Ramesh Final Pro1

7/29/2019 Ramesh Final Pro1

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Gujarat Technical University

GIDC, Rajju Shroff IMR

1.1 INTRODUCTION

The researcher Mr. Ramesh Belgamkar, student of GIDC, Rajju Shroff,

Institute of Management Studies, Vapi has done summer internship at Wellknown

ltd, Daman under the topic Performance Appraisal, Succession Management &

Attrition And Retention.

1.2 OBJECTIVES OF STUDY

To study the functioning of performance appraisal of the employee. To know the means of succession management. To analyze the attrition and retention rate in the organization.

1.3 PROBLEM STATEMENT

The project topic was chosen by the institute guide with the concern of the

researcher. The Researcher had to analyze the available data of various employees

about the understanding functioning of the performance appraisal of employee as well

as the succession management and attrition and retention of the employee. Thus withthe help of it the organization can unfold new horizon.

And therefore the problem statement of the study is Performance Appraisal,

Succession Management & Attrition And Retention. in the Wellknown Polyster ltd,

Daman.

1.4 SCOPE OF STUDY

The scopes of the study are the 120 employees of Wellknown Polyster ltd,Daman.

The study was conducted in one of the unit of i.e., Wellknown Polyster ltd,Daman. The topic was Performance Appraisal, Succession Management &

Attrition And Retention, which was very helpful for the same organization to

unfold new horizons.

It also analyzes the benefits accruing to the company as a result of increase inproductivity and efficiency in the employee.

Chapter 4: RESEARCH DESIGN & METHODOLOGY


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The research was conducted in the personnel and Admin department of theorganization.

The Researcher leaves a scope for further study in detail for long durations &other geographical areas with deeper insight.

The scope of the study is the area of Performance Appraisal, SuccessionManagement & Attrition and Retention of HR stream.

1.5 RESERCH METHODOLOGY

Research definition:

Research is careful inquiry or examination to discover new information and

relationship and to expand and to verify existing knowledge,

Research always starts with questions or a problem. Its purpose is to find answer to

questions through the application of the scientific method. It is a systematic and

intensive study directed towards a more complete knowledge of the subject studies.

Research Design

Research design is the plan, structure and strategy of investigation conceived so as to

obtain answer to research question and to control variance.

From definition it is evident that research design is more or less a blueprint of

research.

At the outset may be noted that there are several ways of studying and tackling a

problem. There is no signal perfect design. The research design can be classified in totrue broad categories:

1. Exploratory2. Descriptive3. Casual

The researcher has selected a Descriptive type of Research; these studies are

concerned with describing the characteristic of a particular individual or a group.


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Sources of Data

The sources of data collection methods are as follows.

1) Secondary data:-Secondary data are those data which are already collected by someone for

some purpose and are available for the present study; secondary data are already

collected by the companys records and other librarys books. When the secondary

data are sufficient, the researcher has to be satisfied with the primary sources of data.

Secondary data can be used as bases for comparison with primary data have been

collected by questionnaire.

Here the researcher have used secondary data , this data are been collected

from the companys presents record and other books and. Some of the sources from

the organization are

Company Website. Indian Management Books. Internal Data.

2) Primary data:-The primary data is that which details we collect first time from the market and also

used first time in the research. We also say that the information is first time in the

research decision.

Primary data at the organization was collected mainly in forms of Informal discussion

with the various human resources.

Data Collection Method

Researcher instruments is the tool by which the researcher can do research on specific

problems or objective. The most popular researcher instrument for collection data is

Questionnaire for a particular investigation. It is simple for a moiled set of

questions presented to respondents for their answers. Due to this flexibility, it is most

common instrument used to collect the primary data.


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Sampling plan

Sampling is a process of obtaining. The information about the entire population by

examine a part of it .The effectiveness of the research depends on the sample size

selected for the survey purpose.(1) Sample Area:-

The survey was conducted at Wellknown Polyster, Daman.

(2) Sampling Unit:-It means Who is to be surveyed. Here target population is executives as well as

different employees of the organization and sampling frame is developed so that

everyone in the target population gets chance of being sampled. So the survey is

conducted in the particularly organization only.

(3) Sample size:-For the purpose of proper survey, there is need of perfect research instruments to find

out sample size for more accurate result. 120 are been field the questionnaire.

1.6 LIMITATIONS OF STUDY

Due to confidentiality of certain data, researcher had to manage with the availablesources of data.

Data is collected from employees who may attract biasness of respondents. The study was limited to the personal and admin department of the organization


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2.1 Industry Details and History

Textile industry in India

The Textile industry in India traditionally, after agriculture, the only industry that has

generated huge employment for both skilled and unskilled labor in textiles. The textile

industry continues to be the second largest employment generating sector in India. It

offers direct employment to over 35 million in the country.

