ABSTRACT

Attrition is an ever green problem faced by almost all the organizations. As Human

resources are considered the real assets of the company retaining them has become a major

concern for all the organizations. Employee Attrition is the gradual natural reduction in the

size of the workforce that occurs when the personnel is lost through retirement, resignation

or death and is not replaced. It is very annoying for the organization to go through the

process of hiring and training, only to find out employees leaving after. This entire process

involves lot of cost and impacts negatively when the employees leave. Attrition leads to

depletion of Human resources, weakening competitive positions in the market.

The main aim of this survey is to understand the concept of attrition and analyze the

causes of attrition in TECUMSEH, with the aim of making recommendations on ways of

reducing it.

The survey results revealed that the main factors behind employee attrition are

inadequate opportunities for training and development, job dissatisfaction and inadequate

welfare measures.

The result indicated that half of the employees did not want to seek the employment

elsewhere.

The conclusion is that the management may take an action to improve the induction and

feedback process, provide more opportunities for career advancement and provide various

benefits (monetary and non- monetary).

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 TABLE OF CONTENTS

S.no Topic Page

number

CHAPTER-1 1.1INTRODUCTION
4-15

1.2 OBJECTIVES
16

1.3NEED FOR THE STUDY

17

1.4RESEARCH METHODOLOGY
18-20

1.5LIMITATIONS OF THE STUDY

21

CHAPTER-2 REVIEW OF LITERATURE

23-25

CHAPTER-3 COMPANY PROFILE

27-43

CHAPTER-4 DATA ANALYSIS AND

INTERPRETATION 45-62

CHAPTER-5 FINDINGS, CONCLUSIONS&

SUGGESTIONS 64-66

CHAPTER-6 ANNEXURE 68-72

BIBLIOGRAPHY 73

2
 CHAPTER -1

INTRODUCTION

3
 1.1 INTRODUCTION

In the best of worlds, employees would love their jobs, like their coworkers, work hard for

their employers, get paid well for their work, have ample chances for advancement, and

flexible schedules so they could attend to personal or family needs when necessary. And

never leave.

But in the real world, employees, do leave, either because they want more money, hate the

working conditions, hate their coworkers, want a change, or because their spouse gets a

dream job in another state.

Definitions:

Employee Attrition:

“A gradual natural reduction in the size of the workforce that occurs when the personnel is

lost through retirement, resignation or death and is not replaced.”

It is also defined as a reduction in the number of employees through retirement, resignation

or death. It is typically number of departures in one year divided by total workforce.

Employee Attrition Rate:

“It is the rate of shrinkage of employees in size or number from an organization.”

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Meaning of Employee Attrition:

Basically, Employee attrition is the loss of personnel. The IT enabled services industry is

being looked upon as the next big employment generator. It is however no easy task for a

HR manager in this sector to bridge the ever-increasing demand and supply gap of

professionals. The HR manager is not only required to fulfill this responsibility, but also

find the right kind of people who can keep pace with the unique work patterns in this

industry.

Adding to this is the issue of maintaining consistency in performance and keeping the

motivation levels high, despite the monotonous work. The toughest concern for an HR

manager is however the high attrition rate.

Keeping low attrition levels is a major challenge as the demand outstrips the supply of

good agents by a big margin. Further, the salary growth plan for each employee is not well

defined. All this only encourages poaching by other companies who can offer a higher

salary.

The high percentage of females in the workforce (constituting 30-35 percent of the total),

adds to the high attrition rate. Most women leave their job either after marriage because of

social pressures caused by irregular working hours in the industry. All this translates into

huge losses for the company, which invests a lot of money in training them.

5
Calculation of Employee Attrition Rate:

Employee Attrition rate can also be described as the number of employees that move

within a certain period. To calculate employee attrition we require the number of

employees who resigned in that period, total number of employees in that period and

number of employees who joined in that period.

Attrition Rate (%) = Number of employees resigned for the period/(Total Number of

employees of the period + Number of Employees who joined in that Period – Number of

Employees got resigned)*100

Importance of Employee Attrition:

Employee attrition costs 12 to 18 months' salary for each leaving manager or professional,

and 4 to 6 months' pay for each leaving clerical or hourly employee. According to a study

by Ipsos-Reid, 30% of employees plan to change jobs in the next two years.

Although employee turnover can help organizations evolve and change, survey showed that

four out of five CEOs view employee retention as a serious issue for organizational

success. If managers know the real causes of attrition, managers can control attrition and

retain employees. Each retained employee can save money and lead to better opportunities.

The effect of attrition is not restricted to any particular country or company it is felt

globally. Below are the attrition rates of few countries.

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Attrition rates:

US 42%

Australia 29%

Europe 24%

India 18%

FIVE PRINCIPAL REASONS PEOPLE CHANGE JOBS:

1. Compensation is the last reason people most leave- Workers want fair compensation,

but the first four aspects must be strong. If they're not, but money's high, you'll hear

people say "you can't pay me enough to stay here." Even with these values in place,

there are a lot of employees who feel they can better themselves just by chasing more

income.

2. It doesn't feel good around here- This is a corporate culture issue. In most cases

workers are also concerned with the company's reputation; the physical conditions of

comfort, convenience, and safety, and the clarity of mission.

3. They wouldn't miss me if I were gone- Even though leaders do value employees, they

don't tell them often enough. If people don't feel important, they're not motivated to

stay. No one wants to be a commodity, easily replaced by someone off the street. If

they are regarded as expendable, they'll leave for a position where they're appreciated.

4. I don't get the support I need to get my job done- Contrary to opinions heard all-too-

often from management, people really do want to do a good job. When they're

frustrated by too many rules, red tape, or incompetent supervisors or co-workers,

people look for other opportunities.

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5. There's no opportunity for advancement- Although many deserving people would

like to move up, the issue here is learning. People want to learn, to sharpen their skills

and pick-up new ones. They want to improve their capacity to perform a wide variety

of jobs. Call it career security. The desire is for training and development. If workers

can't find the growth opportunities with one company, they'll seek another employer

where they can learn.

Causes for Employee Attrition:

The roots of attrition vary by job level and industry. While issues of "career growth"

and "leadership" are major factors that drive attrition and promote retention, there are

important nuances related to occupation level and industry.

Among Management-level employees, the key attrition drivers are such concerns as

“opportunities for management” , “abilities of top management” , “use of skills and

abilities” and “work/family balance.”

For Professional-level employees, the key attrition drivers are concerns about "coaching

and counseling from one's supervisor", "company having a clear sense of direction" and

"chance to do interesting and challenging work."

Among Clerical employees, the key attrition drivers are such concerns such as "type of

and abilities" and "opportunity to learn new skills."

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 Among Hourly employees, the key attrition drivers are concerns as they notice whether

they are treated with respect, their "management ability" and "interesting work.

Impact of Employee Attrition:

Employee attrition is still a major issue for business, and research indicates the cost can be

more devastating in a competitive economy. On an average, attrition costs companies 18

months' salary for each manager or professional who leaves, and 6 months' pay for each

hourly employee who 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, according to a study

completed by Ipsos-Reid.

