Planning Employee Retention Po

SUMMER TRAINING PROJECT REPORT
On
Strategic Planning Employee Retention Policies &

Job Satisfaction
At
Okaya Infocom
Submitted to Mahamaya Technical University, Noida in the partial

fulfillment of the requirement for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
ABES INSTITUTE OF TECHNOLOGY

ACADEMIC SESSION
(2013 2014)
Under the Guidance of: Submitted By:

Mr. Kapil Kohli KARISHMA RAI
HR Manager M.B.A IIIrd Sem.
OKAYA INFOCOM Roll No.1229070016
TO WHOMSOEVER IT MAY CONCERN
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This is to certify that KARISHMA RAI a student of MBA from ABES IT (Batch
2012-2014), Roll No:1229070016 has undergone her Summer Training on the
topic RETENTION POLICIES AND JOB SATISFACTION under my
guidance and supervision from 18 June 2013 to 18 August 2013 .
Signature of Project Guide
Mr.KAPIL KOHLI
HR MANAGER
Okaya infoco
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DECLARATION
I hereby declare that this project is the result of own work and has never been used anywhere for
reward of any degree or diploma.
KARISHMA RAI
MBA
1229070016
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ACKNOWLEDGEMENT
The goals of my eight weeks internship at OKAYA INFOCOM were two-fold -- to complement
formal education with career-related experience. The completion of this thesis should be
attributed to everyone who assisted me with this research endeavor without whom I would never
have had the ability to complete my report.
Further I would like to thank Mr. Vivek Raghuvanshi for giving me the opportunity to
accomplish my summer internship at OKAYA. Special thanks to my project guide
My corporate mentor Mr. Kapil Kohli- (HR), Manager of okaya infocom Pvt. Ltd, for his
enduring guidance, support and encouragement during the period of my internship at okaya
Then, I would like to thank my internal mentor Mr.Ashish Bhalla for teaching me the subtleties
of formatting project report. I would even like to express my gratitude towards all the faculty
members at ABES IT.
Date: Karishma Rai
Place: MBA (2013-2014)
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ABSTRACT
The OKAYA INFOCOM in recent times is seen to be highly competitive and dynamic. Okaya
specializes in enhancing organizational performance through the effective and competent
application of technology and outsourcing solutions for our clients. Our objective is to not only
solve short term business and technology needs, but to create next-generation of competitive
advantages that drive future growth and success.
Hewitts Asia Pacific Attrition Study 2006 cites compensation as a major factor for attrition,
but also point out to lack of opportunities and work life balance as important factors in the IT-
ITES sector in India. This thesis addresses the different strategies adopted by company for
employee retention.
TABLE OF CONTENTS
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ACKNOWLEDGMENT.... 4
ABSTRACT. 5
TABLE OF CONTENTS 6
TABLE OF FIGURES 9
TABLE OF EXHIBITS.. 10
TABLE OF APPENDICES 11
Chapter 1-
INTRODUCTION.. 12
1.1Background.. 13
1.2Outline of the thesis... 14
Chapter 2-
LITERATURE REVIEW 15
2.OKAYA INFOCOM-Company Profile.. 16
2.1.Group companies.. 23
2.2.1Managerial Perspective.. 24
2.2.2Employee Perspective... 28
2.3Why People leave Job. 29
2.4Present strategies adopted to retain employees... 33
2.5Strategies suggested to retain talent 40
Chapter-3
OBJECTIVES & HYPOTHESIS.... 44
3.1Problem Statement.. 44
3.2Research Objectives........ 45
3.3 Hypothesis. 45
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3.4 Limitations.. 46
Chapter- 4
RESEARCH METHODOLOGY.. 47
4.1Research Design. 47
4.2Data Collection Techniques 48
4.3A Qualitative Study. 49
4.3.2Interview with HR Manager 49
4.4Quantitative Study . 49
4.4.1Job Satisfaction Survey (JSS).. 50
4.2Target Respondents. 51
4.5Sources of Data 51
4.5.1Secondary Data 51
4.5.2Primary Data. 52
4.5.3Sources of Data Used In the Thesis.. 52
Chapter 5 -
DATA ANALYSIS. 53
5.1Job Satisfaction. 54
5.2Models of Job Satisfaction 55
5.3Measuring of Job Satisfaction 57
5.4Job Satisfaction Survey.. 58
5.4.1Scoring. 62
5.4.2 Interpretation of scores.. 67
5.5 Comparison of scores of JSS and 9 sub sets with Levensons (1972) norms.. 68
5.5.1 Comparison of JSS scores with Levensons norms.. 69

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5.5.2Comparison of sub-scale PAY with Levensons norms 70
5.5.3Comparison of sub-scale PROMOTION with Levensons norms 72
5.5.4Comparison of sub- scale SUPERVISION with Levensons norms. 74
5.5.5Comparison of sub-scale FRINGE BENEFITS with Levensons norms.. 76
5.5.6Comparison of sub-scale CONTINGENT REWARDS with
Levensons norms.. 78
5.5.7Comparison of sub-scale OPERATING PROCEDURES with
Levensons norms.. 80
5.5.8Comparison of sub-scale NATURE OF WORK with Levensons norms.. 82
5.5.9Comparison of sub-scale COMMUNICATION with Levensons norms... 83
5.5.10Comparison of sub-scale CO-WORKERS with Levensons norms... 86
Chapter 6 -
CONCLUSION 88
6.1 Conclusion- inference & Findings... 88
Chapter 7 -
7.1Bibliogrpahy ..... 92
7.2 Annexure .... 93
LIST OF FIGURES
FIGURE 1: The Outline of the Thesis.
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FIGURE 2: Research Design.
FIGURE 3: Organization Structure.
FIGURE 4: Hierarchy of Needs (MASLOW).
FIGURE 5: Total Rewards.
FIGURE 6: Retention of Employees
FIGURE 7: Pearls of thought for employee retention
FIGURE 8: Research Design of the Project Report.
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LIST OF EXHIBITS
EXHIBIT 1: Job Satisfaction Survey Form.
EXHIBIT 2: JSS Scoring.
EXHIBIT 3: Distribution of Items in Job Satisfaction Survey.
EXHIBIT 4: Job Satisfaction Sub-Scales.
EXHIBIT 5: Levensons (1972) JSS norms.
EXHIBIT 6: Tabulated score of Pay Sub-Scale.
EXHIBIT 7: Tabulated score of Promotion Sub-Scale.
EXHIBIT 8: Tabulated score of Supervision Sub-Scale.
EXHIBIT 9: Tabulated score of Fringe benefits Sub-Scale.
EXHIBIT 10: Tabulated score of Contingent rewards Sub-Scale.
EXHIBIT 11: Tabulated score of Operating procedures Sub-Scale.
EXHIBIT 12: Tabulated score of Nature of work Sub-Scale.
EXHIBIT 13: Tabulated score of Communication Sub-Scale.
EXHIBIT 14: Tabulated score of Co-workers Sub-Scale.
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TABLE OF APPENDICES
APPENDIX 1: HR Manager Interview Performa
APPENDIX 2: Sample JSS forms filled by employees at OKAYA INFOCOM.