According to the Ministry of Textiles, the sector contributes about 14% to industrial

production, 4% to the country's gross domestic product (GDP) and 17% to the

country's export earnings. The share of textiles in total exports was 11.04% during

April-July 2010, as per the Ministry of Textiles. It is estimated that India would

increase its textile and apparel share in the world trade to 8% from the current level of

4.5% and reach US$80 billion by 2020. During 2009-2010, Indian textiles industry

was pegged at US$55 billion, 64% of which services domestic demand.

History

The archaeological surveys and studies have found that the people Harappan

civilization knew the weaving and the spinning of cotton four thousand years ago.

Reference to weaving and spinning materials is found in the Vedic Literature also.

There was textile trade in India during the early centuries. A block printed and resist-

dyed fabrics, whose origin is from Gujarat is found in tombs of Fostat, Egypt. This

proves that Indian export of cotton textiles to the Egypt or the Nile Civilization in

medieval times were to a large extent. Large quantity of north Indian silk were traded

through the silk route in China to the western countries. The Indian silk were often

exchanged with the western countries for their spices in the barter system. During the

late 17th and 18th century there were large export of the Indian cotton to the western

countries to meet the need of the European industries during industrial revolution.

Consequently there was development of nationalist movement like the famous

Swadeshi movement which was headed by the Aurobindo Ghosh.

Chapter 2: COMPANY PROFILE


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Indian Textile Policy

Government of India passed the National Textile Policy in 2000

Organized sector

According to Kearneys Retail Apparel Index India ranked as the fourth most

promising market for apparel retailers in 2009.

There is large scope of improvement in the textile industry of India as there is an huge

increase in personal disposable income income among the Indians after the 1991

liberalization. There is also a large growth of the organized sector in the Indian textile

industries. The foreign brands along with the collaboration of the Indian companies

established business in India. Some of these are Puma, Armani, Benetton, Esprit, Levi

Strauss, Hugo Boss, Liz Claiborne, Crocs etc.

The major Indian Industries include Bombay Dyeing, Fabindia, Grasim Industries,

JCT Limited, Lakshmi Machine Works, Lakshmi Mills and Mysore Silk Factory.


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2.2 Introduction to Company

Company Background

The company was formed in the year 1996 in Mumbai. The companys core activities

is manufacturing of various type of specialty filament yarn and it is totally focused on

expanding its base in specialty Filament Yarn. The company has its manufacturing

facilities in daman. Strategic location of plant helps in quick access to the raw

material suppliers and end consumers, the company is one of the faster growing

company in the segment of the value chain.

Wellknowns positioning

The company has enjoys and annual growth of 35-40% since its inception. The

customers are also growing in the same momentum. The company got the higher

rating by Crisil in the SME category. As of now there were constraints in supplying.

But once the project comes up in a years time the company could be very well

placed. WPL is one of the largest and leading players in the field of ATY and DTY

apart from being the only spinner manufacturing widest range of specialty yarn. After

commissioning of the expansion plans the company could enjoy the privilege of

having the first integrated plant in the country. The company could be able to take the

advantages of the entire value chain. The company could have total quality control

over it s product as entire manufacturing process would be cover in house. It intends

to become top most player in the country in the segment it operates. It is in the among

top 5 player in the country in the overall PFY segment.

Major Competitors

Reliance Industries Bilosa Filatex JBF Industries Indorama Chirpal


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Marketing

Largest player in ATY in india. The product of the company are spelality product which are not of commodities nature

PFY.

The company is large enough to dictate pricing power. Most quality player in the field of PFY in india. Turnover of over Rs. 375 crore of the year ended March 2009. Wide geographic presence due ti strong marketing network. Business secrecy. Quick response to the market change.

Product Detail

a) yarn: Pre final product of polyster yarn, sort of Chips, then the Chips are being melt andthe final product is known as POY.

b) Synthetic yarn: The processed POY is being taxurised in order to have a finished product.Taxurising yarn: After processing POY into different types of Yarn.


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MAJOR CUSTOMER & SUPPLIER

Major customer

Sr.no Name of the customer

1. G.M.Syntex (P) Ltd

2. Surana Yarn

3. Shakti Yarn Pvt. Ltd

4. Sona Synthetics

5. Mohit Rayon

Major suppliers

Sr.no Name of the Supplier Product Supply

1. Reliance Industries Ltd. POY

2. JBF Industries Ltd. CHIPS/POY

3. Garden Silk Mills CHIPS/POY

4. Welspun Syntex Ltd POY

5. Century Enka Ltd. POY


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Organizational Hierarchy

President

GM

Personnel

Admin. Dept.

Dy. Manager

Officer ExecutiveTime Office

Executive

GM

Admin. Dept.

Safety &

Security


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Quality

The group is widely known for its creativity, innovations in specialty yarns. Rich product mix- Many verities of specialty yarns. specialty yarn fetches a high

premium.

