A STUDY ON

EMPLOYEE TURNOVER
With reference to

NAVABHARAT VENTURES LIMITED

SAMALKOT

A project report submitted to ADIKAVI NANNAYA UNIVERSITY, Rajahmundry

in partial fulfillment for the requirement of the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY

V.KRANTHI
(Regd No: 1684110043)

Under the Guidance of

Mr. S. MANOJ, MBA., B.Ed.

Assistant Professor.

Department of Management Studies

ADITYA INSTITUTE OF PG STUDIES
(Approved by AICTE,Affiliated to Adikavi Nannaya University)
Aditya Nagar, ADB Road,
Surampalem 2016-2018
 ADITYA INSTITUTE OF P.G.STUDIES
Department of management studies
(Approved by AICTE, Affiliated To Andhra University)
Aditya Nagar, ADB Road,SURAMPALEM-533437,E.G.Dt
Phone:(08852)252243,252250,cell:9866576662

CERTIFICATE

This is to certify that the project entitled “EMPLOYEE TURNOVER” with

reference to “NAVABHARAT VENTURES LIMITED SAMALKOT” is the bonafide work
done by with V.KRANTHI Regd.No:1684110043 during the project period of the academic year 2016-
2018 in partial fulfillment of the requirement for the award of the degree of MASTER OF BUSINESS
ADMINISTRATION in ADITYA INSTITUTE OF P.G. STUDIES affiliated to Adikavi Nannaya
University, Rajamahendravaram is a record work carried out by him under my guidance and supervision.

Project Guide Head of the Department

Mr.S.Manoj Dr. G.SrinivasaRao

M.B.A., B.Ed. M.Sc., M.B.A, M.Phil., Ph.D

EXTERNAL EXAMINER
 DECLARATION

I hereby declare that the project work entitled “A STUDY ON

EMPLOYEE TURN OVER” from “NAVABHARAT VENTURES LIMITED
SAMALKOT” has been prepared by me during May - June 2017 in partial fulfillment
of the requirements for the award of the degree of Master of Business Administration,
Adikavi Nannaya University, Rajamahendravaram. I also declare that this project
work is the result of my own effort and that is not been submitted to any other
university for the award of the degree

Date: (V.KRANTHI)
Place: Reg no:1684110043
 ACKNOWLEDGEMENT
I hereby take the opportunity to express my sincere gratitude to the following eminent
personalities, without aid and advice, the successful completion of my project work.
I extend my heart full thanks to Dr. G. Srinivasa Rao, Principal, Aditya Institute of PG
Studies, Head of the Department for his kind help during my MBA programme.
First of all heart full thanks to my project guide Mr. S. Manoj, Assistant Professor of
Management Studies for being a sources of inspiration on encouragement, and enlighten and his
valuable suggestions in bringing up the project work truthfully

I extend my sincere thanks to Nava Bharat Ventures Limited, Sugar Division (Deccan Sugars)
SAMALKOT. Who has guided me and encouraged me throughout the project. I am very grateful for
his entire valuable guidance. Finally I would like to express my deep sense of gratitude to my beloved
Parents as without their support and encouragement, I would not have finished this work. I also
express my since thanks to my friends and well wishers too.

Date: (V.KRANTHI)
Place: Reg No: 1684110043
 CONTENTS
Pg.no

CHAPTER-1 1-9

  Introduction of the study

  Need for the study
  Scope of the Study
 Objective of the study
  Methodology of the study
 
 Limitations of the study

CHAPTER-2 10-21

 Industry Profile

CHAPTER-3 22-32

 Company Profile

CHAPTER-4 33-62

 Theoretical Framework

CHAPTER-5 63-78

 Data analysis & Interpretation

CHAPTER-6 79-82

  Findings
  Suggestions
 Conclusion

84
BIBLIOGRAPHY

ANNEXURE

  Questionnaire
 Bio-data
CHAPTER-1
INTRODUCTION
 HUMAN RESOURCE MANAGEMENT

INTRODUCTION

This is a function within an organization concentrated on recruiting, managing and

directing people who work in it. Human Resource Management deals with issues related to
compensation, performance management, organization development, safety, wellness, benefits,
employee motivation, training and others. HRM plays a strategic role in managing people and the
workplace culture and environment. If effective, it can contribute greatly to the overall company
direction and the accomplishment of its goals and objectives.

The New Role in Human Resource Management

More and more companies seek the outsourcing services of HR recruitment companies.
The focus on HRM is now moved to the strategic utilization of employees and the measurable
impact of employee programs over business. Nowadays successful companies need to be adaptive,
resilient, quick to change direction and customer-centered. Within such an environment the
effectiveness of HRM is crucial to business success. HR professionals establish systems for
performance development, career succession planning and employee development. This keeps
people motivated, happy, personally engaged and contributing to company success. Furthermore
the HR professional helps the development of organizational culture and climate in which
employees have the competency, concern and commitment to serve customers well.

Meaning

Human Resource Management is defined by Scott as that branch of management, which is

responsible on a staff basis for connection on those aspects of relationship of management to
employees and with the development of individual and group. Human Resource management [HRM]
through a new no men clature as field of study in today‟s context in some from with evolution of
human organization.

1
CONCEPT OF HUMAN RESOURCE MANAGEMENT:

(a)Milkovichand Boudreau have defined HRM as follows:

“HUMANRESOURCEMANAGEMENT is as series of integrated decisions that form the

employment relationships; their quality contributes to the ability of the organization and the employees
to achieve their objectives.”

(b )Human Resource Management is defined in terms of its pro-active approach to managing people
in the organization. For example, KareLn Legge has specified 3 elements of HRM.

1. Human Resource policies should be integrated with strategic business planning and used
to reinforces appropriate (or change an in appropriate) culture.
2. Human Resources are valuable and a source of competitive advantages.
3. Human Resource can be tapped most effectively by mutually consistent policies which
promote commitment and foster a willingness in employees to act flexibly in the interest of the
adaptive organization pursuit of excellences.

EMPLOYEE TURNOVER

In today‟s most of the India business organization are facing a paradoxical problem so far as
employment of their of their human resource is concerned. On the one hand, they are facing the
problem of overstaffing and are busy to pruning the surplus staff through voluntary retirement and
other schemes. On the hand, they are facing the problem of employee turnover and are busy in
developing retention strategies. The problem of employee turnover is more acute in new economy
business.
Employee turnover is defined as the rate of change in the working personnel of an organization
during a specified period. It signifies the extent to which old employees leave and new employees
enter in to service in a given period.
It means number of incoming and outgoing workers forms an organization or company. In other
words we can say when an employee takes place of old employee it is called employee turnover in a period
of time. Turnover employee can create due to the some internal factors of companies like excessive work
load, not giving the sufficient authority, low salaries; organization does not providing proper facilities .

2
 As the paradigm of lifetime employment becomes unrealistic, the question „who stays with
you?‟ has assumed great importance in organizations today. Simultaneously, there has been an
increasing tendency to „buy in‟ the talents of professionals with cross functional skills in order to
create a competitive advantage. One visible effect of this has been a consistent rise in the pay
packages of most organizations so as to attract and retain the most desirable employees. Such a trend
over the last few years has resulted in an unstable labour market, especially for industries such as
marketing, advertising, finance and software where the skills are by and large transferable, from one
work environment to another.

.The Importance of Employee Turnover to an Organization

Turnover has such an impact on companies that executive bonuses are being conditioned on
retaining a certain percentage of employees. "The Wall Street Journal" reported in June 2008 that the
executive officer of a global car dealership was paid 8 percent of his bonus for keeping overall
turnover below 31 percent, and one technology executive found half his bonus was dependent on
"undesirable attrition." The cost of turnover to the bottom line, in addition to the impact of turnover on
the workforce and operations make it essential for employers to manage the process effectively.

Cost of Turnover

Turnover represents a significant cost to the organization. One study by Harvard Business
School researchers, published in the January-February 2008 issue of the journal "Organization
Science," estimates that the turnover costs from just one departing employee -- earning approximately
minimum wage -- could amount to as much as $25,000. These figures are primarily based on direct
costs, including any severance costs plus the expense to recruit and train a new employee, but can also
incorporate indirect costs such as a resulting decline in productivity or employee morale. According to
Michael Watkins, in his 2003 book "The First 90 Days: Critical Strategies for New Leaders at All
Levels," it takes more than six months before a new employee begins to provide as much value to the
organization as the company is expending to train the employee. Combine this with another finding
from George Bradt, Jayme Check and Jorge Pedraza, in their 2006 book "The New Leader‟s 100-Day
Action Plan" that says 40 percent of leaders will fail before 18 months in the job -- and more than 60
percent if the leader came from the outside, according to 1999 findings by Dan Ciampa and Michael
Watkins in the book "Right From the Start: Taking Charge in a New Leadership Role" -- and it
becomes obvious that turnover represents a significant expense.

3
Turnover, Performance and Productivity

The report published in "Organization Science" also indicates that the effect of turnover on the
organization's overall performance and productivity will be "pronounced" when operational processes
are fairly standard and routine. This might be explained with the theory that fresh ideas from people
new to the organization can add value more quickly to a company that has complex, non-standard
processes; whereas an organization in which the procedure must be learned and repeated will suffer a
greater loss in efficiency until the new employee is fully trained and a cohesive member of the team.

Turnover as a Symptom

Turnover itself can be a symptom of a deeper problem within the organization. A 2003 study
conducted by the U.S. General Accounting Office titled "Child Welfare: HHS Could Play a Greater
Role in Helping Child Welfare Agencies Recruit and Retain Staff," found that ineffective supervision,
unmanageable workloads and inadequate salaries were the primary cause of most turnover amongst
Child Protective Services workers. If the organization identifies an unusually high rate of turnover in a
particular job classification or from a specific division of the company, this indicates a problem that
needs further investigation. Exit interviews, surveying current staff or a workload analysis might all
shed light on the potential issues.

Positive Effects of Turnover

Employers welcome and actually encourage some turnover -- particularly involuntary turnover.
Involuntary turnover is important to the organization in a different way: It refers to employees who have
been dismissed from the company, generally due to a failure on probation, poor performance or
misconduct. It is extremely damaging to an organization to leave poor-performing employees on the
books, or fail to deal with misconduct appropriately and in a timely fashion. Inaction is not only
detrimental to morale and work group relations, but could cost far more in terms of employer liability -
- for example, allowing a sexual harasser to remain employed -- than the cost of replacing the
employee. Employers should distinguish between voluntary and involuntary turnover and monitor the
separate percentages on a regular basis. If involuntary turnover is unusually low, there are probably
some poor performers being allowed to slide by, and if it is extremely high, this could possibly
indicate issues with the recruitment process -- the right candidates are not being selected -- or signify
a change in management tolerance levels.

4
 NEED FOR THE STUDY

The need for employee turnover is organization is realized for the following reasons

 The success of any manufacturing organization depends largely on the workers, the employees.

 The study was mainly undertaken to identify the level of employee‟s attitude, the
dissatisfaction factors they face in the organization and for what reason they prefer to change
their job.

 Once the level of employee‟s attitude is identified, it would be possible for the management
to take necessary action to reduce attrition level.

 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

 The organization in order to assess the overall interest and feeling of the employees
towards their nature of job and organization

 The need of this study can be recognized when the result of the related study need
suggestion and recommendations to the similar situation

5
 SCOPE OF THE STUDY

The scope of the present study is applicable only for the sugar division in Samalkot. This study is
limited to only employee turnover and its impact on the employees in company. Employee‟s response
towards the employee turnover in company can also be derived from this study. The topic chosen
performance was aimed for the betterment of organization in terms of employee turnover.

The scope of employee turnover in Nava Bharat Ventures Limited includes identification of the level
of employee's attitude; dissatisfaction factors leading to the change of the job. It also includes
identification of ways to reduce attrition levels in the company. The study also covers the working
environment of the organization as it is one of the factors which leads to employee turnover.

The study also tries to understand the interests of the employees towards the job in the organization.

6
 OBJECTIVES OF THE STUDY

The main objective of the study is to find out the effectiveness of employee turnover in Nava
Bharat Ventures Limited Samalkot, Sugar Division

Besides this the few objectives are:

 To understand the level of employee turnover in Nava Bharat Ventures Limited Samalkot.

 To study the impact of employee turnover on the productivity in Nava Bharat
Ventures Limited Samalkot

 To examine the determinate factors of employee turnover.

 To Identify the dissatisfaction leading to effects of turnover on the performance of the company.

 To suggest measures to reduce attrition levels in Nava Bharat Ventures Limited.

7
 METHODOLOGY OF THE STUDY

Methodology is scientific and systematic search for pertinent information on specific research area.
The reliability of management decisions depend upon the quality of data. Collection of data is the first
step in statistics. The data collection process follows the formulation for research design including the
sample plan.