The commitment and energy levels of the best employees are critical to the organization in

trying times, yet often very more fragile than they realize. For instance, attrition has surged

by more than 25% over the past five years, and unemployment and joblessness rates remain

quite low.

There are proven ways to predict attrition and identify its causes. By asking employees the

right questions, managers can control attrition and promote retention. When budgets are

tight, companies should consider the opportunity to invest in listening to their people.

When budgets are tight it's usually not money that makes valued people stay with or leave

a job for another opportunity. According to extensive research by Accenture, pay is not

9
likely to have the greatest impact on employees' decisions to stay or leave an organization.

Instead, data suggests that employees who are planning to leave are most likely to do so for

opportunities that allow them to use and develop their skills - or for opportunities in a

company with strong leadership.

MEASURES TO MINIMIZE EMPLOYEE ATTRITION RATE:

1. Employee Retention- The key to bottom line success:

Every time you lose a valued employee, you're losing money right off your bottom

line. It makes sense to stabilize your workforce as much as you can, so you can

generate a stronger profit.

Benefits of Stability:

Most of the benefits of workforce stability are obvious. Let's explore a few others.

When you have a stable workforce-few, if any, people leaving unexpectedly--you

also enjoy a good morale. People know each other, they're comfortable with each

other, they work well together. This kind of relationship can be powerful when there's

a rush order to get out or when there's a problem somewhere in the manufacturing

process. People are more likely to pitch in and help each other when they know each

other and believe in mutual support.

Continuity is priceless: When people have been around for a while, there's a sort of

flow that keeps everything moving. People know where things are, how things are

done, how to fix the little problems that pop up every once in a while. There's a sort of

10
 corporate "memory" about these things that makes operations a lot more efficient.

Confidence is higher, and therefore productivity is also strong.

You and your managers and supervisors don't have to worry about hiring and

training new staff all the time. You can invest your time in generating orders,

communicating positively with your customers, and working more closely with your

people. Training dollars can go toward improving skills of people who know the

business and want to strengthen their ability to make a contribution . . . and to earn

higher rewards.

2. Hire Right to Begin With:

The best way to keep good people is to hire good people. Many companies just hire

warm bodies to fill positions. They don't care how talented the people are or how

interested they are in the company's work.

It makes no sense to hire someone who's going to leave in a few hours, a few days, a

few weeks, or even a few months. Avoid these applicants. Concentrate on the people

who "fit" your company, the people who want to be there. Hire those who are looking

for a career, not just a job.

It may take a little longer to find the right people. It's worth the time and the trouble to

screen properly to get the people who are best suited. We recommend use of screening

tools like "Check-Start" to select the right applicants. Make it more of a privilege to

work for your company.

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3. Care About Your People:

When someone works for you, it's like being part of a family. Show that you care about

them. Recognize their needs, as well as your own. Find a balance between what people

want in their lives and what you need to run the company. Let's look at a few ideas:

Flexible work schedules:

Consider how you can be flexible in working hours so people can work when they want

to. Some workers may want to start early and leave early. Others may want to start later

and work later. Can you accommodate them?

A number of companies are installing compressed work weeks. People work longer each

day so they can take a day off every week or two. If people work four ten hour days, they

can take a day off a week. Make that day a Monday or Friday and your employees get three

day week-ends. Nine hour days make it possible to take off a day every other week.

Reward for greater performance:

When people do a great job, let them know. Emphasize the positive. Rewards can be in the

form of cash bonuses or non-cash rewards. The key is to set standards, then reward people

for meeting or exceeding the expectations.

Appreciate the need to have a place to get away from work for a few minutes. An air-

conditioned break room, a picnic table under a shade tree. Well worth the investment.

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Make Training Count

Research is showing that people want to learn and grow. Consider ways to offer personal

and technical training to your employees. It's an important benefit of working for a good

company, and it bonds people to the company.

Consider more than just job-related training. Work with your employees who might not

have finished high school. Can you help them earn their GED--company paid? The higher

self-esteem will pay off for you. Literacy training, classes in English as a second language,

and brown-bag lunches on practical life skills can make a difference.

Be Out There

Employee retention levels are higher in companies where the boss is highly visible to the

workers. Sure, there's all that paperwork to do, suppliers to negotiate with, and customers

to coddle. But, your most important asset is your people.

Thanking employees on a regular basis--daily in some cases. Remember, you can't do it

without them. Let them know you appreciate them by being sensitive and caring. It's not

just a money issue, it's a matter of people feeling that they are wanted and are valued.

Orientation:

New employees who attend a positive orientation program are 70% more likely to be with

the company three years later.

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Exit Interviews:

Exit interviews provide an excellent source of information of internal problems, employees'

perceptions of the organization, underlying workplace issues, and managers' leadership

abilities.

Reduce Attrition: Managers and Professional Employees:

Ways that can help you adjust your company vision and manager's performance reviews to

reflect employee turnover, and provide mentoring and interpersonal training to

inexperienced managers.

 Develop and communicate a strong strategic vision

 Provide relationship coaching and help people develop to their potential

 Reward managers for their relationship skills - not only on technical know-how and

financial results

 People don't leave jobs, they leave managers! Replace managers who will not

develop relationship skills.

Reduce Attrition: Clerical and Hourly Employees

Most employees want to know more about their work. We can explain each process and

help employees understand the importance of their work. Your employees will become

more knowledgeable about their effectiveness. Here are a few ways:

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 Compliments and thanks cost little and bring great benefits.

 Let employees know that their opinions are valuable.

 Keep employees informed - don't let them hear important news through rumors.

 Update employees on technical information.

 Address staff by their first names.

 Praise publicly what the employee has accomplished and say why it was important.

 Criticize privately about what the employee can do better and explain how to do it

better.

 Create community with activities such as informal meals or events outside work.

 Involve employees in organizational planning.

 Titles cost little, and inform people that your employees are valuable.

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 1.2 OBJECTIVES OF THE STUDY

A modest attempt has been made to study the nature and method of Employee attrition at

TECUMSEH. The main objectives of the study are:

1. To understand the meaning of Employee Attrition and its impact on the

organization.

2. To identify the various reasons of Employee Attrition.

3. To understand the various reasons for Attrition in the company.

4. To recommend suitable steps that can be followed to overcome the

Employee Attrition problem.

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 1.3 NEED FOR THE STUDY

Organizations need to have the right people with right skills and abilities in right place at

the right time. The survival and success of the organization in the next few years will

mostly depend upon its employees. Hence, reducing the employee attrition rate becomes

really important and helps us:

 To know about the organization and its performance.

 To maintain goodwill of the company.

 To minimize mounting of industrial sickness and wastage of scarce resources.

 To understand the causes of high employee attrition rate and outline appropriate

measures for their reduction

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 1.4 RESEARCH METHODOLOGY

Methodology is one of the main aspects of every research. This explains how the research

was conducted.

Research Design:

The research design for this study attempts to obtain a clear, complete and accurate

description of a situation. Descriptive study is necessary when the research is interested in

knowing the characteristic of a certain group.