Integrates producer covering most part of value chain. Quality control Elimination of multiple processes. Product development Varied product mix.

Financials: Strong growth vis-a vis industry peers. The company constantly worked on infusing equity to improve gearing levels. Better working capital management. Better realization due to rich product mix.

Accreditation:

Recognition by Barmag as mist innovative company in the field of textile.(2008-2009)

Recognition- RIL has honored the group by describing it as ont of the best qualitymanufacturers in its in the house publication. (RECRON PERFETION- JUNE- 2002

Edition)

Accreditation by Crisil (Subsidiary of S&P) rating SME-2 Accreditation with ISO 9001:2000.

Management:

Quality management with strong track record. Highly experienced personnel Consistent growth over 12 years.


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Awards:

2006-07: Obtained SME-1 rating from CRISIL. 2007-08: Trade Marks wellknown and New Ways registered under the Trade

Marks act.

2008-09: installed wings winder- First time in the world. 2008-09: recognition from Oerlicon as one of the most innovative company. 2008-09: obtained SME-2 rating from CRISIL.


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INTRODUCTION TO HRMThe main purpose of Human Resource Management and its importance and to describe

how HRM functions helps companies to meet the challenges of global competition in todays

world. Human Resource is a crucial sub-system in the process of management. The term human

resource is quite popular in India with the institution of Ministry of Human Resource

Development being the Union Cabinet.

Human Resource Management central concern is the efficient utilization of HRs. Human Resource Management is the process of managing the people of an

organization with a human approach. HR approach to man power enables the

manager to view his people as an important resource.

Human Resource Management is the staff activity requiring special knowledgeand skill in understanding and predicting individual behavior, interpersonal

behavior, group behavior and organization behavior.

DEFINATION OF HRMHuman Resource Management is a responsibility of all those who manage people as well

as being a description of the work of personnel who are employed as specialists. It is that part of

management which is concerned with people at work and their relationships within an enterprise.

It applies not only to industrial and commerce but to all the fields of employment.

Institution of Personnel Management in UK

Chapter 3: THEORETICAL FRAMEWORK


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INTRODUCTION TO PERFORMANCE APPRAISAL

Managing employee performance is an integral part of the work that all managers andrating officials perform throughout the year. It is as important as managing financial

resources and program outcomes because employee performance or the lack thereof, has

a profound effect on both the financial and program components of any organization.

The Department of the Interiors performance management policy is designed todocument the expectations of individual and organizational performance, provide a

meaningful process by which employees can be rewarded for noteworthy contributions to

the organization, and provide a mechanism to improve individual/organizational

performance as necessary.

To accomplish these objectives, managers need to identify organizational goals to beaccomplished, communicate individual and organizational goals to employees that

support the overall strategic mission and goals of the Department, monitor and evaluate

employee performance, and use performance as a basis for appropriate personnel actions,

including rewarding noteworthy performance and taking action to improve less than

successful performance.

The Office of Personnel Management defines performance management as the systematicprocess of:

planning work and setting expectations

continually monitoring performance

developing the capacity to perform

periodically rating performance in a summary fashion; and

rewarding good performance


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PROCESS OF PERFORMANCE APPRAISAL

1. ESTABLISHING PERFORMANCE STANDARDS

The first step in the process of performance appraisal is the setting up of the standards which will

be used to as the base to compare the actual performance of the employees. This step requires

setting the criteria to judge the performance of the employees as successful or unsuccessful and

the degrees of their contribution to the organizational goals and objectives. The standards set

should be clear, easily understandable and in measurable terms. In case the performance of the

employee cannot be measured, great care should be taken to describe the standards.

2. COMMUNICATING THE STANDARDS

Once set, it is the responsibility of the management to communicate the standards to all the

employees of the organization. The employees should be informed and the standards should be

clearly explained to the. This will help them to understand their roles and to know what exactly

is expected from them. The standards should also be communicated to the appraisers or the

evaluators and if required, the standards can also be modified at this stage itself according to the

relevant feedback from the employees or the evaluators.


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3. MEASURING THE ACTUAL PERFORMANCE

The most difficult part of the Performance appraisalprocess is measuring the actual performance

of the employees that is the work done by the employees during the specified period of time. It is

a continuous process which involves monitoring the performance throughout the year. This stage

requires the careful selection of the appropriate techniques of measurement, taking care that

personal bias does not affect the outcome of the process and providing assistance rather than

interfering in an employees work.

4.COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE

The actual performance is compared with the desired or the standard performance. The

comparison tells the deviations in the performance of the employees from the standards set. The

result can show the actual performance being more than the desired performance or, the actual

performance being less than the desired performance depicting a negative deviation in the

organizational performance. It includes recalling, evaluating and analysis of data related to the

employees performance.

