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RETENTION STRATEGIESFOLLOWED BY VARIOUS
AUTOMOBILE COMPANIES &RECOMMENDATIONS TO
SONALIKA
In partial fulfillment of the requirements for theAwards of M A S T E R S O F B U S I N E S S
A D M I N I S T R AT I O N .
SUBMITTED TO PUNJAB TECHNICAL UNIVERSITY.
Lakhbir singhkamboj MBA
623221673
Session: 2006-2008
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AIMT AMBALA CITY
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It is my privilege to acknowledge profound
Gratitude & indebtedness towards my respected & learned
teachers for their inspirat ion, constructive crit icism &
valuable suggestions. Their precious guidance &
unrelenting support kept me on track through my training.
I want to thank a l l the employees of I N T E R N AT I O N A L
T RA CT OR S L IM IT ED ( IT L) , H OS HI AR PU R f or their
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warm support & co-operation in successful running of the
training work.
I am highly obliged to Ms. Manika Kalia,
Mr. Rajesh Kumar & Ms. Parul Malhotra my project
leaders , whose t imely advice & const ruct ive cri ticism
helped me in completing the project.
Manjot kaur saini
TABLE OF CONTENTS
Executive summary
Company Profile
Introduction
Objectives of the study & scope
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Research Methodology& Design
Data Presentation & Analysis
Findings
Conclusion
Recommendations
Limitations
Bibliography
Questionnaire
Economic factors across the nation have impacted the private
and public sectors regarding work force stability. Losing good
employees is expensive & has a direct impact on yours firms
products & services. Business managers & human resource
professionals know the cost of turnover. Many firms have been
able to establish some relationship between employees
satisfaction & customer satisfaction.
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Other firms are beginning to put actions
behind the words our people are our most important asset by
thinking of their employees as their customers.
The key is to drive retention by
motivating employees. One way to lay a foundation for an
employee-as-customer retention strategy is to base it on
Frederick Hertzbergs "hygiene and motivation" factors.
Retention strategies of various
automobile companies had taken into consideration & they formthe base for determining the retention strategies of sonalika
(ITL).
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Established in 1969, Sonalika group since the
inception has tired to understand customer need to be
facilitating them with its value for money products. The Company
has a state of art manufacturing facilities, spread in acres,
located in the free shrubs of Punjab and Himachal Pradesh.
Sonalika is one of the t o p f i v e tractor
manufacturing companies in India. The Sonalika Group product
listing does include the manufacturing of tractors, multi utility
vehicles, Engines and various farm equipments.
Today the group stands with an appropriate
t u rn o ve r o f 1 2 00 C r o r e I N R . A n a ve r ag e g ro w t h o f 3 0 %
makes it one of the fastest growing corporate in India. Its also
one of the free debt free company group strengthens an
approximate staff count o f 3 0 0 0 e m p l o y e e s .
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No, Doubt that the sonalika products has created
a niche for themselves not in India but also in foreign market. As
at our production any defect even at micro level is been taken
care of and justified.
It has been our visions to cater the agriculture
and auto industry with qualify abrasive products through untiring
dedication and leadership.
The industry has gradually transformed itself into a world class player involved in building state of art products,
solutions and technologies.
International Tractors Limited (ITL)
Sonalika Agriculture Industries
Sonalika Capital Limited
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Punjab Agriculture Industries
Casting Corporation Of India
International Cars & Motors Limited (ICML)
International Auto-trac Finance Limited (IAFL)
At present the company has a strong nation wide
network of 528 dealers. The distribution in various states is:
states Dealers
network
1. Andhra Pradesh -------------- 26
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2. Assam--------------------------- 4
3. Bangladesh-------------------- 1
4. Bihar---------------------------- 37
5. Gujarat------------------------ 31
6. Haryana----------------------- 37
7. Himachal Pradesh------- 4
8. Jammu & Kashmir-------- 1
9. Karnataka------------------- 18
10. Kerala------------------------ 1
11. Madhya Pradesh--------- 68
12. Maharasthra--------------- 35
13. Mizoram-------------------- 1
14. Nepal------------------------- 9
15. Orissa----------------------- 10
16.
Punjab---------------------- 48 17. Rajasthan------------------ 53
18. Tamil Naidu--------------- 19
19. Uttar Pradesh------------- 131
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20. West Bengal------------- 14
The distribution of
dealers network has helped company to provide sales and
services to its customers. The company is catering to the market
not only throughout India but also various other countries like
Nepal & Sri Lanka.
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Sonalika Group believes in treating its
employees with care and concern. For an organization that is
primarily made up of human resources, treating them well and
with respect is our utmost concern.
When the systems, structure, policies,
procedures and practices of an organization are designed and
lived out so that employees genuinely feel that they come first,
trust is the result.
I T L G r o u p is synonymous with
fair business practices and ethics,
quality service and a commitment to society.
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To be the leader in the chosen fields with reputation for
Performance, Customer Care and Transparency.