Basically there are two types of data

1. Primary data

2. Secondary data

PRIMARY DATA:

Collection of Primary Data during the course of the study or research can be through
observations or through direct communication with respondents on one form or another or through
personal interviews. I have collected primary data by the means of a Questionnaire. The Questionnaire
was formulated keeping in mind the objectives of the research study. The questionnaire for the present
study consists of a set of 15 questions which are closed ended questions.

SECONDARY DATA:

Secondary data means data that is already available i.e., the data been collected and analysed
by someone else. When a secondary data is used, the researcher has to look into various sources from
where he can obtain data.

It is collected for the secondary sources. The secondary sources of data includes,

(a)Reports, journals published by the company.

(b) Various books, periodicals, magazines.

(c) websites.

Sample size:
The sample size for the present study is 50 respondents.

Sampling technique: The sampling technique used for collecting data for the present study is
random sampling.

Sampling area: The sampling area for the present study is confined to kakinada only.

8
 LIMITATIONS OF THE STUDY

The present study is conducted in order to evaluate the opinion about the employee turnover
NAVABHARAT VENTURES LIMITED. While conducting the study following were the limitations
in collecting the data.

1. Time is limited factor because 45 days duration is not enough for in depth study. The study
is limited to particular area, i.e., NBVL.

2. Collection of current data is also a limiting factor because of confidentiality. The company
has not traveled the data due to confidential issues.

3. As the managers of the organizations are busy with the work schedule, it is difficult to collect
the detailed data from the employees. There may be bias in the information because of confidentiality.

4. The sample size in the present study is restricted to the area of kakinada and limited
same employees due to their job profile.

9
CHAPTER-2
INDUSTRY PROFILE

10
 INDUSTRY PROFILE

INTRODUCTION:

The sugar industry is the most advanced processing industry in the agricultural sector in India.
In fact, it is the second largest agro based industry in the country.

HISTORY:

From a modest beginning in 1930-31 when traffic protection was granted to it. the industry
has made rapid strides against a mere 29 sugar mills in 1930-31. The number has gone up to 416 in
1992-93 with 200 are in co-operative sector, 75 in public sector and rest in the private sector.

The industry has surpassed the targets set for it in the various plan periods and out of 160 lakh
tones per annum has been targeted for the year 2002.

Sugar industry was initially concentrated the subtropical states of Utter Pradesh and Bihar. But
since the second plan it has dispersed in to the Deccan area and Southern states. About 35 million
farmers (including their families) constitution about 7% of the rural absorbs a sizable portion of the
cane crop and provides the former with resources to meet commitments. Each sugar factory deals with
thousands. The southern states and Maharashtra to 40000-45000 in Northern India.

The Buy-production of the industry, especially Molasses and be gases have opened up fresh
areas of utilizes. Molasses is utilized for production of alcohol and downstream chemicals. Be gases,
another important and by product besides meeting the fuel requirement of industry also the potential to
attain self-sufficiency in the production of paper and news print.

Sugar cane production

For almost 605 of the cost of production of sugar. Sugar industry is an important agro based
industry. It fortunes largely depend upon the adequate availability of sugar cane. By the year 2002 the
country may require 350 million tons of sugar cane.

During the last four decades, the yield per hector increased at an annual rate of 1.30% the
average cane productivity in the sub tropical region is low at 50 tons per hector, while it is high at 84
tons per hector in tropical region.

11
The strategy for increasing sugar cane production includes.

• Production and Distribution of quality seed cane.

• Better water management.

• Judicial and timely used for fertilizer application.

• Training of sugar cane production personal.

• Greater participation of sugar cane factories in cane development.

LOCATION:

The sugar industries mostly oriented to a single material namely sugarcane which forms 60%
of the total cost of production. Therefore, the industry of sugar is naturally conditioned by the
availability of sugarcane and facilities of transporting raw material is essential because the sucrose
content of the sugar cane begins to decrease soon after the cane is cut. Biogases obtained as a
byproduct during the production is used by the factories for generating power. Therefore power is not
at all a nominating factor in determination the location of sugar industry. In recent times Technical
feasibility and economic availability of sugar projects have been given importance in the location of
sugar industry. Sugarcane grows both on tropical & sub-tropical regions. In India AP, Tamilnadu,
Mysore, Kerala & Maharashtra come under tropical regions. UP, Bihar Punjab, Haryana West Bengal,
Orissa, Rajasthan & MP come under sub-tropical regions.

There were only 29 factories in India during the year 1931. Protection granted to the sugar
Industry in 1931 brought tremendous growth in the no. of locations. The no. of factories in operation
has grown from 29 to 140 in 1950-51 out of which 110 factories were in northern parts of India.
During the next decade the no. of factories increased to 174 out of which 116 factories were in the
sub-tropical region in the northern India. Finally the no. of factories has grown from 200 in 1965-66 to
338 in 1984-85 of which nearly 75% of the factories are located in the northern India. The industry is
pre – dominantly localized in MP next to up the industry is mainly connected in Maharashtra, Bihar
and in the eastern coastal districts of AP.

The average per day crushing capacity of the industry increased tremendous from 482 tons per
day in 1932 to 1365 tons per day crushing capacity in the industry increased to 1365

12
tonnes it has been found by the planning commission that the cane crushing capacity of sugar factories
working in our country various from 220 tons to 3200 tons per day. In UP and Bihar, majority of the
sugar mills have a cane crushing capacity ranging from 700 tons to 1000 tons per day. A factory with a
crushing capacity of 1000 tones for sugar cane per day is considered to be an economical unit, under
the present day working conditions.

THE GLOBAL SCENARIO:

The Global sugar production is on a rise and along with the rising demand, the prices of sugar
is expected to remain firm. China, India and Brazil, the largest producers of sugar have already
showing descent production and with good carryover stocks from previous years produce. China's
output of sugar reached 6.8449 million tons by the end of January of this year in the 2008-2009 sugar
production season, rising 14 per cent over the same period of the previous season, according to the
China Sugar Industry Association. The sugar output was 6.0085 million tons in the previous season.
According to Dow Jones‟s report, the global demand would be more than the supply in 2009/2010 by
1.6 million tone.

The International Sugar Organization (ISO) said that early indications show 2009/2010
marketing year could either be in balance or have a small deficit of less than 1-million tons. The ISO
will release its second revision to its 2008/2009 balance sheet in the second half of February, but
currently doesn‟t anticipate any significant changes. The main expectation of deficit is due to the
lower than expectation of sugar cane harvest in India.

The Indian sugar production is expected to go down to 26 million from the last year‟s
production of 28 million. Along with this it is expected that Brazil would stay focused in its
production of Ethanol from sugar, as crude oil makes new highs and demand for alternative fuel rises.

THE INDIAN SCENARIO:

India is the largest consumer and second largest producer of sugar in the world (Source: USDA
Foreign Agricultural Service). In Sugar Year 2007/08 India produced 28.5 million tons and consumed
20 million tons of sugar. India has exported around 1.5 million tons of sugar after the ban on sugar
exports was lifted in January, 2008. With an opening stock of 4 million tons in 2006-07, India has
ended the year with stocks of more than 11 million tons. There is a possibility that overall sugar
production in the country might fall to 26 million metric tons because of low yields as farmers didn't
care much about their

13
Standing crop. Earlier, most industry players and the government were expecting India's sugar
production to be at least 30 million tons, 2 million tons more than last year.

Though production is expected to be lower on the year, it won't affect supply as the large carryover
stocks from last year will be sufficient to meet any additional demand.

STATE WISE SPREAD:

Sugar cane is grown in India, in 15 out of 23 states and in 2 out of the 9 union territories. Utter
Pradesh tops the list with 93 factories and 17 lakh hectors under sugar cane.

Maharashtra ranks next with 78 factories and 31 lakh hectors under sugar cane. Andhra
Pradesh ranks 3rd in respect of number of factories but 5th in respect of area under sugar cane.

A note worthy future of the original spread is, while the northern and eastern states viz. Assam,
Bihar, Haryana, Punjab, Rajasthan, Utter Pradesh and West Bengal together accounted for 68% of the
area sugar cane in the country, their share in the number of factories was 43%. The central and
Southern states which accounted for 32% of the area had 57% of the factories.

14
PROBLEMS:

The worst handicap crippling the industry is the low level of productivity. This is attributing to
in adequate irrigation facilities, untimely supply of quality seed etc..

One factory, which is of a crucial important to the growth of sugar industry in the yield of
sugar cane acre. Percentage recovery of sucrose is the second factory. Which determines the
production in India, both the yield of sugar cane per acre percentage recovery of sucrose is low.

Competition:

Manufacture of sugar consumes 33% of the sugar cane production, while the Khandsari and
guru producers consume about 55% and 12% goes for chewing and seeding purpose. There are about
8000 Khandsari producers is a real cause of worry to the sugar manufacture because they procure
more can by paying prices and making prompt payment.

Under the plea that recovery of Khandsari is lower than that of sugar, a section of the sugar
industry demand some restrictions on Khandsari producers. But rural masses that khandsari producers
ensure utilization of usage cane where setting up a sugar factory is not feasible. The sugar industry
will have to live with competition of Khandsari producers.

Sugar Machinery:

At present there are 27 units in India to manufacture sugar plant and components thereof. The
industry is in a position of manufacture and supplies 21 complete sugar plants per annum. The existing
installed capacity has been estimated at 57.05 c per annum.

NEW SUGAR POLICY:

The policy envisages an additional 30 lakh tones capacity in areas specified as industrially
backward. Licensing of new sugar factories in the co-operative and public sectors would be allowed
with an initial capacity of 1750 tones cane per day. But this would be subjected to the condition that is
would expanded to 2500 tones crush capacity per day within 5 years of going into production.

The policy the distance criterion 25km with could be 15km is special bases where cane
availability justified it.

15
 According to the 1991 policy all new licenses would be kept in view. Licenses for down stairs
would also be readily given. Priority would be given to proposals for new units from the co-operative
operations; priority would be given to the one received carrier.

The government taking not of the problem of the industry has agreed and announced that
buffer stocks of 5 lakh tones should be created. It has been decided to rise statutory minimum price for
cane to Rs.20/- a quintal for the current season and Rs.32.50/- a quintal for the 1993-1994 season.

With a view to improving profitability of operations. It has been decided that the quota for free
sugar would be raised ta a 60% from 55% and that for level of sugar reduced to 40% from 45%. The
issue price for levy sugar has been increased by Rs.140/- a K.G. With a view to facilitating. The
fixation of higher retention prices for levy sugar to offset an increase in cot of cane and conversion
charges. Also with the higher price for level sugary, the government will not be incurring any subsidy
on its sale.

SUGAR INDUSTRY IN INDIAN ECONOMY

The sugar industry is the second largest agro based processing industry in India, having certain
unique feature perishable raw material namely sugar cane. The buy products of the industry have open
up fresh areas of enterprise in diverse dissections. Molasses is an important buy product apart from
meeting the fuel requirements of the industry, offers the potential to generate additional power of
supply to the grid. Further if offers tremendous potential to make the country step sufficient in its
requirements of paper and new print.

There is now 4/6 sugar factories, 200 in the co-operative sector. The annual production of
these units is around 95,00,000 tones. The 6 decades old history of the industry has however, been
characterized by cyclical fluctuations in product due to a lakh of coherence the pricing policies for
cane and sugar.

Sugar industry holds the pride of place as an instrument of rural reconstruction and
development. The extension of sugar cultivation and setting up new sugar factories since
independence have greatly contributed to the social economic development of some rural tracts in the
country with an investment of about Rs.1500 crore, the sugar industry provides employment to nearly
3.61 lakh workers about 35 million formers are engaged in cane cultivation in India.

16
Development:

In the beginning there was no progress in the sugar industry protection was granted to this
industry since 1923. Since then the industry is making worthwhile progress.

Efforts to establish a modern sugar industry however data back only to the beginning of the
present century. Little head way would made in the earlier years, as the varieties of the cane grown
did not posses good milling qualities and the yield per acre was low on account of which is cost or
production of sugar was high.

Sugar cane is grown nearly small parts of India. Sugar cane growing areas in the country may
be broadly divided into two typical belts, the sub-tropical and tropical. The sub tropical part mainly
comprises Bihar, Madhya Pradesh, Gujarat, Andhra Pradesh, Tamilnadu, Karnataka and Kerala. The 2
belts are characterized by market in differences in climate and agricultural conditions. The sub-
tropical area is a flat, plain soil which elevation between 300 and 900 feet above the sea level. Cane
here is grown under the extreme climate. Irrigation facilities are not adequate. But cane survives in the
dry season because of the sub soil moisture.

