGRA-282005
May, 2015

Table of Contents
CHAPTER 1 - INTRODUCTION

3
1.1Attrition
3
1.2LITERATURE
REVIEW
4
1.3NEED OF THE
STUDY
6
1.4OBJECTIVE
6

CHAPTER 2- RESEARCH METHODOLOGY

7
2.1
SAMPLE
.7
2.2 TOOLS OF DATA
COLLECTION
7
2.3 RESEARCH
DSIGHN
8
2.4 HYPOTHESIS

..8

A Study of Employee Attrition and Retention at Fenesta Building Systems (DCM Shriram Ltd.)

A Study of Employee Attrition and Retention at Fenesta Building Systems

(DCM Shriram Ltd.)
1. Introduction:
Attrition is a critical issue and pretty high in the industry these days. Its the major problem which
highlights in all the organizations. Though the term ATTRITION is common, many would be at a loss to
define what actually Attrition is, Attrition is said to be the gradual reduction in the number of employees
through retirement, resignation or death. It can also be said as Employee Turnover or Employee
Defection Whenever a well-trained and well-adapted employee leaves the organization, it creates a
vacuum. So, the organization loses key skills, knowledge and business relationships. Modern managers
and personnel administrators are greatly interested in reducing Attrition in the organization, in such a way
that it will contribute to the maximum effectiveness, growth, and progress of the organization.
Retaining employees is a critical and ongoing effort. One of the biggest challenges in having managers in
the place that understands it is their responsibility to create and sustain an environment that fosters
retention. Staff requires reinforcement, direction and recognition to grow and remain satisfied in their
positions. Managers must recognize this and understand that establishing such fundamentals demonstrates
their objectives to support nature and motivate their employees.

A Study of Employee Attrition and Retention at Fenesta Building Systems (DCM Shriram Ltd.)

Employee attrition refers to the loss of employees through a number of circumstances, such as resignation
and retirement. The cause of attrition may be either voluntary or involuntary, though employer-initiated
events such as layoffs are not typically included in the definition. Each industry has its own standards for
acceptable attrition rates, and these rates can also differ between skilled and unskilled positions. Due to
the expenses associated with training new employees, any type of employee attrition is typically seen to
have a monetary cost. It is also possible for a company to use employee attrition to its benefit in some
circumstances, such as relying on it to control labor costs without issuing mass layoffs. There are many
different ways for a company to lose employees, most of which are typically taken into account to ensure
that the organization is able to operate efficiently. Attrition refers to the loss of employees due to reasons
other than firing and other employer-initiated events. This means that an employer has no direct control
over how many personnel are lost to employee attrition. Retirement is one major cause of employee
attrition, and since people tend to retire around a specific age this is a factor that can be accounted and
planned for. Other causes of employee attrition, such as personnel who quit due to prolonged illness,
dissatisfaction with the company, or other reasons, can be more difficult to estimate.
This study is an outcome of the topic called A study on Employee Attrition and Retention at Fenesta
Building Systems (Gurgaon). The main objectives of this study is to know the reasons, why attrition
occurs, to identify the factors which make employees dissatisfy, to know the satisfactory level of
employees towards their job and working conditions and to find the areas where Fenesta lagging behind.
1.2 literature review:
In the journal- Work organization, HR practices and employee retention in Indian call centers written by
Bob Russell and Mohan Tithe laid emphasis on specific aspects of HR practice for their effect on
retention in the very different context of Indian labor market. The findings suggest that the contribution
of HR to employee retention is a necessary but not sufficient condition for retention in the context to
Indian call centers. (Written in 2010)
Another journal- The Impact of HR practices on employees turnover intention researched by Choi Sang
Long and Panniruky Perumal discusses extensively on the impact of human resource practices that can
alter the negative effect on the organization due to high employees turnover. Issues encountered may be
in the areas of shrinking pool of entry-level workers, individual differences, use of temporary workers,
productivity and competitiveness, retirement benefits and skills development. (Written in June 2012)
In the journal- Role Perception and attrition rate in IT industry written by Anonymous focused on role
perception, for that ORS was chosen as the psychometric test had to be administered. The additional test
A Study of Employee Attrition and Retention at Fenesta Building Systems (DCM Shriram Ltd.)

