A STUDY ON BENCHAMRKING THE EMPLOYEE ENGAGEMENT

In

SUNDARAM CLAYTON LIMITED, PADI, CHENNAI

PROJECT REPORT Submitted to

UNIVERSITY OF MADRAS

In partial fulfillment of the Requirements for the award of

MASTER OF BUSINESS ADMINISTRATION

Submitted by D.SANDHYA SUDHARSHINI (REG NO. MA00700) Under the guidance of Mr.Dr. D. SUGUMAR (M.Com.,MBA., M.Phil, PGDPMIR, Ph.D)

DEPARTMENT OF MANAGEMENT STUDIES VELTECH SRI RANGA SANKU ARTS COLLEGE

Approved by AICTE, New Delhi & Affiliated to University of Madras Avadi, Chennai-600062 December2011-21st FEBRUARY2012

CERTIFICATE
This is to certify that the project work title A STUDY ON BENCHMARKING THE EMPLOYEE ENGAGEMENT in SUNDARAM CLAYTON LIMITED, PADI, CHENNAI submitted to Department of Management Studies, University of Madras, in partial fulfillment of the requirement for the award of degree of Master of Business Administration is a record of bonafide work done by Ms. D. SANDHYA SUDHARSHINI (MA00700) Vel Tech Sri Ranga Sanku Arts College, during the Academic Year 2010-2012.

Internal Guide

Head of the Department

Internal Examiner

External examiner

Project advisor

Principal

DECLARATION
I D.SANDHYA SUDHARSHINI (MA00700) student of management studies, VEL TECH SRI RANGA SANKU ARTS COLLEGE, Chennai would like to declare that the project work title A STUDY ON BENCHAMRKING THE EMPLOYEE ENGAGEMENT in SUNDARAM CLAYTON LIMITED,PADI, CHENNAI. In partial fulfillment for the award of Master of Business Administration course of University Of Madras, which is my original work done under the guidance of Mr. Dr.D. SUGUMAR (M.Com,MBA, M.Phil, PGDPMIR, Ph.d).

PLACE: CHENNAI DATE:

D. SANDHYA SUDHARSHINI

ACKNOWLEDGEMENT
I convey my heartful gratitude to our Chairman Dr.R.Rangarajan, B.E (Elect)., B.E (Mech)., M.S (Auto)., Ph.D., for giving me an opportunity to conduct the study. I would like to thank our college principal Mrs. Radhika, for hier encouragement and inspiration. I convey my deep sense of gratitude to Mr.Dr.D.Sugumar (M.Com,MBA M.Phil, PGDPMIR, Ph.d) Head of the department of Management Studies for his motivation and providing me moral support during the course of this work. I am grateful to my Guide Mr.Dr.D.Sugumar (M.Com, MBA M.Phil, PGDPMIR, Ph.d), for his valuable advice and supported me to complete this project in a successful manner I have great pleasure in thanking Mr.Hemant Kumar [TQC- HEAD], SUNDARAM CLAYTON LIMITED, PADI, CHENNAI, who spared his valuable time in guiding me to undergo this project. I thank all other faculty member of the department for their constant cooperation and encouragement in pursuing my project work.

ABSTRACT

ABSTRACT
The project study is based on the topic BENCHAMARKING THE EMPLOYEE ENGAGEMENT in the company TVS-SUNDARAM CLAYTON LIMITED, Padi, Chennai. The nature of the company is manufacturing the automobile products. The study is all about employee engagement at all levels of the organization and to measure the level of commitment, involvement, and productivity of an employee towards their job from the day he /she has been employed in the organization. It is also to measure the effectiveness of emotional attitudes in engaging with other employees towards the task which they have to perform. The sampling technique used for the project study is convenient sampling as per the permission which is given by the company.

TABLE OF CONTENTS

S.no

Chapter

Page no.

Introduction Research methodolgy Scope of the study Need of the study Objective of the study Limitation of the study Concept and review literature Company profile Data analysis and interpretation Findings , suggestion, and conclusion Bibliography Annexure

2 3 4 5

LIST OF TABLES

Table no 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17

List of tables Age group Experience data Feeling about your welcome given by the organization as a new joinee Training program helps the employee to engage with each other employee Retention strategies followed in your organization Motivation given by the organization when the employee help other employees job too Formal steps help to improve the capabilities Suggesstion being recognized by the organization Organization motivates to work effectively in a team Individual talent being recognized by the organization in a team work Job rotation in the organizaiton Steps taken by the organization to control employees stress Schemes in the organization helps the employee to make their performance effective Regulation of giving feedback for the employees performance Allowances and other benefits compared to other organization Fringe benefits provided by the organization Welfare measures provided by the organization

Page no.

LIST OF FIGURES

Figures no 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17

List of figures Age group Experience data Feeling about your welcome given by the organization as a new joinee Training program helps the employee to engage with each other employee Retention strategies followed in your organization Motivation given by the organization when the employee help other employees job too Formal steps help to improve the capabilities Suggesstion being recognized by the organization Organization motivates to work effectively in a team Individual talent being recognized by the organization in a team work Job rotation in the organizaiton Steps taken by the organization to control employees stress Schemes in the organization helps the employee to make their performance effective Regulation of giving feedback for the employees performance Allowances and other benefits compared to other organization Fringe benefits provided by the organization Welfare measures provided by the organization

Page no.

CHAPTER-1

INTRODUCTION

INTRODUCTION

Benchmarking the employee engagement refers to finding the best practices of employee engagement in various top companies. This study is done by taking a survey from the HR and their employee in each top company through issuing a questionnaire. Through this survey I have given suggestion to the company regarding employee engagement practices by using statistical tools like percentage method and chi-square method and I have made various charts (Bar diagram) representing the survey result.

SCOPE OF THE STUDY

SCOPE OF THE STUDY

Changes when introduced in respect of adoption of best Practices as to employee engagement will lead to: Sound engagement practices that will help retain employees and bring down the existing Annual Attrition Rate. Greater productivity, increased efficiency and higher profitability. A positive image of the company to its employees, customers, peers and competitors.