To be a dynamic growth oriented enterprise in which individuals
are highly motivated team players taking up challenges and
aiming towards excellence and leadership always.
To identify and further diversify into new and exciting businesses
which we enable translate into profitable environments for our
Partners, our People, and our Society within our markets.
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Thirty-three years ago we saw a dream that we have worked to
fulfill relentlessly. This dream was 'to make possible the total
mechanization of Indian agriculture,' so that Indian farmers can
also stand on the forefront of the world in terms of productivity
and technology. Our dream has been to give them a new future,
full of new hopes and challenges. Challenges, that Sonalika will
help every farmer meet' It is this inspiration that has encouraged
us to achieve a new every moment.
International Tractors Limited was incorporated on
October 17, 1995 for the manufacture of Tractors and has
since then built a distinct position for itself in the Tractor
industry. ITL is manufacturing various Tractors of
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S on al ik a br an d b et we en 3 0 H. P. t o 75 H. P. & CE RE S
brand between 60HP to 90HP. The Tractors manufactured by
the company have secured a reputation of performance, quality
and reliability in the market because of their maximum pulling
power, minimum fuel consumption and Emission. All this makes
ITL the fifth largest tractor sell ing company in India and
the number one company in Nepal.
These tractors are also exported to various
o ther count ri es a lso inc luding F rance, Sou th Afr ica,
Aus tr al ia , Z imbabwe, S ri Lanka , Canada, Nepal , and
Bangladesh etc.
The company's marketing efforts are
promoted by the network of 600 Dealers, 400 Sub dealers and 50
Stockiest supervised by various regional sales offices. Such a
networking has enabled the company to grow like a well-knit
family whose roots lie in its customers, who have been providing
constant feedback and support to allow the company to turn their
dreams into products.
It bears testimony to the fact that
company is having world-class R&D facilities , maintaining
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controls and systems of International Standards and
Environmental norms.
Sonalika International Tractors have also
been approved for subsidy under various schemes by Ministry of
Agriculture, Govt. of INDIA. A number of banks have approved
Sonalika Tractor for financing and entering into a tie Up for easy
financing.
ITL went into collaboration with Renault agriculture of
France in July 2000. Renault Agriculture is a subsidiary of the
Renault Group with 51% stake owned by CLAAS, Germany.
Renault Agriculture is the largest tractor manufacturing company
in Europe. It produces tractors in the range of 50-250 HP, having
worldwide distribution ands sales network.
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Renault Agriculture - ITL agreement
results in the production of Ceres and Solis tractor under Sonalika brand name.
With a turnover of more than 637 billion (2002), Renault is
one of the 30 largest companies in the world. Each year Renault
produces over two million vehicles and employs over 140,000
people. Renault has alliance with NISSAN to complement the
financial and technical strengths bringing in synergic growth.
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CLAAS is a leading manufacturer of farming
equipment with a global presence. It is the world market leader
in forage harvester. Apart from the farming products CLAAS also
produces hydraulic components and transmissions. CLAAS
purchased 51% stake in Renault Agriculture in March 2003. It
recorded the turnover of over 1,000 million in the last financial
year.
The ITL seeks to create a culture where each
employee, vendors and dealers feels himself responsible &
integral part of the enterprises. The work culture at I T L is open,
participative & egalitarian. Learning is encouraged in the
company. Every member respects 5 s formulas.
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5 s : - - - -
1. S ( S E IR I) = CLEAN OR
DISPOSE OFF:
Clear the useless
Sort the useful
Transfer possibly the useful somewhere else.
2. S ( SE I TI O N ) =TIDY UP OR
JUST UNDER
THE HAND:
Seiso
Shitsu
ke
Seiket
su
Seiton
Seiri
5s
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Use best the new free place
Reduce the useless searches
Easily picked for use
Improve the floes.
3. S ( S E I S O ) =CLEANING OR
THE QUALITY
BY THE CLEANLINESS:
Cleanliness of items
Cleanliness of environment
Regular cleaning
Maintenance of equipments.
4. S ( S E I K E T S U ) =DEFINE THE
RULES:
Maintaining the standards of housekeeping &
workplace organization
Avoids mistake
Makes the work more pleasant
Formalizes some procedures.
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5. S
( S H I T S U K E ) =STRICTNESS AND RESPECT
OF RULES:
Maintaining a regular surveillance of rules
Remind of written rules
Correct the deviations.
K e y - P o i n t s :
Inbuilt good manufacturing & maintenance practices.
Total employee involvement in the development of
system.
Minimum records are required to be maintained.
Attitudinal change towards positive direction.
It is the gateway for T ot a l Q u a li ty M a n a ge m e n tS y s t e m .
Sonalika Group of
Companies (Rhino)
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Client Profile
Sonalika Group is contributing to green revolution in India Since
1969 by Farm Equipments and Machineries. Sonalika Group is one
of the top five tractor manufacturers in India. An average growth
rate of 30% makes it one of the fastest growing corporate inIndia. It employs about 2500 people including some of the
renowned names in the industry.