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CHAPTER 1
INTRODUCTION
The first chapter introduces the thesis. In this chapter, the background to the research problem
followed by the outline of the thesis is presented.
1.1 Background
1.2 Outline of the thesis
1.1 BACKGROUND
It is our people who make the difference where it matters most
(Tesco 2002)
This is a global success story made possible by the quality and determination of
over 100,000 people worldwide. (Vodafone 2002)
we believe that competitive advantage is achieved through our people
(Kellogg 2002)
Employees are important to the competitive sources of organizations and yet the role of a
business function dedicated to the management of people has never been a glamorous one.
Your contribution has been valuable and has determined our sourcess. We believe you have the
potential to take this organization to the next level and spearhead our international
assignments.A desperate boss who is trying to retain a deserving employee only utters such
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words. Sad reality, such level of recognition and acknowledgement is provided only when the
person gets an offer from another company. But then again, if timely rewards and recognition
were in place, the person would not have chosen to leave, to begin with. Unfortunately, we do not
live in a perfect world and doing the right thing at the right time does not seem so obvious to
most people!
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. Moreover, 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 that entire turnover
cost? Who is likely to stay the longest?
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1.2 OUTLINE OF THE THESIS
Fig.1.The outline of the thesis will be
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Chapter -2
LITERATURE REVIEW
The literature review consists of five main parts. The first part is about the company profile
, group companies, and organization structure. The second part is concerned with employee
retention including definitions and both employees and managerial perspective on it. The third
part focuses on the reasons that why people leave jobs. The fourth part discusses the motivation
theories and strategies companies use to retain employees. The fifth and final part throws light on
strategies that companies can adopt to control attrition rate.
2.1 Okaya Infocom (Company Profile)
2.1.1Group companies
2.2 Overview on Employee Retention
2.2.1Managerial Perspective
2.2.2Employee Perspective
2.3 Why people leave Jobs?
2.4 Present Strategies Adopted to Retain Employees
2.5 Strategies Suggested to Retain Employees
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2.1 Okaya Infocom-Company Profile
Okaya Infocom Private Limited , a Okaya group company, provides an industry leading blend
of technology, business consulting, and outsourcing services.
Okaya specializes in enhancing organizational performance
through the effective and competent application of
technology and outsourcing solutions for our clients. Our
objective is to not only solve short term business and
technology needs, but to create next-generation of competitive advantages that drive future
growth and success.
With the state of the art development center in Noida and associates working in India , US and
UK , we provide services to businesses globally. Our broad resource of associates ensures that
our clients have easy access to resources that they need in their specific business and technical
domain. Okaya's resources, coupled with Okaya Group widely spread channel & infrastructure,
gives client unique scalability to meet the needs of projects of any size, at any location.
Services offered by Okaya Infocom
IT Consulting
Application development and integration
Application maintenance
Business analysis
Content management
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Data warehousing and analysis
Database design, administration, and maintenance
eBusiness and web applications
Help desk support
Management consulting
Network design, implementation, administration,
and support
Operating systems support
Project management
Project outsourcing
Software installation and implementation
Software quality assurance and testing
Systems integration and conversions
Technical writing and documentation
Application Development
On-site Consulting for quick project execution, Off-shore development for cost effectiveness
and hybrid models to combine business expertise with cost effectiveness.
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Fixed cost projects to maintain client budgets, T&M projects to cater to flexible client needs and
hybrid models to meet client requirements.
Offshore Development and Support Centers .
Joint Ventures with start-ups, small and medium sized businesses.
Mission & Quality policy
Our Mission
Our mission is to be the premier IT Services and Resource Management Company by:
Delivering real value to our clients by providing the highest quality IT services and
resources at affordable rates.
Delivering the best work environment and benefits for staff.
Becoming the most trusted partner for our clients and employees.
Quality Policy---
Our policy is to develope quality products and Services in Cost Effective & Timely
manner .
We will strive hard to exceed customer's needs and satisfaction by continual improvement
of processes.
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We will nurture working environment conducive to all to achieve desired results through
team work
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Our Quality Journey
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Our quality Certificate
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HR Initiative
Okaya offers employees an opportunity to work in a professionally managed environment with
great growth opportunities. To make the work culture stimulating we ensure responsibility
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commensurate with authority, excellent training and best in class benefits. We encourage
employees to take increased responsibility and challenges, which lead to unconventional
opportunities.
Training & Development
To encourage need-based learning, Okaya has defined learning hours at all levels.
As part of post employment training and development opportunities, a systematic
training plan has been formulated wherein employee knowledge sharing sessions are
conducted every fortnight by pooling in-house talent.
Employees are regularly sent to attend relevant seminars and conferences to groom
them for assuming positions of higher responsibility, as well as specific need-based
interventions based on scientific knowledge and experience.
Employee Motivation and Welfare Measures
Employee motivational levels are kept high by following non-hierarchical work
environment and transparency.
To make the performance appraisal system very fair and just, 360 degree appraisal
system is followed where managers and above are assessed by superiors, peers and
subordinates to encourage team building and fairness.
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To take care of employee grievances a solution club has been formed where
employees can freely express their problems/grievances through email, which is
kept confidential. Okaya provides free cab to the employee those working in night.
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Group Companies
OKAYA diversified into Global IT services by branching into:
Okaya Infocom Pvt. Ltd. to deliver best in class Process Consulting,
Software Solutions and Business Support with continued focus on
customer satisfaction and reliable service.
Okaya Infocom has its head office in Noida and branch office in New York, USA.
Another company which is coming up in a big way is Okaya Energy System Pvt. Ltd. for
Non conventional energy sources, which is another big booming industry of the future.
Plants under construction in Rajasthan & Haryana.
Microtek International Pvt. Ltd. is one of the Largest Power Products manufacturer
having products like Line Interactive UPS, ONLINE UPS, and DIGITAL & SINEWAVE
INVERTERS/UPS. Having eight manufacturing plants, each specializing in different
spheres of the industry, has made it possible for Microtek to harness the World's latest
technology, perfect it and incorporate it in its product range, for the user's benefit. Its head
office in New Delhi & Plants in Himachal Pradesh & Haryana.
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The Action Group is one of the India's leading business
conglomerates. The group commenced its operations as a source of
footwear and its components in domestic and export markets, gradually moving its core
competence into other diversified fields such as: (API) Chemicals and Plasticizers,
(MICROTEK) Computer Monitors and Peripherals, Power Back Up/Inverters, (OKAYA)
Batteries, (SUN CITY) Housing Projects and (SRI BALAJI ACTION MEDICAL
INSTITUTE) Health Care
2.2.1 MANAGERIAL PERSPECTIVE
As most of us heard, it costs less to retain an employee than to replace an existing one.
In fact, the American Management Association estimates that the cost of replacing an
employee is equal to 30% of his or her salary (Brown and Alleyne).A recent Hewitt 'Attrition &
Retention' survey shows that 27% of the employees in their EXIT interview mentioned
compensation as the primary reason.
In fact, people quit people before they quit companies. Employees are generally first
dissatisfied with their manager and the way the manager deals with the employees, before they
find fault with the company. Woodard-Chavez argues that employees might leave the
organization for better pay if they are not happy. On the other hand, they will probably stay with
the organization even for slightly less pay if they are happy with their work.
