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BONAFIDE CERTIFICATE
Certified that this project report titled, “A STUDY ON EMPLOYEE ATTRITION IN TVS
No. 96009631029) who carried out the research under my supervision. Certified further, that to
the best of my knowledge the work reported here in does not form part of any other project
report or dissertation on the basis of which a degree or award was conferred on an earlier
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Murugappan. R Reg. No. : 96009631029
I MBA
Mepco Schlenk Engineering College
DECLARATION
I hereby declare that the project titled “A study on Employee Attrition in TVS Sri
Chakra Tyres Pvt Ltd” submitted for the award of Master of Business Administration in Anna
University has been carried out under the guidance of Mr.N.Senthil Kumaran, Department of
Management Studies, Mepco Schlenk Engineering College, is my original work which does not
Murugappan.R
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ACKNOWLEDGEMENT
At the outset, I thank god for granting me the wisdom and grace to complete my project. I
would like to express my gratitude to take this opportunity to express my profound sense of
gratitude and to extend my best wishes to all the people who have guided, inspired and motivated
me during this project, which gives me immense pleasure to acknowledge their co-operation.
I wish to express my thanks and sincere gratitude to our Director and Head of the
Department, Dr.S.TamilSelvan, M.B.A., Ph.D, for his valuable advice and guidance to
complete this work successfully and also for his enthusiastic encouragement.
I wish my hearty gratitude to my family who has been the primary sources of inspiration
for my success. Last but not the least, I wish to thank my friends who really gave me some boost
to complete the project.
Murugappan. R
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ABSTRACT
Attrition is a critical issue and pretty high in the industry these days. It is the major
problem which highlights in all the organizations. Attrition is said to be the gradual reduction in
the number of employees through retirement, resignation or death. It can also be said as
Employee Turnover or Employee Defection. Whenever a well-trained or well-adapted employee
leaves the organization, it creates a vacuum. So, the organization loses key skills, knowledge and
business relationships. Modern managers and personnel administrators are greatly interested in
reducing Attrition in their organization, in such a way that it will contribute to the maximum
effectiveness, growth, and progress of the organization.
This study is an outcome of the topic called “A STUDY ON ATTRITION IN TVS SRI
CHAKRA TYRES” for a period of six weeks. The main objective of this study is to know the
reasons for the employee attrition in the concern and to find the ways to reduce it. It also helps to
know the satisfactory level of employees towards their job and working conditions by which we
can improve the areas in which it lags behind.
The research design used in this study is descriptive research design.
The research has been conducted with the help of primary data. It has been
collected through questionnaires. The responses were received from the
executive and above level managers in TVS Sri Chakra Tyres, Madurai. Totally
87 samples are taken to the study the Attrition level in the organization. The collected data
are compiled, edited and tabulated for the purpose of effective analysis. For
analysis purpose the following statistical tools and techniques has been
applied (Frequency analysis, Correlation, Chi-square).
After analyzing the data, the findings and suggestions to the company
are prepared. From the study it is identified that the lack in growth opportunities and the
monetary benefits are the major problems for the occurrence of attrition in the company. If the
recommendations are implemented by the company, it will help to reduce
the level of attrition in the concern.
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TABLE OF CONTENTS
ABSTRACT
I INTRODUCTION
APPENDICES 27
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CHAPTER 1
INTRODUCTION
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1.1 INTRODUCTION TO THE STUDY
This study on employee attrition was done in TVS Sri Chakra Tyres, Madurai. This
company thinks that there is increase in attrition level nowadays and so they want to find out the
reasons behind attrition. Hence, this study focused on why the Attrition occurs and the possible
ways to reduce it.
The study was mainly undertaken to identify the level of employee’s attitude, the
dissatisfaction factors they face in the organization and for what reason they prefer to change
their job. Once the levels of Employee’s attitude are identified, it would be possible for the
management to take necessary action to reduce attrition level. Their progression in their career
will lead to the success of the Company for the long run.
ATTRITION:
Attrition is defined as "A reduction in the number of employees through retirement,
resignation or death". Attrition, also known as employee churn, employee turnover,
or employee defection, is an industrial term used to describe loss of employees or Man
power.
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• Lack of future scope.
• Lack of promotion opportunity.
• Poor perception / relation with boss.
• Lack of career planning.
• Poor implementation of performance appraisal.
• Lack of performance management system.