In the tropical areas sugar cane is grown in the delta areas of the east coast and at irrigated
plains of Deccan plateau etc., the climate and soil difference between the tropical and subtropical
areas have their effect not only the average output turn of cane per acre. But also on the quality of the
per acre but also on the quality of the cane protection have the desired fill up within about 2 years
after their grant of protection, the number of factories have rise from 29-111 and production from 1.21
lakh tones to 4.61 lakh tones. At the end of world war two there were 136 sugar factories and their
products 9.57 lakh tones. There after no further noticeable development took till the beginning of the
following year. In 1950-1951 through the number of factories renamed at 139; production of sugar
went up to 11.34 lakh tones. More than half of these factories were located in the sub-tropical belt of
Utter Pradesh and Bihar. The progress of the industry during the 5 years this has been phenomenal.
The numbers of factories were up to from 139 in 1950-51 to 110 lakh tones 1978-88 and production
from
lakh tones to 91.91 lakh tones in 1987-88. For 1988-89 the output estimated to be higher at 102
lakh tones, representing an increase pf more than 10 lakh tones, representing an increase of more than
10 lakh tones last year.

17
SUGAR INDUSTRY IN ANDHRA PRADESH

In AP there are 34 sugar factories of which are under co-operative sector, 8 are under private
sector. Sugar Industry continuous to play a dominant role in the economy of the state as sugar cane in
one of the important commercial crops. The installed capacity of the sugar factories in the state is
54000 tonnes of cane crushing per day (T.C.D). this include the capacity of 23000 T.C.D in 18 co-
operative mills 10700 T.C.D in public sector units and 20250 T.C.D in 7 private units. During the
1993-94 season the sugar factory state crushing 56 lakh tones of sugar cane with an average recovery
of 9.34%. About 5.28 lakh tones sugar was produced by these factories.

The co-operative sugar mills also crushed 25.07 lakh tones oh sugar cane and produced 2.22
lakh tones. AP occupies 4th place in respect of sugar cane growing. This is one of the largest growing
sugar cane in the country sugar cane is cultivated in the district of Srikakulam, Vishakhapatnam, East
Godavari, West Godavari, Nizamabad, Medak, Chittore and Guntur. The biggest in Asia 3 more units
were setup under the same management. These three units used to pay more remunerative price to can
growers of when compared to others because of those remunerative price, formers had restored too
much plan under cultivation and this was 2, 40,000 acre against its previous year acre of 3,79,000.

In our country a total land on the sugar cane on 5th belong to AP and this occupies 9th place in
the country. Average cane yield per acre in India is 20 tones and in AP is 30 tones. The crossing
capacity of all the AP is 30 tones. The crushing capacity of all the sugar mills in the state is 57,00,000
tones. Private Mills could utilized 70% of the crushing capacity where as the other mills could just
manage.

SWOT Analysis of the Sugar Industry:

Strengths:

 Indian sugar industry is the second largest producer of sugar in the world after Brazil. The
sector has a potential to make the country to be self reliant in this highly sensitive essential
commodity of mass consumption.

 The sugar industry paid well over Rs. 122.69 billion to the sugarcane growers in the
financial year 2006.

 Annual tax contribution to exchequer Rs. 17 billion annually.

18
  Provides direct employment including ancillary activities to near about 0.5 million workers

 It also supports the downstream industries by providing the raw material.

 Sugarcane farming is more profitable than any other cash crop in India.

 This sector have been the focal point of socioeconomic development of the rural India

 Strong government policies as it come under essential commodity of mass consumption.

Weaknesses:

 Capacity leads to the decrease in production and losses.


 Lack of Most of the Co-operative sugar industries in India e. g. in Maharashtra find difficult
to pay for the sugar cane supplied by the farmers.

 Most of the sugar factories are more than 30 years old and still using the old technology
low installed production professionalism

Opportunities:

 High value of by-products for downstream industries.


 Huge potential to increase the productivity of cane and sugar recovery rate.

 Technology up gradation, new advanced technology available for the byproduct utilization.

Threats:

 Sugar sector is vulnerable to political interest.


 Ground water availability for irrigation.

 Quality of soil deteriorates due to overuse of fertilizer and pesticides to increase
sugarcane yield.

The union government announces every year a uniform sugarcane price (Statutory minimum
price), on the basis of the recommendations of the commission agriculture cost and price (CACP). The
government announced the SMP which is linked to the sugar recovery of 9.00% fixed as a minimum
level to be achieved by the sugar units. The actual price paid to sugarcane farmers is then fixed on the
basis of the State Advised Price (SAP) announced by the state government which are usually higher
than the SMP. The SMP and the SAP guide the sugarcane prices in the market.

19
 Under the dual pricing system levy sugar and free sale sugar priced differently. The levy price
which is defined by the essential commodities act is equal to or lowers than the cost of production. The
cost of production determine by the bureau of the industrial costs and prices. Levy prices are fixed by
the government of India on the advice of the BICP.

At present, the quota is fixed at a ratio of 20:80 for levy and free sugar which means that 20%
of the production will be procured from the sugar factories at a fixed levy prices and factories will be
free to sell 80% at the market price and to compensate the loss that they have incurred on the levy
quota. However, the central government indirectly

It controls the free sale sugar prices through sugar releases each month. The price of sugar in
the market has always been a sensitive political issue. Whenever sugar is in short supply, the
government of India imposed conditions on sugar units to protect the interests of the common man.

Profitability in the sugar industry is dependent on the sugarcane price paid by companies and
sugar prices and the state imposed dual pricing system.

The government‟s sugar policy was announced in November 1991, retained. The minimum
economic capacity 2500tones of cane crushed per day for issuing of fresh licenses.

The government has no proposal for new units from the co-operative and public sector. The
government has permitted existing mills to raise their capacity.

Export of Sugar:

India‟s first started exporting of sugar from the year 1957. Since 1990-91 the quantitative that
were exported steadily raise. Whenever food there has been higher sugar production, efforts were
made by the industry to more export quota sanction from the international sugar organization.

The government policy is to encourage exports from agro-based industries and the time has
come to fix a minimum export quota for sugar every year, so that permanent buyer-seller relations
could be established and also better prices released. Industry sources feel that, at least a minimum
Quota of 1 million tons for the export of the sugar could be released in the beginning of every season,
so that export commitment would be entered into an appropriate time.

20
 According to food industry sources, at a present the two major buyers in the international
market are Pakistan which needs 3 lakh tones, and Bangladesh which needs 1 lakh tones. As India now
cannot fulfill its contacts Thailand and Brazil will grab the opportunity. As the industry made contracts
based on the government‟s decisions, India has become a logging stock among the international
community because of its apathetic attitude towards exports.

In 1995 export of 4.34 lakh tones of sugar i.e. value Rs. 597.34 crores. Now in 2008-09 export
sugar quantity is 33.32 lakh tones i.e. value of Rs. 4448.74 crores.

SUGAR PRODUCTION IN EAST GODAVARI

Before going to know the history and date of Nava Bharat Ventures Limited Sugar Division, It
is essential to know the development of East Godavari District, AP and the helpful for their
development. The district is situated in the fertile deltas of the river Godavari which is supposed to be
the biggest rivers in South India. The main occupation of the people is agriculture as there are number
of fertile lands. As an effect of this the district is economically forward and the population too is
economically richer when compared with the people of the other districts in AP state. The people of
the area are very much interested in the cultivation. The land as it as go favorable conditions for its
development. As this is situation the minds of the people were dragged to industrial field which was
filled with difficulties during British regime. Since the drawn of India independence industrialization
was started as a large scale throughout the country. The minds of some petty land lords and Jamindars
were drawn towards industries. As the district of the East Godavari is surrounded by a fertile land of
the deltas of river Godavari which give rice to commercial crops like sugar cane.

21
CHAPTER-3
COMPANY PROFILE

22
 COMPANY PROFILE

SUGAR DIVISION:

History of the company:

Samalkot sugar factory was established in the year 1898 as a Gur refinery and a distillery unit
was added in 1902.The Sugar unit was converted into cane sugar manufacture in the year 1943-44 and
gradually expanded to 1500 t.c.d crushing capacity in 1997-78. The distillery unit was originally of
700 g.p.d capacity and was supplying barrack for a vast area in the Madras presidency before the
introduction of prohibition in 1947.

After the introduction of prohibition, the only outlet for alcohol and for industrial use and the
distillery unit could hardly work for 10 days in a month. Due to the uneconomic size and frequent
closure for want of off take. Severe losses were sustained on account of this unit. With a view to make
it viable and as more and more industrial units based on alcohol as raw material were coming up,
modernization and increase in capacity to 7000 l.p.d was taken up in the year 1974. Also prohibition
was lifted in the year 1969 and the Government of Andhra Pradesh took up issue of arrack for potable
use from the distilleries.

The Samalkot Sugar factory was granted license for expansion to crush 1500 l.c.d as early as
1971. The expansion to the licensed capacity was carried in stages during 1975 to 1977. Unfortunately,
successive cyclones and severe drought conditions that prevailed in the coastal areas of Andhra
Pradesh during the years 1976 and 1977 affected the cane cultivation to a great extent. The incidence
of scare infection further aggravated the situation, resulting in cane growers switching over the other
crops. Consequent to the above, the plant utilization capacity was as low as 50% only. Added to the
above, the Government of India also changed the methodology of fixing the levy sugar price. The
Government took into account only statutory cane price paid for computation of levy price and also
fixed the levy price taking into account assumed free share sugar price.

Due to the above losses, the financial position of the company became very bad, resulting in acute
liquidity problems. The company approached ICICI, the lead institution which had extended term loan
for expansion, of rehabilitation finance. At this time, M/s. Nava Bharat Ferro Alloys Ltd., NBFA, a
Hyderabad – based company examined the overall position of this company both in terms of technical
and financial viability and submitted a revival policy

23
program to ICICI. ICICI, NBFA and this company entered into a Memorandum of Understanding
(MOU) by which NBFA provided this company a sum of Rs.100 lakes initially to modernize the plant
and machinery and to meet a part of its cash losses. NBFA, after took over of the control of the
company.

Modernized the sugar factory and increased the capacity of the distillery from 7,000 LPD to
20,000 LPD. The irrigation facility in upland area was improved by providing bore well vans to the
growers and the area under cane has been increased to roughly 10,000 acres at present with adequate
supply of cane and efficient operation of the sugar unit and distillery the Samalkot sugar complex has
become a viable unit today. Regularly by improving the efficiencies of the equipments by modifying
the equipments wherever necessary, the company could improve the crushing capacity by 100 % and
also because of this increase in capacity company could crush 425,261 tones during the season 1991-
1992.and 2009-2010 crushing QT in lakhs 2059955.820 VALUE in lakhs 490039016058 and turnover
in lakh 8600744041555.and crushing QT in lakhs 3078010 and VALUE in lakhs 71008219000 and
turnover in lakhs 880091010762.and 2011-2012 crushing QT in lakhs 405097514 and value
80076012276.60 and turnover in lakhs129006110920.

Company expected to crush 4 lakh tones of cane during the next season company could also
improve the recovery % cane by advancing the planning the earlier marks of December, January and
February and also encouraging the growers to plant Sugar rich varieties.

Organization Review:

24
AWARDS OF NAVABHARAT VENTURES LTD:

Excellence in performance is a goal pursued constantly by our Company. The Company is

honored with the following awards and rankings in 2009 - 2010 for excellence in maintaining
Industrial Relations, Labour Welfare & Productivity; Net Sales; Energy Management; Value Creation;
Innovation, Cost Optimization & Intelligent Marketing; Exports and Rural Development.

• CII Environmental best Practice Award 2012 for Most Innovative Environmental project
(Ferro Alloy plant, Paloncha received this award).from Confederation of Indian industry.

• 5-s Excellence Award 2011(sugar division received this Award) from confederation of
Indian Industry(south region).

• National Award for excellence in Water Management as Water Efficient Unit (power plant
at Kharag Prasad received this Award) from confederation of Indian industry.

• National Award for Excellence in Energy Management as Energy Efficient Unit (power
plant Paloncha received this award) from confederation of Indian industry.

• National Award for Excellence in Energy Management as Excellent Energy Efficient Unit
(sugar division received this Award the 5th consecutive year) from confederation of Indian industry.

25
• Prakruti Mitra Puraskar for being Excellent in the field of conservation of Nature and
Protection of Environment in the Block level, village/Organization from Forest and Environment
Department, Government of Odisha.