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Those days are gone when salary was the sole motivator for an employee to leave an
organization. According to a survey, there are three main reasons that are followed by other
common reason:
* In equity in compensation
* Limited career opportunities
* Role stagnation
Therefore, it is very challenging task for an HR expert to cope up with this situation and
retain talent with an organization.
Associated costs with high Attrition
OUR ASSEST WALK OUT OF THE DOOR EACH EVENING.WE HAVE TO MAKE SURE
THAT THEY COME BACK THE NEXT MORNING.
NARAYAN A MURTHY
(CHIEF MENTOR OF INFOSYS)
What is Employee Retention?
Employee retention is a process in which the employees are encouraged to remain with
the organization for the maximum period of time or until the completion of the project.
Employee retention is beneficial for the organization as well as the employee.
(A reduction in the number of employees through retirement, resignation or death)
. EFFECT ON ORGANIZATION IF ITS EMPLOYEE LEAVE

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Loss of productivity
Replacing qualified employees
Poor retention creates a revolving door culture within the organization lowering
morale and confidence.
Cost of overtime or temporary help
Recruiting costs
Interviewing costs
Time spent in orientation
Talent loss:
* It includes the cost of lost knowledge, skills and contacts that the person who is leaving is
taking with them out of your door.
Training cost:
* It includes the cost of orientation in terms of the new person's salary and the cost of the person
who conducts the orientation.
* It also consists of the training.
* Calculate the cost of various training materials needed including company product manuals,
computer or other technology equipment used in the delivery of the training.
Motivational cost:
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* It refers to the cost arises because of motivating the other employees to retain them in the
organization in terms of increasing their salary and time.
Lost Productivity Costs:
* As the new employee is learning the new job, the company policies and practices, etc. they are
not fully productive.
Recruitment cost:
* The cost of advertisements; agency costs; employee referral costs; internet posting costs.
* Calculate the cost of the manager who has to understand what work remains, and how to cover
that work until a replacement is found.
* cost of the various candidates pre-employment tests to help assess candidates' skills, abilities,
aptitude, attitude, values and behaviors.
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Key Areas in Employee Retention
Compensation Environment Growth
Relationship
Support
2.2.2EMPLOYEE PERSPECTIVE
The reason to leave an organization may vary from person to person and from organization to
organization. The level of satisfaction/dissatisfaction is also determined by the employees belief
in how much influence/bearing external factors like superiors, peers, subordinates and luck,
fate and/or chance have on their success/failure in the organization. If employees feel that they
can determine the path of their careers in the organization, the degree of satisfaction is bound to
be higher. Job dissatisfaction poses a threat to the performance of workers and, in turn, to the
performance of an organization as a whole.
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If you ask retired professionals what they remember most about their workplace, their answer
would probably be a 9-5 routine, work and only work in these eight hours, a pay cheque at the
end of every month and a constant struggle to save for a rainy day. Cut to the present job
scenario where a workplace has become more than a place to earn your daily bread. It has, for
many, become a second home as you end up spending more time there, than any other place, and
have to contribute more, than just what is expected of you. This has led to both employers and
employees extending themselves beyond just a 9-5 relationship. Employees, therefore, have high
expectations, as far as benefits and remuneration, for the time and the effort they put into their
work are concerned.
2.3 WHY PEOPLE LEAVE JOB?

A rolling stone gathers no moss? In the corporate context, the adage indicates the importance of
being on the constant lookout for a suitable opportunity and shift gears once the opportunity comes
knocking.
There are numerous reasons for the attrition to be high which can be categorized into two broad
classifications. The first, can be coined as Drive Attrition which is caused due to the employer; the
second one can be termed as Drag Attrition which is caused due to the employee .
The reasons for Drive Attrition are due to employers policy / policies of terminating the employee
at the end of the contract period for employment. Drag Attrition is due to the host of insecurities
and vulnerabilities associated with the taking up a career with a private company.and relational
wellbeing. The new people driven economy offers far more options to balance work and home life. It
is time that employers take advantage of these flexible options while re-establishing a healthy balance
in employees personal and professional life.
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Salary, can be considered as one of the main reasons to quit a job. Maslow's central theme revolves
around the meaning and significance of human work. Maslow (1970), is known for establishing the
theory of a hierarchy of needs, writing that human beings are motivated by unsatisfied needs. A
persons behavior is seen as dominated by his/her unsatisfied needs, and when one need is satisfied
he/she aspires for the next higher one. This is, therefore, seen as an ongoing activity, in which one is
totally absorbed in order to attain perfection through self-development (Steers and Porter, 1975).
According to Maslow (1970), there are general types of needs (physiological, safety, love, and
esteem) that must be satisfied before a person can act unselfishly. He called these needs "deficiency
needs." As long as we are motivated to satisfy these cravings, we are moving towards growth, toward
self-actualization. The five basic human needs, according to Maslow (1970), are:
(1) Physiological: hunger, thirst, bodily comforts, etc.;
(2) Safety/security: be out of danger;
(3) Belongingness and Love: affiliate with others, be accepted;
(4) Esteem: to achieve, be competent, gain approval and recognition and
(5) Self actualization: to find self-fulfillment and realize one's potential.
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Figure 4. Hierarchy of Needs, source: MASLOW (1970)
NEED LEVEL DESCRIPTION EXAMPLES
Experts are of the view that people, Change jobs not just for money but industry potential.
Prakash Gurbaxani believes that those who want to make a mark in life should view the potential
in an industry while making a job switchover.
What is interesting about the survey is that most of its Top 10 reasons for contractor
turnover relate to an executive feeling "pushed" away from a bad situation, rather than being
"pulled" by a better deal. These include a perceived lack of flexibility toward personal and
family issues, fears associated with job security, incompetent leadership, and concerns over
the firm's ethics, integrity and values and a perceived lack of recognition and appreciation of
the executive's contributions. A better opportunity or more meaningful challenge is the second-
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most common reason for turnover, but increased compensation dropped from third place last year
to fifth this year. Opportunity for stock ownership dropped from fourth to last.
Poaching for talents is particularly acute in the information technology and information
technology-enabled sectors as well as engineering and construction.
. Herzberg (1959) constructed a two-dimensional paradigm of factors affecting people's
attitudes about work. He concluded that such factors as company policy, supervision,
interpersonal relations, working conditions, and salary are hygiene factors rather than
motivators. According to the theory, the absence of hygiene factors can create job
dissatisfaction, but their presence does not motivate or create satisfaction.
Most of the Civil Engineers prefer taking up jobs in the IT sector or accept lucrative
assignments.. After a project is finished in one state the company moves to its project in
another state leaving the workers behind. In most cases, the workers too do not prefer to shift
unless they get good salaries and perks like in the IT companies.
The reasons why women engineers leave jobs in engineering at different stages (e.g.
dissatisfaction with job contents and work climate; lack of career perspectives; working in a
non-engineering position/field; problems of compatibility of job and family affairs).
The trend of teams moving out as their bosses move out has been quite a fad now -a -days.