Data Collection Methods:

Data for this research was collected both from primary and secondary sources.

There are two types of data sources:

1. Primary sources:

This consists of original information gathered for specific purpose. The procedure

used to get the required data is through a structured questionnaire.

2. Secondary Sources:

The various sources such as the company manuals, ledgers are used to gather

information regarding the organization and its employees. The management journals,

magazines and various websites were referred to collect information pertaining to literature

review and various books related to Human Resource Management are referred for the

above research work.

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Questionnaire Design:

Types of questions used in the questionnaire are as follows:

 Multiple Choice questions which are framed on 5 point rating scale and 3 point

rating scale.

 Dichotomous Questions (Yes/No)

 Open-ended questions

 Close-ended questions

Open-ended questions:

Open-ended questions are used to get suggestions from the respondent in order to

give feedback to the company.

Close-ended questions:

In close-ended questions there are two types of questions:

Multiple choice questions:

In multi choice question, the respondent is given four to five choices in which he has

to select one.

Double ended questions:

In these questions, the respondent will be given some choices for the answer in which

he will have to choose one.

Sampling Technique:

50 samples were collected from the population of employees of TECUMSEH, using

convenient sampling techniques.

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Data Analysis:

The data was analyzed using simple statistical tool like percentages. The data was

interpreted using various types of charts. Accordingly, findings were summarized and

appropriate recommendations were made to the organization.

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 LIMITATIONS OF THE STUDY

 Some of the answers might have biased due to the presence of co-employees when

the questions were asked.

 As the questionnaire was condensed certain factors could not be studied in depth.

Nevertheless the questionnaire did provide relevant data for the study.

 The time for conducting the research was limited.

 The study may not yield a real representation of facts as only a sample of 50

respondents has been used.

 The questionnaire used is not an exhaustive list of attributes.

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 CHAPTER -2

LITERATURE REVIEW

LITERATURE REVIEW

22
According to the author Priti Suman Mishra, published an article on Exploring

attrition problems in BPO’s in the Journal Management and Labor studies vol 32 feb

2007.

“ Attrition is the normal reduction of the work force caused my employees leaving the

organization for reasons of retirement, death , or resignation” ( National Performance

Review 1997 ). Attrition means not only the loss of talent but also includes the cost of

training the new recruits.

Employee attrition and Retention should be seen as a reciprocal phenomenon which has

inverse relationship with each other. The retention strategies should be designed such that

the retentive forces are maximized and the debilitating forces are minimized.

According to Leonard Schlesinger and James Heskett, who identified a phenomenon

called “The cycle of failure”. This cycle involves a chain of consequences leading to

employee attrition beginning with employee dissatisfaction and ending with organizational

inefficiency, poor service quality high customer turnover and decreased profitability.

According to the author V. Prashanti, published an article on the topic “Causes of

attrition in general”. This study mainly focuses on concept of attrition and in depth

analysis of causes of attrition in an organization. Various studies have revealed various

factors which influence attrition. Some of the causes of attrition given were: Employee

Engagement, Leadership support, Job stress, organizational culture, Job satisfaction.

23
According to the Employee vulnerable study conducted by NFO India “Attrition is

instigated by good economic conditions” Positive news about the economy- after 4-yr

recession, the economy appears to be on there bound and is showing signs of sustainable

momentum. Economic indicators support this recovery: growth rate over 8%.The current

economic forces are creating an environment just right for potential business disaster -

unexpected employee attrition and turnover at a level many businesses have never

experienced. Companies already weakened by downsizing and cost cutting must be

prepared to heed the signs and take action if they are to survive, much less excel. Studies

have revealed the following:

• 83 percent of employees are likely to seek new employment as the economy booms.

•48 percent of managers are likely to seek new employment with the improving economy.

•75 percent of those managers are actively looking out.

•56 percent of HR professionals indicated it is likely that voluntary turnover would rise due

to the improving economy.

According to the author Santoshi Sen Gupta, published an article in ICFAI Journal of

Organizational Behavior of 2008, Volume 7, issue 2, on vicious circle of Attrition in the

BPO industry.

Business Process Outsourcing (BPO) is growing at a phenomenal pace. It has become a

mantra of employment. Despite its momentous growth and bright future, the BPO industry

continues to suffer from very high attrition rates. New employees come with a lot of

enthusiasm but their motivation gets depleted as job realities unfold with the passage of

time. Reviewing the earlier research, the paper identifies the main causal agents responsible

24
for high attrition in the BPO industry and argues that there is a vicious circle of attrition

because 'Low Perceived Value' drives the employees to quit which further lowers the

perceived value. This has implications for further research on BPO industry.

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 CHAPTER -3

COMPANY PROFILE

COMPANY PROFILE

26
 HISTORY AND PROFILE OF TECUMSEH PRODUCTS COMPANY

Tecumseh Products Company started in 1930 when Ray. W. Herrick opened the Hillsdale
machine and Tools Company of Hillsdale, Michigan a former employee of Ford Motors
Company, Ray Herrick initially produced parts of automobiles, as well as electric
refrigerator components in small town 60 miles southwest of Detroit, and Ray Herrick
renamed his company after his town. In 1937, the company went public with an offering of
25000 shares. TECUMSEH means “CROUCHING PANTHER” derived from the chief of
Shawnee tribe (1768-1813), it was not in the automobile industry bit in the burgeoning new
refrigeration industry. By 1939, Tecumseh turned out 160000 compressors a year for
Mechanical Refrigerators.
After World War II, Tecumseh resumed manufacturing compressors, expanding its product
base to include compressors for window air conditioners in 1947. In 1950, the company
acquired two Wisconsin-based small engine manufacturers. Lauson engine and power
products. The addition of these two companies made Tecumseh as an important presence in
the expanding outdoor power equipment industry. Today, Tecumseh has over 30 principle
locations producing compressors, engines and pumps worldwide; with facilities in Brazil,
Canada, Czech Republic, France, India and the US.
The compressors sell in four major segments:
 House hold refrigerators and freezers
 Room air conditioners
 Commercial and residential unitary central air conditioning systems
 Commercial devices including freezers, dehumidifiers, water coolers and Welding
Machines.

The company sells compressors to original equipment manufacturers and cool products
distributors in the United States, as well as distributors around the globe. Tecumseh
Products Company continues to invest money and resources in order to develop new and
improved products.
The head quarters engineering department plays an important role as the technology centre
of the Tecumseh group of companies and entails various testing and the facilities for the

27
purpose. The test facilities include Calorimeter, Locked Rotor, Application Testing and
Endurance Testing. Development/Production samples, sound testing, etc. in the room of
development/Production samples, they work on samples of new compressors not yet
released for production, such as scroll and advanced reciprocating design.

TOUCHING THE LIVES OF MILLIONS FOR MORE THAN 75 YEARS.

Demonstrated performance. Tecumseh Products Company is renowned for bringing an

extra dimension of product innovation, customer reliance, and product quality to the air
conditioning and refrigeration industry. As a result of our innovative spirit and product
performance, people rely on our products every day. We literally touch the lives of
millions.