BEST MANAGEMENT AWARDS

• Outstanding contribution in maintenance of Industrial Relations, Labor Welfare &

Productivity from Department of Labor, Govt. of Andhra Pradesh

• Super Rank 20 and Rank 297 among 1000 Corporate Giants in India

• Net Sales from Business Standard magazine

• National Award for Excellence in Energy Management

• Excellent Energy Efficient Unit from Confederation of Indian Industry

• Best Value Creator Award in the Small Cap Category

• Continuous increase in profitability and high growth resulting in spurt in the equity share
price on the Stock Exchanges from Outlook Money NDTV Profit

• Sixth Rank among Top 500 Indian Manufacturing Companies

• Innovative thinking, cost optimization strategies, intelligent marketing, quality products

and services and hard work. From INDUSTRY 2.0 Magazine

• State Award for Energy Conservation (1st position) under Iron & Steel Sector

• From Non-Conventional Energy Development Corporation of A.P. Limited

• Silver Trophy for Outstanding export performance

• From The Federation of Andhra Pradesh Chambers of Commerce & Industry, Hyderabad

• Silver Trophy for Excellence in Rural Development

• Multifarious rural development activities from The Federation of Andhra Pradesh Chambers
of Commerce& Industry, Hyderabad

• 6th Best Performer in the Top 10 on BSE 500 Index in the decade

26
• Stock price in 2009 was 103 times the price in early

• Silver Trophy- Top Exporter as Large Enterprise from EEPC India

Highlights of Achievements:

• The Company‟s Sugar Plant is one of the most energy efficient sugar plants,
operating with an electrical energy consumption of 23 kWh per tonne of cane crushed and
31% steam consumption on cane.

• Zero discharge of effluents achieved by installation of a reverse osmosis plant and spent wash
evaporation plant and 100% utilization of the product received from the evaporation plant for
composting filter cake and producing organic manure.

PRODUCTS OF THE COMPANY:

This company‟s main product is sugar and the substitute product is molasses from which Spirit,
ENA and Co2 (carbon dioxide) are obtained.

The main product sugar proceed (yield) by the company is basically of two types.

1. Levy Sugar

2. Free Sugar

These two types of sugars produced by the company differ in prices, one decided by the company and
the other decided by the Government. The essential substitute product by the company is the molasses
which intern yields two other products i.e. Spirit and Co2 (carbon dioxide).

The spirit from the molasses is of three types.

1. Rectified spirit

2. Denatured spirit

3. Extra Neutral Alcohol

Rectified spirit is used for the production of alcohol, and denatured spirit is used by doctors in
Medical surgeries. The other products carbon dioxide (Co2) molasses is used for cooling purpose and
also used for making sodas. Extra Neutral Alcohol is used for manufacturing of Brava rages for
market use.

27
THE SUGAR FACTORY AND ITS PRODUCTS:

The factory started with a spirit of co-operation with a concept of “each for all and all for each” self-
help& mutual help. The factory main product is sugar and it‟s by products are molasses, Spirit, ENA
and Co2.

SUGAR:

Sugar is the essential consumer product which starts our daily life with a cup of tea, milk or coffee.
Every family is consuming the sugar widely; its consumption is same as other consumer‟s
commodities like salt, rice, dal etc. Even the small families consume on an average 120 grams of sugar
per day. So we can imagine the importance of sugar in our daily life. Sugar also included in public
distribution system by our Central & State Government to control rate as well as other indiscriminately
practices of market people.

MOLASSES:

Molasses is a byproduct of the sugar industry. Which is widely used in distilleries, chocolate industry
and cattle feed using plants.

SPIRIT:

Spirit derived from molasses is two types.

1. Rectified spirit

2. Denatured Spirit

3. Extra Neutral Alcohol (ENA)

Rectified Spirit is used for the production of alcohol, and denature spirit is used by doctor‟s for
medical purpose.CO2: Carbon dioxide yield by the molasses is used for cooling purpose and also used
for making sodas

ENA:

ENA is used for the production of Brava rages for market.

28
ORGANIZATION & STAFF OF THE DECCAN SUGARS:

The Sugar Factory has a democratically elected body to organize the factory activities,
marketing and welfare activities. The body elected by the shareholders or the members of
general body who are the suppliers of sugar cane. The body is headed by a chairperson with a
Board of Directors. The Managing Director / General Manager and his staff Chef Engineer –
in-charge of plant, Chief Manager (Agricultural) officer-in-charge of sugar cane development
and chief chemist-in-charge of processing and quality control, are responsible for day to day
activities of the sugar factory. The remaining staff working is shown in the organizational
chart.

PROCESS AND QUALITY SYSTEM:

The quality system of the sugar factory takes place in various stages; mainly the factory is
producing three types of sugar as per the Indian sugar standards 1994-95 specified by National
Sugar Institute, Kanpur. The types of sugar large grain (L), Small grain (S), medium grain
(M). The quality system chart is indicating the various stages of its products and by products.

ENVIRONMENTAL INFLUENCE:

Due to the new industrial policy the new sugar factories are coming into the picture which
retain free village also in the area of operations of the factory. So it will affect sugarcane
supply to the factory to expanded capacity. The jiggery market is nearer to the factory so that
it may also effect for inadequate supply of sugarcane.

Sugar manufacturing process:

• Procurement of Sugarcane from the registered areas through Zonal Offices.

• Weighment of Sugarcane in the Weigh Bridge.

• Feeding of sugarcane in the Cane Carrier.

• Preparation of Sugarcane into fine fibers through leveler units.

• Feeding of prepared Sugarcane into the mills.

• Extraction of 72% of Juice from the prepared Sugarcane in the first mill.

29
• Juice Imbibitions to extract maximum juice in the remaining Fibers.

• Juice is taken for boiling purpose.

• Excess bagasse is sold.

• The Juice extracted from the Mills is measured.

• Treating of Juice in the Juice heaters.

• Addition of liquid lime and sulphur-dioxide in juice Sulphitor.

• Separation of Clear Juice and muddy juice in the clarifier.

• Clear Juice is sent for evaporation in the semi-kestners and Evaporators. Extraction

of juice from muddy residue through Vacuum Filters.

• The extraction juice is reduced into Syrup after evaporation of water

particles. Addition of Sulphur di-oxide to the syrup in order to improve the
color of the sugar.

• Syrup is sent to pans for massecuite boiling.

• Production of massecuites by adding of various types of molasses & syrup.

• Preparation of A, B & C massecuite.

• A massecuite is improved from B massecuite.

• B massecuite is improved from C massecuite.

• Separation of C massecuite into C Seed and Final Molasses in the centrifugals.

• Separation of B massecuite into B heavy and B Seed in the centrifugals.

• Separation of A massecuite into Whiter Crystal sugar and a heavy and

a light in the Centrifugals.

• The White crystal sugar is dried in the Sugar Hoppers.

30
Board of Directors

Mr. D. Ashok Chairman

Mr. P. Trivikrama Prasad Managing Director

Mr. C.V. Durga Prasad Director (Business Development)

Mr.G.R.K.Prasad Director (Finance & Corporate Affairs)

Dr. E.R.C. Shaker

Dr. M.V.G. Rao

Mr. K. BalaramaReddi

Dr. D. NageswaraRao

Mr. S.V. Satyanarayana IDBI Nominee

Mr. M. Subrahmanyam Company Secretary and Vice President

Auditors Registered Office

Mr.Brahmayya& Co.

Chartered Accountants „Nava Bharat Chambers‟

Flat No. 403, Golden Green Apartments

IrrumManzil Colony, Somajiguda

Hyderabad - 500 082

Cost Auditors Works

Messrs.Narasimha Murthy & C o. Ferro Alloy Division Power Division

Cost Accountants Ferro Alloy Plant (A.P.) Power Plant (A.P.)

104, Pavani Estates P loncha –507 154 Paloncha –507 154

3-6-365, Himayat Nagar Khammam District Khammam District

Hyderabad - 500 029 Andhra Pradesh Andhra Pradesh

31
Registrars& Share Transfer Agents Sugar Division Machine

Building Division Messrs.Karvy Computershare

Private Limited Samalkot – 533 440 Nacharam

Plot No. 17 to 24, Near

Image Hospital East Godavari District Hyderabad - 500

076

Vittalrao Nagar, Madhapur, Andhra Pradesh Andhra Pradesh

32
 CHAPTER-4
THEORETICAL FRAMEWORK

33
 THEORETICAL FRAMEWORK

INTRODUCTION:

All business large and small, have some way of keeping track of their finances. Business is
constantly looking for more ways to keep expenses low. One factor that is often overlooked, however,
it is cost of employee turnover. High employee turnover can cost a company more than they might
realize in the long run.

This report explains some causes of high employee turnover, who it affects the most common
and aware companies can decrease employee turnover in order to cut hidden cost.

Employee turnover occurs voluntarily leave their jobs and must be replaced. Turnover is
expressed as an annual percentage of the total workforce. Turnover should not be confused with
layoffs, which involve the termination of employees at the employer‟s discretion in response to
business conditions such as reduced sales or a merger with another company.

The severity of turnover varies widely by type of business and the economic health of the
region where the companies are located. Innovative high-tech companies and the most successful
manufactures frequently experience low turnover rates while fast-food restaurant managers expect
turnover to be as high as 50 to 75 percent.

Employee turnover is technically and mathematically as – the ratio of the number of workers
that had to be replaced in a given time period the average number of workers. Put simply, it is an
instance when an employee leaves their position at their work place and needs to be replaced.

Employee turnover is a ratio comparison of the number of employees a company must replace
in a given time period to the average number of total employees. A huge concern to most companies,
employee turnover is a costly expense especially in lower, paying job roles, for which the employee
turnover s highest. Many factors play a role in the employee turnover rate of any company, and these
can stem from both the employers and the employees. Wages, benefits, employee attendance and job
performance are all factors that play a role of employee turnover.

In a human resources, turnover on labour is the rare at which an employer gains and losses
employees.
Simple ways to describe it or “how long employees tend to stay” or “the rate of traffic through the
revolving door”. Turnover is measured for individual companies and for their industry as a whole. If an
employer is said to have a high turnover relative to its competitors, it means that employees of that
company have a shorter average tenure than those of other companies in the same industry. High
turnover can be harmful to a company‟s productivity if skilled workers are often leaving and
34
the worker population contains a high percentage of novice workers.

Employees who are not satisfied with their career in the present organization may see suitable
employment in other organizations. Similarly, organizations may also prefer candidates from external
sources, if the internal candidates are not found suitable. This situation in career development of both
the individuals and the organization result in external mobility or employee turnover. External
mobility is also known as „external career‟ or employee turnover.

External mobility means shifting of employees into and out of an organization it is defined as
the rate of change in the employees of an organization during a definite period. It measures the extent
to which old employees leave and new employees enter into an organization.

Definition:

1. Employee turnover is defined as the rate of change in the working personnel of an organization
during a specified period. It signifies the extent to which old employees leave and new employees
enter in to service in a given period.

2. In human resource terms, employee turnover is a measurement of how long your employees stay
with your company and how often you have to replace them. Anytime an employee leaves your
company for any reason, they are called a turnover or separation.

Employee turnover refers to the number or percentage of workers who leave an organization
and are replaced by new employees. Measuring employee turnover can be helpful to employees that
want to examine reasons for turnover or estimate the cost to hire.

TYPES OF TURNOVER:

There are four types of employee turnover

 Voluntary turnover:
A turnover is initiated by employee. When employee choice or intended to leave
the organization. There are several possible causes
a) Re location
b) Starting a family
c) Taking care of an elderly relative
d) General job dis satisfaction such as low pay, lack of benefits, poor management.
 In voluntary turnover:
35
 When employee has no choice in the termination process. It can result from different situation
like dismissal retirement, physical, disability, relocation..,etc. It could be because the company
is trying to cut costs or the employee has violated company policy.

 Functional turnover:A turnover in which poor performers leave is called as functional turnover

 Dysfunctional turnover:

A turnover in which good performance leave is called as dysfunctional turnover.

 Avoidable turnover:

A turnover that happens in avoidable circumstances is called as avoidable turnover.

 Unavoidable turnover:

A turnover that happens in unavoidable circumstances is called as unavoidable turnover
.for eg. Employee‟s death or spouse‟s relocation.

 Internal turnover:

It involves employees leaving their current position and taking a new position with the same
organization. Internal turnover might be moderated and controlled by typical HR mechanism
such as an internal recruitment policy or formal succession planning.

Mostly it is said that employee turnover is not good for the organization. But employers should
remember that turnover is not that bad either. What is required is an optimum mix of turnover, not too
high-not low. An optimum mix of employee turnover can help in many ways

36
A little rate of employee turnover may result into:

1. Bringing in new ideas and skills from new hires.

2. Better employee-job matches.

3. More staffing flexibility.

4. Facilitate change and innovation.

High rate of turnover may lead to decrease in:

1. Productivity

2. Service delivery

3. Spread of organizational Knowledge

Measurement of Employee Turnover

Quantitatively, employee turnover can be measured in different ways. These are accession.
Separation method, combined method, and replacement method.

Accession Method:

In this method, employee turnover is expressed in the form of relationship between total number of
employees acquired during a year and the average number of employees during the year. This
relationship is expressed in the following form:

Turnover rate = Total number of employees acquired/Average number of employees during the year
*100

Separation Method:

In this method, employee turnover is measured in terms of number of employees separated from the
organization and the average number of employees employed during a year and is expressed is
follows.

Turnover rate =Total separation during the year/Average number of employees*100

This method gives better idea about the employee turnover which can be used for designing
retention strategy.