Many organizations are trying hard against such practices. There are probably two factors that
lead such a situation - the current situation in the company and the opportunity outside. If the
entire team leaves this is probably a sign of dissatisfaction with the strategy of the firm regarding
this particular division. On the other hand, there may be a great opportunity outside the firm to set
up a company or a business unit in another firm.
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Maslow's hierarchy of needs theory has proven that man likes to move on to
greener pastures. Therefore, the organization needs to ask itself whether they are willing
to create green pastures within the existing company or simply let their employees wander
towards greener pastures.
2.4 PRESENT STRATEGIES ADOPTED TO
RETAIN TALENT
Todays employee retention policies move beyond show me the money
There was a time when an employee would just be rewarded for a job well done. Now the
organizations have realized that rewarding and appreciating employee boosts morale and help to
excel in future projects. Organizations have found that annual salary increases do not have a
significant impact in retaining critical talent. A good mix of offerings including the right kind
of roles, career opportunities and investment in employees development is a global demand.
The IT and manufacturing industries, which have traditionally been conservative about offering
hefty salary hikes and have lost out to IT and business process outsourcing in the bargain, is
returning with a vengeance, according to the latest survey by Watson Wyatt, a leading human
resources consultancy.
In 2009 IT professionals seem to be getting better paid but when it comes to salary hikes, BPO
employees are more privileged. While IT professionals got an average salary increase of 16%,
BPO professionals received a 18% hike,
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Even the conservative pharmaceutical industry -- which has been losing people, especially
medical representatives, to retail -- said it would increase salaries 15.7 per cent in 2008. Last
year, manufacturing salaries went up only 12.5 per cent and pharma only 12 per cent.
According to Mercer, highest-performing employees, or 14 percent of the workforce, can expect
average salary increases of 5.6 percent in 2009 compared to 3.3 percent for average performers
and 0.6 percent for the weakest performers.
"Manufacturing growth has matched overall economic growth and the industry has realized that it
cannot lose people to other high-growth industries. That's why it is paying more," said Anita
Belani, country head, human capital group of Watson Wyatt Worldwide.
Companies are looking to balance the pressures of inflation and lower HR budgets by increasing
productivity (57 percent) and redeployment of manpower (31 percent). Meanwhile 30 percent of
them stated that they have increased performance linkages to counter fixed pay increases. Only
20 percent of the organizations surveyed mentioned a hiring freeze or slowdown.
The study also throws up some interesting new trends in terms of talent retention.
For instance, cash retention or deferred bonus has overtaken stock options as a popular means of
retaining employees.
Second, signing bonuses to new employees have caught on, percolating to even clerical and
supervisory staff.
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Companies have also realized that overseas assignments are a strong employee retention tool.
Belani said the imposition of the fringe benefit tax has prompted companies to prefer cash
options to stock options to retain talent.
The attrition rate continues to be a worry through it is not expected to worsen this year. Across
industries, it will be around 16.3 per cent, almost the same as last year's 16.5 per cent. To have a
high rate of absence as well as employee turnover is very costly for organizations.
Having personnel, who are motivated, inspired and diligent, might assist in avoiding such
inconveniences. In today's global and increasingly competitive workplace, events have become a
strategic means in many areas for companies to attract and retain both customers and employees.
Corporate special events (CSE), such as New year parties, kick-offs, company celebrations,
incentive trips, recognition dinners are one of the strategic tools available to companies that
can be used to satisfy the social needs of the employee. CSE also provide an opportunity to
communicate corporate policies, strategies and goals to employees, or to enhance the team spirit
and the feeling of belonging to the company.
There is no secret recipe that will suddenly engage all the employees. Many companies provide
excellent work environments, perks and benefits from recreation facilities, multi-cuisine
restaurants, fitness centers, crche facilities, concierge services to maternity and paternity
leave, adoption leave, and part-time work. While these are great strategies to keep employees
engaged, the real secret goes back to fundamental management practices know your employees.
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ESOPs are used in some organizations for increasing employee productivity and controlling
turnover.OKAYA INFOCOM provide various benefits to its employees, including allowances
for housing, travel assistance, medical benefits and recreational facilities. Enhanced benefits
are provided to its employees working at remote project sites..
According to one report, popularly adopted flexi time options include the flexi-tour option,
where the employee chooses his own starting and stopping time for work and adheres to these
timings regularly; gliding schedule, where you can vary your arrival and departure times on a
daily basis, under the condition you work 8 hours a day; and the variable day option, where you
work a total of 40-48 hours a week, but the number of hours worked each day may vary.
A deeper investment in developing management capability is a key retention strategy in many
companies today. Many studies have shown that one of the top reasons an employee leaves a
company is the manager. Encouraging managers to have regular meetings and spend quality
time on understanding the employee go above and beyond having the employee update the
manager on project status, resources and next steps. At ENERGY INFRATECH, the
management looks upon the grievances of the employees by personally interacting with the
employees.
Retention bonuses are becoming common everywhere; some industries are more likely than
others to offer them. Retail/wholesale companies are the most appropriate to implement stay-pay
bonuses, followed by financial service providers and IT firms. Companies of all sizes use
retention bonus plans to keep knowledge employees retained in the company. This is mainly to
retain good employees and provide them a cash incentive to keep them motivated. A number
of IT companies use well-developed procedures for identifying training needs and career
development, in particular Personal Development Reviews linking training needs to business
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objectives. One firm linked training needs to individual objectives derived from a set of key
business performance indicators, such as customer satisfaction, quality of product, competition
and safety.
Employee Referral Scheme - in several companies employee referral scheme is implemented to
encourage employees to refer friends and relatives for employment in the organization.
//
Medi-claim Insurance Scheme; This insurance scheme is to provide adequate insurance
coverage of employees for expenses related to hospitalization due to illness, disease or injury or
pregnancy in case of female employees or spouse of male employees. All employees and their
dependent family members are eligible. Dependent family members include spouse, non-earning
parents and children above three months.
Personal Accident Insurance Scheme; This scheme is to provide adequate insurance coverage
for hospitalization expenses arising out of injuries sustained in an accident. This covers total /
partial disablement / death due to accident.
According to NASSCOM, Hewitt the trend has changed from Compensation to Total
Rewards refers to the transactional and relational levers provided to employees in exchange of
their time, talents, efforts and results. The key levers in the integrated model are stated below:
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Figure: 5. Total rewards. (Source: HR CONNECT, Feb07)
Benefits Work
Compensation
Experience
Employee
Business
Compensation,
Satisfaction Performance&
Benefits,
& results
engagement Work Life,
Performance
and Recognition
Knowing the pulse of the employees, firms today lay emphasis on various things like ensuring
open communication, providing learning opportunities, ensuring career progression, providing
flexi-working hours etc. apart from compensation for employee engagement. Employee
engagement by trained managers, total rewards, and competency based learning rather than
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sporadic training programmes, annual satisfaction surveys, and continuous communication
rather than event-based bulletins etc. are strategies adopted by most of the companies.
TAVRITA HR CONSULTANCY, Suggested Interventions in the Exit Process as below-
Figure 6 retention of employees.
People need to be engaged and they need to be inspired by what they do, said Hecht, president
of Retensa of New York. Thats the new standard.In addition, employees should feel they are
part of a team whose work is appreciated, which is why Hecht emphasizes recognition.