• Lack of pay for performance.
• Travel hazard, prefer close to home.
• High expectation of the employee.
• Prefer self employment.
• A flat organization, hence limited scope for progress
Attrition also happens when people, do not like their team-mates or perhaps do not like
what they are doing. There are also cases when people leave their job for family reasons or when
they wish to migrate. Studying all these factors will help us to find the Remedial, Corrective
actions to reduce the Attrition.
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1.2. COMPANY PROFILE
TVS Sri chakra is one of the leading two and three-wheeler tyre manufacturer in India
rolling out over 11 million tyres per annum. Part of US $ 2.2 billion largest Auto Ancillary group
TVS, founded by Sri. T.V.Sundaram Iyengar, TVS Tyres lives up to the rich heritage and strong
value system of the parent company.
Accredited on 1996 with ISO 9001 certifications, TVS Tyres adopted strong quality
standards from its inception and these benchmarks were further strengthened with the
certification of ISO 14001, ISO 9001-2000 and TS 16949. The company has other practices like
Six Sigma and Lean Manufacturing Techniques in place to abide by their high quality standards.
TVS Tyres was also the winner of the prestigious TPM Excellence Award in 2003 and TPM
Consistency Award in 2005.
The vision statement of TVS Sri Chakra Tyres is “To be a company with highest
profitability in the industry by consistently exceeding the customer’s expectations” and they
are working towards achieving their vision in every part of their work.
They focus on both industrial safety and production. All over the campus, they displayed
their motto as “Safety first, Production must“. They provide all statuary benefits to the workers
and train them well in the job to achieve their goal of increased customer satisfaction.
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1.3 INDUSTRY PROFILE
In the growing world of locomotives, the usage of tyres is unavoidable. While the tyre
industry is mainly dominated by the organized sector, the unorganized sector holds sway in
bicycle tyres. The major players in the organized tyre segment consist of MRF, Apollo Tyres,
Ceat and JK industries, which account for 63% of the organizes tyre market. The other key
players include Modi Rubber, Kesiram Industries and Goodyear India with 11%, 7% and 6%
respectively. Dunlop, Falcon, Tyre Corporation of India Limited (TCIL), TVS SriChakra, Metro
Tyres and BalKrishna tyres are some of the other players in the industry. MRF, the largest tyre
manufacturer in the country, has strong brand equity. While it rules supreme in the industry,
other players have created niche markets of their own.
Apart from natural rubber and synthetic rubber, rubber chemicals are also widely used in
tyres. The two types of synthetic rubber used in tyres are Poly Butadiene Rubber (PBR) and
Styrene Butadiene Rubber (SBR). The former is used in most of the tyres, while the latter is used
in the radials for passenger cars. Synthetic rubber accounts for 14% of the material cost. Unlike
in the case of rubber, India imports 60% of its synthetic rubber requirements.
Apart from rubber major raw materials are nylon tyre cord and carbon black. The former
is used to make the tyres strong and impart tenacity to it. The latter is responsible for the color of
the tyre and also enhances the life span of the tyre. Nylon tyre cord comprises 34%, while carbon
black accounts for 13% of the raw material cost. In India. The carbon black used is of N660,
N220 and N330 variety.
To sum up, the tyre industry is highly raw-material intensive, with raw material costs
accounting for 70% of the cost of production. Fortunately for the industry, the rubber and carbon
prices have taken a beating recently, which means lower costs for the tyre industry. The export-
import policy allows free import of all types of new tyres and tubes. However, import of
retreated tyres, either for use or for reclamation of rubber is restricted. This has led to tyres being
smuggled into the country under the label of new tyres. Though tyre import and all raw materials
for tyres except natural rubber are under open general license (OGL), only import of natural
rubber from SriLanka is eligible under OBL.
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1.4 LITERATURE REVIEW
A literature review is a body of text that aims to review the critical points of current
knowledge including substantive findings as well as theoretical and methodological contributions
to a particular topic. Some of the literature reviews regarding “employee attrition” are as follows:
2. Alan G. Downe in his research study, titled Employee attrition states that” The success of the
industry is, in part, dependent on recruiting and retaining workers with the right combinations of
skills, but is threatened by high rates of staff attrition and job-hopping”. Using survey, focus
group and interview techniques, this study explores the factors influencing the intention to turn-
over among young, well-educated professionals within the Malaysian service industry. The
results showed that there was a high tendency for this group of young employees to switch jobs.