NEED OF THE STUDY

NEED OF THE STUDY

To know the employees commitment, involvement, and productivity towards the job given to them in the organization. To benchmark the employee engagement of the organization with the best practice of the same top companies in the Chennai region. To recommend the employee engagement strategies followed in the other same top companies in the Chennai region.

OBJECTIVE OF THE STUDY

OBJECTIVE OF THE STUDY Primary Objectives:

To analyze the Benchmarking on employee engagement in Sundaram Clayton Limited, Padi, Chennai.

Secondary Objectives:
To evaluate existing employee engagement practices across various organizations in the Chennai Region and to make suggestions regarding the best practices as to the same. To establish the relationship between organizations engagement programmes and their respective annual attrition rates. To study the relative importance of each of the factors influencing engagement. To examine whether the welfare measures provided truly reflect the managements philosophy and policy.

LIMITATION OF THE STUDY

LIMITATION OF THE STUDY

The area of the study was very vast an in edepth analysis of the system and the process was not possible in the time limit of two months. Limitation of data collection method are: The employees who have given opinion ight not be true Due to shift timings of the employees they are unable to cooperate to conduct tehe survey. Some of the employee to whom the survey was conducted are not so nuch knowledgeable due to their experience

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
Meaning of Research and Methodology. Research Design. Data Collection Method.

MEANING OF RESEARCH METHODOLOGY

The research is an attempt to study a problem or a situation to any given Circumstances and identify various causes or consequences of that particular problem. It lives to solve a complex and complicated problem through use of various tools and techniques. These tools and technique try to bring out a logical, accurate and scientific solution to a given Problem. Methodology as the name suggests is the method through which the problem or situation is tackled. It involves a lot of factor like the research design, sample size, contact method and data collection method are used etc. all these steps and factors put together bring out a clear and accurate result. Research in common parlance refers to a search for knowledge. Once can also define research as a Scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. The advanced learners dictionary of current English lays down the meaning of Research careful investigation or inquiry especially through search for new facts in any branch of knowledge. Redman and more define research as a systematized effort to gain new knowledge.

RESEARCH DESIGN
A research is an arrangement of conditions for collection and analysis of data in a Manner that aims to combine relevance purpose with economy in procedure. The research design Adopted in the study was descriptive study.

DATA COLLECTION METHOD

Data collection has mainly been from two sources, viz., primary and Secondary data
Primary Data. Secondary Data.

PRI MARY DATA

The primary data are those which are collected afresh and for the first time, and thus happen to be Original in character. The collection of primary data is done through direct communication with the employees and by observing them in their activities.

SECONDARY DATA
On the other hand, secondary data are those which have already been passed through the Statistical process. Secondary data are the data that are collected from company records.

CONTACT METHOD
The HR managers and employees of each top companies were personally contacted and were given questionnaire.

DATA ANALYIS
After collecting the data it was analyzed with the help of various statistical tools.

STATISTICAL TOOLS
Bar diagrams Percentage method Chi-Square Method

PERCENTAGE METHOD = Number of respondents 100 Total number of Respondents CHI-SQUARE METHOD () = (O-E) E

O= Observed frequency E= Expected frequency E = (Row total)(Column total) Grand total

Degree of freedom= (r-1) (c-1)

If calculated value is lesser than tabulated value, the null hypothesis is accepted and alternative hypothesis is rejected.

If calculated value is more than tabulated value, the null hypothesis is rejected and altenative hypothesis is accepted.

CHAPTER-2

CONCEPT AND REVIEW LITERATURE

MEANING OF BENCHMARKING:
Benchmarking is a highly respected practice in the business world. It is an activity that looks outward find best practice and high performance and then measures actual business operations against those goals. It is the process of identifying, understanding, and adapting outstanding practices from organizations anywhere in the world to help your organization improve its performance.

DEFINITION OF BENCHMARKING:
According to Robert C.Camp benchmarking is the search for industrys best practices that lead to superior performance.

EMPLOYEE NEGAGEMENT
Employee Engagement is the extent to which employee commitment, both emotional and intellectual, exists relative to accomplishing the work, mission, and vision of the organization. Engagement can be seen as a heightened level of ownership where each employee wants to do whatever they can for the benefit of their internal and external customers, and for the success of the organization as a whole. Employee engagement was described in the academic literature by Schmidt et al. (1993). A modernized version of job satisfaction, Schmidt et al.'s influential definition of engagement was "an employee's involvement with, commitment to, and satisfaction with work." This integrates the classic constructs of job satisfaction (Smith et al., 1969), and organizational commitment (Meyer & Allen, 1991). Harter and Schmidt's (2003) most recent meta-analysis can be useful for understanding the impact of engagement. Linkage research (e.g., Treacy) received significant attention in the business community because of correlations between employee engagement and desirable

business outcomes such as retention of talent, customer service, individual performance, team performance, business unit productivity, and even enterpriselevel financial performance (e.g., Rucci at al, 1998 using data from Sears). Some of this work has been published in a diversity context (e.g., McKay, Avery, Morris et al., 2007). Directions of causality were discussed by Schneider and colleagues in 2003. Employee engagement is derived from studies of morale or a group's willingness to accomplish organizational objectives which began in the 1920s. The value of morale to organizations was matured by US Army researchers during WWII to predict unity of effort and attitudinal battle-readiness before combat. In the postwar mass production society that required unity of effort in execution, (group) morale scores were used as predictors of speed, quality and militancy. With the advent of the knowledge worker and emphasis on individual talent management (stars), a term was needed to describe an individual's emotional attachment to the organization, fellow associates and the job. Thus, the birth of the term "employee engagement" which is an individual emotional phenomenon whereas morale is a group emotional phenomenon of similar characteristics. In other words, employee engagement is the raw material of morale composed of 15 intrinsic and extrinsic attitudinal drivers. (E.g.Scarlett Surveys 2001).