Situation
Campaign: Punjab, Haryana, Chandigarh.
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Solution
As the company had a limited marketing budget they were finding
it difficult to attract prospective target audience to visit company
dealers showroom for having the gleam of vehicles & to take a
test drive. So we suggested those Holiday incentives.
ResultsCompany decided to incentives the test drive and they found
Holiday incentive is the best. As the cost of the vehicle is in the
range of 5 lakhs plus a Holiday is the right incentive for the target
audience of this car segment.
Even a spec ia l scheme i s been worked
out for their buyers. RHINO
/TRAVELPORT - Travel discount cards.
Rhino set to hot up SUV market
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To be p r i c e d b e t w e e n R s . 8 0 0 , 0 0 0 a n d R s . 1 m i l l i o n ,
Rhino is a joint venture between Britain's MG Rover and
International Tractors, manufacturers of Sonalika tractors.
The new company is called International Cars and
Motors Limited. It will manufacture 24,000 SUVs annually at its
company's new plant at Kala Amb in Himachal Pradesh, 30 km
from here. T h e p l a n t , b e i n g s e t u p o n a 1 0 0 - a c r e p l o t , w i l l
h a v e a n a u t o m a t e d a s s e m b l y l in e .
"The plant is being set up with Rs.200crore (Rs. 2
billion) investments and the first vehicle will roll out in
December," Sonalika vice president Amrit S. Mittal said in a
statement.
Sonalika has, in the last eight years, become one of India's top five tractor manufacturers, selling 90,000 tractors
powered by its in-house developed engine. The company has
exported tractors to Algeria, Bangladesh, Ivory Coast, Nepal,
South Africa and Sri Lanka, as also to European countries.
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Personal Mechanical
Chairman
Mr. L.D.MittalVice-ChairmanMr. A.S.Mittal
ManagingDirector Mr. Deepak
Mittal
Chief ExecutiveOfficer
Mr. M.C.Sarkar
Head of Departments
Marketing
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DepartmentDepartment
Quality Research &Control Development
Logistics Marketing
Assembly Division Accounts
Paint Shop Project &Material
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D I 9 0 F o u r W h e e l D r iv e
D I 7 5 Tw o w h e e l D r i ve
D I 7 5 F o u r
w h e e l D r iv e
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D I 6 0 F o u r w h e e l D r i v e
D I 7 3 0 I I
D I 7 5 0 I I I
D I 7 4 0 I I I D I 3 4 0 S E x p o r t
M o d e l
http://www.sonalika.com/di340-s.htmhttp://www.sonalika.com/7502.htmhttp://www.sonalika.com/7503.htmhttp://www.sonalika.com/730II.htmhttp://www.sonalika.com/di60.htm8/6/2019 KAMBOJ PROJECT
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Pride of Country awarded to Sh. L.D. Mittal, Chairman Gold Medal Awarded to Sh. A.S. Mittal Vice Chairman
Udyog Bhushan Awarded to Sh. Deepak Mittal MD.
Shri Deepak Mittal, Managing Director,
International Tractors Limited received this coveted award at thehands of Shri Shanta Kumar, Honorable Minister for Rural
Development and Govt of India on the occasion of the Second
National Seminar on Quality Consciousness on 24th December,
2002 at New Delhi.
Shri L.D. Mittal , Chairman, Sonalika GroupArchitect of a New World 8th Ernst & Young
Entrepreneur.
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Sonalika group under the stewardship toShri L.D. Mittal, (Chairman) has made rapid strides within a short
span of 9 years. It has not only made its presence felt in the
tractor Industry but has made in-roads into the market share of
popular brands. Its valued and satisfied customers are
multiplying and have crossed 10, 0000 mark in year 2004.
CMERI (Central Mechanical Engineering Research
Institute) Govt. of India, which has many first to its credit in many
fields, has been helping Sonalika a lot in enriching the company
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with technological advancements based on their strenuous
efforts and research.
Honorable Former Prime Minister, Sh. Atal BihariVajpayee said to the science & Technology Institutions to go to
masses and make them aware of their activities while
inaugurating the Diamond Jubilee celebrations of the council of
Scientific and Industrial Research (CSIR).
Sonalika Tractor is marching ahead on the path of
success in which CSIR's contribution is very crucial. Sonalika is
the only Tractor in which technology of CSIR, Govt. of India has
been used and which is produced at the ultra-modern plant of
global Tractor Company Sonalika.
Resultantly, Sonalika has become the
first choice of Indian farmers. On close observation of the
features of Sonalika, one will find that at one hand it is fuel
efficient; on other hand it has got special position in pulling
power. The number of satisfied and proud customers is
increasing day by day and has crossed the figure of 100000. After
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all, there is something exclusive and unique so much of prestige
in just 9 Years.
Kumari Savitri Kunadi H.H. Ambassador of India atthat time in France visited the Sonalika- Renault stall and
expressed her happiness with the progress made by the Indian
company Sonalika both in domestic and foreign markets and
wished its joint venture with Renault Agriculture, France a grand
success .