This was motivated by both push factors (interference with work-family-lifestyle balance, poor
relations with co-workers, work stressors, unsatisfactory supervisory relationships) and pull
factors (offers of better compensations, more interesting work, promotion opportunities, desire to
return for academic studies). The importance of human capital management in the service
industry has been linked to maximizing all employees’ values to reach the firms’ objectives. By
identifying these push and pull factors, it provides valuable insights to Malaysian employers to
understand better what current young workers are seeking for and to utilize more innovative
strategies to attract and retain their top talent.
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3. “A Firm-Level Analysis of Employee Attrition” by Terry C. Blum considers the role that
firm characteristics, work force characteristics, location, and employee benefits practices have in
explaining employee attrition. Hierarchical regression analyses suggest that benefit practices are
associated with turnover, even when controlling for firm characteristics, firm setting, and work
force characteristics. Specifically, firms where benefits were a higher percentage of total labor
costs and firms whose benefits packages were described to be of higher quality experienced less
attrition. Implications of the findings for human resource management are discussed.
4. Mastri, Annalisa in his research, titled “The Effect of Work-Family Policies on Female
Employee Attrition and Firm Profitability" This paper investigates how work-family policies are
linked to the attrition of female employees and firm profitability. There are three main findings.
First,Employee Assistance Plans, dependent care flexible spending accounts, and emergency
child care are associated with increases in the percentage of associates who are female. Second,
these policies are linked to reductions in the turnover rates of associates. This, combined with the
first finding, indicates that work-family policies help retain female employees. Third, by linking
a subset of the firm-level data to supplemental data on firm profitability over the same period, we
also show that providing such benefits does not hurt firm profitability or lead firms to go out of
business. The results of the study are generalizable to other large firms with similar
organizational structures and a similar workforce composition, such as consulting and accounting
firms. Overall, these findings suggest that firm provision of work-family policies can play an
important role in retaining female employees without hurting firm profitability.
5. Shari L. Peterson in his research article, titled” Employee Turnover” sets forth the
Organizational Model of Employee Persistence, influenced by traditional turnover models and a
student attrition model. The model was developed to clarify the impact of organizational
practices on employee turnover from a human resource development (HRD) perspective and
provide a theoretical foundation for research on that topic. What is unique about this unified
longitudinal model in which organizational factors that impact human resources are the focal
point is that these organizational factors are hypothesized to be symbiotically and reciprocally
linked to key individual variables—intention, goals, commitment, and satisfaction. Implications
include evaluating HRD practices on the basis of reduced costs of turnover, thus enhancing the
strategic role of HRD in organizations.
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1.5 OBJECTIVES OF THE STUDY
Primary Objectives:
• To identify the reasons for employee attrition.
• To find the ways to reduce the attrition in TVS SRI CHAKRA TYRES
• To know the satisfactory level of employees towards their job and
working conditions..
1.6 METHODOLOGY
1.6.1 RESEARCH DESIGN
Descriptive research has been used in this study.
The sampling technique used here is convenience sampling. From the total
population of 120 employees, convenient samples of 87 have been used. As the number of
samples is closer to the population, the convenience sampling technique does not make much
difference in the results.
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1.6.3.2 STATISTICAL TOOL
• CHI-SQUARE
• CORRELATION ANALYSIS
• FREQUENCY ANALYSIS:
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CHAPTER – II
DATA ANALYSIS AND
INTERPRETATION
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Data analysis And Interpretation
Table 2.1: To find out the satisfaction level of the employees among various factors
in the concern.
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
Motivation 87 2 5 3.99 .707
Appraisal 87 2 5 3.75 .781
Basic Needs 87 2 5 3.91 .709
Nature Of Job 87 2 5 3.97 .599
Job Understanding 87 3 5 4.18 .638
Freedom 87 1 5 3.71 .901
Creativity 86 2 5 3.64 .825
Promotion 86 2 5 3.28 .863
Recreation 87 1 5 3.13 1.098
Transport 87 2 5 3.79 .718
Canteen 87 1 5 3.21 .966
Environment 87 1 5 3.49 .847
Workload 87 1 5 3.31 .968
Training 87 2 5 3.44 .677
Advancement 87 2 5 3.41 .815
Rules 87 1 5 3.49 .834
Grievance 87 2 5 3.38 .703
Orientation 87 1 5 3.54 .760
INFERENCE:
On seeing the means of various factors, they all tend between 3 and 4 which states they
are either neutral or satisfied about these factors. Out of all factors 3.13 is the minimum which
shows they have to concentrate more on recreation facilities in their concern. And also most of
the employees agree that they understand their job and the role it plays in achieving their vision.