of ASUFA(Attrition of Success and Faliure) was administered to understand if the locus of control of the
employees play a role in the attrition rate of the organization . A more detailed and in-depth study of role
stress and the effect it has on the morale of the employee, will fetch the best result in terms of reduction of
attrition rate. The study also showed that the Locus of control has a high positive correlation with the
attrition rate.
In the journal- A Relationship between Organizational climate, Employee personality and intention to
Leave. Written by Liew Chai Hong and Sharan Kaur found that organizational climate has a significant
association with employees intention to leave. The entire four organizational climate dimensions had
significant negative correlations with employees intention to leave. (Published in International Review of
Business Research Papers in June, 2008)
In the journal-Employee attrition and Retention: Exploring the dimensions in the urban centric BPO
industry researched by Santoshi Sen Gupta aims to produce a model for employee retention conjoining it
with other aspects of perceived attitudes viz. employee motivation, employee satisfaction, employee
involvement and life interest and work compatibility etc. Researcher tried to study the variables with the
help of few management theories. (Written in 2010)
In the journal- Attrition and Retention of employees at Greenville Fire Rescue written by Eric T Griffin
deals with a problem of employees leaving the organization after receiving training and job preparation.
conjoining it with other aspects of perceived attitudes viz. employee motivation, employee satisfaction,
employee involvement and life interest and work compatibility etc. (written in October 2006)
In the journal-The Effects of Employee Development Programs on Job Satisfaction and Employee
Retention written by L. Karen Shelton analyzes the significance of employee development on job
satisfaction and retention; it also takes account into business success. The study determined that training
and development increase employee satisfaction and are significant in an employees decision to stay with
a company. It also indicated that the impact of training decreases without the organizational culture to
support employees in the development process. (Written in may 2001)
Ravi Bapna, Alok Gupta, Amit Mehra and V. Sambamurthy in their research paper Attrition of IT
workers in the context of offshore outsourcing: the Economic impact of training explains that IS
professionals working within business firms primarily seek to contribute to their firms effective
leverage of IT. They are motivated to make strong internal contributions, but do not typically
contribute

directly

to

revenue

and

are

often considered

to be cost centers.

A Study of Employee Attrition and Retention at Fenesta Building Systems (DCM Shriram Ltd.)

In contrast IS professionals working in an offshore outsourcing context, such as in the Indian IT/ITeS
industry, are evaluated primary y on their ability to generate revenue. (Written in 2008)
In the journal- Factor affecting employees turnover and job satisfaction: A case study of Amari hotels and
resorts researched by Assoc. Prof. Manat Chaisawat came out with some interesting findings. He
clarified that the highest influencing factors affecting employees turnover was the insufficient tools and
resources to do the daily job, followed by inadequate recognition and rewards for a job well done, the
benefits received were not met with the employees needs, the salary and responsibilities were not
compatible and the career path advancement was not compensate for lack of salary increase.
Another journal Attrition and retention of employees in BPO sector written by Ankit Srivastava, Yogesh
Tiwari, Hradesh Kumar identifies the root causes of attrition and retention in BPOs, analyzing the level
of employee motivation, satisfaction and involvement, generate a model for maximizing sustenance of
employees in the organization and come up with concrete recommendations, which will eventually be
valuable to the organizations to retain their employees for a long term. They have also analyzed it through
Human Resource Management theories.
In the journal- Analysis of impact of attrition rates in Hospitality Industry written by Ms. Sugandha
Mahajan analyzes the impact of attrition rates in hospitality, their cause and remedies. The secondary
data collectedin the research clearly shows that hospitality has highest attrition rate, As per interview
taken of HR manager of hilton chester hotel shows that attrition rate is 30%. (Written in 2010)
1.3Need of the Study:
The success of any organization depends largely on the workers, the employees
are considered as the backbone of any company. The study is mainly undertaken
to identify the level of employees attitude, the dissatisfaction factors they face in
the organization and for what reason they prefer to change their job. Once the
levels of employees attitude are identified, it would be possible for the
management to take necessary action to reduce attrition level. Since they are
considered as backbone of the company, their progression will lead to the
success of the company for the long run. This study can be helpful in knowing,
why the employees prefer to change their job and which factors make employee
dissatisfy. Since the study is critical issue, it is needed by the originations in order
to assess the overall interest and the feelings of the employees towards their
nature of job and organization. This study can be helpful to the management to
A Study of Employee Attrition and Retention at Fenesta Building Systems (DCM Shriram Ltd.)