Research Studies
Engaged employees care about the future of the company and are willing to invest discretionary effort. Engaged employees feel a strong emotional bond to the organization that employs them(Robinson),which results in higher retention levels and productivity levels and lower absenteeism. When reliably measured, positive employee engagement can be causally related or correlated to specific positive business outcomes by workgroup and job type. Scarlet Surveys refers to these statistical relationships as engageonomics.

Emotional attachment
Only 31% of employees are actively engaged in their jobs.[These employees work with passion and feel a profound connection to their company. People that are actively engaged help move the organization forward. 88% of highly engaged employees believe they can positively impact quality of their organization's products, compared with only 38% of the disengaged.72% of highly engaged employees believes they can positively affect customer service, versus 27% of the disengaged. 68% of highly engaged employees believe they can positively impact costs in their job or unit, compared with just 19% of the disengaged. Engaged employees feel a strong emotional bond to the organization that employs them. This is associated with people demonstrating willingness to recommend the organization to others and commit time and effort to help the organization succeed. It suggests that people are motivated by intrinsic factors (e.g. personal growth, working to a common purpose, being part of a larger process) rather than simply focusing on extrinsic factors (e.g., pay/reward).

Involvement
Eileen Appelbaum and her colleagues (2000) studied 15 steel mills, 17 apparel manufacturers, and 10 electronic instrument and imaging equipment producers. Their purpose was to compare traditional production systems with flexible highperformance production systems involving teams, training, and incentive pay systems. In all three industries, the plants utilizing high-involvement practices showed superior performance. In addition, workers in the high-involvement plants showed more positive attitudes, including trust, organizational commitment and intrinsic enjoyment of the work. The concept has gained popularity as various studies have demonstrated links with productivity. It is often linked to the notion of employee voice and empowerment.

Commitment
It has been routinely found that employee engagement scores account for as much as half of the variance in customer satisfaction scores. This translates into millions of dollars for companies if they can improve their scores. Studies have statistically demonstrated that engaged employees are more productive, more profitable, more customer-focused, safer, and less likely to leave their employer. Employees with the highest level of commitment perform 20% better and are 87% less likely to leave the organization, which indicates that engagement is linked to organizational performance. For example, at the beverage company of MolsonCoors, it was found that engaged employees were five times less likely than non-engaged employees to have a safety incident and seven times less likely to have a lost-time safety incident. In fact, the average cost of a safety incident for an engaged employee was $63, compared with an average of $392 for a non-engaged employee. Consequently, through strengthening employee engagement, the company saved $1,721,760 in safety costs in 2002. In addition, savings were found in sales performance teams through engagement. In 2005, for example, lowengagement teams were seen falling behind engaged teams, with a difference in performance-related costs of low- versus high-engagement teams totaling $2,104,823.3 (Lockwood).

Life insurance industry

Two studies of employees in the life insurance industry examined the impact of employee perceptions that they had the power to make decisions, sufficient knowledge and information to do the job effectively, and rewards for high performance. Both studies included large samples of employees (3,570 employees in 49 organizations and 4,828 employees in 92 organizations). In both studies, highinvolvement management practices were positively associated with

employee morale, employee retention, and firm financial performance. Watson Wyatt found that high-commitment organizations (one with loyal and dedicated employees) out-performed those with low commitment by 47% in the 2000 study and by 200% in the 2002 study.

Productivity
In a study of professional service firms, the Hay Group found that offices with engaged employees were up to 43% more productive. The most striking finding is the almost 52% gaps in operating incomes between companies with highly engaged employees and companies whose employees have low-engagement scores. High-engagement companies improved 19.2% while lowengagement companies declined 32.7% in operating income during the study period]. For example, New Century Financial Corporation, a U.S. specialty mortgage banking company, found that account executives in the wholesale division who were actively disengaged produced 28% less revenue than their colleagues who were engaged. Furthermore, those not engaged generated 23% less revenue than their engaged counterparts. Engaged employees also outperformed the not engaged and actively disengaged employees in other divisions.

Generating engagement
Recent research has focused on developing a better understanding of how variables such as quality of work relationships and values of the organization interact and their link to important work outcomes.84% of highly engaged employees believe they can positively impact the quality of their organization's products, compared with only 31 percent of the disengaged. From the perspective of the employee, "outcomes" range from strong commitment to the isolation of oneself from the organization. The study done by the Gallup Management Journal has shown that only 29% of employees are actively engaged in their jobs. Those "engaged" employees work with passion and feel a strong connection to their company. About

 of the business units scoring above the median on employee engagement also scored above the median on performance. Moreover, 54% of employees are not engaged meaning that they go through each workday putting time but no passion into their work. Only about of companies below the median on employee engagement scored above the median on performance.[4] Access to a reliable model enables organizations to conduct validation studies to establish the relationship of employee engagement to productivity/performance and other measures linked to effectiveness. It is an important principle of industrial and organizational psychology (i.e. the application of psychological theories, research methods, and intervention strategies involving workplace issues) that validation studies should be anchored in reliable scales (i.e. organized and related groups of items) and not simply focus on individual elements in isolation. To understand how high levels of employee engagement affect organizational performance/productivity it is important to have an a priori model that demonstrates how the scales interact. There is also overlap between this concept and those relating to well-being at work and the contract. Research by Gallup Consulting has shown a strong correlation between the degree of well-being of an individual and the extent to which they are engaged as am employee - high well-being yields high engagement. A well and engaged employee is likely to have less sick days, lowering the cost of lost productivity to their organization, and come to work energized and focused. A well and engaged employee is efficient and effective and a valuable asset in the workplace. As employee productivity is clearly connected with employee engagement, creating an environment that encourages employee engagement is considered to be essential in the effective management of human capital.