Table 2.2: Relationship between age group and satisfaction on recreation facilities
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Null Hypothesis (H0): There is no significant relationship between age group and satisfaction
on recreation facilities.
Alternate Hypothesis (H1): There is significant relationship between age group and satisfaction
on recreation facilities.
Chi-Square Tests
Asymp. Sig. (2-
Value df sided)
Pearson Chi-Square 7.142a 12 .848
Likelihood Ratio 7.402 12 .830
Linear-by-Linear .269 1 .604
Association
N of Valid Cases 87
INFERENCE:
Table value of chisquare with df 12 at 95% confidence level = 21.026
Calculated chisquare value = 7.142
The table value is greater than that of calculated value. Hence H0 is accepted.
It is inferred that the age factor does not influence their satisfaction on recreation and the
employees of all age group need improvement in recreation facilities.
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worker with the workload in the organization.
Alternate Hypothesis (H1): There is significant relationship between motivation of the
worker and the workload in the organization
N 2 6 4 3 1 16
DS 0 10 16 21 3 50
HDS 0 2 3 11 3 19
Total 2 18 25 35 7 87
Chi-Square Tests
Asymp. Sig. (2-
Value df sided)
Pearson Chi-Square 23.394a 12 .025
Likelihood Ratio 21.269 12 .047
Linear-by-Linear 10.236 1 .001
Association
N of Valid Cases 87
INFERENCE:
Table value of chisquare with df 12 at 95% confidence level = 21.026
Calculated chisquare value = 23.394
The table value is less than that of calculated value. Hence H0 is rejected.
It is inferred that the motivation of the employees and workload given to them are dependant.
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Factors Frequency
1 ) Health conditions 4
2) Family issues 9
3) Growth 28
4)Monetary benefits 25
5)others 16
6)not applicable 5
Total 87
INFERENCE:
From the graph we can infer that the factors personal growth is the major reason to quit
the job. And also the normal curve on the histogram shows the mean of 3.63 which shows the
monetary benefits also influences the employee to quit the job. Out of 87 samples 28 were
quoting the growth factors and 25 were to monetary benefits.
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Table 2.5: Relationship between employees’ freedom to top level people and their work
environment
Null Hypothesis (H0): There is no significant relationship between the employee’s view on
freedom to convey their problems to top level people and work environment
Alternate Hypothesis (H1): There is significant relationship between the employee’s view on
freedom to convey their problems to top level people and work environment
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Chi-Square Tests
Asymp. Sig.
Value df (2-sided)
Pearson Chi-Square 46.029a 16 .000
Likelihood Ratio 40.677 16 .001
Linear-by-Linear 12.826 1 .000
Association
N of Valid Cases 87
INFERENCE:
The table value is less than that of calculated value. Hence H0 is rejected.
It is inferred that the there is significant relationship between the employee’s view on freedom to
convey their problems to top level people and work environment
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Table 2.6: To know which area the company needs improvement internally
Factors Frequency
1) Employee Motivation 26
2) Working Environment 24
3) Monetary Benefits 27
4) Other Factors 9
5) Not Applicable 1
Total 87
INFERENCE:
The histogram shows that the employees need some improvements in the monetary
benefits (i.e) the pay structure provided to them .It is said by 27 employees out of 87 employees
followed by motivation gets 26 members attention and then 24 was to the working environment.
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Table 2.7: Relationship between employees’ reason on quitting the job with internal
improvement
Null Hypothesis (H0): There is no significant relationship between the employee’s reason on
quitting the job with the factors on internal improvement
Alternate Hypothesis (H1): There is significant relationship between the employee’s reason on
quitting the job with the factors on internal improvement
Chi-Square Tests
Asymp. Sig.
Value df (2-sided)
Pearson Chi-Square 54.387a 20 .000
Likelihood Ratio 48.579 24 20 .000
Linear-by-Linear 21.110 1 .000
Association
N of Valid Cases 87
INFERENCE:
Table value of chi-square with df 20 at 95% confidence level = 31.410
Calculated chi-square value = 54.387
The table value is less than that of calculated value. Hence H0 is rejected.