37
Combined Method:

This method is a combination of accession and separation methods. The basic idea behind combining
both methods is to ascertain the exact mobility of employees eliminating seasonal and cyclical impact
on employee mobility. For example, during prosperity, her may be more acquisitions and lesser
separations while in depression, the reverse may be ture.This method calculates employee turnover as
follows

Turnover rate =(Accessions +separations)/2/Average number of employees*100

Replacement Method:

In this method, net amount of employee mobility is taken into consideration which is obtained by
difference between total number of employees acquired and total number of employees separated and
is expressed as follows

Turnover rate = Total accessions-total separations/Average number of employees*100

The above methods express employee turnover in quantities form and a high turnover is
considered as bad for the organization. However, in today‟s context, it is not merely the number of
employee turnover that is relevant but the quality of personnel who leave the organization is a matter
of concern. Such personnel may be in managerial or technical cadre whose replacement is quite a
costly affair. Therefore, organizations have to take care of this qualitative aspect too while measuring
employee turnover.

Similarly the rates can be computed separately for different types of separations likes voluntary quit or
lay-off. The difference between accession rate and separation rates indicates the strength of employees
and the need for fresh employment.

Measures to reduce the rate of Turnover

1. Benefits

Offering employees an affordable medical, dental, and vision package in this day and age is a
great way to keep employees happy. Healthy employees are happy employees, and being able to
provide affordable health care for their spouses and families as well is something every company
should offer.

38
2. An added bonus could be vacation time, sick leave. On-site child care would be extremely
helpful for parents who have to work long or late hours especially single parents.

3. Higher Pay

Giving employees regular raises and paying well over minimum wage would be an incentive
from them to stay.

4. A set schedule

In food service and retail, and most service industries as well as health care, employees are forced to
work six or more even up to ten days in row without a day off. Days off may even be split up, so the
employees never really get a chance to rest. Giving them the opportunity to choose which days off
they want, or at least giving them two in a row and not working them more than five, would be
extremely beneficial in employee retention. This would also increase productivity and would be
beneficial to be the company.

5.Job variation

Employees get burned out on performing the same job every hour of every day, day in and day out
for years, even months. Cross training should be done, especially in food service and retail, in order to
avoid burnout.

6. A positive attitude from superiors

Most employees don‟t like negativity from their superiors. Instead of always being told what
they‟re doing wrong, they need positive reinforcement as well as constructive criticism. Managers and
supervisors should always have a positive attitude toward their employees and never insult, criticize,
or berate them.

Causes of employee turnover:

In order to know the cause of excessive employee turnover, the causes of dysfunctional and avoidable
turnover should be known. Few reasons for dysfunctional turnover may be

 Compensation package difference


 Job and employee skill mismatch: the job may be less or more satisfying and
challenging according to the employee.

 Inferior facilities, tools, etc

39
  Less recognition

 Less growth opportunities

 Poor training

 Poor supervision

 Less work and life balance

practices Factors of employee

Turnover Employee-related Factors:

Employee-related factors responsible for turnover are of the following

 .Job hopping tendency among individuals particularly at the initial stage of the career.

 Too much ambition among individuals leading to a state of never being satisfied.

 Dissatisfaction from the present job and the organization

 Better career opportunities particulars in new economy sectors.

 Tendency of home sickness.

 Tendency to start own

business. Organization-related

Factors:

Besides the individual factors, there are many organizational factors which are not
conducive resulting in to high employee turnover.

 Incongruent organizational culture resulting into conflict between the individuals

and the organization.

 Faulty human resource police and practices particular related to compensation,
promotion, and training and development.

 Poor leadership and supervision.

 Poor working conditions.

 Unrealistic job preview raising high expectations.

There are some other factors that contribute to employee turnover to explore some of
these factors in more detail below:

1. The economy: in exit interviews one of the most common reasons given for leaving is the
availability of higher paying jobs. Some minimum wage workers report leaving one job for
another that pays only 50 cents an hour more. Obviously, in a better economy the
40
 availability of alternative jobs play a role in turnover, but this tends to be overstated in exit
interviews.

2. The preference of the organization: An organization perceived to be economic difficulty will

also raise the spectre of impending layoffs. Workers believe that it is rational to seek other
employment

3.The organizational culture: much has been written about organizational culture it is sufficient to
note here that the reward system, the strength of leadership, the ability of the organizations to elicit
a sense of commitment on other part of workers, and its development of a sense of shared goals,
among other factors will influence such indices of job satisfaction as turnover intentions and
turnover rate.

4.The characteristics of the job: some jobs are intrinsically more attractive than others. A job‟s
attractiveness will be affected by many characteristics, including its repetitiveness, challenge,
danger, perceived importance and capacity to elicit a sense of accomplishment. A job‟s status is
also important as are many other factors

5. Unrealistic expectations: Another factor is the unrealistic expectation and general lack of
knowledge that many job applicants has about the job at the time that they receive an offer.

6. Demographics: Empirical studies have demonstrated that turnover is associated in

particular situation with demographic and biographical characteristics of workers.

7.The person: The individual that can influence turnover rates. These include both personal and
trait-based factors. Personal factors include things such as changes in family situation, a desire to
learn a new skill or trade or an unsolicited job offer.

8. Lack of opportunity for advancement: If the job is basically a dead-end proposition, this should
be explained before hiring so as not to mislead the employee. The job should be described
precisely, without raising false hopes for growth and advancement in the position.

9. Inadequate: Employees need guidance and direction. New employees may need extra help in
learning an unfamiliar job. Similarly, the absence of a training program may cause workers to fall
behind in their level of performance and feel that their abilities are lacking.

41
 10. Substandard wages structures: In equity in pay structures or low pay is great causes of
dissatisfaction and can drive some employees to quite. Again, a new worker may wonder why
the person next to him is receiving a higher wages for what is perceived to be the same work.

Effects of employee Turnover:

High employee turnover is a costly affair for both employees as well as organization. It
indicates that there is something wrong in the organization and unless this is corrected, the
organization cannot flourish. In the same way, unless an employee sticks to an organization for a
fairly long time, he cannot make significant contributions. Thus, organization and employees both
suffer because of high turnover.

Cost to organization:

High employee turnover is a huge cost to an organization. For example, rain Friedman, an HR
consultant, views that “what is the cost of replacing, say a middle ranking executive in your
organization? It is not just the cost of replacing the person, or paying a higher salary. We have
found that the transactional cost of replacing a person is about 1.5 to 2 times the current salary paid
in that position. Companies tend not to factors .An organization has to bear the following types of
cost because of high employee turnover.

 Hiring cost involved in recruitment, selection, and placement of new employees.


 Cost of production in the intervening period in which the position remains vacant.

 Socialization cost of new employees.

 Adverse impact on the existing employees „morale.

 Loss of prestige of the organization in human resource market and
other relevant environmental factors.

 Disturbed teamwork and team spirit in the

organization Cost to Employees

High employee turnover is costly to employees too which is in the following forms.

42
  Frequent job changes resulting into loss of long-term benefits like
provident fund, pension, gratuity, etc., to employees.

 Socialization process with the new work environment resulting into
lower productivity.

 Frequent dislocations affecting personal and family life adversely.

 Loss of employee‟s creditability because of frequent job changes

REDUCING TURNOVER

Let us explore some ideas to reduce employee turnover

 Hire the best candidate.


 Welcome new employees. Customize your induction program for new employees
according to the requirements. Same inductions program cannot be applied to all the
candidates. Make them feel welcomed.

 Produce quality managers who can really manage employees well.

 Provide employees with work schedules that are flexible enough to suit their needs.

 Don‟t be too demanding. You are hiring human beings who have their own life
and family commitments. Respect them.

 Provide career counseling and development.

 Discuss your future plans regarding the candidate with the candidate. Let them know
that the management is interested in retaining them and cares for them‟

 Take proper feedback from employees regarding their grievances.

 Remember your ex-employees. They can be of help in future. It is also a part of retention.

TRUTHS ABOUT EMPLOYEE TURNOVER

It is difficult to accept when organization say they have zero attrition rates. Companies may have
healthier turnover rates, however, there is no such thing as zero attrition There are other such facts
about turnover, about which most of us are not aware. Some of such fact shave have been
highlighted below:

 Turnover always happens:

Companies who believe in zero attrition rates only fool themselves. This happens because
employees keep on moving due to reasons like marriage r further education. Nothing can top these
employees from moving on so, rather than achieving zero attrition companies should focus on
identifying whom they want to keep so that they healthy attrition rate.
43
  Some Turnover is Desirable:
Zero attrition is not desirable mainly because of two reasons. Firstly, if all employees continue
to stay in the same organization, most of them will be at top of their pay scale which will result
in excessive manpower costs. Secondly, new employees bring new ideas, approaches, abilities
& attitude which can keep the organization from becoming stagnant.
 Turnover includes costs:

Turnover always includes some costs. Consider the costs of replacing the key employee who
falls in to the category of high performers. This includes the costs of recruitment
advertisement, referral bonuses,

Selection testing, training costs, etc. Moreover, turnover result in loss of time and efforts,
low productivity, loss of morale, loss of knowledge and so on.

 High salary doesn‟t work:
Most managers assume that a high salary package is enough to keep employees loyal to their
organization. Employees may face other problems like low job satisfaction, low engagement
levels, no recognition, poor working conditions, less support from superiors and so on. Salaries
are not always the solution to attrition.
Managers should try to identify the roots of the problems and then find a feasible solution.
 The manager can reduce attrition:

Employee‟s perception of job satisfaction stem from the relationship they share with their
immediate supervisor. Managers should try to support their subordinates and give proper
feedback on performance.HR manager work in collaboration to make the Manager should take
primary responsibility for retaining their employees. Much of the key employees last in their
organization.

 Reducing Turnover takes commitment:

Reducing turnover takes an investment in coaching, developing, motivating, mentoring &
listening to people. There should be universal acceptance of the goal of reducing turnover
along with top management commitment and dedication.

44
Problems Related to Employee Turnover

 Increased Work load

The loss of employees can result in increased work load to the other employees in the
company. Employees suggest that the employee turnover in their company leads to increased
work load.
 Training and development

Training and development in each of the company cost more as compared to the salary
increment of the current employees. The new employees need training to do job effectively.

 Low Morale

Morale in high turnover firms is usually weak. Company culture is that the shared norms and
value of a group of workers who work along. Motivating your workers to share the vision of
your business and perform at high levels is tough once colleagues and colleagues are vanishing
all around them. Workplace relationships are key to an employee‟s satisfaction with work.

 Productivity

High rates of employee turnover will causes lower employee productivity. Employee who have
additional expertise at a definite company are additional aware of the company‟s policies,
goals and the way meet their roles within the company.

 Management Frustration

Manager quickly gets frustrated with the constantly revolving of employees. The employees
contributed to longer term employees getting upset and leaving. This takes away from his
decision making and supervisory duties.

 Customer Service

High turnover will damage a business ability to retain clients and supply high quality
customer‟s service. Customers might feel more comfortable talking to a similar staff and client
services representative‟s overtime.

 Poor Performance

High turnover the basic the fundamental level of expertise across your organization is below it
otherwise would be Workers with less information and less expertise in your business and with
their jobs will not produce moreover as people who apprehend additional regarding what they
are doing. During a production job, the efficiency of production is probably going lower.

45
  Costs

High prices are one of the additional mentioned negatives of high turnover. When a worker
leaves and is replaced, there are prices related to the method of losing the primary worker and
hiring and coaching the new one. It will value regarding half of an unskilled workers
remuneration to switch as a lost worker‟s.

Control of Employee turnover

Through a reasonable degree of employee turnover is desirable even for the organizations. High
Level of turnover is detrimental. Therefore, most of the organizations make attempts to control high
employee turnover. In order to control employee turnover attempts can be taken in two directions-
holding exit interview to identify the reasons for turnover and developing retention strategy to retain
employees in the organization.

Exit interview

Exit interview is held with an employee who is due to leave an organization. Its basic obj4ective is to
identify the reasons for which the employee is leaving the organization and to take corrective actions
to overcome those reasons. Because of high employee tur4nover, many companies have taken exit
interview compulsory. In conducting exit interview an organization must take up the following issues
–

1. It must decide the person who will conduct exit interview. Generally, exit interview is
conducted either by HR personnel or direct superior of the employee concern. Sometimes, both
persons conduct exit interview and their assessment is compared

2. Another issue related to exit interview is the timing of conducting it .some companies prefer to
conduct it at the last day of the employees tenure while many others prefer to conduct it earlier as they
find last day to be very hectic for the employee

3. The third issue related to exit interview is its formal, that is whether it should be a structured
one and in depth or unstructured. Some companies have developed structured questionnaires which
exiting employees are required to fill. Some companies prefer to use unstructured form as they feel
that exiting employees tend to fill in reasons without much thinking, and it is only through in depth
interviews through which reality can be known

4. The last issue in exit interview is the analysis of result and to design action plans based on
such as analysis.

46
 There are two major problems in exit interviews. First , many organizations do not take it seriously.
Either they do not conduct exit interview at all or conduct it as a formality. With the result, they are
not in o pposition to know the truth. Second exiting employees do not disclose all negative factors.
Thus, the inadequacies of job are rarely highlighted.
In order to solve both these problems. Organizations should take certain steps. These steps may be of
the following.