Drivers of Engagement
While it is possible to measure engagement itself through employee surveys, this does not assist in identifying areas for improvement within organizations. There are a range of factors, known as drivers, which are thought to increase overall engagement. By managing the drivers, an organization can effectively manage engagement levels of its employees. Drivers such as communication, performance clarity and feedback, organizational culture, rewards and recognition, relationships with managers and peers, career development opportunities and knowledge of the organisation's goals and vision are some of the factors that facilitate employee engagement. Some points from the research are presented below: Employee perceptions of job importance - According to a 2006 study by Gerard Seijts and Dan Crim, "...an employees attitude toward the job['s importance] and the company had the greatest impact on loyalty and customer service then all other employee factors combined." Employee clarity of job expectations - "If expectations are not clear and basic materials and equipment not provided, negative emotions such as boredom or resentment may result, and the employee may then become focused on surviving more than thinking about how he can help the organization succeed." Career advancement/improvement opportunities - "Plant supervisors and managers indicated that many plant improvements were being made outside the suggestion system, where employees initiated changes in order to reap the bonuses generated by the subsequent cost savings." Regular feedback and dialogue with superiors - "Feedback is the key to giving employees a sense of where theyre going, but many organizations are remarkably bad at giving it.."'What I really wanted to

hear was 'Thanks. You did a good job.' But all my boss did was hand me a check.'" Quality of working relationships with peers, superiors,

and subordinates - "...if employees' relationship with their managers

is fractured, then no amount of perks will persuade the employees to perform at top levels. Employee engagement is a direct reflection of how employees feel about their relationship with the boss." Perceptions of the ethos and values of the organization "'Inspiration and values' is the most important of the six drivers in our Engaged Performance model. Inspirational leadership is the ultimate perk. In its absence, [it] is unlikely to engage employees." Effective Internal Employee Communications - which convey a clear description of "what's going on". "'If you accept that employees want to be involved in what they are doing then this trend is clear (from small businesses to large global organizations). The effect of poor internal communications is seen as its most destructive in global organizations which suffer from employee annexation - where the head office in one country is buoyant (since they are closest to the action, know what is going on, and are heavily engaged) but its annexes (who are furthest away from the action and know little about what is happening) are dis-engaged. In the worst case, employee annexation can be very destructive when the head office attributes the annex's low engagement to its poor performance when its poor performance is really due to its poor communications. Reward to engage - Look at employee benefits and acknowledge the role of incentives. "An incentive to reward good work is a tried and test way of boosting staff morale and enhancing engagement." There are a range of tactics you can employ to ensure your incentive scheme hits the mark with your workforce such as: Setting realistic targets, selecting the right rewards for your incentive programmer, communicating the scheme effectively and frequently, have lots of winners and reward all achievers,

encouraging sustained effort, present awards publicly and evaluate the incentive scheme regularly.

Potential red flags

Inappropriate use of Benchmark Data - some of the more well established Employee Engagement survey companies will state that the most important part of post survey follow up is related to comparison of internal survey data to numerous external benchmarks. This seems to have rubbed off onto internal sponsors who demand very specific benchmarks. Whilst some research analysts claim that the standard comparisons by industry sector are flawed others disagree. Is it right to compare a Bentley employee to one from Vauxhall (GM) because they are in the same automotive sector? The alternative argument is that both organizations would likely draw from similar worker pools and would as such wish to better understand expectations of workers in that industry and how they compare to competing employers. A focus on data gathering rather than taking action may also damage engagement efforts. Organizations that survey their workforce without acting on the feedback appear to negatively impact engagement scores. According to the Conference Board and other recent studies, employee engagement has deteriorated significantly in the US and the UK over the last five years. Measuring and managing the wrong or incomplete set of engagement drivers is partly if not mostly to blame.

CHAPTER-3

COMPANY PROFILE

SUNDARAM CLAYTON LIMITED

Sundaram-Clayton, a TVS Group company Sundaram-Clayton Limited is a member of the TVS group, one of the largest automotive components manufacturing groups in India, with total sales revenue of more than $ 2.5 billion. The group has been able to achieve this pre-eminence through its commitment to the cherished values of promoting trust, value and customer service. The TVS group, India's leading supplier of automotive components originated as a transport company in 1911. Today it has grown to more than thirty three companies and employs a workforce of over 25,000, grossing an annual aggregate sale in excess of $ 3 billion, with diverse range of operations that includes manufacturing and distribution. Sundaram-Clayton Limited has two divisions, namely, Brakes division and Die casting division. What follows, pertains to the practice of TQM at the Brakes division. SCL-Brakes division commenced its operations in 1962 at Chennai in southern India, in collaboration with Clayton Dewandre Holdings Limited, UK (now part of WABCO Automotive group). SCL-Brakes division is the pioneer in the manufacture of air and air-assisted braking actuation system products. A market leader since inception, SCL Brakes division develops and manufactures products for a wide range of commercial and off-highway vehicles. The factory is situated at Padi, 11 km from Chennai. The Die casting division established in 1968 in Chennai, began as a captive unit manufacturing high precision aluminium castings and has grown into a top-line industry vendor offering a wide range of Pressure die castings, low pressure and gravity die castings. The division's two plants one at Chennai and other at Hosur are equipped with latest technology in Gravity, Low pressure and high Pressure Die Casting process with Vacuum and Squeeze casting capability for a capacity of 24,000 Metric Tonnes per annum.

Having a wide customer base, SCL is one of the largest supplier of aluminium die castings in the country. SCL exports its products to international Original Equipment Manufacturers having proven its credentials as a reliable supplier of world class products. SCL has a solid foundation in its domestic market leadership and pioneering R&D efforts. Comprehensive TQM (Total Quality Management) practices enables SCL in being a competitive world-class manufacturer in terms of quality, cost and timely delivery of products.

Journey of Sundaram-Clayton Introduction phase (1987 to 1990)

The change process was started with the aim of getting a buy-in from the employees. As a first step, change seminars were conducted for all employees, stressing the need for change. The visible barriers were broken with a common uniform and canteen for all employees, no cabins for managers and open offices to enable easy accessibility of employees to the heads of the departments. This contributed to a change in the mindset of employees, which began viewing the management as part of the same team.