It is inferred that there is significant relationship between the employee’s view on freedom to
convey their problems to top level people and work environment
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Table 2.8: To find out the areas where the concern is to improve in the external factors.
Facors Frequency
1)Innovative Technology 16
2)Training Programs 47
3)New Products 11
4)Others 13
Total 87
INFERENCE:
From the graph it has been proved that the concern lags behind in Training Programs offered to
the employees which was accepted by 47 employees.
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CORRELATION ANALYSIS
Null Hypothesis (H0): There is no correlation between the motivation and basic needs provided
to them.
Alternate Hypothesis (H1): There is correlation between the motivation and basic needs
provided to them.
Correlations
motivation basicneeds
motivation Pearson Correlation 1 .415**
INFERENCE:
The value of Pearson correlation is 0.415 which is less than 0.5. Hence, there is no correlation
between motivation and basic needs. Hence H0 is accepted.
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Table 2.10: CORRELATION BETWEEN APPRAISAL AND MOTIVATION
Null Hypothesis (H0): There is no correlation between appraisal and the motivation
Alternate Hypothesis (H1): There is correlation between appraisal and the motivation
Correlations
Motivation appraisal
Motivation Pearson Correlation 1 .690**
INFERENCE:
The value of Pearson correlation is 0.690 which is greater than 0.5. It shows that there is
perfect positive correlation between motivation and appraisal. Hence H0 is rejected.
Null Hypothesis (H0): There is no correlation between the reasons quit and promotion
Alternate Hypothesis (H1): There is correlation between the reasons quit and promotion
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Correlations
resonsquit promotion
resonsquit Pearson Correlation 1 .075
INFERENCE:
The value of Pearson correlation is 0.075 which is very less than 0.5. Hence, there is no
correlation between the reasons behind quit the job and promotion. Hence H0 is accepted.
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CHAPTER – III
FINDINGS AND SUGGESTIONS
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FINDINGS
• It is inferred that there is significant relationship between the factors affecting internal
improvement and reasons for quitting the job.
• There is no correlation occurs between motivation of the employees and the nature of the
job provided to them.
• There is no correlation between motivation and basic needs.
• There occurs a perfect positive correlation between motivation of the employees and
appraisal.
• There is no correlation occurs between training provided to the workers and orientation.
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SUGGESTIONS
• The monetary benefits is the major factor in which the employees are not satisfied. So it
may be improved for them.
• The recreation facilities for the employees can be improved, so that involvement of the
employees towards work will be improved
• The working environment in the concern has to be improved in order to avoid the
hazardous from the manufacturing areas. Health provisions have to be made to improve
their well-being.
• Employees are satisfied with their understanding of their job and so organization can
more concentrate to maintain that same level.
• The work load was another problem which is well exhibited in the company during data
collection and so new recruitments have to be made in order to reduce their workload
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CONCLUSION
From the analysis it has been concluded that TVS Srichakra Ltd, can provide
satisfied recreation, welfare facility, relationship with supervisors and co-workers, pay structure
and grievance handling procedure. They also can concentrate on recruitment procedure and
explain employees work responsibility to minimize the employees’ attrition. Organization may
provide extra health and hygienic benefits and good working condition in addition to that more
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BIBLIOGRAPHY
2. “Elements of Mercantile Law”, Sultan Chand & Sons 29th Edition, N.D.Kapoor.
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APPENDIX
Dear respondents,
PERSONAL DATA
1. Name:
2. Designation:
5. Educational Qualification:
OTHER DATA:
Less than 1year 1-2 years 2-3 years More than 3 years
Motivation
Appraisal
Basic Needs
Nature of Job
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10. Which of the following makes you to get dissatisfied..?
Work Pressure Management decisions Working Environment Pay structure
Others
13. Which of the following reasons makes you to quit the job..?
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15. Rate the following characterisitics / facilities in your concern
Highly Highly
Satisfied Satisfied Neutral Dissatisfied Disatisfied
(5) (4) (3) (2) (1)
a. Recreation Facilities
b. Food And Canteen facilities
c. Transportation
d. Work environment
e. Work load
f. Training And Development
g. Effective Opportunities
for advancement in your career
h. Rules and Regulations
of the company
i. Grievance Handling Procedures
j. Job Orientation
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