International Tractors Ltd. with Sonalika brand of
tractors has been certified as ISO 9001 issued by International
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Standards Organization. This certification can be earned by those
organizations only who can establish and demonstrate strict
compliance of quality systems prescribed under ISO 9001 as
highest level of certification under which the organizations
possess capabilities in the area of design and, development and
in manufacturing and marketing functions. It is indeed a great
honor for the International Tractors Ltd. to have achieved this
distinction that too within short span of its inception. It is the 2nd
such company in India, which has received this certification.
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Sonalika has also been certified as ISO
14001 which is another golden feather in Company's Cap and
another stamp of quality.
We are the first Tractor manufacturing company in
the country to be accredited with ISO-14001.
It bears testimony to the fact that company is having
world-class R&D facilities, maintaining controls and systems of
International Standards and Environmental norms .
As part of diversification plans, the Rs 2,500-crore
tractor and farm equipment major Sonalika Group has ventured
into the auto finance sector.
The new company, named International Autotrac
Finance Ltd (IAFL), is a 100 per cent subsidiary of the group and
would finance the vehicles produced by International Tractors
Ltd (Sonalika brand tractor) & International Cars & Motors Ltd.
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The newly launched financial arm of the company is
hopeful of doing business worth Rs 300 crore by the end of the
fiscal year 2007-2008. The IAFL would be a very customer-
friendly company, which would give them auto loan on fewer
rates of interest and with least formalities.
He told that four different departments have
been created by the company to help the customers avail the
loan easily. The company will also provide the information and
handle the inquiries online.
The new company would achieve its goal in three
stages. At the first stage, the finance facility by IAFL will be
available only in Punjab and in second stage we would extend it
to northern India and finally we will cover the complete Indian
market, he added.
So, in order to strengthen their presence, the
finance company would open 24 new branches spread across
Northern region by the end of this fiscal year. The proposed
locations for the branches are Ambala, Karnal, Jaipur, Jodhpur,
Chandigarh, etc. At present, it has a branch each in Amritsar,
Ludhiana and Hoshiarpur in Punjab.
Moreover, to have a nationwide presence, the
company plans to open 24 new branches in southern part of
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India. By the end of 2009, we are hoping to do business worth Rs
1,000 crore through the finance company.
Recently, the group also announced investments of Rs
1,150 crore in its two subsidiaries International Cars and
Motors (ICML) and International Tractors Ltd (ITL).
Of the total, it would invest about Rs 700 crore
on capacity expansion, enhancing its design facility and
development of a new sports utility vehicle(currently it produce a
multi-utility vehicle having brand name Rhino).
(RetentionStrategies)
Sonalika (INTERNATIONAL TRACTORS LIMITED)
are the leading manufacturers for tractors. Sonalika attains the
5 th position in India.
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Sonalika is a growing company & it has lot of
manpower requirements at various levels & it all the times. In
view of this requirement & of the dynamic/ volatile job market.
Sonalika has a major challenge to hire good talent & more
challenging is to retain its current talent.
In order to suggest best strategies for retention let
understand what is Retention? & whats other company are doing
in this area.
Retention : ---- Developing Confidence Factor - so that they believe in
potential success/leadership strategies.
Developing Emotional Factor - through (Huge) contribution,
recognition, appreciation.
Developing Trust Factor - with the help of 2 ways-
promises/commitments kept (strong link to loyalty). Considering Fit Factor - Values/ethics are a good fit.
Considering Listening Factor - Are they heard and Valued?
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Retention Strategies are now recognized as mandatory in many
industries:
Leadership is critical! "Best Practices" Does Senior
Management: support (with skill), hire, manage, recognize,
communicate, include, reward, and make people feel significant.
A strong retention strategy
becomes a powerful recruitmenttool!
Have companies ever lost key personnel to other
companies? Was it expensive to find and train replacements?
Could companies have prevented the loss and at the same time
created a policy that actually helps to attract the best and the
brightest candidates? Retention has become an essential
business strategy for companies that wish to remain productive
into the future.
Retention Factors :
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Compensation & Benefits
(Money can not be ignored!), Clear business goals (where do I fit
in), well defined jobs, rewards & recognition, strong in
communication, "Well trained" management/leaders.
Does "Culture" Support: innovation-risk taking
(freedom from fears to try new innovative approaches - without
Put Downs,) encourage creativity, supportive accountability
(Culture is made up of: Organizational Values, how we defineourselves, how we interact.
Getting Employees to fall in
love with your company:
1. Capture the Hearts of your workforce with :
Compelling vision/Balance/Celebration-Fun.
2. Open Communication : Internal listening is a priority,
multiple lines of communication (various channels.) This is
essential for managing change in a positive way with less
sabotage, anger, resistance, and fear.
3. Create partnerships : Squash status barriers/Open the
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books/pay for performance (not titles), share the "bad" times the
"good" times.