Early beginnings. We developed the first “hermetic” compressor for consumer

refrigerators in 1937. As the name Tecumseh became synonymous with commercial
refrigeration and central home air conditioning, we expanded our product line to include
automotive air conditioning compressors in 1953. Our reputation for innovation was
further enhanced in 1959 when we developed the first high-speed hermetically-sealed
compressor for commercial applications.

A Focused Company. Although our product manufacturing focus remains constant,

Tecumseh has substantially invested in research and development engineering laboratories
in North America, Europe, South American and India. We've also partnered with R&D
facilities at universities throughout the globe. These facilities are not just responsible for
engineering product solutions, but our university partners also provide Life Science
Research on how our products interface with mankind and the environment.

Tecumseh innovation. Today, we engineer a full-line of hermetically-sealed compressors

for residential and specialty air conditioning, home refrigerators and freezers, and
commercial refrigeration. But our expertise doesn’t stop there; we also offer a complete

28
line of indoor and outdoor condensing units, evaporator coils, heat pumps, complete
refrigeration systems and authorized spare parts.

Global products. Our products can be quickly accessed from manufacturing facilities on
four continents when needed on a worldwide basis. We can provide coordination among
our global facilities and your plant locations anywhere, so product selection, specifications
and delivery of product are assured.

Unwavering commitment. Tecumseh has responded to the challenges of the refrigeration

and air conditioning marketplace for over seven decades, leading the way with improved
products and service in support of the industry we serve. A company-wide dedication to
quality control has already earned Tecumseh the highest quality rating from major
refrigeration and air conditioning manufacturers. And the people we employ are honored
to touch so many lives, in so many countries, every day.

HYDERABAD PLANT:
The Hyderabad plant is located on the sprawling 54 acre land at Balanagar Industries Belt
15km away from Hyderabad city on highway line going towards HMT limited, Narsapur
road. At the Hyderabad plant, they manufacture compressors for air conditioning from
1200BTU to 6 lakhs BTU (British thermal unit) and also compressors for deep freezers,
bottle coolers and water coolers which are considered to be world no. 1 in 150 million
compressor market a year. Hyderabad plant has a capacity of manufacturing more than
3000 units per day. This plant has a technology development center with R&D faculty.
This plant is also supported by two service centers AW service center and MC service
center. Hyderabad plant has six regional sales offices, out of which four are the metro cities
Delhi, Mumbai, Chennai and Calcutta. The remaining two offices are at Ahmedabad and
Secunderabad. Besides there are branch offices and depots located in prime cities across
the country. The Hyderabad plants also have a network of about 177 dealers across the
country and preferred suppliers to key OEMs (Original Equipment Manufacturers) like
Voltas, AMTREX, LG, Blue-Star, Godrej, Videocon, Fodders Lloyd, Hitachi etc. TPIPL
Hyderabad plant was successful in getting the ISO 9001 certification for maintaining high

29
quality of the compressors in 1994 for the ECO friendly environment maintenance the
company has got ISO 14001 certification. TPIPL Hyderabad has a total of 823 employees.
Company not only meets its target but also increases its market share and company thinks
about amalgamation.
Total To-Dated 2013 employees are: 1888
The company has 6000 of control workers. It is divided into Badali or Special Badali.
AC Compressors Business:
 The capacity is 3,00,000(expanding)
 The plant is certified company with ISO 9001-2000 version, ISO 14001
 Models AC applications AW
 Certification, VDE

Products:
Air Conditioning (12,000-29,5000 BTU per/hr)
Compressors manufactured at Hyderabad:
 AW series- AW, AWQ, AWA, etc.
 Rotaries (to be introduced in 2003)

The management had started development activities in the following areas:

a) Effluent Treatment Plan
b) Tree Plantation
c) Biological Treatment Plan
d) Rain water Harvesting is to increase the group water level and TPIPL has the
distinctions of being the first organization in this regard.
e) Vermin culture is the process of utilizing canteen food wastage for converting in
this regard.

TPIPL Vision:

30
We are not going to simply provide compressors are going to provide the customer’s
satisfaction.
It is our goal to be the global leader in all the markets which we choose to participate
we will pursue disruptive technologies to redefine our products.

TPIPL Mission:
We will all leverage our global expertise in mechanical, electrical, flood handling
related components and services to provide comprehensive solutions for our customer
needs compressors, engines, electrical motors, pumps, electronics and controls.
 We will be best in class and the most effective cost producer by utilizing the
principles of TQM, 6 SIGMA, and LEAN.
 Our organization will modify itself in response to change in environment at a
pace and amount of change that can be made without eliminating or impending
our ongoing effectiveness.
 Incisive continuous strategic thinking will be will communicated and shared by
the organization.
 Incisive continuous planned thinking will be will communicated and shared by
the organization.

KEY BUSINESS ACTIVITES:

 Set the world industry standard of excellence for customer satisfaction achieve
total quality.
 To attain and surpass global quality and reliability standards for our products.
 Maintain clear technology leadership.
 Market share leadership with focus on customer needs.
 Meet business and financial commitments.

IMAGE:

31
 To build up a high degree of customers confidence by sustaining
international markets in regard to supply of spare parts and after sale service. The
HRDC policy of TECUMSEH is manifested in the code of conduct of TPIPL listed
below:
 Respect and mutual trust
 Integrity and fairness in all matters
 Team work

TPIPL QUALITY POLICY:

 Committed to total customer satisfaction by meeting their needs, expectations and
aspirations-stated, implied or latent.
 Striving to provide products and services of global standard and to reach a position
of leadership in the field of operations, setting new values.
 Continuous improvement across the organization and upgrading of product,
technology and process supportive environment at least cost to society shall be the
means t achieve the goals.
 The approach will be through proper systems and procedures and total involvement
of employees endeavor and other business associates.

TPIPL ENVIRONMENT POLICY: The vision of Tecumseh India is to be SERENE

green and co-friendly co-operation carrying out all its operations contributing to
preservations of environment and nature resources for the benefit at large.
Among others this can be achieved through:
 Allocation of count country wide priority for sustainable development with total
involvement and commitment.
 Evaluation and up gradation of current technologies products and raw materials for
minimization handling and disposal of solid, liquid and gaseous wastes.
 Realization of tangible objective and target set for continual improvement to control
and prevent pollution and conserve resources.
 Variable earning sharing of value addition.
 Agreement process organization needs.
 Non conformance reporting audits

32
  Open audits/ communication meetings
 Team assessment and feed back
 Changing lifestyles

SAFETY POLICY:
Education and training
Creating a safe working environment
Providing adequate and required personal protective equipment
Updating safety rules and procedures
Continuous improvement through safety audits and risk assessment audits

The Employees and all others share:

 Follow safety rules
 Use all the required personal protective equipment
 Adopt safe working methods
 Take proactive interest in maintaining safety standards.

TPIPL’S SEVEN DEADLY SINS:

a. Inconsistent product quality
b. Slow response to market pace.
c. Lack of innovative and competitive product.
d. Uncompetitive cost structure.
e. Inadequate employee involvement.
f. Unresponsive customer service.
g. Ineffective resources allocation.