5.DISCUSSING RESULTS

The result of the appraisal is communicated and discussed with the employees on one-to-one

basis. The focus of this discussion is on communication and listening. The results, the problems

and the possible solutions are discussed with the aim of problem solving and reaching consensus.

The feedback should be given with a positive attitude as this can have an effect on the

employees future performance. The purpose of the meeting should be to solve the problems

faced and motivate the employees to perform better.

6. DECISION MAKING

The last step of the process is to take decisions which can be taken either to improve the

performance of the employees, take the required corrective actions, or the related HR decisions

like rewards, promotions, demotions, transfers etc.
http://appraisals.naukrihub.com/http://appraisals.naukrihub.com/


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TRADITIONAL METHODS OF PERFORMANCE

APPRAISAL

1.ESSAY APPRAISAL METHODThis traditional form of appraisal, also known as Free Form method involves a description of

the performance of an employee by his superior. The description is an evaluation of the

performance of any individual based on the facts and often includes examples and evidences to

support the information. A major drawback of the method is the inseparability of the bias of the

evaluator.

2.STRAIGHT RANKING METHOD

This is one of the oldest and simplest techniques of performance appraisal. In this method, the

appraiser ranks the employees from the best to the poorest on the basis of their overall

performance. It is quite useful for a comparative evaluation.

3.PAIRED COMPARISON

A better technique of comparison than the straight ranking method, this method compares each

employee with all others in the group, one at a time. After all the comparisons on the basis of the

overall comparisons, the employees are given the final rankings.

4.CRITICAL INCIDENTS METHODS

In this method of Performance appraisal, the evaluator rates the employee on the basis of critical

events and how the employee behaved during those incidents. It includes both negative and

positive points. The drawback of this method is that the supervisor has to note down the critical

incidents and the employee behaviour as and when they occur.

5.FIELD REVIEW

In this method, a senior member of the HR department or a training officer discusses and

interviews the supervisors to evaluate and rate their respective subordinates. A major drawback

of this method is that it is a very time consuming method. But this method helps to reduce the

superiors personal bias.


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6.CHECKLIST METHOD

The rater is given a checklist of the descriptions of the behaviour of the employees on job. The

checklist contains a list of statements on the basis of which the rater describes the on the job

performance of the employees.

7.GRAPHIC RATING SCALE

In this method, an employees quality and quantity of work is assessed in a graphic scale

indicating different degrees of a particular trait. The factors taken into consideration include both

the personal characteristics and characteristics related to the on-the-job performance of the

employees. For example a trait like Job Knowledge may be judged on the range of average,

above average, outstanding or unsatisfactory.

8.FORCED DISTRIBUTION

To eliminate the element of bias from the raters ratings, the evaluator is asked to distribute the

employees in some fixed categories of ratings like on a normal distribution curve. The rater

chooses the appropriate fit for the categories on his own discretion.


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MODERN METHODSOF PERFORMANCE APPRAISAL

1. ASSESSMENT CENTRES

An assessment centre typically involves the use of methods like social/informal events, tests and

exercises, assignments being given to a group of employees to assess their competencies to take

higher responsibilities in the future. Generally, employees are given an assignment similar to the

job they would be expected to perform if promoted. The trained evaluators observe and evaluate

employees as they perform the assigned jobs and are evaluated on job related characteristics.

The major competencies that are judged in assessment centres are interpersonal skills,

intellectual capability, planning and organizing capabilities, motivation, career orientation etc.

assessment centres are also an effective way to determine the training and development needs of

the targeted employees.

2. BEHAVIORALLY ANCHORED RATING SCALES

Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which combines the

graphic rating scale and critical incidents method. It consists of predetermined critical areas of

job performance or sets of behavioral statements describing important job performance qualities

as good or bad (for eg. the qualities like inter-personal relationships, adaptability and reliability,job knowledge etc). These statements are developed from critical incidents.

In this method, an employees actual job behaviour is judged against the desired behaviour by

recording and comparing the behaviour with BARS. Developing and practicing BARS requires

expert knowledge.

3. HUMAN RESOURCE ACCOUNTING METHOD

Human resources are valuable assets for every organization. Human resource accounting method

tries to find the relative worth of these assets in the terms of money. In this method the

Performance appraisal of the employees is judged in terms of cost and contribution of the

employees. The cost of employees include all the expenses incurred on them like their

compensation, recruitment and selection costs, induction and training costs etc whereas their


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contribution includes the total value added (in monetary terms). The difference between the cost

and the contribution will be the performance of the employees. Ideally, the contribution of the

employees should be greater than the cost incurred on them.


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Introduction to succession management

Succession planning is one of the most critical functions of an organization. This is the process

that identifies the critical and core roles of an organization and identifies and assesses the

suitable candidates for the same.