Success factors leading to recognition

Another major initiative related to the restructuring of the manufacturing system. Process layout was changed to product based layouts. Manufacturing units (factories within factory) were formed, based on product groups. Workmen were trained to become multi-skilled, whereby they worked on many machines. The production managers were empowered and held accountable for quality, cost and delivery.

Promotion phase (1990 to 1994)

Policy management process, which commenced at SCL in 1990-91, helped create company-wide goal congruence. The annual targets of the company were deployed to various departments and individuals. Guidelines were provided, towards achieving company objectives, highlighting broad strategies that needed to be followed by all. Each department aligned its objectives and action plans towards achieving the company objectives. As a part of TQM implementation, the company-wide quality assurance system was executed. The culture of quality by inspection was gradually changed to quality control and quality assurance (QA). Focus was placed on ownership of quality by the manufacturing units, supplier quality improvements and the genba audit concept.

Deployment phase (1994 to 1998)

During this phase, daily work management, viz, defining and monitoring key processes, ensuring that they met set targets, detecting abnormalities and preventing their recurrence, were strengthened. Continuous improvement in all aspects of work, using total employee involvement, became the norm. The range of products manufactured by SCL-Brakes division (SCL) comprises: Air brake actuation system used for medium and heavy commercial vehicles:Compressors for generation of air- Air dryers and reservoirs for processing and storage of air- Valves for control and regulation of the system- Actuators for actuating the brakes- Electronic control system for air brakes (Anti-lock braking system - ABS and Anti-spin regulation - ASR) Vacuum brake products for light commercial vehicles

Awards/ Achievements
SCL won the Deming Application Prize in 1998, becoming the first in India and only the fourth company outside Japan to claim this honour. SCL won the Japan Quality Medal for the year 2002, the first in India and the second company outside Japan to win this honour. The other awards won by SCL in its continuous improvement journey include: Automotive Component Manufacturers Award (ACMA, India)- ACMA Technology award in 2002- ACMA Manufacturing excellence award in 2003 Tamil Nadu State Government Award for good industrial relations for both management and the employees union (won 8 annual awards since inception of the award in 1988)

ORGANIZATIONAL CHART

BOARD OF DIRECTORS VENU SRINIVASAN CHAIRMAN & MD- TVS MOTOR COMPANY & MD- SUNDARAM CLAYTON LTD (SCL)

President & CEO Automotive Products division SCL- PRESIDENT Sundaram auto components - PRESIDENT Harita systems - PRESIDENT President & CEO TVS MOTOR COMPANY LTD

CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

TABLE 4.1
Age group No. of respondents Percentage 30 35 15 18 22 26 18 21 85 100

S .no 1 2 3 4 5

Age 25-30 30-35 35-40 40-45 Total

INTERPRTATION
The above table reveals that out of 85 respondents, 35% respondents were from the age group of 25-30 and 26% of the respondents were from the age group 35-40, 21% of the respondents were from the age group of 40-45, finally 18% of the respondents were from the age group of 30-35.

CHART 4.1
Age group
35

32
30

PERCENTAGE/NO. OF RESPONDENTS

26
25

25

23 20 18 15

20

19

15

10

0 0-5 years 5-10 years 10-15 years 15-20 years

YEARS No. of respondents Percentage

TABLE 4.2
Experience data

S .no

Experience (in years) 0-5 5-10 10-15 15-20 Total

No. of respondents 20 25 15 25 85

Percentage

1 2 3 4 5

24 29 18 29 100

INTERPRETATION
The above table reveals that out of 85 respondents, 29% respondents were experienced for 15-20 years and 29% of the respondents were experienced for 5-10 years, 24% of the respondents were experienced for 0-5 years, 18 % of the respondents were experienced for 10-15 years.

CHART 4.2
Experience data

35

30

29 25 25

29

PERCENTAGE/NO.OF RESPONDENTS

25

24 20

20

18 15

15

10

0 0-5 years 5-10 years 10-15 years 15-20 years

YEARS
No. of respondents Percentage

TABLE 4.3
Feeling about your welcome given by the organization as a new joinee

S.No 1 2 3 4 5

Types of responses Excellent Good Fair Poor Cannot say Totals

No. of respondents 35 20 15 0 15 85

Percentage 41 24 18 0 18 100

INTERPRETATION
The above table reveals that out of 85 respondents, 41% of respondents say that their welcome by the organization was excellent, 24% of the respondents say that their welcome by the organization were good, 18% of the respondents say that their welcome by the organization was fair.

CHART 4.3
Feeling about your welcome given by the organization as new joinee 45
41

40
PERCENTAGE/NO.OF RESPONDENTS

35 30 25 20 15 10 5 0

35

24 20 18 15 15 18

E XC E

T EN LL

GO

OD

IR FA

O PO

R ' AN C T

Y SA

RESPONSES NO OF RESPONDENT PERCENTAGE

TABLE 4.4
Training program helps to engage with each other employee.

S no 1 2 3

Types of responses Yes No Neutral Total

No. of Percentage respondents 40 47 25 20 85 29 24 100

INTERPRETATION
The above table reveals that out of 85 respondents, 47% of the

respondents say that their training program helps them to engage with each other employee in the organization,29% of the respondents said that their training program given by the organization were not helpful to them to engage with each other employee in the organization.

CHART 4.4
Training program helps to engage with each other employee.

50
PERCENTAGE/NO. OF RESPONDENTS

47 40

40

30
25

29 24 20

20

10

0 Yes No
RESPONSES
NO.OF RESPON DENTS PERCENTAGE

Neutral

TABLE 4.5
Retention strategies followed by your organization

S .no 1 2 3 4 5

Suggestion Agree Strongly agree Dis agree Strongly disagree To some extent Total

No . of Percentage respondents 25 29 30 35 15 18 0 0 15 85 18 100

INTERTPRETATION
The above table reveals that out of 85 respondents, 29% of the

respondents agree with their organizations retention strategies and 18% of the respondents dis-agree with the retention strategies followed by their organization and 18% were agreed to some extent with their retention strategies in their organization.