improve its core weaknesses by the suggestions and recommendations. This

study can serve as a basis for measuring the organizations overall performance
in terms of employee satisfaction.
1.4Objective of the Study:

To know the satisfaction level of employees towards their job and working conditions at

Fenesta.
To identify the factors which make employees dissatisfy about companys policy and norms.
To identify the attrition rate in Fenesta and satisfaction level of employees at workplace.
To give the major recommendations to management to reduce attrition in Fenesta.

2. Research Design
Research Design i.e. the method of research adopted is Exploratory Research. This research focuses on
variables that affect the attrition rate in Fenesta Building Systems. The various variables considered in
study of research are:

Job Satisfaction
Organizational Commitment
Leadership
HR Practices

I will try to study the levels of attrition rate in Fenesta with respect to the above mentioned variables by
examining and explaining the changes be it positive or negative in the attrition rates with regard to the
changes in the variables that may or may not affect the attrition rate in Fenesta.
This study was designed with a mixed methods approach to optimize the understanding of attrition in
TWO PHASES:
A Study of Employee Attrition and Retention at Fenesta Building Systems (DCM Shriram Ltd.)

 Interviewing the ex-employees (within past one year)

Surveying the existing Agents with less than 1 year job duration
Universe:
The universe comprises of Fenesta Building Systems (Gurgaon, HO ).
2.1 Sample:
The sample size refers to the number of items to be selected from the universe to constitute a sample. The
sample size used for the study is proposed to include 50 employees from different departments/functions,
roles/positions and locations of Fenesta (Gurgaon, HO).
Employees of Fenesta are to be chosen through Stratified Random Sampling from different
functions/roles, units and locations for gaining a clear picture.
2.2Tools of data collection:
Both primary and secondary data will be used for the project.
Primary data: primary data is that which is collected for the first time and thus happens to be original in
character. In this study primary data is to be collected through:
1. Interviewing the ex-employees (within past one year)
2. Surveying the existing Employees with less than 1 year job duration with the help
of a Questionnaire.
Questionnaire survey: In this study a questionnaire shall be prepared. The questionnaire shall consist of a
set of questions that shall be circulated among the employees.
Secondary data: it refers to the data that has already been collected. The secondary data, which are
needed to be used to carry out this study, are as follows:

Previous records containing information regarding employees.

Other relevant study materials and websites.

2.3 Data analysis design:

The feedback from 50 respondents of different positions/functions, departments/units shall be recorded in
a descriptive manner (through charts and tables) and analyzed in terms of their effectiveness and scope
for future improvement if necessary. As I took 4 variables on which study is based, hence it is important
to know the relation between all four and objective, so I will use correlation and T-test for this.
A Study of Employee Attrition and Retention at Fenesta Building Systems (DCM Shriram Ltd.)

Correlation will tell us how strong or weak is the relationship between the variables and objective of our
study.
2.4 Hypotheses:
H1: There is a significant relation between age and attrition of the employees at Fenesta.
H2: There is a significant relation between educational qualification and attrition of the employees at
Fenetsa.
H3: There is a significant relation between experience and attrition of the employees at Fenesta.
H4: HR practices are responsible for attrition rate in Fenesta.
H5: People are satisfied at their work place.
H6: People are happy with their leaders.
H7: Organization commitment does influence attrition rate of Fenesta.

A Study of Employee Attrition and Retention at Fenesta Building Systems (DCM Shriram Ltd.)