The succession planning process ramps up potential candidates with appropriate skills and

experiences in an effort to train them to handle future responsibilities in their respective roles.

Succession planning is applicable for all critical roles in the organization. The upper

management of each practice or department is responsible of coming up with a suitable

succession plan for each core position under his or her department.

Steps of Succession Planning

There are four main important steps in planning for succession.

Recruitment

and Staffing

Training &

development

Performance &

Compensation

Manageemnt

Talent

Management


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Step 1: Recruitment and staffing

This is one of the key steps of the succession planning. Hiring the right and skilled employees is

the key to growing human resources in the organization. Sometimes, some companies require a

paradigm shift in order to retain in the business.In such cases, the organization requires to let go or redefine the roles and responsibilities of the

portion of existing staff. Then, the organization hires the new blood in order to acquire the

required skills and expertise.

When it comes to succession planning, organization should always hire people who will have the

potential to go up the corporate leader.

Step 2: Training and development

All the organizational training can come under two categories; skills training and management

trainings.

1. Skills training: Employees are trained to enhance their skills, so their day-to-day workbecomes easy.

2. Management training: A selected set of employees undergoes training where they aretrained to take over management responsibilities.

Step 3: Compensation and performance management

Based on their performance, the employees who have the potential to become leaders in the

organization should be appropriately compensated.

These employees should be considered for fast track promotions and special compensation

benefits.

Step 4: Talent management

Talent management is one of the key factors that contribute for succession planning. The right

candidate will have the required level of skills in order to execute responsibilities of the new

role.

The upper management and mentors of the staff member should always make sure that the

employee is constantly enhancing his / her skills by accepting challenging responsibilities.

Importance of succession planning

The benefits of good succession planning include:


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A means of ensuring the organization is prepared with a plan to support servicecontinuity when the executive director, senior managers or key people leave

A continuing supply of qualified, motivated people (or a process to identify them), whoare prepared to take over when current senior staff and other key employees leave the

organization

An alignment between your organization's vision and your human resources thatdemonstrates an understanding of the need to have appropriate staffing to achieve

strategic plans

A commitment to developing career paths for employees which will facilitate yourorganization's ability to recruit and retain top-performing employees and volunteers

An external reputation as an employer that invests in its people and providesopportunities and support for advancement

A message to your employees that they are valuableThe absence of a succession plan can undermine an organization's effectiveness and its

sustainability. Without a succession planning process, an organization may not have a means of

ensuring that the programs and services that are crucial to its operation are sustained beyond the

tenure of the individual currently responsible for them.

Challenges for effective succession planning

Some challenges to succession planning are: Size of the organization: some nonprofits have so few positions that they may not have

the ability to offer opportunities for advancement; employees with the potential and the

desire to advance their careers may move to larger organizations as a result

Lack of financial resources: employees may leave for better salaries and benefits offeredin other workplaces

The nature of funding: as more and more organizations depend on project funding asopposed to core funding, there are fewer core staff members available to take up

positions in the organizations

Project staff come and go and may not be seen to be part of the talent pool available toorganizations


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In some cases, senior leaders are staying on in their positions, despite the fact that theskills needed for the job may have changed or they are no longer making a meaningful

and productive contribution to the organization

Indiscriminate inclusion of employees in the succession plan including those who aredisinterested, unmotivated or lack capacity to advance

Inadequate training and development resulting in an employee who is not prepared for apromotion

A plan that does not promote people in a timely fashion, leading potential successors toleave the organization to seek new opportunities

Poor communication resulting in confusion and turmoil within the organization as staffspeculate about what the succession plan really is

Potential candidates for promotion cannot be guaranteed that they will be promoted; a lot

depends on timing and need of the organization.


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ATTRITION AND RETENTION

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

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

schedules so they could attend to personal or family needs when necessary. And never leave.

But then there's the real world. And in the real world, employees, do leave, either because they

want more money, hate the working conditions, hate their coworkers, want a change, or because

their spouse gets a dream job in another state. So, what does all that turnover cost? And what

employees are likely to have the highest turnover? Who is likely to stay the longest?

Defining Attrition: "A reduction in the number of employees through retirement, resignation or

death"

Defining Attrition rate: "the rate of shrinkage in size or number"

Attrition is beginning to significantly affect offshore ROI. Just as businesses faced a scarcity of

talented IT resources during the dotcom era, organizations in offshore countries such as India are

experiencing similar pains. Skilled employees are hopping from job to job and taking with them

the customer knowledge and technical expertise that any company needs. Their salaries are

increasing, along with their perks, benefits, and bonuses.