STRATEGIES AND PROCESS AT TPIPL:

33
  Work place improvement
 Creativity club
 KRA’s club (improvement/ suggestions)

The management has started development activities in the following areas:

 Effluent Treatment Plan
 Tree Plantation
 Biological Treatment Plan
 Rain water Harvesting is to increase the group water level and TPIPL has the
distinctions of being the first organization in this regard.
 Vermin culture is the process of utilizing canteen food wastage for converting in
this regard.

PLEASE CHECK:
 Do you have anything not useful around you?
 Are all the required things kept at their allocated places?
 Are you following the operating standards?
 Are you following the timing?
 Let us review the 5-S

Let us improve if we have any bad practices. Let us have a new practice in which we
have more comfortable atmosphere and we manufacture a better quality product.

QUALITY IMPROVEMENT MEASURES:

Your company’s at Hyderabad and Ballabgarh plant are ISO 9001 (version 2000)
certification. Your company is constantly meeting the quality requirement of Domestic
and International customers.

ENVIRONMENTAL PROTECTION & CONSERVATION OF NATURAL

RESOUCRES:

34
  During the year, ISO 14001 first Annual Assessment after Recertification Audit
carried out by the corporate Director of Environment control Hyderabad unit
has scored 95 points and reveal any non-conformity.
 During the Annual Compliance Assurance review carried out by the corporate
Director of Environment control Hyderabad unit had scored 95 points and the
Ballabgarh unit had scored 89 point of 115 for 2004.

The following conservations measures were undertaken by the company:

 Usage of De-mineralized water in place of Municipal/ Bore water in the
process.
 I MECO BULLOWS components cleaning equipment have been introduced in
EOU for effective cleaning of components to minimize water and chemicals.
 Export oriented unit is completely R-134 compatible plant.
 Energy factory canteen renovation and new kitchen equipment installation.
 Construction of new septic tanks for effective treatment of sewage water.
 Mezzanine floor fabrication and erection to install Dehydration oven.
 LPG yard renovation to accommodate 5 ton LPG bullet to cater pretreatment
plant requirements.

RESEARCH AND DEVELOPMENT:

1. Specific areas in which R&D carried out by the company:
 Designed and development high out by the energy efficient compressors
of the existing and higher cooling capacity.
 Improvement in product quality.
 Introduced AW 1000Q compressor for small size air conditioners.

2. Benefits derived as a result of above R&D:

 Development of new products.

35
  Improvement in product quality.
 Optimization of processing parameters.
 Improved customer satisfaction and developed new customers.
 Lower power expense for the customer thus reducing his recurring
expenses.

3. Future plan of action:

 Design improvements.
 High efficiency low noise compressors.
 Enhanced range of compressors.
 Product ionization of newly developed refrigerator compressor.

1) Efforts: Technology absorption and Innovation Company has focused on

innovation and is working on a refrigeration compressor, which would
be equivalent or better than the best available in the global market. It has
upgraded in test lab facilities and reduced its dependence on foreign
labs. This gives indigenous capacity to develop, test and launch new
products.

2) Benefits: derived as a result of the above efforts is product improvement,

cost reduction and product development import substitution, etc.

DEPARTMENTS OF TPIPL:
 Rotary project (new)

36
  Human Resource department
 IT department
 Welfare department
 FCD
 CTS & S
 TDC
 Attendance and pay office (A&PO)
 Electronic data processing (EDP)
 Provident fund and credit cooperative society (PF&CCS)
 Maintenance and engineering department (MED)
 Export Oriented Unit (EOU)
 Logistics
 Quality control department
 AW PRESS shop
 AW machine shop
 Dispensary
 Canteen
 Chemical and Technological laboratories
 Legal compliance and going beyond setting new standards.
 Stores
 Material and purchase
 Accounts and Audit

PRODUCTS OF TECUMSEH:
TECUMSEH products are grouped into 3 principal industry segments:
 Compressor products
 Engine and power train products
 Pump product

New Products from TECUMSEH:

AW 1000QC COMPRESSORS:

37
Compact 1-ton compressors.

Ideal for compact RAC units

Products from the well-known AW series of compressors.

Silent and efficient.

Very well accepted by the market.

AE 2415 AK COMPRESSORS:
A huge energy saving compressors that cuts power bills compact and light weight.

Wide voltage range.

Manufactures with state of the art technology.

Dependable friend for all deep freezers.

FINANCE MANAGEMENT:
1) Cadres
2) Functions of Finance Department

Milestones:

1961: Technical collaboration with Westing House Electrical International Company

USA.

1962: The name was changed to USHA Refrigeration Industries Ltd., (URIL).

1964: Started production of Westing House compressors, this is known as SRX.

1966: The name USHA Refrigeration Industries Ltd was again changed to Shriram
Refrigeration Industries Limited.

1967: Manufacturing of water coolers was added.

1969: Added manufacturing of diesel engine pumps, etc.

1986: Started marketing electronics voltage connectors.

38
1987: Added manufacturing of room air conditioner enter into technical collaboration
agreement with TECUMSEH products company USA. World largest manufacturer of air
conditioning compressors.

1990: Discontinued manufacturing of diesel’s engines. The company expanded the range of
room air conditioners and launched split air conditioners.

1992: Shriram Refrigeration Industries Ltd was merged with SIEL.

1993: First Company in India to get World Bank aid to phase out CFC refrigerants under
the Montreal protocol.

1994: TPIPL Hyderabad has been awarded the ISO 9001 for its quality man agent system
by BVQI.

1995: Set up world class compressor manufacturing plant to increase volume and range of
TECUMSEH compressors.

1996: 100% acquisition (20 million equity shares) by TPIPL.

1999: TPIPL certified for ISO 14001 by UL India.

2001: Won National Award for Excellence in energy management.

2002: Won Genentech Environment excellence silver award for outstanding achievement
in environment management.

2003: Won Genentech Environment excellence silver award for outstanding achievement
in environment management.

2004: TPIPL has achieved the prestigious National Award for excellence energy efficient
unit conducted by CII at Chennai.

2005: Won Genentech Safety Award.

CERTIFICATIONS:-

ISO 9001-2000 VERSION:

As TECUMSEH is ISO 9001-2000 certified company it makes all the employees aware of
the OSO norms. The topics covered under this training program are:

1) Background to revision of ISO 9001 standards.

39
 2) Concepts used in the new standard.
3) Process based quality management system model.
4) Alignment with other standard for example ISO-EMS 14000, health and safety
5) Overview of 9001:2000
a. Scope
b. Application normative reference
c. Terms and definitions
d. Key definitions in new standards
e. Concept of continual improvements

Under overview of 9001-2000 the program also includes information on five clauses:

1) Quality management system: It includes

a. General requirement
b. Quality management
c. Documents requirement
d. Control of document
e. Control of records
2) Management responsibility: It includes
a. Management commitment
b. Customer focus
c. Quality policy
d. Quality objectives
e. Responsibility and authority
f. Communication
g. Management review
3) Resources management: It includes
a. Provision of resources
b. Human resource competence and awareness and training
c. Infrastructure
d. Work environment

40
 4) Product realization: It includes
a. Planning of public relations
b. Customer related process
c. Customer communication design
d. Purchasing
e. Control of production
f. Service provision
g. Control of monitoring
h. Measuring devices
5) Measurements analysis and improvement
I. Monitoring and measurement of
a. Customers
b. Internal audit
c. Procedures
d. Product
II. Control of non conforming products
III. Data analysis
IV. Corrective actions and improvements
V. Preventive actions

Due to exposure to ISO 9001-2000 norms and requirement the employees know how to
carry out their work. They know about record maintenance and its importance. Thus,
making all the employees aware of these standards it will be easy for the organizations to
produce quality products.