4. Drive Learning : "Guarantee Employability," Encourage
Life Long Learning (Train outside of job description). Loyalty
comes from trusting your employees to develop their skills for the
good of the company and for their needs for personal growth and
satisfaction.
5. Emancipate Action : Freedom to Fail, reduce
bureaucracy. Breathe life into your organization. Do not let your
employees stagnate.
Retention StrategiesFollowed By AutomobileCompanies: -----
Tata
EscortsToyota
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Hyundai
E s c o r t s :
Once Hes Joined, Keep HimInvolved
Proposing a new member is a terrific achievement.
But, turning over a completed Membership Document (#100) to
the grand knight is not the end of the job. A proposer needs to
maintain a personal relationship with the new Knight to see that
R e c o m m e n d a t i
o n s
T o
S o n a l i k a
g r o u p
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he is integrated and stays involved in council activities. There
are several steps proposers can take to ensure this:
After signing up a prospect, explain to him that the councilsAdmission Committee will examine his qualifications for
membership. Accompany the prospective member to the
Admission Committee meeting. Introduce him to the
members present.
Once the prospect has been accepted by the council, escort
him to his First Degree and remain with him throughout the
event. Introduce him to his fellow council members after the
exemplification.
Take the newly initiated member and his family under your
wing. See that he learns council procedures (such as
meeting times, committee assignments, etc.) and meets
other council members.
Accompany your recruit to his Second and Third degreeexemplifications and stay with him throughout the day.
Introduce him and his family at council events. Encourage
him to involve his family in council-sponsored activities.
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Always contact the new member before each council
meeting and bring him to a meeting if necessary. If the new
member becomes inactive in council activities. Call and ask
to visit with him.
Explain your concern about his absence and offer support or
assistance, find out the reasons for his lapsed interest and
to work to conserve his membership.
With a little personal effort you can help guarantee that your
recruit becomes not only an active member of the Knights of Columbus, but a member for life.
T O Y O TA :
1. Career Development: US companies have aggressively begun to provide
incentives for women and minorities to join and remain in their
workforce. One of the incentives is career development
programs. A report from a survey of women engineers indicated
that "Active career development programs, whether targeted
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the opportunity for women and minorities to share experiences,
mentor each other, and learn about the unwritten rules to
success. While once frowned upon as subversive or detracting
from career opportunity, corporations now see the benefits of
special interest groups in their organization. Many companies
have assisted in the establishment of these groups and have
even come to rely upon them for information and guidance in
management.
4. Compensation:
Recognizing that salary disparities do exist, some
companies have initiated salary studies to identify such
disparities.
In addition, compensation has a strong influence on the
retention of women and minorities, especially at the early stages
of their careers.
While most students are not taught about
negotiating compensation packages, women and minorities are
often even more naive about the potential impact of what an
initial salary has upon subsequent career opportunities. A 1990study traced "31 to 34 percent of gender differences in current
salaries to difference in starting salary."
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5. Family Policies :
In an effort to make companies "family-friendly" for
both male and female employees, a number of creative strategies
have been implemented. Flexible work schedules and maternity
leave are examples of the most commonly tried.
Others include: staggered work
schedules; excused absence for emergencies or
unpredictable situations; unpaid personal leave for family-
related matters; part-time employment; job sharing; vacation
carryover; on-site child care; career-family balancing training;
child-care referral; and, paid and unpaid sabbaticals.
6. Diversity Training: Several companies provide and require diversity
training on an on-going basis to all employees and have found
that it is most successful.
Implementing the training as a company-
wide initiative has assisted in changing the workplace culture.
As an extra boost to effect workplace climate, a few
companies have made strident efforts to change the format of
meetings so that minority and women manager's ideas and
thoughts are not over-shadowed by traditional males .
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In conclusion ,
Companies have employed anumber of different types of strategies to recruit and retain
women and minorities. Although there are a number of strategies
such as creating family friendly policies that are generalizable
across all types of companies. Conducting an initial needs
assessment or analysis of a particular work environment is a
critical first step. Top management must commit to the value of
a diverse workforce, demonstrate that commitment in financial
and human resources, and must be visible to the employees as
partners in change.
TATA :
Attracting and retainingEmployees:
Compensation has been, and will
continue to be, the big driver in retaining people. But I feel the
importance of money varies at different stages of life and in
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different roles that people play. Once people reach a minimum
level of compensation, what matters to them are their aspirations
and this is where role planning and the work environment are
critical.
Goals and targets need to be clear so
that people can know what they are going to do and what they
have achieved. These two rules have been in focus for the last 25
years of my life and they will continue to be important. It's also
universally true that people join companies but work with bosses.
And, equally true, people leave bosses; not a company.
What people will also look for is a comfort level that they
have a good job to do in the company and that what they do
matters to the company.
A company needs to create a good employer brand,
internally as well as externally, by ensuring that people have
good jobs which make them feel proud of working for the
organization.