Defining the attrition problem

Global outsourcing and the astounding amount of foreign direct investment pouring into China,

Russia, and India have created tremendous opportunities and competition for talented IT

professionals in those countries. The downside of this increased competition is a rising rate of

attrition, particularly in India. Fiscal third-quarter 2005 (ended December 2004) results filed by

Infosys, Wipro, Satyam, and TCS listed attrition rates between 7.6% and 17.7%. Vendors that we

have interviewed place the numbers much higher, at 25%60%, while an April 2005

BusinessWeek article estimated an attrition rate of 60%, with some India service providers

experiencing up to 80% turnover.


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To put these attrition numbers into perspective, if a company has 100 programmers and an

attrition rate of 25%, then 25 of its IT staff will leave each year. Think about the time and money

it took to find, interview, hire, train, and coach those 25 people. Now think about losing them

and starting the hiring and training processes anew.

How do the hiring and training processes break down in terms of total costs in India? The typical

time for advertising, interviewing, screening, negotiating, and hiring a new employee is about

two weeks. Companies usually allot one week for programmers to become familiar with the new

business, two more weeks for technical training, and one last week for customer training. Now

imagine a 25% attrition rate and replacing 25 of these programmers each year. Based on a yearly

salary of $15,000 for the human resource person and $25,000 for the programmer, it would cost

an additional $63,000 annually in acquisition and employee training costs. After considering

these figures, it quickly becomes apparent why companies are investing in strategies to prevent

attrition.

Reasons for attrition

It is not easy to find out as to who contributes and who has the control on the attrition of

employees. Various studies/survey conducted indicates that every one is contributing to the

prevailing attrition. Attrition does not happen for one or two reasons. The way the industry is

projected and speed at which the companies are expanding has a major part in attrition.

For a moment if we look back, did we plan for the growth of this industry and answer will be no.

The readiness in all aspects will ease the problems to some extent. In our country we start the

industry and then develop the infrastructure. All the major IT companies have faced these

realities. If you look within, the specific reasons for attrition are varied in nature and it is

interesting to know why the people change jobs so quickly. Even today, the main reason for

changing jobs is for higher salary and better benefits. But in call centers the reasons are many

and it is also true that for funny reasons people change jobs. At the same time the attrition cannot

be attributed to employees alone.


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Organizational matters:

The employees always assess the management values, work culture, work practices and

credibility of the organization. The Indian companies do have difficulties in getting the

businesses and retain it for a long time. There are always ups and downs in the business. When

there is no focus and in the absence of business plans, non-availability of the campaigns makes

people to quickly move out of the organization.

Working environment:

Working environment is the most important cause of attrition. Employees expect very

professional approach and international working environment. They expect very friendly and

learning environment. It means bossism; rigid rules and stick approach will not suit the call

center. Employees look for freedom, good treatment from the superiors, good encouragement,

friendly approach from one and all, and good motivation.

Job matters:

No doubt the jobs today bring lots of pressure and stress is high. The employees leave the job ifthere is too much pressure on performance or any work related pressure. It is quite common that

employees are moved from one process to another. They take time to get adjusted with the new

campaigns and few employees find it difficult to get adjusted and they leave immediately.

Monotony sets in very quickly and this is one of the main reasons for attrition. Youngsters look

jobs as being temporary and they quickly change the job once they get in to their own field. The

other option is to move to such other process work where there is no pressure of sales and

meeting service level agreements (SLA). The employees move out if there are strained relations

with the superiors or with the subordinates or any slightest discontent.

Salary and other benefits:

Moving from one job to another for higher salary, better positions and better benefits are the


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most important reasons for attrition. The salary and offered from MNC companies in Bangalore,

Delhi and Mumbai have gone up very high (Rs 15000 to Rs 18000 per month) and it is highly

impossible for Indian companies to meet the expectation of the employees. The employees

expect salary revision once in 4-6 months and if not they move to other organizations.

Personal reasons:

The personal reasons are many and only few are visible to us. The foremost personal reasons are

getting married or falling in love or change of place. The next important personal reason is going

for higher education. Most of the BE, MCA and others appear for GATE examination or other

examinations and once they get cleared they quickly move out.

Health is another aspect, which contributes for attrition. Employees do get affected with health

problems like sleep disturbances, indigestion, headache, throat infection and gynecological

dysfunction for lady employees. Employees who have allergic problems and unable to cope with

the AC hall etc will tend to get various other health problems and loose interest to work.

Poaching:

The demand for trained and competent manpower is very high. Poaching has become very

common. The big companies target employees of small companies. The placement agencies have

good days for doing more business.

The employees with 4-6 months experience have very good confidence and dare to walk out and

get a better job in a week's time. Most of the organizations have employee referral schemes and

this makes people to spread message and refer the know candidates from the previous companies

and earn too.

Employees advocate:One of the main reasons why employees leave companies is because of problems with their

managers. An HR professional can be termed an employees advocate and a bridge between top

management and employees at all levels. There is a huge gap between HR professionals and


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employees in terms of understanding challenges and delivering requirements. HR has not really

understood the problems associated with employees careers and jobs. The companys overall

plans and strategies also depend on HR professionals as they voice employees problems and

requirements. The HR department should have genuine interest in the employees welfareit is

responsible for making sure that their expectations are met. By doing this it is easier to meet the

companys business targets.