41
COMPETITOR ANALYSIS

In India, TPIPL has four main Competitors i.e., Kirloskar, Volta’s, Blue Star and Carrier
Air Conditioners Ltd. TPIPL is the market leader with overall 50% market share impressed
in terms of value. In this segment of air conditioning compressor, it has still competition
from Kirloskar Copeland. The other manufacturers i.e., Carrier Air Conditioners Ltd,
Volta’s, Blue Star are manufacturing compressors mostly for their indigenous use as they
are in their air conditioners markets and refrigerators market. Carrier Air Conditioner is
looking for diversity of their compressor division as of their comeback strategy they have
been on down sidelines since 1999 it has also listed its shares during their period.
Tecumseh refrigerators and air conditioners products have concerns, a large chunk of the
Indian markets as its clients include most of the OEM’s. Tecumseh has a 40% of market
share of the domestic and 30% of the refrigerator compressor market.
Kirloskar is 51:49 joint venture between Kirloskar Brother and US based Copeland
Corporation, a global competitor of TPIL, USA. The joint venture company was
incorporated on 19th March 1993. The joint venture company took over the compressors
manufacturing and sells business of emetic compressor division at Karad and Atitl of
Kirloskar Brother limited from 1st April 1993. Kirloskar Brother limited stated its
production of hermetic compressor way back in 1996, at Kirloskar wadi. It was then with a
technical collaboration with TPC USA, which had no yet entered India. Kirloskar Copeland
as a part of their strategy to increase their sales have started manufacturing of condensers,
which are mainly used in diaries, cold storage, industrial chillers and water coolers. The
estimated market size in India being Rs. 28 Crores.

42
FINANCIAL PERFORMANCES

Tecumseh Products Company Reports Third Quarter 2013 Results

-- Net sales in the third quarter of 2013 decreased $14.2 million, or 6.8%, versus the same
period of 2012.

-- Excluding the effect of unfavorable changes in foreign currency translation of $7.0

million, net sales decreased by 3.5% compared to the third quarter of 2012.

-- Net loss for the quarter was $5.7 million, or $0.30 per share, compared to a net loss of
$3.8 million, or $0.21 per share, for the third quarter of 2012.

-- Operating loss was $3.4 million compared to an operating loss of $3.3 million in the
third quarter of 2012.

-- EBITDAR from continuing operations for the third quarter of 2013 was $12.6 million
compared to $6.1 million in the third quarter of 2012 (EBITDAR is defined below).

43
 CHAPTER -4

DATA ANALYSIS AND

INTERPRETATION

44
1) Are you satisfied with your present job?

Table 4.1 Present job satisfaction

Options No. of Responses Percentage

Yes 38 76%
No 12 24%
Total 50 100%

Fig 4.1 Present job satisfaction

60

50
No. of Respondents

40

30

20

10

0
Yes No Total
Satisfaction with current Job

Interpretation:

76% of the respondents said that they are satisfied with their job. 24% of

the respondents said that they are not satisfied with their job.

45
2) Work environment of office?

Table 4.2 Work environment in office

Options No. of Responses percentage

Positive 13 26%
Negative 7 14%
Balanced 30 60%
Total 50 100%
Fig 4.2 Work environment in office

60

50
No. of Respondents

40

30

20

10

0
Positive Negative Balanced Total

Work Environment

Interpretation:

60% of the respondents said that the work environment is balanced and

26% of the respondents said that the work atmosphere is positive.14% of the

respondents said that the work atmosphere is negative.

46
3) How are the working conditions?

Table 4.3

Options Excellent Good Poor Score Rank

Flexibility in
11*3 =
work 29*2 = 58 10*1 = 10 101 1
33
schedule
Opportunities
for training
9*3 = 27 32*2 = 64 9*1 = 9 100 1
and
development
Work and
life issues 10*3 =
30*2 = 60 10*1 = 10 100 2
appropriately 30
balanced
Appropriate
resources and 12*3 =
27*2 = 54 11*1 = 11 101 2
equipment to 36
perform job
Fig 4.3 Working conditions

101.5
101
100.5
No. of

100
99.5

Working Conditions
Interpretation:

Most of the respondents preferred flexibility in work schedule and

opportunities for training and development as the first preferred factor and work

and life issues appropriately balanced and appropriate resources and equipment to

perform job as second preferred factor.

47
4) How are problems solved in your organization?

Table 4.4 Problem management in the organization

Options No. of Responses percentage

Open communication 30 60%
Up line communication 10 20%
Down line
10 20%
communication
Total 50 100%

Fig 4.4 Problem management in the organization

60

50
No. of Respondents

40

30

20

10

0
Open communication Upline Downline Total
communication communication

Problem Management

Interpretation:

60% of the respondents said that problems are managed through open

communication. 40% of the respondents said that problems are managed through

up line and down line communication.

48
5) Do your managers have good relations with their subordinates?

Table 4.5 Manager-subordinate relationship

Options No. of Responses percentage

Very good relations 24 48%
Fair relations 18 36%
Poor relations 8 16%
Total 50 100%

Fig 4.5 Manager-subordinate relationship

60

50
No. of Respondents

40

30

20

10

0
Very good relations Fair relations Poor relations Total

Manager-Subordinate relationship

Interpretation:

84% respondents said that they share very good and healthy relations

with their subordinates.16% of the respondents said that they share poor relations

with their manager.

49
6) Supervision?

Options Excellent Good Poor Score Rank

Work load
14*3 = 27*2 9*1
distributed 105 1
42 = 54 =9
equally
Problems
11*3 = 29*2 10*1
addressed 101 3
33 = 58 = 10
promptly
Provides
information
12*3 = 27*2 11*1
needed to 101 3
36 = 54 = 11
perform
job
Welcomes
suggestions 12*3 = 28*2 10*1
102 2
and 36 = 56 = 10
feedbacks

Fig 4.6 Supervision

106
105
No. of Respondents

104
103
102
101
100
99
Work load Problems Provides Welcomes
distributed equally addressed information suggestions and
promptly needed to perform feedbacks
job

Supervision

Interpretation:

In the above particulars of supervision most of the respondents

preferred address problems promptly as the first factor, second preferred factor is

equal work load distribution, third preferred factor is welcomes suggestions and

encourages feedbacks and fourth preferred factor is provides information needed

to perform job.

50
7) Are policies Clearly articulated ?