CHART 4.5

Retention strategies followed in your organization

40 35 30 25 20 15 10 5 0 0 0 15 25 29 30 35

PERCENTAGE/NO.OF RESPONDENTS

18 15

18

R EE

EE

EE

EE

G R

A G

D IS

LY

IS -A

ST R

N G

ST R

NO. OF RESPONDENTS

RESPONSES
PERCENTAGE

TABLE 4.6

TO

SO

LY

M E

EX

TE N

Motivation given by the organization when helping other employees job

S No

Suggestion

No of respondents 45 15 25 85

Percentage

1 2 3

Yes No Neutral Total

53 18 29 100

INTERPRETATION
60

The above table reveals that out of 85 respondents, 53% of the respondents 53 say that organization motivates them, when they help other employees job and 18% of respondents does motivate them when they help other employees job too. 50 PERCENTAGE/NO. OF RESPONDENTS 45
40

30

29 25

20

18 15

10

CHART 4.6
0 Motivation given by the organization when helping other employees job Yes No Neutral

RESPONSES No of respondents Percentage

TABLE 4.7
Formal steps helps to improve the capabilities

S.no 1 2 3

Suggestion Yes No Neutral Total

No of respondents 45 10 30 85

Percentage 53 12 35 100

INTERPRETATION
The above table reveals that out of 85 respondents, 53% of the respondents say that the formal steps followed in the organization helps them to improve their capabilities, but 12% of the respondents said that their were no proper formal steps to improve their capabilities.

CHART 4.7
Formal steps help to improve the capabilities

60

53
50

PERCENTAGE/NO. OF RESPONDENTS

45

40

35 30
30

20

12 10
10

0 Yes No Neutral

RESPONSES

No of respondents

Percentage

TABLE 4.8
Suggestion being recognized by the organization

S .no 1 2 3

Suggestion Yes No Neutral Total

No of respondents 40 10 35 85

Percentage 47 12 41 100

INTERPRETATION
The above table reveals that out of 85 respondents, 41% of the respondents 50 47 say that their suggestion are being neutrally selected recognized, 47% of the
45 respondents said that their suggestion were recognized, 12% of the respondents said

that their suggestion are not recognized by their organization. 40

41

PERCENTAGE/NO. OF RESPONDENTS

40

35

35

30

25

20

15

12 10

10

CHART 4.8

0 Suggestion being recognized by the organization Yes

No

Neutral

RESPONSES

No of respondents

Percentage

TABLE 4.9
Organization motivates to work effectively in a team

S .no

Suggestion

No of respondents 45 25 15 85

Percentage

1 2 3

Fully Partially To some extent Total

53 29 18 100

INTERPRETATION
The above table reveals that out of 85 respondents, 53% of the respondents say that they are fully motivated to work effectively in a team, 29% of the respondents say that they are not motivated to work effectively in a team, 18% of the respondents say that their organization motivate them to work effectively in a team to some extent only.

CHART 4.9

Organization motivates to work effectively in a team

60

53
50

45 PERCENTAGE/NO. OF RESPONDENTS

40

30

29 25

20

18 15

10

0 Fully Partially To Some extent

RESPONSES

No of respondents

Percentage

TABLE 4.10
Individual talent being recognized by the organization in a team work

S.no

Suggestion

No of respondents 30 10 45 85

Percentage

1 2 3

Yes No Neutral Total

35 12 53 100

INTERPRETATION
The above table reveals that out of 85 respondents, 53% of the respondents say that their individual talents are neutrally recognized by the organization in a team work, 35% of the respondents say that their individual talents were recognized by their organization in a team work, 12% of the respondents say that their individual talents are not recognized by the organization in a team work.

CHART 4.10
Individual talent being recognized by the organization in a team work

60

53
50 PERCENTAGE/NO. OF RESPONDENTS

45
40

35
30

30

20

10

10

12

0 Yes No RESPONSES Neutral

No of respondents

Percentage

TABLE 4.11
Job rotation in the organization

S .no 1 2 3 4 5

Suggestion Satisfied Dis -satisfied Highly satisfied Highly dissatisfied Neutral Total

No. of Percentage respondents 25 29 15 18 30 35 0 0 15 85 18 100

INTERPRETAION
The above reveals that out of 85 respondents, 35% of the respondents are highly satisfied with their job rotation in the organization, 29% of the respondents are satisfied, 18% of the respondents are dis-satisfied, 18% of the respondents are neutral and 0% respondents are highly dis-satisfied.

CHART 4.11
Job rotation in the organization
40

PERCENTAGE/NO. OF RESPONDENTS

35

35

30

29 25

30

25

20

18 15 15

18

15

10

0 Satisfied Highly Dis Satisfied Satisfied

0
Neutral

Highly DisSatisfied

RESPONSES

No of respondents

Percentage

TABLE 4.12
Steps taken by the organization to control employees stress

S .no

Suggestion

No of respondents 45 10 30 85

Percentage

1 2 3

Yes No Neutral Total

53 12 35 100

INTERPRETATION
The above reveals that out of 85 respondents 53% of the resondents say that their organization take steps to control their stress, 12% of the respondents, 35% of the respondents are neutral.

CHART 4.12
Steps taken by the organization to control employees stress
60

53
50

PERCENTAGE/NO. OF RESPONDENTS

45

40

35 30

30

20

12
10

10

0 Yes No Neutral

RESPONSES

No of respondents

Percentage

TABLE 4.13
Schemes in the organization help the employees to make their performance effective S .no Suggestion No of respondents 45 15 25 85 Percentage

1 2 3

Yes No Neutral Total

53 18 29 100

INTERPRETATION
The above table reveals that out of 85 respondents 45% of the respondents say that the schemes in the organization help the employees to make their performance effective., 18% of the respondents said no and 29% of the respondents are neutral.