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120

100%

0

20

40

60

80

100

120

140

No. of Respondents % of Responses

PA in Organization

Yes

No

1) Is Performance Appraisal system in your organization?Options No. of Respondents % of Responses

Yes 120 100%

No 0 0%

Total 120 100%

Interpretation:

From the above Table and Graph it can be stated as that Performance Appraisal System is very

well practiced in the organization.

Chapter 5: DATA PRESENTATION & ANALYSIS


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120

100%

0

20

40

60

80

100

120

140


Post PA Information Delivery

Yes

No

2) Are you informed in advance about the .P.A.?Options No. of Respondents % of Responses

Yes 120 100%

No 0 0%

Total 120 100%

Interpretation:

From the above mentioned graph nad table it can be analyzed that out of 120 sample size of the,

every worker is well informed about the P.A in advance, in short Wellknown Polesyter lt

company adopts close P.A system.


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95.84%

0.83% 3.33%0

20

40

60

80

100

120

140

Yes No No Opinion

Duration Of P.A

% of Responses

No. of Respondents

3) Do you feel that duration on .P.A. is adequate?Options No. of Respondents % of Responses

Yes 115 95.84%

No 1 0.83%

No Opinion 4 3.33%

Total 120 100%

Interpretation:

The above mentioned graph suggested that out of 120 workers:-

95.84% of the employee are of the opinion that Yes, there is adequate duration of P.A and 0.83%

says NO and 3.33% of the employee are of No opinion.


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0

20

40

60

80

100

120

140

MBO

Method

Ranking

Method

Rating

Method

Grading

Method

0 0

120

0

% of Responses

No. of Respondents

5) What is the method of performance appraisal system?Options No. of Respondents % of Responses

MBO Method 0 0%

Ranking Method 0 0%

Rating Method 120 100%

Grading Method 0 0%

Total 120 100%

Interpretation:

From the above mentioned table and graph it is very much visible that organization follows only

Rating Method, which is more confineable and impressive.


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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


120 100%No

Yes

6) Is your strength and weakness being checked in performance appraisal system?Options No. of Respondents % of Responses

Yes 120 100%

No 0 0%

Total 120 0%

Interpretation:

The organization takes utmost check on the strength and weakness of the employee, this can be

very much stated from the above mentioned table and graph, which results in the improvement in

the efficiency and effectively of the organization.


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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


120 100%No

Yes

7) Are you informed about the result of P.A.?Options No. of Respondents % of Responses

Yes 120 100%

No 0 0%Total 120 100%

Interpretation:

The employee of the organization are informed about the result of the P.A which helps them to

evaluate their own flaws and weakness, this can be well stated from the above mentioned graph

and tables.


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99%

1%


8) Are you satisfied with .P.A.?Options No. of Respondents % of Responses

Yes 119 99.16%

No 1 0.84%

Total 120 100%

Interpretation:

From the above mentioned chart it states that 99.16% are satisfied with the P.A executed in the

organization. And .84% states they are not satisfied with the P.A, which shows a very positive

perspective from the organization point of view.


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99%

1%

No. of Respondents

% of Responses

9) Do you feel that evaluation should be communicated?options No. of Respondents % of Responses

Yes 114 95%

No 6 5%

Total 120 100%

Interpretation:

Out of 120 sample size, 95% of the employees says evaluation must be communicated and 5%

says it should not be communicated. This shows that organization should follow the system of

communicating the evaluation as it is not practiced now.


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70

100

5

35

0

Efficiency

Productivity

Competition

Passion

Efficiency & Productivity

Efficiency & Competition

10) Do you feel that through .P.A. & reward system, any changes have taken place?

Options No. of Respondents % of Responses

Efficiency 70 58.33%

Productivity 10 8.33%

Competition 0 0

Passion 5 4.17%

Efficiency & Productivity 35 29.17%

Efficiency & Competition 0 100%

Interpretation:

From the above mention chart it can be stated as 58.33% has taken place in Efficiency,

productivity as 8.33% passion as 4.17%, Efficiency & Productivity as 29.17%, which shows a

very drastic changes have been taken place in the organization with the help of P.A.


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0%

10%

20%

30%

40%

50%

60%70%

80%

90%

100%


120 100%No

Yes

11) Does P.A. inspire you?

options No. of Respondents % of Responses

Yes 120 100%

No 0 0%

Totsl 120 100%

Interpretation:

120 employees which were surveyed came out with the same experience that P.A does motivates

and inspires them to work towards the organizational as well as individual development over the

time period.