Table 4.7 Clear articulation of policies

Options No. of Responses percentage

Yes 32 64%
No 18 36%
Total 50 100%

Fig 4.7 Clear articulation of policies

60

50
No. of Respondents

40

30

20

10

0
Yes No Total

Clear articulation of policies

Interpretation:

64% of the respondents said that the policies are clearly articulated

for its staff.36% of the respondents said that the policies are not clearly articulated

for its staff.

51
8) Are you fairly compensated for the work you do in office?

Table 4.8 Fair compensation for work in office

Options No. of Responses percentage

Always 25 50%
Sometimes 13 26%
Rarely 12 24%
Total 50 100%

Fig 4.8 Fair compensation for work in office

60

50

40
No. of Respondents

30

20

10

0
Always Sometimes Rarely Total

Fair Compensation

Interpretation:

50% of the employees are always fairly compensated for their office

work. 26% of the employees are sometimes compensated for their office work and

24% of the respondents are rarely compensated for the work they do in office.
52
9) What are the types of extra Compensation?

Table 4.9 Compensation

Options Excellent Good Poor Score Rank

Extra work
38*3 = 114 6*2 = 12 6*1 = 6 132 2
payment
Bonus 37*3 = 111 3*2 = 6 10*1 = 10 127 3
Leave travel
38*3 = 114 8*2 = 16 12*1 = 12 142 1
allowance
House rental
21*3 = 63 14*2 = 28 15*1 = 15 106 4
allowance

Fig 4.9 Compensation

160

140

120
No. of Respondents

100

80

60

40

20

0
Extra work Bonus Leave travel House rental
payment allowance allowance
Compensation

Interpretation:

In the above particulars of compensation most of the respondents

preferred as first factor is leave travel allowance, second preferred factor is extra

work payment, third preferred factor is bonus and fourth preferred factor is house

rental allowance.

53
10) Are disciplinary procedures in your company consistently enforced?

Table 4.10 Consistent enforcement of disciplinary procedures

Options No. of Responses percentage

Always 25 50%
Sometimes 14 28%
Never 11 22%
Total 50 100%

Fig 4.10 Consistent enforcement of disciplinary procedures

60

50

40
No. of Respondents

30

20

10

0
Always Sometimes Never Total

Consistent enforcement of disciplinary procedures

Interpretation:

50% of the respondents said that disciplinary procedures in the

company are always consistently enforced.28% of the respondents said that

sometimes disciplinary procedures are enforced.22% of the respondents said that

rarely the disciplinary procedures are enforced.

54
11) Are Policies of the organization favourable to its staff?

Table 4.11 Policies of the organization supportive of its staff

Options No. of Responses percentage

Very supportive 22 44%
Partially supportive 15 30%
Neutral 5 10%
Partially unsupportive 3 6%
Highly unsupportive 5 10%
Total 50 100%

Fig 4.11 Policies of the organization supportive of its staff

25

20
No. of Respondents

15

10

0
Very Partially Neutral Partially Highly
supportive supportive insupportive insupportive
Policies of the organization supportive of its

Interpretation:

44% of the respondents said that policies of the organization are very

supportive of its staff, 30% of the respondents said that policies are partially

supportive of its staff, 10% preferred to remain neutral whereas 6% said that the

policies are partially unsupportive and another 10% said that the policies are

highly unsupportive.

55
12) What is your opinion on leadership ?

Table 4.12 Leadership

Options Excellent Good Poor Score Rank

Encourages
open 9*3 = 27 34*2 = 68 7*1 = 7 102 2
communication
Good
communal 7*3 = 21 32*2 = 64 11*1 = 11 96 4
relationships
Encourages
cooperation 14*3 = 42 29*2 = 58 7*1 = 7 107 1
and teamwork
Treats
employees
with respect 7*3 = 21 34*2 = 68 9*1 = 9 98 3
and fair
treatment

Fig 4.12 Leadership

108

106

104

102
No. of Respondents

100

98

96

94

92

90
Encourages open Good communal Encourages Treats employees
communication relationships cooperation and with respect and fair
teamwork treatment

Leadership

56
Interpretation:

Most of the respondents preferred encourages cooperation and teamwork as

the first factor, second preferred factor is encourages open communication, third

preferred factor is treats employees with respect and fair treatment and fourth

preferred factor is good communal relationships.

57
13) Do you feel that there is a high morale in the organization?

Table 4.13 High morale of the organization

Options No. of Responses percentage

Yes 40 80%
No 10 20%
Total 50 100%

Fig 4.13 High morale of the organization

60

50

40
No. of Respondents

30

20

10

0
Yes No Total

High morales of the organization

Interpretation:

80% of the respondents are satisfied with the morale of the

organization and 20% of the respondents are not satisfied with the morale of the

organization

58
14) Are you seeking employment elsewhere?

Table 4.14 Seeking employment elsewhere

Options No. of Responses percentage

Always 12 24%
Sometimes 13 26%
Never 25 50%
Total 50 100%

Fig 4.14 Seeking employment elsewhere

60

50
No. of Respondents

40

30

20

10

0
Always Sometimes Never Total
Seeking employment elsewhere

Interpretation:

50% of the respondents said that they never thought of seeking

employment elsewhere. 26% of the respondents said that they sometimes think of

seeking employment elsewhere.24% of the respondents said that they often think

of seeking employment elsewhere.

59
15)What are welfare measures available in you company?

Table 4.15 Welfare measures

Options Excellent Good Poor Score Rank

Canteen 26*3 = 78 7*2 = 14 17*1 = 17 109 5
Sanitary 21*3 = 63 24*2 = 48 5*1 = 5 116 3

Restrooms 27*3 = 81 18*2 = 36 5*1 = 5 112 4

Leisure time 9*3 = 27 24*2 = 48 17*1= 17 92 6
Infrastructure 40*3 = 120 7*2 = 14 3*1 = 3 137 2
First aid 45*3 = 135 3*2 = 6 2*1 = 2 143 1

Fig 4.15 Welfare measures

160
140
120
100
80
No. of

60
40
20
0

Welfare Measures

Interpretation:

Most of the respondents preferred first aid as the first factor, second

factor as infrastructure, third factor is sanitary, fourth factor is restrooms, fifth

preferred factor is canteen and sixth preferred factor is leisure time.

60
16) On what basis would you like to quit the company?

Table 4.16 On what basis would you quit the company

Options Excellent Good Poor Score Rank

No career
advancement 28*3 = 84 39*2 = 78 23*1 = 23 185 1
opportunities
No retirement
8*3 = 24 7*2 = 14 4*1 = 4 42 4
benefits
Work not
challenging 28*3 = 84 24*2 = 48 8*1 = 8 140 2
enough
No rewards
and bonus 7*3 = 21 5*2 = 10 9*1= 9 40 5
enough
Salary
structure 9*3 = 27 28*2 = 56 7*1 = 7 90 3
unsatisfactory

Fig 4.16 On what basis would you quit the company

200
180
160
140
No. of Respondents

120
100
80
60
40
20
0
No career No retirement Work not No rewards and Salary structure
advancement benefits challenging bonus enough unsatisfactory
opportunities enough

Reasons for quitting the company

61
Interpretation:

In the above particulars for reasons to quit the company most the

respondents preferred no career advancement opportunities as the first option,

work not challenging enough as the second option, salary structure unsatisfactory

as the third option, no retirement benefits as the fourth option and no rewards and

bonus offered as the fifth option.