CHART 4.13
Schemes in the organization help the employees to make their performance effective

60

53
50

PERCENTAGE/NO. OF RESPONDENTS

45

40

30

29 25

20

18 15

10

0 Yes No Neutral

RESPONSES

No of respondents

Percentage

TABLE 4.14
Regulation of giving feedback for the employees performance

S .no 1 2 3 4 5

Suggestion Monthly Quarterly Half -yearly Annually Never Total

No. of respondents Percentage 25 29 20 24 30 35 10 12 0 0 85 100

INTERPRETAION
The above table reveals that out of 85 respondents 35% of the respondents say that their performance feedback are given half yearly, 29% of the respondents say monthly they have their feedback, 24% of the respondents say quarterly they have their feedback, 12% of the respondents say annually they have their feedback, and 0% of the respondents say never.

CHART 4.14
Regulation of giving feedback for the employees performance
40

35

35

PERCENTAGE/NO.OF RESPONDENTS

30

29 25

30

25

24 20

20

15

12
10

10

0 Monthly Quarterly Half-yearly Annually

Never

RESPONSES

No of respondents

Percentage

TABLE 4.15
Allowances and other benefits compared to other organization

S.no 1 2 3 4 5

Suggestion Satisfied Dis-satisfied Highly satisfied Highly dissatisfied Neutral Total

No. Of respondents 30 10 35 0 10 85

Percentage 35 12 41 0 12 100

INTERPRETAION

The above reveals that out of 85 respondents, 41% of the respondents are highly satisfied with their allowances and other benefits compared to other organization, 35% of the respondents are satisfied, 12% of the respondents are dissatisfied, 12% of the respondents are neutral and 0% respondents are highly dissatisfied.

45

CHART 4.15
40

41

Allowances and other benefits compared to other organization

35 35 PERCENTAGE/NO.OF RESPONDENTS
35

30
30

25

20

15

12 10
10

12 10

0
0 Satisfied Dis-Satisfied Highly Satisfied

0
Neutral

Highly DisSatisfied

RESPONSES

No of respondents

Percentage

TABLE 4.16
Fringe benefits provided by the organization

S .no 1 2 3 4 5

Suggestion Satisfied Highly satisfied Dis satisfied Highly dissatisfied Neutral Total

No . of respondents 25 35 15 0 10 85

Percentage 29 41 18 0 12 100

INTERPRETAION

The above reveals that out of 85 respondents, 41% of the respondents are highly satisfied with their fringe benefits in the organization, 29% of the respondents are satisfied, 18% of the respondents are dis-satisfied, 12% of the respondents are neutral and 0% respondents are highly dis-satisfied.

45

CHART 4.16
40

41

Fringe benefits provided by the organization

35

35

PERCENTAGE/ NO. OF RESPONDENTS

30

29 25

25

20

18 15 12

15

10

10

0 Satisfied Highly Satisfied

0
Neutral

Dis Satisfied Highly DisSatisfied

RESPONSES

No of respondents

Percentage

TABLE 4.17
Welfare measures provided by the organization

S .no 1 2 3 4 5

Suggestion Satisfied Highly satisfied Dis-satisfied Highly dissatisfied Neutral Total

No . of Percentage respondents 25 29 30 35 10 0 20 85 12 0 24 100

INTERPRETATION
The above reveals that out of 85 respondents, 35% of the respondents are highly satisfied with their welfare measures in the organization, 29% of the

respondents are satisfied, 12% of the respondents are dis-satisfied, 24% of the reapondents are neutral, 0% respondents are highly dis satisfied.

40 CHART 4.17

Welfare measures provided by the organization 35

35

PERCENTAGE/ NO. OF RESPONDENTS

30 25

29

30

25

24

20

20

15 12 10 10

5 0 Satisfied Dis-Satisfied Highly Satis fied RESPONSES No of respondents Percentage 0 Neutral

Highly DisSatisfied

CHI-SQUARE TEST- I
To find the relationship between the employees experience and the retention strategies.

NULL HYPOTHESIS (HO):

There is no significant relationship between the employees experience and the retention strategies.

ALTERNATIVE HYPOTHESIS (H1):

There is a significant relationship between the employees experience and the retention strategies.

OBSERVED FREQUENCY

Exp R.S 0-5 5-10 10-15 15-20 Total

Agree

Strongly agree 6 10 4 10 30

Disagree Strongly disagree 10 3 0 2 15 0 0 0 0 0

Neutral Total

0 8 9 8 25

4 4 2 5 15

20 25 15 25 85

EXPECTED FREQUENCY
E=

5.9 7. 4 4. 4 7. 4

7. 1 8. 8 5.3 8. 8

3.5 4. 4 2. 6 4. 4

3.5 4.4 2.6 4.4

CHI SQUARE TEST-1

Oi 0 6 10 4 8 10 3 4 9 4 0 2 8 10 2 5

Ei 5.9 7.1 3.5 3.5 7.4 8.8 4.4 4.4 4.4 5.3 2.6 2.6 7.4 8.8 4.4 4.4

Oi-Ei -5.88 -1.05 6.47 0.47 0.64 1.17 -1.41 -0.41 4.58 -1.29 -2.64 -0.64 0.64 1.17 -2.41 0.588

(Oi-Ei)2 34.60 1.12 41.87 0.22 0.42 1.38 1.99 0.17 21.05 1.67 7.01 0.42 0.42 1.38 5.82 0.35 Total

5.882 0.159 11.863 0.063 0.057 0.157 0.452 0.038 4.772 0.316 2.647 0.158 0.057 0.157 1.318 0.078 28.175

Degrees of freedom = (C-1) (R-1) = (5-1) (4-1) = 12 Total tabulated value at 5% level of significance =21.026 Calculated Value= 28.175 C.V > T.V So we reject NULL HYPOTHESIS (Ho) and we accept ALTERNATIVE HYPOTHESIS (H1). Conclusion: There is significant relationship between the employees experience and the retention strategies

CHI-SQUARE TEST- II
To find the relationship between the employees age and the training program.