41
Providing coaching: Everyone wants to be successful in his or her current job. However, not
everyone knows how. Retention coaching when a person expresses his/her intentions to quit and
the organization is keen to retain him/her; retention coaching can help retain the valuable
employee.People have lots of choices, so the power is at the consumer level, so employers
have to leverage all their talents to increase retention, said R. Gore Bolton, president and
CEO of Bolton & Associates LLC, a La Plata civil engineering firm.
2.5 STRAITEGIES SUGGESTED TO RETAIN EMPLOYEES
In creating an effective retention program, compensation and benefits are certainly
factors in a person's job satisfaction. However, a caring workplace where employees feel valued
is critical. Companies have found that the reason employees look is not always the reason they
leave. Why do some firms do a better job of retaining employees than others? The key lies in the
planning. Companies that establish a clear, definitive strategy for retention will benefit
tremendously. Below are some strategies that are invaluable in a retention program.
Welcoming an employee into your company may seem like an easy task, but many
organizations fail to plan accordingly. Integration must begin before the employee's first day of
work. Begin with a welcome letter from a direct supervisor, the owner or other recognized
leader. The letter should share the company's vision, culture and outlook for the future, and it
also should reaffirm the company's excitement about the hire. In addition, it is ideal to have the
employee's workspace furnished, business cards and nametag ordered, office supplies stocked,
and any other required tools ready for the first day of work. Provide introductions to existing
employees and schedule lunches with a variety of people. Having a buddy system or assigning
42
a mentor to each new employee also is very helpful for easing tension or feelings of
nervousness.
Figure: 7. Pearls of thought for employee retention
An open line of a communication between an employee and his or her manager is a
critical goal in ensuring employee satisfaction. Managers will benefit from periodic, informal
day-to-day discussions with employees in order to understand what challenges they face and
what can be done to further enhance their short- or long-term experiences with the organization.
Managers who show a willingness to work side-by-side with employees also demonstrate their
compassion and commitment to the team's success. Offering assistance with projects creates a
feeling of mutual respect and enhances the relationship between manager and employee.
43
Most employees want to grow in their careers. Companies need to work with employees to
develop personalized training programs that meet both the developing needs of the individual
and the long-term strategies of the company.
Keep your employees healthy and happy. Encourage good health and wellness of body, mind,
and spirit. You can be creative. Bring in a yoga instructor for morning meditation. Allow for
restful breaks. Learn about your employees outside interests. Feed their minds with books,
magazine subscriptions, and concert or theater tickets.
Giving extra responsibility to employees is another way to get them engaged with the
company. However, just giving the extra responsibility does not help. The manager must spend
good time teaching the employees of how to manage responsibilities given to them so that they
do not feel over burdened.
Team leaders who create motivating environments are likely to keep their team members
together for a longer period of time. Motivation does not necessarily have to come through fun
events such as parties, celebrations, team outings etc. They can also come through serious events
e.g. arranging a talk by VP of Quality on career opportunities in the field of quality.
Employees who look forward to these events and are likely to remain more engaged.
Recreation is an important as any other tool. It helps in creating a conducive environment
making fun for everyone. Thus, it is necessary to introduce consistent recreation initiatives like
Sports, Activities, family get together and unwinding zones at the workplaces. Besides this,
cultural programmes and Birthday celebrations break the monotony of everyday work pressure
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Companies can look at third parties to provide benefits to it employees. The concept of Meal
Vouchers has become popular in IT companies. Meal Vouchers are exempted from Fringe
benefits Tax for the employer under section 115 WB of Income Tax Act. Employees then use the
Meal Vouchers to purchase food and beverages from 15000 affiliated eating joints/outlets spread
across 175 locations in India. These eateries in turn send the Meal Vouchers to the service
provider like Accor Services for reimbursement. The IT should even provide their employees
lucrative offers so that they do not leave to find new opportunities in IT companies.
45
CHAPTER -3
OBJECTIVES AND HYPOTHESIS
This chapter is followed by a discussion of the research issue. Then the research
questions, the objectives, and hypothesis of the study are presented. The chapter is concluded
with the delimitations of the research.
3.1 Problem statement
3.2 Research objectives
3.3 Hypothesis
3.4 Limitations
3.1 PROBLEM STATEMENT
The purpose of this research was to identify the employee retention strategies used by OKAYA
Infrastructure and other IT companies in India for retaining human inventory. Also, to determine
the job satisfaction level in the employees at OKAYA INFOCOM.
46
3.2 RESEARCH OBJECTIVES
The purpose of this study is to provide a better understanding of employee retention strategies
adopted by IT. In order to reach this purpose the following research questions are posed -
1.) The retention strategies adopted by various Indian IT companies.
2.) Propose strategies that these companies can adopt to get a better solution to this
Herculean problem.
3.) To undertake analysis of Job Satisfaction scores of 10 respondents, in term of the nine
Job Satisfaction sub-scales, using mathematical tools like Mean and
Standard-Deviation.
(Though the issues and options analyzed are with respect to Indian service providers, the same
may be applied to service providers across the globe as the issues and options remain the same
irrespective of place of operation.)
3.3 HYPOTHESIS
The following hypothesis will be investigated -
H1.When job satisfaction is low, turnover will be high.
. H2.When job satisfaction is high, turnover will be low.
3.4 LIMITATIONS
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The primary instrument of data collection was the Job Satisfaction Questionnaires, sent to
respondents. Two of the most important weaknesses is the low response rate and hence the limited
inferential power of the conclusions drawn from the result. In depth interviews was even one of the
data collection tool, the limitations could be due to certain biases, which exist in individuals mind
towards a particular aspect of an industry or a company based on his/her experiences. The research
was conducted within a limited duration. So a detailed and comprehensive study could not be made.
Low response of the respondents due to factors like transfer on site places and small organization
size(with 20 employees).
48
CHAPTER-4
METHODOLOGY
The term methodology refers to the way in which we approach problems and seek answers
(Taylor and Bodgan, 1998); it applies to how research is conducted. Our assumptions, interests,
and purposes shape which methodology we choose. This chapter covers the process through
which this research was carried out. It describes and discusses steps taken and methods used in
my thesis. The research conducted was based on the objectives stated in chapter 3.
4.1 Research Design
4.2 Data Collection Tools
4.3 A Qualitative Research
4.3.1Interview with HR Managers
4.4 A Quantitative Research
4.4.1 Job Satisfaction Survey
4.4.2Target Respondents
4.5 Sources of Data
4.5.1Secondary Data
4.5.2Primary Data
4.5.3 Sources of Data used in the Thesis
4.1 RESEARCH DESIGN
Figure: 8, depicts the research design adopted for undertaking the report.
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RESEARCH OBJECTIVES
QUANTITATIVE QUALITATIVE
RESEARCH RESEARCH
QUESTIONNAIRE INTERVIEWING HR
MANAGER
ANALYSIS &
CONCLUSION
The following data collection was undertaken for this project-
4.2 DATA COLLECTION TECHNIQUES
Data collection is generally split into two different methodological approaches- quantitative and
qualitative methodology.