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0

20

40

60

80

100

120

140

Yes NO

N

o

.

o

f

r

e

s

p

o

n

d

e

n

t

s

Series 2Series 1

12) After the completion of P.A. function, is any step taken by management?

a) Yes b) NoIf yes, in what type of step?

Options No. of Respondents

Training 60

Counseling 0

Instruction 10

Open Discussion 20

Individual meeting 10

Training & Individual Meeting 20

This question shows that management is putting efforts to make p.a system very sound. After the

Performance appraisal they are taking actions in order to improve the performance of the

employees.

Action may be in the form of training, counseling, instruction, open discussion, individual

meeting and training & meeting. This action are taken according to the requirement of

employees. 60 employees out of 120 are given training. These are the employees who are far

below the performance. 20 out of 120 are invited for open discussion as they only little problems

in their working area which can be solved by discussion. So in this manner actions are taken

according to the need.


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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


120 100%No

Yes

13) Is there any punishment for performance?


Yes 120 100%

No 0 0

Total 120 100%

Interpretation:

From the above mentioned table and graph it can be stated as there is punishment for the

improper execution of the P.A by degrading the points of the employee.


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99%

1%


14) Do you agree that P.A. is the best device for improvement?


Yes 119 99.16%

No 1 0.84%

Total 120 100%

Interpretation:

InWellknown polyester ltd, P.A is said as the best device for improvement in the organization

development over the long term period as well as for the employee also.


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8

112

120

No. of Respondents

Yes

No

Total

15) Do you have any suggestion for P.A. system?


Yes 8 6.67%

No 112 93.33%

Total 120 100%

Interpretation:

6.67% of the employee stated with some of the suggestion which are as follows:

Suggestions:

a) Training should be provided for new task and meeting also has to be conducted totake the review of the assigned task.

b) More and adequate training need to be provided from different perspective to the alllevels of the employee which should be provided on regular interval of time.

c) Training should be provided on the installation of the new machinery and to theoperator too.


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FINDINGS:

Based on the study conducted at the Wellknown Polyster. Ltd, Daman, the

researcher has come upon certain findings as:-

a) The organization follows the Rating method of P.A and also follows theopen and transparent system.

b) The organization plays a very lead role in increasing the productivity andmotivation by adopting the performance appraisal system.

c) The attrition rate in Wellknown Polyester ltd is very low, can be termed asNIL because only 3 employees have been attracted in the last five years.

SUGGESTIONS:

The researcher has tried to interpret the data and have shown Areas of

Improvement and new Areas of Growth as:-

a) KRAs should be set for the low level employees.b) Honesty in identifying employees performance.c) Proper feedback should be given on time.d) Training calendar should be updated on regular interval of time.e) Comparison of self rating& superior rating must be there.

Chapter 6: Findings & Suggestions


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The Researcher has done the Summer Project on the Topic: Performance Appraisal,

Succession Management & Attrition And Retention. at Wellknown Polyester ltd,

Daman.

Performance appraisal has been considered as a most significant tool of the

organization, for the information it is highly useful in making decision regarding

various personal aspects such as promotion and merit increase. It also focuses on the

weak areas in the primary systems like marketing, finance and production.

If valid performance data are available timely accurate, objective standardized and

relevant, management can maintain consistent promotion and compensation policies

throughout the total system.

The main purpose of P.A is to provide the deadlock and research data for improving

the overall personal information system.

We have also given the opportunity of company visit. I hope the training will bring to

effective and helpful to me for my bright carrier.

SUCCESSION MANAGEMENT

Succession planning is one of the most critical functions of an organization. This is

the process that identifies the critical and core roles of an organization and identifies

and assesses the suitable candidates for the same.

The succession planning process ramps up potential candidates with appropriate skills

and experiences in an effort to train them to handle future responsibilities in their

respective roles.

Succession planning is applicable for all critical roles in the organization. The upper

management of each practice or department is responsible of coming up with a

suitable succession plan for each core position under his or her department.

Chapter 7: CONCLUSION


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Attrition & Retention

Retention is an important concept that has been receiving considerable attention from

academicians, researchers and practicing HR managers. In its essence, Retention

comprises important elements such as the need or content, search and choice ofstrategies, goal-directed behavior, social comparison of rewards reinforcement, and

performance-satisfaction. The increasing attention paid towards Retention is justified

because of several reasons.

The Human Relations Movement posits that social contacts will motivate workers.

Mere knowledge about the theories of Retention will not help manager their

subordinates. They need to have certain techniques that help them change the

behavior of employees. One such technique is reward. Reward, particularly money, is

a motivator according to need-based and process theories of Retention. For the

behavioral scientists, however, money is not important as a motivator. Whatever may

be the arguments, it can be stated that money can influence some people in certain

circumstance. Hence forth the Attrition and Retention plays a very cruicial role in the

organization.

Ramesh Final Pro1

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