After that, depending on the demography and age of
the person, companies need to add certain benefits that create a
social status for the person, give him or her recognition outside
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the company. People want their place under the sky. Employees
can be given opportunities to make presentations at international
forums, or made members of academic institutes or industry
associations. This will increase retention.
I t is increasingly evident that people are
reaching h igher, fas te r. So where do you go when you
approach the top?
A company can take you only so far in your personalambition and growth. After that the company should allow you to
move to an internal or external company.
In this respect, the Tata Group has a phenomenal
advantage. We have more than 90 companies, and there is good
opportunity for mobility within the Group.
For the Group, the Tata brand will continue to be a
magnet for people looking for a job. In the Indian ethos there is a
certain value attached to the Tata brand. It was there when I
joined TCS many years ago and it continues to be there today
also. I am always proud to say I am a part of Tata.
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A feel for peopleWith some 2, 46,000 members in its diverse and
widespread family, the Tata Group is more than just another
employer. The Group's many pioneering initiatives to benefit and
empower employees have few parallels anywhere in the world,and it has blended its traditional benevolence with evolving
human resource methodologies to deliver a whole lot beyond
mere jobs.
H Y U N D A I :
More companies are deciding to focus on
strategies that could help them create a more psychologically
healthy workplace.
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Each year, the American Psychological Association
recognizes companies that work proactively to provide
employees with an opportunity to feel more in control of their
lives both at work and in their homes. These programs not only
benefit the employee, but they pay large dividends to the
employer.
W h y i n s t i t u t e a p r o g ra m t h a t w i l l l e a d t o
a p s y c h o l o g y h e a l t h y w o r k p l a c e ? H e r e
a r e a f e w r e a s o n s f o r y o u t o c o n s i d e r :
1. Two-thirds of both men and women say, Work has a
significant impact on their stress level.
2. One-fourth of employees view their jobs as the No. 1 stressor
in their lives.
3. Productivity losses related to personal and family health
problems cost U.S. employers $1,685 per employee year or
$225.8 billion annually.
4. Employers could save $3.50 for every dollar spent on improving
their work environment in terms of reduced absenteeism and
health care costs.
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The results were as follows:
Employee satisfaction rate of 90 percent.
Employee turnover rate of only 3 percent.
High levels of productivity and financial performance.
Health care savings and a low rate of workplace accidents
and injuries.
Annual Awards are based on thefollowing
Criteria:
Employee involvement
Work-Life balance Employee growth & development Health & safety Employee recognition
I n c o n c l u s io n ,
This focus on the employee at Health wise creates
a positive work environment and builds relationships between
employees that lead to higher levels of synergy.
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High levels of employee satisfaction were
experienced when employees were involved in the decision-
making process, participated in self-directed teams and had clear
performance measures, and where there were open channels of
communication to management.
Employee retention levels and satisfaction are
higher, because employees are being trained for the next job as
part of an ongoing process of employee development.
Government statistics have shown that as many as
1 million workers or almost 1 percent of the workforce is absent
each day due to physical or mental health reasons.
C u r r e n t r e t e n t i o n
p r o g r a m s :
( Sonalika group mustconsider )
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Money (including compensation, benefits and stock options)
was the most frequently mentioned aspect of the retentionprograms.
Second was the executive/management team
The third was the opportunity for growth , both through the
challenge of work assignments and individual development.
Two elements comprised the fourth aspect: the work
environment in general, and the trust existing between people in
the organization.
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O b j e c t i v e s :
To analysis the retention strategies followed by various
automobile companies & recommendations to Sonalika.
To know the reactions of the employees towards retention
strategies followed in todays era.
To study whether retention strategies help in reducing
labour turnover ratio.
Whether recruitment cost also reduced if proper retention
strategies are followed.
Recommendations given to Sonalika in regards to retention
strategies.
S c o p e :
Research is related to the premises of ITL (INTERNATIONAL
TRACTORS LIMITED) & research is restricted to retention
strategies only.
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Research comprising defining & re-defining problems,
formulating hypothesis or suggested solutions; collecting,
organizing & evaluating data; making deductions & reaching
conclusions; & at last carefully testing the conclusions to
determine whether they fit the formulating hypothesis or not.
Clifford &Woody
Sources of datacollection
Primaryrimary sources :: -
PrimaryPrimarysourcessources
SecondarySecondarysourcessources
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We can obtain primary data either through direct communication with respondents or through
personal interviews.
Various ways of collecting primary data
Observation Method
Interviews Interviews
Through Questionnaires Through Questionnaires
Through Schedules etc..Through Schedules etc..
Secondaryecondary sources : -Secondary data means data that are already
available i.e. data which have already been collected & analyzed
by someone else. It may either be published or unpublished.
Like books, magazines, newspapers, journals, Historical documents etc..
A c c o r d i n g t o o u r p r o j e c t r e p o r t ,
P r i m a r y
R e s e a r c h h a s b e e n c o n d u c t e d .( S o u r c e - - - - Q u e s t i o n n a i r e . )( S o u r c e - - - - Q u e s t i o n n a i r e . )
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RESEARCH PROBLEM : TO STUDY THE RETENTIONSTRATEGIES OF AUTOMOBILE COMPANIES & RECOMMENDING
SONALIKA GROUP ABOUT RETENTION.