62
 CHAPTER -5

FINDINGS,
CONCLUSIONS AND
SUGGESTIONS

63
 5.1 FINDINGS

 During the period of survey, 76% of the employees are satisfied with their present

job whereas 24% of the employees are not satisfied with their present job.

 Most of the respondents i.e 60% found their work environment to be balanced

whereas 14% of the respondents said that their work environment is negative.

 Most of the respondents preferred flexibility in work schedule and opportunities for

training and development.

 Majority of the problems i.e 60% in the organization are managed through open

communication whereas 40% of the problems are managed through up line and

down line communication.

 Most of the respondents i.e 84% shared a good and fair relation with their

managers.

 Most of the respondents are satisfied with encourage cooperation and teamwork.

 Majority of the respondents are satisfied with the workload distributed equally.

 Most of the respondents i.e 64% are satisfied with the articulation of the

policies whereas i.e 36% of the respondents are not satisfied with the

articulation of the policies.

 Most of the respondents are satisfied with the leave travel allowance.

 Majority of the respondents are satisfied with first aid facilities.

 The respondents would be satisfied if they have better career advancement

opportunities.

64
 5.2 CONCLUSIONS

A survey is conducted on the topic “Employee Attrition” in TECUMSEH. Based on

analysis and interpretation, the following conclusions have been made which are as

follows:

 During the period of survey, 76% of the employees are satisfied with their present

job whereas 24% of the employees are not satisfied with their present job.

 Most of the respondents found their work environment to be positive and balanced.

 Most of the respondents preferred flexibility in work schedule and opportunities for

training and development.

 Most of the problems in the organization are managed through open

communication.

 84% of the respondents shared a good and fair relation with their managers.

 Most of the respondents are satisfied with encourage cooperation and teamwork.

 Majority of the respondents are satisfied with the addresses problems promptly and

articulation of policies.

 Most of the respondents are satisfied with the leave travel allowance.

 Most of the respondents are satisfied with the policies of the organization and

enforcement of disciplinary procedures.

 Majority of the respondents are satisfied with first aid facilities.

 The respondents would be satisfied if they have better career advancement

opportunities.

65
 5.3 SUGGESTIONS

The following ideas have been suggested to reduce the problem of attrition rate in

TECUMSEH.

 Employee opinion is that the HR policies should be more transparent in their

organization.

 Employees suggest that management should welcome suggestions and encourage

for feedback and provide equal work load distribution.

 Induction process should be more effective and interesting

 Recognize employees for good performance – MLP (Managerial Leadership

Program) and ELP (Employee Leadership Program) should be performance based.

 Provide 360 degree feedback.

 Invest in Training and Development- Programs should be frequently conducted and

customized to the needs of the employees- Competency Mapping.

 Employees suggest that monetary and non-monetary benefits will motivate them to

continue their jobs.

 Structured exit interviews should be conducted.

 Hold meetings with employees on regular basis to identify their desires and needs.

66
ANNEXURE

67
 Questionnaire:

i) Name:

ii) Designation:

iii) Age:

a) Less than 25 years b) 26-35 years c) 36-45 years d) More than 45 years

iv) Experience:

a) Less than 5 years b) 6-10 years c)11-15years d) More than 15years

v) Education :

a) 10 b) 10+2 c) Graduate d) Post Graduate

vi) Salary (in PA):

a) Less than 1,00,000 b) 1,00,001-3,00,000 c) 3,00,001 – 5,00,0000

d) More than 5, 00,000

1) Are you satisfied with your present job?

(a)Yes (b) No

2) How is the work environment of your office?

(a)Positive environment (b) Negative environment (c) Balanced work environment

68
3)How are the Working conditions:

Options Excellent Good Poor

Flexibility in work

schedule

Opportunities for

training and

development for

advancement of its

employees

Work and life issues

appropriately

balanced

Appropriate

resources and

equipment to perform

job

4) How are problems solved in your organization?

(a)Open communication (b) Up line communication (c) Down line communication

5) Does your manager have good relations with their subordinates?

(a)Very good relations (b) Fair relations (c) Poor relations

69
6) Supervision:

Particulars Excellent Good Poor

Work load distributed equally

Problems addressed promptly

Provides information needed to

perform job

Welcomes suggestions and

feedbacks

7)Are Policies clearly articulated ?

(a) Yes (b) No

8) Are you fairly compensated for the work you do in office?

(a)Always (b) Sometimes (c) Rarely

9) Are disciplinary procedures in your company consistently enforced?

(a)Always (b) Sometimes (c) Rarely

10) What are the types of extra Compensation:

Particulars Satisfied Neither satisfied nor Dissatisfied

dissatisfied

Extra work payment

Bonus

Leave travel

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allowance

House rental

allowance

11)Are policies of organization favourable to its staff?

(a)Very supportive (b)Partially supportive (c)Neutral (d)Partially unsupportive (e)Highly

unsupportive

12)What is your opinion on leadership:

Options Excellent Good Poor

Encourages Open

Communication

Good Communal

Relationship

Encourages cooperation

and team work

Treats employees with

respect and fair

treatment

13)Do you feel that there is high morale in the organization ?

(a)Yes (b) No

14) How often do you think about seeking employment elsewhere?

(a)Often (b) Sometimes (c) Never

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15)What are welfare measures available in your company?

Particulars Satisfied Neither satisfied nor Dissatisfied

dissatisfied

Canteen

Sanitary

Restrooms

Leisure time

Infrastructure

First Aid

16) On what basis would you like to quit the company?

(a) No career advancement opportunities (b) No retirement benefits

(c)Work not challenging enough (d) No rewards and bonus offered

(e)Salary structure unsatisfactory

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 BIBLIOGRAPHY

Textbooks :

1. P.Subha Rao “ Personnel and Human Resource Management” (2009), 4th Edition,

Page nos. 77-78, Himalaya Publishing House.

2. Barb Wingfield and Janice Berry, (2004) “ Retaining your employees” A Viva

Crisp Fifty-Minute Book.

Journals:

1. V.Prashanthi, Causes of Attrition in General, Osmania Journal of Management,

Volume 5, number 9, June 2008.

2. Priti Suman, Employee Attrition Problems in BPO, Management and Labor studies,

Volume 32, Feb 2007, XLRI Jamshedpur.

3. Mohan.M.Prasad HRD News letter March 2010, Volume 25, Issue 12.

4. HRD newsletter, Volume 32, Issue:3, June 2006, Retaining Talent.

Website:

1. Robert.L Berteda, 2007,”Employee attrition” URL : www.scribd.com/employee

atrittion/bcg/91.

2. Leonard Schlesinger and James Heskett,1997.Available from

URL:www.citehr.com

3. V. Prashanti 2003 “causes of attition in general”URL :

www.nationalhrd/.org/management.

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