NULL HYPOTHESIS (HO):

There is no significant relationship between the employees age and the training program.

ALTERNATIVE HYPOTHESIS (H1):

There is a significant relationship between the employees age and the training program.

OBSERVED FREQUENCY

Training Age 25-30 30-35 35-40 40-45 Total

Yes

No

Neutral

Total

20 10 5 5 40

7 2 7 9 25

3 3 10 4 20

30 15 22 18 85

EXPECTED FREQUENCY
E=

Oi 20 7 3 10 2 3 5 7 10 5 9 4

14. 1 7.1 10. 4 8.5

Ei Oi-Ei 14.12 5.88 8.82 -1.82 7.06 -4.06 8.2.94 7.06 8-2.41 4.41 4.-0.53 3.53 10.35 4-5.35 6.0.53 6.47 54.18 5.18 8.47 5.3-3.47 5.29 3.71 4.24 -0.24

(Oi-Ei)2 34.57 3.31 16.48 8.64 7.1 5.81 0.28 3.5 28.62 0.28 5.2 17.47 4.2 12.04 13.76 0.06 Total

2.45 0.38 2.33 1.22 1.32 0.08 2.77 0.04 3.37 1.42 2.60 0.01 17.99

CHI SQUARE TABLE

Degrees of freedom = (C-1) (R-1) = (3-1) (4-1) =6 Total tabulated value at 5% level of significance =12.592 Calculated Value= 17.99 C.V > T.V So we reject NULL HYPOTHESIS (Ho) and we accept ALTERNATIVE HYPOTHESIS (H1). Conclusion: There is significant relationship between the employees age and the training program.

CHAPTER-5

FINDINGS, SUGGESTIONS AND CONCLUSION

FINDINGS

 Majority of 41% of respondents say that their welcome by the organization was excellent. Majority of 47% of the respondents say that their training program helps them to engage with each other employee in the organization. Majority of 35% of the respondents strongly agree with their organizations retention strategies. Majority of 53% of the respondents say that organization motivates them, when they help other employees job. Majority 53% of the respondents say that the formal steps followed in the organization helps them to improve their capabilities Majority 47% of the respondents say that their suggestion are being neutrally selected recognized. Majority 53% of the respondents say that they are fully motivated to work effectively in a team Majority of 53% of the respondents say that their individual talents are neutrally recognized by the organization Majority of 35% of the respondents are highly satisfied with their job rotation in the organization. Majority of 53% of the respondents say that their organization take steps to control their stress. Majority of 53% of the respondents say that their organizations schemes make their performance effective. Majority of 35% of the respondents say that their performance are being given feedback half-yearly. Majority of 41% of the respondents are highly satisfied with their allowances and other benefits compared to other organization. Majority of 41% of the respondents are highly satisfied with the fringe benefits provided. Majority of 35% of the respondents were highly satisfied for the welfare measures provided by their organization.

SUGGESTIONS
New joiners of the organization the organization should be welcomed with more clear and specific with attention for each and every employee. Training program should be conducted with more interesting task for the trainees. Retention strategies should be well modified and the organization should introduce more retention strategies. Their should be more recognition schemes or packages for each and every employee in the organization who help for their colleagues jobs too. Their should be more steps introduced to improve the employees capabilities. Employees suggestion should be recognized with more appraisal and schemes. The organization should concentrate more on the individuals talents in their team work. Job rotation should be based on the employees best performance. The organization should bring in more stress management programs to make employees performance effective. Feedback should be given to the employee every now and then to improve potentiality.

CONCLUSION

BIBLIOGRAPHY

WEBSITES www.sundaramclayton.com www.google.co.in www.wikipedia.com www.citehr.com www.scribd.co.in

QUESTIONNAIRE

Name Age

: :

Qualification : Designation : Experience :

1) How do you feel about your welcome by your organization? a) Excellent b) Good c) Fair d) Poor e) Cant Say 2) Does the training given to you by your organization help you to engage with each other employee in your organization? a) Yes b) No c) Neutral 3) Do you agree with the retention strategies followed in your organization? a) Agree b) Strongly Agree c) Dis-Agree d) Strongly Dis- Agree e) To some extent 4) Does your organization motivate you, when you help other employees job? a) Yes b) No c) Neutral 5) Do the formal steps followed in your organization help you to improve your capabilities? a) Yes

b) No c) Neutral 6) Are your suggestions being recognized by your organization? a) Yes b) No c) Neutral 7) How does your organization motivate you to work effectively in a team? a) Fully b) Partially c) To some extent 8) In a team work, does your individual talent being recognized by your organization? a) Yes b) No c) Neutral 9) How do you feel about your job rotation in your organization? a) Satisfied b) Highly Satisfied c) Dis-Satisfied d) Highly Dis-Satisfied e) Neutral 10) Does your organization take steps to control your stress? a) Yes b) No c) Neutral

11) Does the scheme offered in your organization help you to make your performance effective? a) Yes b) No c) Neutral

12) How often does your organization give feedback for your performance? a) Monthly b) Quarterly c) Half-Yearly d) Annually e) Never 13) Are you satisfied with the allowances and other benefits compared to other organization? a) Satisfied b) Highly Satisfied c) Dis-Satisfied d) Highly Dis-Satisfied e) Neutral 14) Are you satisfied with the fringe benefits provided by your organization? a) Satisfied b) Highly Satisfied c) Dis-Satisfied d) Highly Dis-Satisfied e) Neutral 15) Are you satisfied with the safety and welfare measures provided by your organization? a) Satisfied b) Highly Satisfied c) Dis-Satisfied d) Highly Dis-Satisfied e) Neutral