DECLARATION

I hereby declare that this Dissertation titled A study of applicability of advanced

employee retention strategies for middle management level in small and medium
scale software enterprises in Bangalore. submitted by me to the Department of
Management, Bangalore University in partial fulfillment of requirements of MBA
programme is a bonafide work carried by me under the guidance of Prof. A.M Tatti.
This has not been submitted earlier to any other University or Institution for the award
of any degree diploma / certificate or published any time before

MATHEW ABRAHAM

Place: Bangalore
Date:

CERTIFICATE FROM GUIDE & HEAD OF THE INSTITUTION

Certified that this dissertation entitled A study of applicability of advanced
employee retention strategies for middle management level in small and medium
scale software enterprises in Bangalore Submitted in partial fulfillment for the
award of MBA Degree of Bangalore University was carried out by Mathew Abraham
under the guidance of Prof. A. M Tatti. This has not been submitted to any other
University or Institution for the award of any degree/diploma/certificate.

GUIDE
DEAN
MBA department

PRINCIPAL
Place: Bangalore
Date:

ACKNOWLEDGEMENT

First and foremost, I praise and thank God Almighty from the depth of
my heart, which has been the source of strength in the completion of
this project work.
It is my profound concern to thank the principal, Fr. Josekutty P.D, M.
Com, Kristu Jayanti College who offered me this opportunity of infinite
possibilities of knowledge.
I further express my deep sense of gratitude to Prof. A.M.Tatti,
coordinator of MBA department, Kristu Jayanti College for his constant
guidance, encouragement and valuable help.
It had been an enriching experience to learn about employee behavior in
organizations and I am grateful for the courtesy extended to me by
members of the organizations I visited.
I am also thankful to my parents and friends for their encouragement
and support
Finally I would like to express my sincere gratitude to all those who
spent their valuable time for providing necessary data for this study.

Mathew Abraham

I. EXECUTIVE SUMMARY
HR professionals all over the world, working in IT industry are breaking their heads
to formulate retention strategies, but nothing is working in their favor. The average
attrition rate in this sector is still 35-40%. There are many employee retention
strategies are available in the industry. In this study the researcher is particularly
interested in three retention strategies and its applicability in the industry. The
strategies are:
1. Unique organizational structure strategy
2. Variable benefit strategy
3. Internal advertisement strategy
The research is aimed to find out the applicability of these strategies in the
Industry. Two questions are answered by the research:
1. Whether the strategies are applicable in the industry?
The research is analyzing the ability of the small and medium scale
industry to implement the retention strategies mentioned above.
2. If applicable, to what extent these strategies are going to solve the
problem of employee attrition in the industry.
The research also provides insight in to the exact percentage of
solution offered by the retention strategies.
Questionnaire survey is used for collecting primary data. Statistical tools used for
analysis are Chi-square test and Sign test. The sample size is 50. The research shows
that there is a relationship between Positional benefits and employee retention in the
organization. It also concluded that internal advertisement cannot be used in the small
and medium scale software enterprises.

Mathew Abraham

CONTENTS
Chapter No
1

Details

Page

INTRODUCTION

No
1-20

1.1

The factors affecting employee attrition

2-2

1.2

Retention - a big challenge

3-4

1.3
1.3.1
1.3.2
1.3.3
1.4
1.4.1

Retention strategies
Unique organizational structure strategy
Variable benefit strategy
Internal advertisement strategy
The concepts
Applicability of Unique organizational structure

4-17
5-9
9-16
16-17
18-20
18-19

1.4.2
1.4.3

strategy
Applicability of Variable benefit structure strategy
Applicability of Internal advertisement strategy

RESEARCH DESIGN

19-20
20-20
21-30

2.1

Statement of the problem

21-21

2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
2.11

Management question
Research objectives
Research questions
Hypothesis
Population size and area of study
Sampling method and sample size
Data collection design
Method of analysis
Scope of the study
limitation of the study

21-21
21-22
22-22
23-25
25-25
25-28
28-28
28-29
29-30
30-30
31-34

3
3.1

PROFILE
Back ground of the study

DATA ANALYSIS AND INTERPRETATION

31-34
35-60

4.1
4.1.1

Sample questions and its valuation

Sample analysis of applicability of unique

35-50
38-42

4.1.2

organizational structure
Sample analysis of applicability of variable benefit

42-46

4.1.3

strategy
Sample analysis of applicability of internal

46-49

4.2
4.2.1

advertisement strategy
Analysis of actual data
Validity of Unique organizational structure strategy

50-60
50-53

4.2.2
4.2.3

Validity of Variable benefit strategy

Validity of Internal advertisement strategy

FINDINGS RECOMMENDATIONS AND

53-57
57-60
61-68

CONCLUSIONS
5.1

Findings and recommendations

61-67

5.1.1

Findings from the research on Unique organizational

62-63

structure strategy
5.1.2

Findings from the research on Variable benefit

64-65

5.1.3

structure strategy
Findings from the research on internal advertisement 66-67
strategy

5.2
6

Conclusions

BIBLIOGRAPHY AND APPENDIXES

68-68
69-78

6.1
6.2
6.2.1
6.2.2
6.2.3
6.2.4
6.2.5

Bibliography
Appendixes
Questionnaire
Pilot study table for sample size
Questionnaire data analysis table for chi-squire tests
Chi-square table for unique organizational structure
Chi-square table for Variable benefit structure

69-70
71-78
71-74
75-75
76-77
77-77
78-78

TABLES AND CHARTS

TABLE/
GRAPH
No

CONTENTS

Page
NO

1.1

Chart showing applicability of Unique

18

1.2

organizational structure strategy

Chart showing applicability of Variable benefit

19

4.1

structure strategy
Table showing Sample Chi-square test for

39

4.2

Unique organizational structure

Chart showing the number of solvable attrition by

41

unique org. structure in SMSI as percentage of

4.3

total employees in SMSI.

Table showing Sample Chi-square test for

43

4.4

Variable benefit structure

Chart showing the number of solvable attrition by

45

variable benefit structure in SMSI as percentage

4.5

of total employees in SMSI.

Table showing Questionnaire analysis for Internal

46

4.6

advertisement strategy
Table showing Horizontal analysis of each of the

48

4.7

questions for internal advertisement

Chart showing Opinion about implementation of

49

4.8

internal advertisement strategy

Table showing Chi-square test for Unique

51

4.9

organizational structure
Table showing Calculation for chi square test

52

4.10
4.11

(Unique organizational structure)

Table showing chi square test (Variable benefit)
Table showing Calculation for chi square table

54
55

4.12

(Variable benefit)
Table showing Questionnaire analysis for

58

4.13
5.1

internal advertisement strategy

Table showing Calculation for sign test
Chart showing Employee preference for staying

59
61

5.2

the company in SMSI

Chart showing Reasons for attrition in SMSI as a

62

5.3

percentage of total attrition in SMSI

Chart showing The number of solvable attrition

63

by unique org. structure in SMSI as percentage of

5.4

total employees in SMSI.

Chart showing Attrition among people who prefer

64

5.5

different benefit structures

Chart showing The number of solvable attrition

65

by variable benefit structure in SMSI as

5.6

percentage of total employees in SMSI.

Chart showing Access to the communication

66

5.7

channels present in the SMSI

Chart showing Opinion about implementation of

67

internal advertisement strategy

7.1

Table showing Pilot study for sample size

75

7.2

calculation (30 respondents)

Table showing Questionnaire data analysis for chi-

76

square test

7.3

Table showing chi-square test (Unique

77

7.4

organizational structure)
Table showing chi-square test (variable benefit

78

structure)