1. Organization should realize that exit interviews are as important as selection interviews.
Therefore, proper emphasis should be placed on exit interviews.

2. Like selection interviews, exit interviews should be conducted by specially ,qualified and
skilled personnel.

3. An existing employee should not be treated as a foe of organization‟ HR policies and

practices. Therefore, an exit interviews should be conducted in most conducive and cooperative way
not in hostile way. This will increase the image of the organization in the mind of exiting employee
which may be projected by him later.

4. At the end of the exit interviews, the interviewers should convey their good wishes to the
exiting employee. This also helps in creating favorable image.

Strategies to overcome employee turnover:

 Recognize accomplishments

For some employees, acknowledgment of a job well done can mean almost as much as a
pay increase. When employees do a good job, praise them in front of their peers.

 Treat people fairly

An employee, who perceives unfairness, is highly likely to resign. Do not discriminate
against employees and treat them at all times.

 Job Security

If people feel secure within their role, they are less likely to feel the need to look elsewhere for
employment. Security and stability are greatly valued by most employees.

 Communicate

Good communication is vital within any business. If communicate regularly with employees,
they are more likely to feel like a true member of the team. Open

47
 communicate channels such as consultative bodies, performance appraisals, attitude survey
and grievance systems will give your staff the opportunity to raise any issues .
 Promote Engagement

Keep employees engaged to prevent them from becoming bored and losing interest in their
work. Seek their input to determine ways you can keep the job interesting and fresh and
provide new challenges by creating special projects that make use f their particular skills and
interests.

 People Management Skills for Line Managers

Ensure that all line managers are fully trained in people management and development skills.
Re-training may be required for any line manager who has a high level of staff turnover.

 Be Flexible

If people are forced to work hours which do not suit them, they may well look for a job which
fulfils their requirements, therefore, it may be needed to accommodate flexible working hours.

RETENTION STRATEGY

In order to control excess employee turnover, organization should chalk out retention strategy and
implement it. Retention strategy involves taking actions having both long-term and short-term impact
in retaining desired employees. Research studies indicate that both high and low achievers have higher
quit rates than average performers. While quitting by low performers may not have adverse impact on
an organization, quitting by high performers is a matter of serious concern for the organization.
Therefore, the organization has to adopt strategy to retain high performers. This is known as selective
retention strategy that is retaining those who are needed and letting to go those who are not needed. An
organization can take a number of measures to retain its employees. These measures may be package
for long-term stay, retention bonus, intangible benefits, matching jobs and individuals, and employee
relationship management .Some of this measure have financial implications while others are related to
work environment.

Package for Long –term stay

An employee leaves the organization because he feels that his market value is more somewhere
else. This feeling can be overcome by designing suitable long-term package for
employees which may include stock option with provision of higher benefits for longer duration of
stay in the organisation as discussed ,increasing financial incentives over the period o time, and
increasing emphasis on deferred payment of financial incentives in the long run like superannuation
allowance or long term stay bonus .The provision may be made that if employees leave earlier than
stipulated time, they will forgo certain long term benefits.
48
Retention Bonus

Retention bonus is a kind of ad hoc payment to essential employees to retain them in the organization
The retention bonus, once compensation tool reserved largely for top executives
, is increasingly being used to retain essential mid-level and rank and file employees. The measure of
paying retention bonus is used when any change in an organization take place such as merger and
acquisition or organization restructuring and employees tend to leave the organization because of such
exchange. There are several issues involved in paying retention bonus. These are paying one lump sum
or over several times ,paying on the basis of length of service or other measures , uniform payment to
all employees or discriminate payment to them depending on some criteria , and basis of calculation of
amount of retention bonus These issues can be solved by an organization taking its own needs and
those of employees.

Intangible Benefits

Companies are offering many intangible benefits‟ to their employees for developing belongingness
with the organization. Such intangible are in the form o developing training . Overseas employment in
case f companies having branches in foreign countries, holiday trips for employees and their families,
dinner meetings in posh hotels with employees and their families , meeting in posh hotel with
employee and their families, etc. In fact, many companies, particularly MNCS operating in India use
overseas training and employment as carrots to their employees.

Matching jobs and Individual

IN, fact many employees change their organization because mismatch between them and their jobs.
Career planning, career development and promotion can take case of this problem. Many companies
offer choice to their employees to switch from line function to staff function and vice versa from fast
track project to slow track project, and soon . This flexibility helps in reducing monitory and job stress
and the job satisfaction is high.

49
 Employee Relationship management

On the pattern of customer relationship management, the concept of employee relationship

management has developed. While CRM is the external response to „why an organization does
business. Employee relation management is internal response to „how‟ an organization does business
Employee relationship management is wider set of functional that encompasses learning performance
and incentives guidance, workforce analysis, and host of others operational issues related to managing
human resource. Researches show that changing jobs by employees is a painful decision with
repercussions on a family‟s stability, spouse‟s career, and children education, social network in the
present location and employment, and uncertainty in the next job. Unless te person feel quite strongly
about issues such as equity, morale, relations with immediate superior and opportunities outside, he is
unlikely to change jobs. Therefore, the employing organization should take care to develop employee
relationship based on the above factors. Many software developers have developed human capital
management solution in which employee relationship management is included as a capsule. HCM
solution keeps track of employee satisfaction or dissatisfaction. If a key employees dissatisfaction
level goes beyond a certain level at which he is likely to be attractive by a offer for job, HCL solutions
brings into the organization in HR personally take a immediate step overcome this problem.

Besides the above measures, an organization can use persuasion to retain key employees. If key
employees can be brought in through persuasion, they can be retained through persuasion too. In
persuasion skills of the chief executive or HR personnel are important. In fact, many progressive
organizations rely on this method to retain key employees.

MANAGING RETENTON

The task of managing employees can be understand as a three stage process

1. Identify the cost of employee turnover

2. Understand why employee leave

3. Implement retention strategies

50
 Identify the cost employee turnover:

The organization should start with identifying the employee turnover rates within a particular time
period and benchmark it with the competitor organizations. This will help in assessing the whether the
retention rates are healthy in the company. Secondly, the cost of employee turnover can be calculated.

According to a survey, on an average, attrition costs companies 18 month‟s salary for each
manager or professional who leaves, and 6 month‟s pat for each hourly employee whole leaves. This
amounts to major organizational and financial stress, considering that one out of every three
employees plans to leave his or her job in the next two years.

Understand why employees leave:

Why employees leave often puzzles top management. Exit interviews are an ideal way of recording
and analyzing the factors that have led employees to leave the organization. They allow an
organization to understand the reasons for leaving and underlying issues. However employees never
provide appropriate response to the asked question. So an impartial person should be appointed with
whom the employees feel comfortable in expressing their opinions.

Implement retention strategy:

Once the causes of attrition are found, a strategy is to be implemented so as to reduce employee
turnover. The most effective strategy is to adopt a holistic approach to dealing with attrition. An
effective retention strategy will seek to ensure:

 Attraction and recruitment strategies enable selection of the „right‟ candidate for
each role/organization.

 New employee‟s initial experiences of the organization are positive.

 Appropriate development opportunities are available to employees, and that they keep aware
of their likely career with the organization.

 The organization‟s reward strategy reflects the employee drives.

 The leaving process is managed effectively.

SEPARATIONS:

Separations mean termination of employment by either of the parties or both the parties
via, employee, separation may be natural, voluntary and mandatory.

51
TYPES OF SEPARATIONS:

(1) NATURAL SEPARATIONS:

Natural separations take naturally without any special initiation by the employee or by the company.
Natural separations include; employee retirements, employee deaths and company closure.

Retirement:

The agreement between the employee and employer at the time of employment specifies the age of
retirement of the employee from service of the company based on the provisions of the labour laws in
force of the land or the policies of the company. Age of retirement is varied from organization to
organization. It is 62 years in case of central government universities, 60years in case of universities of
a number of universities,58 years in case of a n state government universities in India. It is 58 years in
case of national employees working in government organizations. Employees separate naturally from
the organization as a regular employee when they naturally retire. Employees after retirement are
eligible to get various retirement benefits like pension, provident fund and gratuity.

• Re-Employment after Retirement:

Some organization re-employee the retired employees on contracts basis due to shortage
of experienced and skilled manpower.

• Employee Death:

Employees naturally separate from the organization when they die.

• Company closure:

Some companies are closed due to various reasons like poor financial position, adverse business
conditions, out-dated technology like companies producing manual type writing machines, carbon
papers, pagers, computer floppies and the like. Employees working in such companies separate from
companies

(2) EMPLOYEE-INITIATED SEPARATIONS

Employee voluntary separate or voluntary quite the job for various reasons like dissatisfaction
over current job, getting better job in term of salary and status in other

52
organization, start of business on their own, continuous ill-health, family reasons, contentment over
career in terms of earning or job status and the like. The expanding business opportunities across the
globe created a number of new jobs in software and other high technology industries during 1997-
2000.Consequently,the employees working in various organizations resigned their jobs in order to join
new organizations.

Voluntary separations are two types viz…, resignations and voluntary retirement.

• Employee Resignations:

Employees tender their resignations, due to various reasons as specified in the voluntary separations,
when alternatives arrangements like retirement are not available as retirement enables employees to
receive different kinds of facilities like pension\provident funds, and gratuity. Thus employees tender
resignations when the perceived benefits from the new jobs or alternative careers would be more than
the probable loss of retirement benefits and salary from the current job.

• Voluntary retirements:

Some organizations provide an opportunity of „voluntary retirement „to employees, which carry
proportionate \pro-rata amount of retirement benefits. Employees, who completed specified length of
service, are normally eligible for voluntary retirement. Organizations provide this facility to enable
employees to separate from the organization with retirement facilities, when the employees face health
problems or have better career opportunities or organization face the problem of over staffing. Most of
the public sector organization in different countries including India announced voluntary retirement
facilities to employees, when they realized the problem of over staffing consequent upon competition
and globalization in 1991.The economic policy of 1991 provided for the voluntary retirement facility
to employees based on their exit policy.

Voluntary exit policy and practice:

The new economic policy of 1991 brought significant changes in industrial and business sectors.
One of the important aspects of the new economic policy is the exit policy.

Exit policy refers to the policy and action programme of retrenching the surplus human resources
resulting from restructuring, modernizing, reducing the activities, closure of a part

53
or total unit, adopting new technology or new methods of operations, redesigning and re-allotting the
jobs in an industrial or business organization.

Government’s policy before 1991 and its consequences:

Government specified its policy regarding employment before 1991, in various industrial policies. One
of objectives of government in establishing and developing public sector was to create or generate
employment opportunities. The government aimed at solving the unemployment problem by
encouraging the small , tiny and cottage industries. Further government used to appreciate the large
scale private sector industry, if it was employment – oriented. The huge size and ever growing
population and unemployment problem was the reasons for formulating such a policy by the
government.

Consequent upon the implementation of government policies regarding employment and other
practices of the industries result in surplus human resources and disguised unemployment in industrial
in unit in India. This problem is predominant in public sector compared to that of private sector.

Extent of surplus

The surplus of human resources of two dimensions viz..,

• Surplus of human resources even with the existing level of technology,

• Surplus of human resources, if the technology is upgraded.

India industrial units employ more number of workers compared to that of the foreign
organization with similar nature and level of technology.

Consequence of surplus man power

• Surplus human resource results in high labour cost. Increased labour cost leads to
high production cost and high price of the product or service.

• Surplus human resource, high cost of labour and high cost of production reduces
the organization competitive ability.

• Surplus labour and there by disguised un employment reduces employment efficiency

and labour productivity.

54
• Surplus labours create organizational politics.

• Surplus human resource poses threat for technological up-gradation. But, technological up-

• gradation is an essential factor in market economies.

• Surplus labour may lead to industrial unrest and poor industrial relations

VOLUNTARY RETIREMENT SCHEME

One of the techniques of trimming the workforce is voluntary retirement scheme. This is generous,
tax-free severance payment to persuade the employees to voluntary retire from the company. The
scheme has its origin during early 1990s in u.s.a. This scheme is also known as „Golden Handshake‟
as it is the golden route to retrenchment. The voluntary retirement scheme is the most humane
techniques for downsizing the workforce.

The voluntary retirement scheme was announced by the government to cover the public sector
employees. The scheme was later introduced In private sector industries.