4.3 A QUALITATIVE STUDY

50
Qualitative methodology refers in its broadest sense to research that produces descriptive data -
peoples own written or spoken words and observable behavior (Taylor and Bogdan, 1998), for
instance interviewing and talking with key target people (Pyke, 2003), and it deals with
explanatory concepts (Robson and Foster, 1989). Qualitative techniques concentrate less on
quantifiable measures, and look at, for example, the reasons "why" someone may approve or
disapprove, or like or dislike an initiative taken by an organization (Sang, 2003). Qualitative data
analysis is a process of piecing together data, of making the invisible obvious (Morse, 1994).The
answers given in qualitative interview therefore often give a more actual picture of reality and
deeper understanding of the subject studied.
4.3.1 INTERVIEW WITH HR MANAGER
Robson and Foster (1989) suggest that interviews provide opportunity to listen, observe, question
freely and interpret the individuals behavior. An interview was conducted with the HR manager
at OKAYA INFOCOM HR MANAGER . The Performa for this interview is provided in
Appendix 1.
4.4 QUANTITATIVE STUDY
The emphasis of Quantitative research is on collecting and analyzing numerical data; it
concentrates on measuring the scale, range, frequency etc. of phenomena. This type of research,
although harder to design initially, is usually highly detailed and structured and results can be
easily collated and presented statistically. Quantitative data collection techniques are formalized
51
and structured. However, quantitative data can only tell us where we are, not why, because
feelings and attitudes cannot be expressed.
4.4.1JOB SATISFACTION SURVEY
To carry out the quantitative or conclusive research a statistical analysis method has been
adopted. A statistical method is a method usually referred to when a survey is conducted. For this
research Job Satisfaction Survey (JSS) has been used to collect data.
4.4.2TARGET RESPONDENTS
The target respondents comprise of 10 respondents who have been chosen randomly from the
Executive and Managerial level at OKAYA INFRASTRUCTURE. The respondents were asked
to fill the JOB SATISFACTION SURVEY.
4.5 SOURCES OF DATA
There are two fundamental categories of data available: primary data and secondary data.
4.5.1 SECONDARY DATA
Secondary data has been collected prior to the specific research by someone else for some other
purpose. Examples of secondary data are books, research reports, and articles. Secondary data
can be divided into external data and internal data. Internal data originates from inside an
52
organization, e.g. HR manuals, leaflets, annual reports etc. External data is the information
gathered from outside the organization like- articles, books etc.
4.5.2 PRIMARY DATA
Primary data is the information gained from original sources that have been collected for a
specific research question and that is used for the first time. Consequently primary data is
collected by the researchers and has not been gathered for some other purpose. Examples of such
sources can be interviews or observations.
4.5.3 SOURCES OF DATA USED IN THE THESIS
In my thesis, I have used both secondary and primary data.
Primary data
This thesis is based on primary data collected during face- to face interviews with HR managers
of Okaya Infocom .Even questionnaires of Job Satisfaction Survey were got filled by randomly
selected respondents. Moreover, the questionnaires to the respondents were also sent and
answered through e-mails. To carry out the quantitative or conclusive research a statistical
analysis method has been adopted. A statistical method is a method usually referred to when a
survey is conducted. For this research, Job Satisfaction Survey (JSS) has been used to collect
data.
53
Secondary data
The secondary data used in this thesis is different books and articles dealing with Retention and
related subjects. The companys website, internet, HR manuals, annual reports have been used
54
CHAPTER-5
DATA ANALYSIS
This chapter will analyze and discuss the findings that are presented earlier in the Literature
Review chapter and connect them to the theory and opinions. The conclusions that have been
drawn by the interpretation of the Job Satisfaction Survey scores of 10 respondents, in terms of
nine Job Satisfaction subscales, using mathematical tools like Mean and Standard Deviation will
be presented in accordance with the purpose of the thesis.
5.1 Job Satisfaction
5.2 Models of Job Satisfaction
5.3 Measuring Job Satisfaction
5.4 Job Satisfaction Survey
5.4.1 Scoring
5.4.2 Interpretation of scores
5.5 Comparison of scores of JSS and 9 sub sets with Levensons (1972) norms
5.5.1 Comparison of JSS scores with Levensons norms
5.5.2Comparison of sub-scale PAY with Levensons norms
5.5.3Comparison of sub-scale PROMOTION with Levensons norms
5.5.4Comparison of sub- scale SUPERVISION with Levensons norms
5.5.5Comparison of sub-scale FRINGE BENEFITS with Levensons norms
5.5.6Comparison of sub-scale CONTINGENT REWARDS with Levensons norms
5.5.7Comparison of sub-scale OPERATING PROCEDURES with Levensons norms
55
5.5.8Comparison of sub-scale NATURE OF WORK with Levensons norms
5.5.9Comparison of sub-scale COMMUNICATION with Levensons norms
5.5.10Comparison of sub-scale CO-WORKERS with Levensons norms
5.1 JOB SATISFACTION
Nature of work and the state-of-mind of an individual have intrigued behavioral scientists,
psychologists, researchers and practitioners since time immemorial. Relationship with ones
superiors, peers, colleagues & subordinates, working conditions in the organization, and
degree of fulfillment that the individual derives from her/his work, have all been found to have a
correlation with job satisfaction. The positive/negative reaction to ones jobs can thus be termed
as Job Satisfaction/Dissatisfaction.
JOB SATISFACTION is a rather complex construct fraught with many definitions. Job
satisfaction can be defined as the extent to which a person derives pleasure from a job
(Muchinsky, 1993, p. 290) or as a pleasurable or positive emotional state resulting from the
appraisal of ones job (Friday & Friday, 2003 as cited in Locke, 1969).
One of the biggest preludes to the study of job satisfaction was the Hawthorne studies. These
studies (1924-1933), primarily credited to Elton Mayo of the Harvard Business School, sought
to find the effects of various conditions (most notably illumination) on workers productivity.
These studies ultimately showed that novel changes in work conditions temporarily increase
productivity (called the Hawthorne Effect). It was later found that this increase resulted, not
from the new conditions, but from the knowledge of being observed. This finding provided
56
strong evidence that people work for purposes other than pay, which paved the way for
researchers to investigate other factors in job satisfaction.
5.2 Models of job satisfaction
Affect Theory
Edwin A. Lockes Range of Affect Theory (1976) is arguably the most famous job satisfaction
model. The main premise of this theory is that satisfaction is determined by a discrepancy
between what one wants in a job and what one has in a job. Further, the theory states that how
much one values a given facet of work (e.g. the degree of autonomy in a position) moderates how
satisfied/dissatisfied one becomes when expectations are/arent met. When a person values a
particular facet of a job, his satisfaction is more greatly impacted both positively (when
expectations are met) and negatively (when expectations are not met), compared to one who
doesnt value that facet.
To illustrate, if Employee A values autonomy in the workplace and Employee B is indifferent
about autonomy, then Employee A would be more satisfied in a position that offers a high degree
of autonomy and less satisfied in a position with little or no autonomy compared to Employee B.
This theory also states that too much of a particular facet will produce stronger feelings of
dissatisfaction the more a worker values that facet.