T YPE O F RE SE ARC H: D e s c r i p t i v e
R e s e a r c h
Blend of Descriptive & Conclusive
method has been used in this research for the collection of data.
As the research is related to the study of employees views, which
can more effectively be studied through direct questions,
personal interview and informal talks- experimental research will
not much effective. Also, considering the time constraints,
descriptive research leading to conclusive result is the most
suitable design for this research.
SOURCES OF DATA COLLECTION:
Q u e s t i o n n a i r
e
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The data has been collected through
questionnaire method. The questionnaire was designed in such a
way to cover as many aspects as possible.
(Data Presentation)
A. Sampling Design : ----
U n i v e r s e Refers to the total of the items or units in the
field of inquiry i.e. S o n a l ik a H o s h i a r p u r .
S a m p l e - - - - Selection of some part of an aggregate on
the basis of which a judgment or inference about
aggregate is made.
S a m p l e U n i t - --- Define unit of sample i.e. unit by which
sample is measured i.e. N o . o f e m p l o y e e s .
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A n a l y s i s :
Is there any importance of retention strategies in an
automobile company ?
Number of Respondents=50
Determine
Contents of Questions
DesignQuestion
Wording
ArrangeQuestionsin properorder
DecideFont &Layout
ReproduceQuestionnaire
RepresentingQuestionnaire
DesigntheQuestions
DesignQuestionStructure
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Yes 100% No 0%
Importance Of RetentionStrategies
yes no
Interpretation: - The above analysis shows that retention strategies are
the important element of auto mobile companies.
Are you aware of various retention strategies followed in
todays era?
Number of Respondents=50
Yes 98% No 2%
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Aw are ne ss About Retention StrateFollow ed In Toda y's Era
yes
no
Interpretation: - The above analysis shows that most of the employees are
aware of the retention strategies followed in todays era.
Is retention strategies help in reducing labour turnover
ratio?
Number of Respondents=50
Below 25% 10%25% - 50% 30%50% - 75% 45%
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Above 75% 15%
Retention Strategies Helped InReducing Labour Turnover Ratio
Below 25%
25% - 50%
50% - 75%
Above 75%
Interpretation: - The above analysis shows that 50% - 75% labour turnover
ratio reduced with the help of retention strategies.
Which factor influence more while considering retention
strategies?
Number of Respondents=50
Communication 32%
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Above 75% 18%
To What Extent Factors Have An ImpactOn Retention Of Employees
Below 25%
25% - 50%
50% - 75%
Above 75%
Interpretation: - The above analysis shows that 50%- 75% factors influence
Retention Strategies most.
Are recruitment cost reduced due to consideration of
retention strategies properly?
Number of Respondents=50
Yes 97% No 3%
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R etention S trategies ProvH elpful In R edu cing Re cruit
Cos t
Y es
No
Interpretation: - The above analysis shows that 97%respondent thinks that
Retention Strategies help in reducing recruitment cost.
What are retention strategies of Sonalika?
Number of Respondents=50
Rewards 18%Work Culture 34%
Games 70%
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Employees Grievances Cell
Introduce Incentives
Organize Trips.
How retention strategies do benefits employees?
Motivation Level Increase
Grooming Environment
Work Home Balance
Rewards
Work Appreciated
Personality Develops Through Training
How retention strategies do benefits employers?
Reduce Attrition Rate
Recruitment Cost Reduce
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Motivated Team Work
Healthy Work Culture
Loyalty Increases
Completion of Projects on Time.
Retention Strategies the important element of auto mobile
companies.
Most of the employees are aware of the retention strategies
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followed in todays era .
50% - 75% labour turnover ratio reduced with the help of
retention strategies.
Work Culture & Compensation factors influence retention
strategies most .
97% respondent thinks that Retention Strategies help in
reducing recruitment cost.
Club Membership & Work Culture is the most favored retention
strategies followed. Employees Recognition, Improve Work Culture Employees
Grievances Cell, Introducing Incentives & Organizing Trips are
Strategies which must be followed at sonalika.
High levels of employee satisfaction were experienced when
employees were involved in the decision-making process.
High levels of productivity and financial performance.
In the end after completing the project in
nutshell I would conclude that R e t e n t i o n S t r a t e g ie s are very
important for each & every organization. Retention plays vital
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role for the development of human resources as well as the
organization as whole.
Retention Strategies are being used by the HODs in order
t o b o os t t h e e m p lo y ee m o r a le & m o t i va t i on . T h a t
r e s u l t e d i n j o b s e cu r i t y & r e d uc ti o n i n l a b o ur
t u r n o v e r r a t e .
Organization may not able to attain the required
results which are expected if retention strategies are not
followed properly. Proper control should be implemented in the
organization in order to check whether strategies are followed or
not.