Benefits under this scheme

The employee for voluntary retirement entitles for 45 days emoluments for each completed year of
service or monthly emoluments at the time of retirement multiplied by the remaining months of
services before normal date of retirement whichever is less. In addition to these emoluments, the
employee will get his provident fund and gratuity dues. The VSR originally granted tax-exemption for
amount up to 5 lakhs received by a public sector employee as high severance pay-package.

Eligibility for VRS

The eligibility criterion for VRS varies from one company to the other. In case of public sectors units,
employees who have attained 40 years of age or completed 10 years of service are eligible for
voluntary retirement under the scheme.

Merits of VRS

1. It offers the best and humane route to retrenching excess work force.

2. Lucrative settlement prevents resentment.

3. Voluntary nature precludes the need for enforcement.

55
4. It allows specific division to be down sized.

5. It allows for lowering the overall wage bills and enables for increase in salaries.

Demerits of VRS

The employees of the company may accept the deal and leave the company

1. It creates a sense of fear and uncertainty among those employees who stay with the company.

2. Severance costs may outpace productivity gains.

3. Trade unions and individual workers may protest the operation of the scheme and these
protests may disrupt operation.

4. Operation of the scheme may create a bad reputation for the company.

National Renewal Funds

National renewal fund was established to help the workers affected by industrial
restructuring, modernization or closure of the units. The objectives of the national.

• To provided assistance to firms to cover the cost of retraining and redeployment of employees
arising as a result of modernization and technological up-gradation of existing capacities and from
industrial restructuring.

• To provide funds for compensation to employees affected by restructuring or closure

of industrial units, both in the public and private sectors.

• To provide funds for employment generation schemes in the organized and un-
organized sectors in order to provide social safety net for labour

Measures to minimize the Limitations.

• The organizations may make use of the following measures to reduce the limitations of
the scheme.

• The management should involve the unions in the process of decision-making, formulating
the rules and regulations of the scheme and in implementing the scheme.

• Increase the benefits to make the severance package more attractive.

56
  Motivate the managers through counseling.

The challenges of Employees Exit

Reducing the excess manpower in organization is not an easy task. There are a number
of challenges of this task.

• Establish the compulsion of manpower reduction.

• Manage downsizing without disrupting the organization.

• Ensure that employees participate in the decision to down size.

• Match of focus of manpower reduction to corporate strategy.

• Ensure a transparent system for choosing people to be eased out.

• Maintain contract and relationships with former employees.

• Manage the psychological and social fallout on exiting employees.

• Prevent the company from being branded anti-people.

• Develop a post downsizing manpower deployment plans.

Manage Employee Exit

People who contribute significantly to the organization goals are the organization‟s assets. These
assets are turned into liabilities due to obsolescence of their skills, Knowledge and abilities consequent
upon the technological up-gradation or change in the organizational requirements. Added to this,
intensifying competition and recession in business create the need for eliminating the non-performing
employees or the liabilities. Mergers, joint ventures, takeover also cause reduction of excess
manpower. After identifying the excess manpower, prepare for the reduction by identifying the
departments with high wage bills and low productivity. Then; initiate the process of reduction of the
manpower.

(3) EMPLOYER-INITIATED SEPARATIONS

Employers also initiate separations due to performance and in-disciplinary issues, inability of
employer to provide continuous employment due to supply-chain management problems in

57
the entire business process. Thus, employer-imitated separations include discharges lay-off and
retrenchment.

Discharge/Dismissal:

The reasons for dismissal or discharge are due to the employee‟s inability to follow organizational
rules and regulations of employment. Thus employers initiate the employee separations when the
employees fail to follow organizational rules and regulations of employment. These reasons include,
but not limited to poor performance, continuous absenteeism without proper approval, misbehavior,
misconduct, theft of company‟s property and illegal acts

Layoff:

Organization separates the employees temporarily due to its inability to provide employment in
view of supply-chain management problems like lack of/inadequate raw materials, other kinds of
inputs, power, working capital, breakdown of machinery, decline in sales and other any temporary
problems.

Legal provisions:

Employers pay lay-off compensation to employees during lay-off period as employees are laid
off due to the employer- centered reasons. The amount of lay-off compensation to be paid as per the
section-25 of industrial disputes Act,1947 is half of the normal wages, According to the Industrial
Disputes Act,1947,industrial units employing more than 100 employees require prior permission from
the government for layoff‟s retrenchment and closures.

Employers have to make the basis for lay-off clear like seniority or performance junior
employees are laid-off first and the senior employees are laid off at the end, if the organizations follow
the seniority as the basis for lay-off. Senior employees are called back to work first and the junior
employees are called back to work at the last, when the business operations are restored. Similarly, if
the organizations follow merit as the basis for lay off, employees with least performance appraisal
scores are laid off first and highest performance appraisal scorers are laid off at end. Employees with
highest performance appraisal scores are called first and the least appraisal scorers are called back at
the end, when the business operations are restored.

58
RETRENCHMENT

Retrenchment is separation of employees relatively on permanent basis by employers due to the

latter‟s inability to provide employment .Thus organization retrench employees due to adaption of
modern manufacturing technology, adaption of robotics in business operations, adaption of
information technology, shifting of manufacturing locations to less manufacturing cost centers,
economics recession and adverse business conditions relevant to s particular company. However, some
34w`companies recover and turnaround from adverse business conditions, recessionary impacts and
boost-up the business growth. Companies in such cases of recovery and turn-around can reemploy the
qualified retrenched employees.

Manufacturing Technology and Retrenchment

Sophisticated equipment and automated manufacturing technology perform a number of

functions hither to perform by manual labour in the past. As such automated and modern technology
eliminated a number of manual and lower level jobs. Consequently, companies adapted automated
technology found surplus staff in production department and plan for retrenchment of staff. In
addition, automated technology requires highly skilled employees, who would replace a large number
of employees with traditional skills. Thus, modern manufacturing technology resulted in employees
with traditional skills.

Robotics and Retrenchment

Robotic is an important technology of modern manufacturing in most of the companies. Most of the
factories have been using robots on an increased scale. Robots have already started replacing menial
and repetitive jobs. Therefore, Companies adapting robots started retrenching employees.

INFORMATION TECHNOLOGY AND RETRENCHMENT

Information technology perform a number of jobs like processing data and

information
,communication, clerical jobs and a number of office maintenance jobs. In addition, information
technology helps in fast performance of a number of jobs in accounting, finance, human resource and
marketing. Thus, information technology enhances performance and productivity. In order word, less
number of people can do more work with help of information technology. Consequently most of the
offices that adapted information technology found surplus number of employees and resorted to
retrenchment.

59
Globalization and Retrenchment in Advanced Countries

Globalization and consequent competition brought paradigm shifts in location of business

operations from high manufacturing cost destinations to low manufacturing cost locations.
Consequently, most of the multinational companies shifted their manufacturing and some other
business location for advanced economies like USA, UK and France to India, China and brazil. This in
turn resulted in loss of jobs in MNC‟S locations of advanced countries. MNC‟S found surplus staff in
their location in advanced economies and hence retrenched them.

Economic Recession and Retrenchment

The economic recession that began in December 2007 and still continuing even in 2011 resulted
in decline in business activity of a number of countries. The impact of economic recession is severe in
case of advanced countries like USA, UK and Italy. In fact, the world trade in term of exports and
imports declined during 2007 and 2011 due to economic recession. Thus the economics recession
resulted in decline in demand for products and services, output, marketing activities, loss of jobs and
loss of income. Companies reduced their business operations consequent upon reduction in sales due
to economic recession. Reduction in business operations forced the companies to reduce employees
through retrenchment. Retrenchment, consequent upon recession affected all kinds of employees like
young and old. Inexperienced and experienced and unskilled and skilled employees. Though it is said
that the recession officially ended in June 2009, unemployment didn‟t peak until 2010,after which it
declined slightly.

Adverse Business Conditions and Retrenchment

Adverse business conditions like decline in demand for the product or service following shifts in
customer preferences, tastes and fashions, redundancy of the product owning to technology shifts,
competitors ,strategies, poor financial management, mismanagement inability of the human resources
to be innovative and change ahead of the environmental shifts.

Legal Provisions Governing Retrenchment and Compensation

Under the industrial dispute Act, 1947,a company has the right to retrench employees for any
reasons what‟s ever other than disciplinary reasons. Retrenchment procedures are

60
governed by the Last in firs out method.Section25-G of the industrial disputes Act,1947 states that, an
employer should only retrench employees who have been most recently hired. According to Section
25(f) of industrial disputes Act, 1947, companies have to pay retrenchment compensation to
retrenched employees equivalent to 15 days average pay for every completed year of continuous
service.

According to the industrial disputes Act, 1947, industrial units employing more than 100
employees require prior permission from the government for layoff, retrenchment and
closure.23public sectors units retrenched 264 employees in 2007 in India due to closure of the
industrial units.

Employee turnover in Nava Bharat ventures limited

A Nava Bharat venture limited (sugar division) is a seasonal factory as the production of the
sugarcane crop is seasonal. The crop is sugarcane is produced only for 6 months of the year. During
those months only sugar manufacturing is done. Turnover mainly exists at production which involves
machine work. The manufacturing of sugar employs only in seasonal employees.

Seasonal Employees

Generally seasonal employees are hired to work on a part-time basis by companies that need extra
help to particularly season. Seasonal jobs can offer out-of-work employees the opportunity to earn
income to pay down bills, for example, or earn money for holiday gift giving. In addition, since many
seasonal jobs can be performed on evenings and weekend, regular employees can earn a second
income for a certain period of time as a seasonal employee.

 Law concerning employee treatment, benefits, and policies of part-time, temporary,
or seasonal employees a covered by both federal and state laws.
 The permanent industry has high turnover compared to that of seasonal industry because
the work schedule is very busy at the permanent industry.
 It involves in the continuous working of the employees.
 In seasonal industry, people have change in the work and are interested in the work.
 Turnover in the Nava Bharat is less the maximum turnover in the company is due to retirement.
The turnover is less because the wages and salaries provided to the employee is satisfactory.
 The administrative staff has less work as during off season they complete their work.
 Contract employees are continuing their work for the next year.

61
 The turnover is less because the wages and salaries provided to the employee
is satisfactory.

 The administrative staff has less work as during off season they complete their work.

 Contract employees are continuing their work for the next year.

62
 CHAPTER-5
DATA ANALYSIS AND INTERPRETATION

63
 DATA ANALYSIS AND NTERPRETATION

1)How you feel with your job?

a)Satisfied b)Dissatisfied c)Neither Both

Table No:5.1 Employee response towards job

S.No Response No. of Percentage of

Respondents Respondents
1 Satisfied 23 46
2 Dissatisfied 22 44

3 Neither both 5 10

Total 50 100

Graphical representation :No: 5.1

Employee response towards job

25

20
Satisfied
15
dissatisfied
10
neither both
5

Analysis:
From the above table and graph out of 50 employees,23 members are satisfied with the
present job and 22 members are dissatisfied the remaining 5 have no feeling regarding the job.

Inference:

Most of the employees are satisfied with the job.

64
2)As a new employee at the organization, did you receive an Orientation package?

a)Compensation b)Employee Skills c)Lack of relationship

Table No:5.2Response towards receiving of orientation package

S.No Response No. of Percentage of

Respondents
Respondents
1 Yes 24 48
2 No 10 20
3 Not fully 8 16
4 Partial 8 16
Total 50 100

Graphical representation: No: 5.2

Response towards receiving of

orientation package

30
25
20
no
15
not fully
10
5
0

Analysis:

From the above table and graph out of 50 employees,24 members are yes with the present job
and 10 members are no and 8 members are not fully receiving packages and remaining 8 have partial
regarding the package.

Inference:
Most of the employee said that they are receiving of orientation packing.
65
3)For how many years you are working in the current organization?

a) Less than 2 years b)More than 2 years

c)More than 5 years d)More than 8 years

Table No:5.3 Work experience in current organization

S.No Response No. of Percentage of

Respondents Respondents
1 Less than 2 year 7 14
2 More than 2 year 10 20

3 More than 5 years 15 30

4 More than 8 years 18 36

Total 50 100

Graphical representation: No: 5.3

Work experience in current

Organization
20

15 less than 2 year

more than 2 year

10
more than 5 years

5 more than 8 years

Analysis:
From the above table and graph out of 50 employees,7 members are less than 2 years with the
work experience in current organization and 10 members are more than 2 year with the present job and
more than 5 years with the current organization and remaining 18 members more than 8 years with the
work experience in current organization.

Inference:

Most of the employees are satisfied with work Experience in Current organizations.
66
 4) What kind of following benefits will attract you to stay in the current organization?

a) Incentives b) Fringe benefits

c) Hikes in salaries d) Prerequisites

Table No:5.4 Benefits that attract to stay in the organization.

S.No Response No. of Percentage of

Respondents Respondents
1 Incentives 18 36
2 Fringe benefits 7 14
3 Hikes in salaries 19 38
4 Prerequisites 6 12
Total 50 100

Graphical representation: No:5.4

Benefits that attract to stay in the

organization
20

15 incentives
fringe benefits
10
hikes in salaries
5 prerequisites

Analysis:
From the above table and graph out of 50 employees,18 members are said that incentives. with the
present 6 members are prerequisites.