Dispositional Theory
Another well-known job satisfaction theory is the Dispositional Theory. It is a very general
theory that suggests that people have innate dispositions that cause them to have tendencies
toward a certain level of satisfaction, regardless of ones job. This approach became a notable
57
explanation of job satisfaction in light of evidence that job satisfaction tends to be stable over
time and across careers and jobs. Research also indicates that identical twins have similar levels
of job satisfaction.
A significant model that narrowed the scope of the Dispositional Theory was the Core Self-
evaluations Model, proposed by Timothy A. Judge in 1998. Judge argued that there are four Core
Self-evaluations that determine ones disposition towards job satisfaction: self-esteem, general
self-efficacy, locus of control, and neuroticism. This model states that higher levels of self-
esteem (the value one places on his self) and general self-efficacy (the belief in ones own
competence) lead to higher work satisfaction. Having an internal locus of control (believing one
has control over her\his own life, as opposed to outside forces having control) leads to higher job
satisfaction. Finally, lower levels of neuroticism lead to higher job satisfaction.
Two-Factor Theory (Motivator-Hygiene Theory)
Frederick Herzbergs Two factor theory (also known as Motivator Hygiene Theory) attempts
to explain satisfaction and motivation in the workplace. This theory states that satisfaction and
dissatisfaction are driven by different factors motivation and hygiene factors, respectively.
Motivating factors are those aspects of the job that make people want to perform, and provide
people with satisfaction, for example achievement in work, recognition, promotion opportunities.
These motivating factors are considered to be intrinsic to the job, or the work carried out.
Hygiene factors include aspects of the working environment such as pay, company policies,
supervisory practices, and other working conditions.
58
While Hertzberg's model has stimulated much research, researchers have been unable to reliably
empirically prove the model, with Hack man & Oldham suggesting that Hertzberg's original
formulation of the model may have been a methodological artifact. Furthermore, the theory does
not consider individual differences, conversely predicting all employees will react in an identical
manner to changes in motivating/hygiene factors. Finally, the model has been criticized in that it
does not specify how motivating/hygiene factors are to be measured.
5.3 Measuring job satisfaction
There are many methods for measuring job satisfaction. By far, the most common method for
collecting data regarding job satisfaction is the Likert scale (named after Rensis Likert). Other
less common methods of for gauging job satisfaction include: Yes/No questions, True/False
questions, point systems, checklists, and forced choice answers. This data is typically collected
using an Enterprise Feedback Management (EFM) system.
The Job Descriptive Index (JDI), created by Smith, Kendall, & Hulin (1969), is a specific
questionnaire of job satisfaction that has been widely used. It measures ones satisfaction in five
facets: pay, promotions and promotion opportunities, coworkers, supervision, and the work itself.
The scale is simple, participants answer either yes, no, or cant decide (indicated by ?) in
response to whether given statements accurately describe ones job.
The Job in General Index is an overall measurement of job satisfaction. It is an improvement to
the Job Descriptive Index because the JDI focuses too much on individual facets and not enough
on work satisfaction in general. On the next page Job Satisfaction Survey is shown in Exhibit.
59
Other job satisfaction questionnaires include: the Minnesota Satisfaction Questionnaire
(MSQ), the Job Satisfaction Survey (JSS), and the Faces Scale. The MSQ measures job
satisfaction in 20 facets and has a long form with 100 questions (five items from each facet) and a
short form with 20 questions (one item from each facet. Finally, the Faces Scale of job
satisfaction, one of the first scales used widely, measured overall job satisfaction with just one
item which participants respond to by choosing a face.
5.4 JOB SATISFACTION SURVEY
The JOB SATISFACTION SURVEY is developed by Paul E. Spector. The Job Satisfaction
Survey, JSS is a 36 item, nine facet scales to assess employee attitudes about the job and aspects
of the job.
Paul E.Spector has devised a method to measure job satisfaction. It is called the job satisfaction
survey (JSS). It recognizes nine facets of job satisfaction and they are measured in the survey.
The different facets are:
1) Pay: remuneration, equity of salary.
2) Promotion: opportunity for promotion in an organization.
3) Supervision: effectiveness of immediate supervisor.
4) Benefits: monetary and non monetary fringe benefits.
5) Contingent rewards: rewards and recognition for good work.
6) Operating procedures: policies and procedure of an organization.

60
7) Coworkers: colleagues in ones work area.
8) Nature of job: tasks in a job itself.
9) Communication: information flow within the organization.
Under each of the above facets four items are assessed and a total summation of score is
computed. Each of them are rated using a six scale format ranging from strongly disagree to
strongly agree.
Each facet is assessed with four items, and a total score is computed from all items. A summated
rating scale format is used, with six choices per item ranging from "strongly disagree" to
"strongly agree". Items are written in both directions, so about half must be reverse scored.
Although the JSS was originally developed for use in human service organizations, it is
applicable to all organizations.
61
Exhibit: 1. JSS, is given on the next page.
JOB SATISFACTION SURVEY
Disagree very much
PLEASE CIRCLE THE ONE NUMBER FOR EACH QUESTION THAT

Disagree moderately
COMES CLOSEST TO REFLECTING YOUR OPINION
Disagree slightly
ABOUT IT.
Agree slightly
Agree moderately
Agree very much
1 I feel I am being paid a fair amount for the work I do. 1 2 3 4 5 6
2 There is really too little chance for promotion on my job. 1 2 3 4 5 6
3 My supervisor is quite competent in doing his/her job. 1 2 3 4 5 6
4 I am not satisfied with the benefits I receive. 1 2 3 4 5 6
5 When I do a good job, I receive the recognition for it that I should 1 2 3 4 5 6
receive.
6 Many of our rules and procedures make doing a good job difficult. 1 2 3 4 5 6
7 I like the people I work with. 1 2 3 4 5 6

8 I sometimes feel my job is meaningless. 1 2 3 4 5 6
18 1 2 3 4 5 6
9 Communications seem good within this organization. 1 2 3 4 5 6
The goals of this organization are not clear to me.
10 Raises are too few and far between. 1 2 3 4 5 6
19 I feel unappreciated by the organization when I think about what they 1 2 3 4 5 6
11 Those who do well on the job stand a fair chance of being promoted. 1 2 3 4 5 6
pay me. 1 2
3 4 5 6
12 My supervisor is unfair to me.
20 People get ahead as fast here as they do in other places. 13 4 5 62
13 The benefits we receive are as good as most other organizations offer. 1 2 3 4 5 6
21 My supervisor shows too little interest in the feelings of subordinates. 1 2 3 4 5 6
14 I do not feel that the work I do is appreciated. 1 2 3 4 5 6
22 The benefit package we have is equitable. 1 1 2 2 3 3 4 45 5 6 6
15 My efforts to do a good job are seldom blocked by red tape.
23 There are few rewards for those who work here. 1 2 3 4 5 6
16 I find I have to work harder at my job because of the incompetence of 1 2 3 4 5 6
24 I have too much to do at work. 1 2 3 4 5 6
people I work with.