While working on the project, I came to
know that for retaining the employees in the organization
retention strategies play significant role & should not be
neglected at any cost.
At end I would say that S o n a l i k a G r o u p must
follow the retention strategies that would help in reducing labour
turnover rate & cost incurred on recruitment.
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Club Membership & Work Culture is the most
favored retention strategies followed. Employees Recognition,
Improve Work Culture Employees Grievances Cell, Introducing
Incentives & Organizing Trips are Strategies which must be
followed at sonalika.
High levels of productivity and financial performance &
High levels of employee satisfaction were experienced when
employees were involved in the decision-making process.
I had 7 weeks summer training in S o n a l i k a
( I N T E R N AT I O N A L T R A C T O R S L T D .) . It was a great
working experience to work in such a reputed organization.
Proper rules & regulations are being followed. Working
atmosphere is co-operative & friendly. Co-ordination between
different departments & top, middle, lower levels of management
exist.
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The following are strategiesrecommended to Sonalika Group foremployee retention:
How do you get your employees tofall in Love" with your organization? This is a greatquestion. The answer to the question would be thatcompanies must follow Top 10 Retention Tips:
1. Treat your employees l ike you treat yourmost valuable clients.
It is cheaper to keep your good employees than it is to hireand train new ones. Your top 20-25% should be courted as youwould court and then service your top customers.
2. Get your employees to fa ll i n Love wi th
your organization.
Communicate your vision in a compelling way.Show everyone the role they have to contribute to this vision.Create opportunities for people to connect with each other for support and to improve communication in work teams.
3. Strong retention strategies become strongrecruit ing advantages.
4 . Retent ion is much more effect ive when youput the r ight person in to the r ight job . Know
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the job! Know the employee and theirmotivations.
5. M on ey i s i mp or ta nt b ut i t i s n ot t he o nl yreason people stay with an organization.
If your compensation plan is in the top 20-30% of your industry,then money will often not be the reason why people leave.
6. Employee committees to help develop
retention strategies are a very effectivestrategy.
Get their input! Ask, what dopeople like about working here? What would you like changed tomake your company a better place to work?
7. Leadership must be deeply invested inretention.
Management must be skillful communicating companypolicies in a way that creates "buy-in" from their staff and beopen to employee input. Help create "ownership" in your employees .
The companies with the best retention percentages are thesame companies that are actively committed to retention.
8. Recognition, in various forms, is apowerful retention strategy.
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It does not have to cost a lot. US Dept. of Labor - 46% of people leave their jobs because they feelunappreciated.
9. Remember, the "Fun Factor" is veryimportant to many employees.
The FUN Factor is part of the generation of workersthat use activities as stress management in highly chargedproduction environments where long hours are required. Greghas encouraged Ping-Pong tournaments and basketball leaguesfor interpersonal interaction, fun, and stress management.
10. Know the t r ends in benef i t packages . Doy ou r b es t t o o ff er t he o ne s y ou r e mp lo ye esneed?
Consider offering the best of the rest.
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Lack of knowledge----- Employees of HR department
was only aware of retention concept & other departments
employees have no clarity about the term retention strategy.
Non response error ------- Response rate was low asterm is not clear & lack of interest also exist.
Sampling----- It is not possible to cover each & every
department as in many departments females entry is
prohibited.
Lack of time---- As training period limited to 6-7
weeks only. So its difficult to cover all the aspects.
Personal biasness----- Employees not discloses the
information about strategies & policies of organization being
a policy matter.
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Daily Dairy helped me a lot in
preparing my project report. The majority of material has
been taken from it.
Sources of Information: ----
A. Websites
A n s w e r s . c o m
G o o g l e . c o m
A l t a v i s t a . c o m
S o n a l i k a . c o m
B. Books..
H R M ( s y m b i o s i s c e n t r e ) p u n e
H R M ( G a r ry D e s s l e r )
R e s p e c t e d s i r / m a d a m : - -
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I am the student of MBA; for the sake of my
summer training I undertook the project on the topic
RETENTION STRATEGIES FOLLOWED BY AUTOMOBILE
COMPANIES & RECOMMENDATIONS TO SONALIKA. I will be
highly obliged if you provide me the following required
information.
QUESTIONNAIRENAME:
SEX:
DESIGNATION:
Is there any importance of retention
strategies in an automobile company?
Yes no
Are you aware of various retention
strategies followed in todays era?Yes no
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Is retention strategies help in reducing
labour turnover ratio?Below 25% 50% - 75%
25% - 50% Above 75%
Which factor influence more while
considering retention strategies?
Communication Listening
Compensation Work
culture
To what extent the above mentioned
factors have an impact on retention of
employees?
Below 25% 50% - 75%
25% - 50% Above 75%
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Are recruitment cost reduced due to
consideration of retention strategies
properly?Yes no
What are retention strategies of Sonalika?
Rewards Work culture
Games Club
membership
What other strategies does Sonalika
follows?
How retention strategies do benefits
employees?
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How retention strategies do benefits
employers?
T
hank you