Inference:

Most of the employees are satisfied with benefits to stay in the organization.

67
5)Are you satisfied with your working hours?

a)Satisfied b)Partial satisfied

c)Dissatisfied d)Partial Dissatisfied

Table No:5.5 Satisfaction with working hours

S.No Response No. of Percentage of

Respondents Respondents
1 Satisfied 14 28
2 Partial satisfied 26 52
3 Dissatisfied 4 8
4 Partial dissatisfied 6 12

Total 50 100

Graphical representation: No: 5.5

Satisfaction towards working hours

30
25
20
partial satisfied
15
dissatisfied
10
5
0

Analysis:
From the above table and graph out of 50 employees,14 members are satisfied with the working
hours and 26 members are partial dissatisfied and 4 members are dissatisfied and remaining 6 have
partial dissatisfied with working hours .

Inference:

Most of the employee are partially satisfied with the working hours.

68
6) Are you satisfied with your salary?

a)Satisfied b)dissatisfied

Table No:5.6Satisfaction with salary

S.No Response No. of Percentage Of

Respondents Respondents
1 Satisfied 40 80
2 Dissatisfied 10 20
Total 50 100

Graphical representation:No:5.6

Analysis:

From the above table and graph out of 50 employees,40 members are satisfied with the
salary and 10 members are dissatisfied with toward salary.

Inference:

Most of the employees are satisfied with salary.

69
7) Do you have freedom at work environment?

a)Agree b)Extremely agree c)Disagree d)Extremely disagree

Table No:5.7 Freedom at work environment

S.No Response No. of Percentage of

Respondents Respondents
1 Agree 14 28
2 Extremely agree 31 62
3 Disagree 4 8
4 Extremely disagree 1 2
Total 50 100

Graphical representation:No:5.7

Freedom at work environment

40
30 Agree
extremely disagree
20
Disagree
10 extremely disagree

Analysis:

From the above table and graph out of 50 employees,14 members are agree with work
environment and 31 members are extremely agree and 4 members are disagree with work environment
and remaining 1 have extremely disagree with freedom at work environment..

Inference:

Most of the employees said that they have freedom at work environment.

70
8) Is employer paid for overtime if they work above their contracted hours?

a)Yes b)No

Table No:5.8 Payment of overtime if worked above contracted hours

S.No Response No. of Percentage of

Respondents Respondents
1 Yes 29 58

2 No 21 42

Total 50 100

Graphical representation:No:5.8

Payment for overtime

35
30
25

20 yes
15 no
10
5
0

Analysis:

From the above table and graph out of 50 employees,29 members are yes said that payment
for overtime and remaining 21 members said no to the above statement .

Inference:

Most of the employees responded that Payment is done for overtime.

71
9) As per your concern which causes may affect for the employee turnover?

a)compensation b)Employee Skill c)Lack of relationship

Table No:5.9Causes may effect employee turnover

S.No Response No. of Percentage of

Respondents Respondents
1 Compensation 20 40
2 Employee skills 11 22
3 Lack 19 38
Of Relationship
Total 50 100

Graphical representation:No:5.9

Causes of employee turnover

25

20

15 compensation
employee skills
10 lack of relationship

Analysis:

From the above table and graph out of 50 employees,20 members are said that causes of
employee turnover with the present job and 11 due to employee skills and 19 due to lack of
relationship.

Inference:

Most of the employees are satisfied with compensation.

72
10)How much physical stress at work environment?

a)Heavy b)Normal c)Comfort d)Discomfort

Table No:5.10Physical stress at work environment

S.No Response No. of Percentage of

Respondents Respondents
1 Heavy 3 6
2 Normal 24 48
3 Comfort 16 32
4 Discomfort 7 14
Total 50 100

Graphical representation:No:5.10

Physical stress at work environment

30

25
Heavy
20
Normal
15
comfort
10
discomfort
5

Analysis:

From the above table and graph out of 50 employees,3 members are heavy with physical stress at
work environment and 24 members are normal with the present job and 16 members are comfort and
remaining 7 have discomfort feeling regarding the job.

Inference:

Most of the employees said that physical stress at work environment

73
11) For which reason you prefer change the job?

a)Health ground b)Family issues

c)Monetary benefits d)Any other

Table No:5.11Reason to change the job

S.No Response No. of Percentage of

Respondents Respondents
1 Heath ground 20 40

2 Family issues 22 44
3 Monetary benefits 5 10
4 Any other 3 6

Total 50 100

Graphical representation:No:5.11

Reasons to change the job

25

20
health ground
15 family issues

10 monetary benefits
any other
5

Analysis:
From the above table and graph out of 50 employees,20 members said that reasons to change the
job and 22 members are family issues and 5 due to monetary benefits and 3 have any other reason.

Inference:

Reasons for changing the job is health ground and family issues.

74
12) Overall, what is your satisfaction of the job with the organization?

a)Satisfied b)Dissatisfied c)both a &b

Table No:5.12 Overall satisfaction towards job

S.No Response No. of Percentage of

Respondents Respondents
1 Satisfied 32 64

2 Dissatisfied 14 28

3 both 4 8

Total 50 100

Graphical representation:No:5.12

Overall satisfaction toward job

35
30
25
satisfied
20
dissatisfied
15
both
10
5

Analysis:

From the above table and graph out of 50 employees,32 members are satisfied with
overall satisfaction toward job and 14members are dissatisfied the remaining 4 have both.

Inference:

Most of the employees said that overall satisfaction toward job.

75
13) Have you received adequate training on employee motivation?

a)Yes b)No

Table No:5.13 Receiving of adequate training on employee motivation

S.No Response No. of Percentage of

Respondents Respondents
1 Yes 28 56
2 No 22 44
Total 50 100

Graphical representation:No:5.13

Response towards receiving adequate

30
training on employee motivation
25
20
yes
15 no
10

Analysis:

From the above table and graph out of 50 employees, 28 respondents are said that response
towards receiving adequate training on employee motivations and remaining 22 members said no to
the above statement.

Inference:

Most of the employees responded that they have adequate training is providing on employee
motivation.

76
14) Are the employees leaving your organization frequently?

a)Yes b)No

Table No:5.14 Are the employees leaving the organization frequently

S.No Response No. of Percentage of

Respondents
Respondents
1 Yes 10 20
2 No 40 80
Total 50 100

Graphical representation:No:5.14

Employees are leaving the

50
organization frequently
40

30
yes
20 no
10

Analysis:
From the above table and graph out of 50 employees 10 respondents said that employees are
leaving the organization frequently and remaining 40 members said no to the above statement.

Inference:

Most of the employees responded that Job in security is the main reason for leaving the
organization frequently.

77
15) What is your opinion of the working conditions at your job?

a)good b)Bad c)Average

Table No:5.15. Opinions on working conditions of the job

S.No Response No. of Percentage of

Respondents Respondents

1 good 28 56
2 Bad 6 12
3 Below 16 32
Average
Total 50 100

Graphical representation:No:5.15

Opinion on working conditions of the job

30

20 good
bad
10 average

Analysis:

From the above table and graph out of 50 employees, 28 members are good opinion on working
conditions of the job. And 6 members are bad with job and 16 members are average with working
condition of the job.

Inference:

Most of the employees got satisfied with the working condition of the job.

78
CHAPTER-6
FINDINGS

SUGGESTIONS

CONCLUSION

79
 FINDINGS

1. Most of the employees are satisfied with job.

2. Most of the employees are satisfied with benefits to stay in the organization.

3. Most of the employees are satisfied with salary.

4. Most of the employee said that physical stress at work environment.

5. Reasons for changing the job are health ground and family issues.

6. Most of the employees responded that Job insecurity is the main reason for the
leaving the organization frequently.

80
 SUGGESTIONS

After conducting the study on “Employee Turnover” with respect to Nava Bharat Ventures Ltd. By
collecting the opinions from 50 respondents through questionnaire, the information which was
collected is stored and analyzed by using different statistical tools like „tables‟, „Graphs‟. After this
extensive and well performed analysis of the data, some of the findings and suggestions from the
respondents with regard to the improvements that have to be made with respect to “employee
turnover” have been identified. The data so collected have been analyzed in different chapters and
conclusions have been drawn.

 Every employee in the organization should have a personal development plan for the
coming year.

 Provide opportunities considering the overall development of an employee

 Take appropriate measures to avoid burnout in the employees.

 Retain your best people to gain competitive edge with suitable measures.

 Create great jobs through information sharing and encouragement.

 Create rotational schedule for roles with sets of tasks that cycle 2 or 3 times a year.

 Encourages employee pride by offering innovate programs that demonstrate that they
are important to the success of the organization


81
 CONCLUSION

Employee turnover is a burning issue for any organization. The study found that low level
salary and benefits packages are significantly reasoned for employee turnover. In particularly, lack of
career advancement, job dissatisfaction, leaders unwillingness to allow staff participate in the decision
making process of the organizational matters, inadequate training opportunities directly impacted on
the staff turnover and separations.

It was revealed that unfavorable employee related factors low level of team work, impartiality of
management over benefits, lack of flexible working conditions and other related factors increased
employee dissatisfaction, lack of commitment, in the end result was resignation.

It is important for managers to have an understanding of why people would leave the organization
and it is equally important to identify those factors that attract people to the organization. This
researcher will help the organization to make the necessary measures to retain the employees. This
will certainly bring down the causes for employee turnover and helps the management to reduce the
employee turnover. So it leads the organization to retain their employees.

82
BIBLIOGRAPHY

83
 BIBLIOGRAPHY

• L.M.PRASAD‟S “HUMAN RESOURCE MANAGEMENT

• K.ASWATHAPPA‟S “HUMAN RESOURCE MANAGEMENT” Tata McGraw Hill

Fifth Edition-2009.

• P.SUBBA RAO‟s Human resource Management and Industrial Relations Himalaya

Publishing House

• HRD and management by Ghosh

WEBSITES:

WWW.HRMGUIDE.UK

WWW.MAHALIBRARY.COM

WWW.GOOGLE.COM

WWW.EN.WIKIPEDIA.ORG

84
 ANNEXURE
QUESTIONNAIRE
BIO-DATA
 Employee
Turnover

QUESTIONNAIRE

NAME:

GENDER:
AGE:

1) How you feel with your job?

a) Satisfied b) Dissatisfied c) Neither both

2) As a new employee at the organization, did you receive an orientation package ?

a )Yes b) No c) Not fully d) partial

3) For how many years you are working in the current organization?

a)Less than 2 year b) More than 2year

c) More than 5years d) More than 8years

4) What kind of following benefits will attract you to stay in the current organization?

a) Incentives b) Fringe benefits

c) Hikes in salaries d) Prerequisites

5) Are you satisfied with your working hours?

a) Satisfied b) Partial satisfied

c) Dis-satisfied d) Partial dissatisfied

6) Are you satisfied with your salary?

a) Satisfied b) Dissatisfied
7) Do yo u have freedom at work environment?
a) Agree b) Extremely agree c) Disagree d) Extremely disagree
8) Is employer paid for overtime if they work above their contracted hours?

a) Yes b) No

9) As per your concern which causes may affect for the employee turnover?

a)Compensation b)Employee skill c)Lack of relationship

10) How much physical stress at work environment?

a) Heavy b) Normal c) Comfort d) Discomfort

11) For which reason you prefer change the job?

a) Health ground b) Family issues

c)Monetary benefits d) Any other

12) Overall, what is your satisfaction of the job with the organization?

a) Satisfied b) Dissatisfied c)both a & b

13) Have you received adequate training on employee motivation?

a) Yes b) No

14) Are the employees leaving your organization frequently?

a) Yes b) No

15) What is your opinion of the working conditions at your job?

a) Good b) Bad c) Average

 BIODATA

NAME : V.KRANTHI

FATHER‟S NAME : V.GANGADHAR RAO

SEX : FEMALE

DATE OF BIRTH : 23-07-1996

AGE : 21

RELIGION : HINDU

NATIONALITY : INDIAN

LANGUAGES KNOWN : TELUGU,ENGLISH

MARITAL STATUS : UNMARRIED

EDUCATIONAL QUALIFICATIONS:

S.NO NAME OF THE NAME OF THE YEAR

PERCENTAGE
COURSE INSTITUTION OF
PASSING
1. MBA ADITYA PG COLLEGE 2018 PURSUING
(HR,MARKETING)
2. GRADUATION YRL DEGREE COLLEGE 2016 76
B.Sc OF ARTS ,
SCIENCE&TECHNOLOGY
3. INTERMEDIATE PRAGATHI VIDHAYALA 2013 80
(BI.P.C) JUNIOR COLLEGE
4. SSC MOHAN HIGH SCHOOL 2011 62