25 I enjoy my coworkers. 1 2 3 4 5 6
17 I like doing the things I do at work. 1 12 23 34 45 56 6
26 I often feel that I do not know what is going on with the organization.
27 I feel a sense of pride in doing my job. 1 2 3 4 5 6
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28 I feel satisfied with my chances for salary increases. 1 2 3 4 5 6
29 There are benefits we do not have which we should have. 1 2 3 4 5 6
30 I like my supervisor. 1 2 3 4 5 6
31 I have too much paperwork. 1 2 3 4 5 6
32 I don't feel my efforts are rewarded the way they should be. 1 2 3 4 5 6
33 I am satisfied with my chances for promotion. 1 2 3 4 5 6
34 There is too much bickering and fighting at work. 1 2 3 4 5 6
35 My job is enjoyable. 1 2 3 4 5 6
36 Work assignments are not fully explained. 1 2 3 4 5 6
5.4.1 SCORING
1. The respondents are asked to fill in their responses on the basis of a six point Agree-
Disagree Likert11 Scale (Summated Rating Scale). The scale is given below
1 = Disagree Very Much 4 = Agree Slightly
2 = Disagree Moderately 5 = Agree Moderately
3 = Disagree Slightly 6 = Agree Very Much
2. Out of the 36 items in the Job Satisfaction Survey, 17 items are in a positively worded
direction and the rest are in a negatively worded direction. Every item reflects an
evaluative statement. If an individual agrees with an item, it reflects a positive or negative
attitude about the job.
3. The negatively worded items are 2, 4, 6, 8, 10, 12, 14, 16, 18, 19, 21, 23, 24, 26, 29, 31,
32, 34 and 36. These negatively worded items are reverse scored and added to the scores
of the positively worded items. Only this way the total job satisfaction score can be
calculated correctly. For example, if an individual gives a score of 6 (agreeing very
much) on a negatively worded item, this score will be equivalent to a score of 1, which
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represents strongest disagreement on a positively worded item in the job satisfaction
survey.
In Diagram ., the column on the left contains the original score, while that on the right contains
the reverse score.
Exhibit:2 .JSS Scoring
1=6
2=5
3=4
4=3
5=2
6=1
Say for instance, an individual has given a score of 2 responding to item number 10, this
should be reverse-scored and taken as 5.
3. Each item in the job satisfaction survey is a part of one of the nine job satisfaction sub-
scales. Each sub-scale includes four items. Exhibit:3, depicts the division of all the 36
items in the job satisfaction survey.
// Exhibit:3 Distribution of Items in Job Satisfaction Survey
Sub-scale Item Numbers
Pay 1 10 19 28
Promotion 2 11 20 33
Supervision 3 12 21 30
Fringe benefits 4 13 22 29
Contingent rewards 5 14 23 32
Operating procedures 6
64 15 24 31
Co-workers 7 16 25 34
Nature of work 8 17 27 35
Communication 9 18 26 36
5. An individual can score a maximum score of 24 on each of the nine facet sub-scales, if s(he)
gives a score of 6 on each of the four items in a particular sub-scale. Similarly, a respondent can
score a total minimum score of 4 on each of the nine sub-scales, if s(he) gives a score of 1 on
each of the four items in a particular sub-scale. This means that scores on each of these sub-scales
can range between 4 and 24.
6. The total score on the job satisfaction survey can range from 36 to 216. This is because an
individual can give a maximum score of 6 on each of the 36 items in the Job Satisfaction
Survey, resulting in a maximum possible total score of 216. Similarly, an individual can give a
minimum score of 1 on each of the items in the JSS, leading to a minimum possible JSS score
of 36.
7. To convert the total score on the job satisfaction survey into a 100-point scale, the score is
multiplied by 0.46.
The nine facets of the Job Satisfaction Scale and their description are given in Exhibit:4
Exhibit:4,Job Satisfaction Sub-Scales
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S. No. Sub-Scale Description
1. Pay Pay and remuneration

2. Promotion Promotion opportunities
3. Supervision Immediate supervisor
4. Fringe benefits Monetary and non monetary fringe benefits
5. Contingent rewards Performance based rewards, appreciation, recognition
6. Operating procedures Operating policies and procedures
7. Co-workers People you work with
8. Nature of work Job tasks themselves
9. Communication Communication within the organization
66
5.4.2 INTERPRETATION OF SCORES
1. A high score on the job satisfaction survey will represent a high degree of job
satisfaction. However, to interpret the level of job satisfaction accurately, the Mean of all
the JSS scores obtained from the 10 respondents at OKAYA INFOCOM is calculated.
2. There are nine sub-scales in the job satisfaction survey. Four items represent each sub-
scale. The total of these four items in each sub-scale for every respondent is calculated
individually. Then, the scores so obtained for each sub-scale (from 10 respondents) is
totaled to calculate the Mean. The Mean is then compared with the norms suggested by
Levenson (1972).
The following interpretation can be done after comparison of the Mean with the norms
a. If Mean is higher than the norm in a particular scale; the respondents exhibit
a high level of satisfaction on that scale.
b.. If the Mean is lower than the norm in a particular scale, the respondents
exhibit a low level of satisfaction on that scale.
c. If the Mean falls within the range, Mean plus SD and Mean minus SD,
then the respondents exhibit an acceptable level of satisfaction on that scale.
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5.5 COMPARISON OF SCORES ON JOB SATISFACTION SURVEY & ITS
9 SUB- SCALES WITH LEVENSONS (1972) NORMS
EXHIBIT 5
LEVENSONS (1972) JOB SATISFACTION SURVEY NORMS
Sub-scale Mean StandardDeviation
Pay 10.5 5.1
Promotion 11.5 5.1
Supervision 19.9 4.6
Fringe benefits 13.1 5.0
Contingent rewards 13.4 5.1
Operating procedures 12.5 4.6
Co-workers 18.8 3.7
Nature of work 19.2 4.4
Communication 14.0 5.0

Total satisfaction 133.1 27.9
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?? 5.5.1 COMPARISON OF JSS SCORES WITH LEVENSONS (1972)
NORMS
Comparison & analysis
As per the calculation of the total job satisfaction score and the Mean, the following results were
derived
Total Satisfaction Score = 727.72
Mean = 72.77
As per the norms suggested by Levenson (1972), following are the norms for the Mean and
Standard Deviation for total satisfaction
Mean Norm = 133.1
Standard Deviation Norm = 27.9
The total satisfaction Mean of all the 10 respondents is compared with the norms suggested by
Levenson (1972). According to the norms, a deviation of 13.95 to +13.95 is acceptable. Since
the Mean (72.7) does not fall within the range, Mean minus SD (119.15) and Mean plus SD
(147.05). The respondents seem to be slightly dissatisfied. However, the detailed analysis of sub-
sets will provide a clearer picture of satisfaction level of employees at OKAYA INFOCOM
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5.5.2 COMPARISON OF SUB-SCALE PAY WITH LEVENSONS (1972)
NORMS
EXHIBI T 6-Tabulation of Pay Sub-Scale
S. No. Item 1 Item Item Item Total
10 19 28
1 6 6 6 6 24
2 3 3 4 5 15
3 3 4 3 1 11
4 5 2 2 4 13
5 2 2 3 5 12
6 3 3 4 5 15
7 6 6 6 6 24
8 2 3 2 5 12
9 3 3 4 1 11
10 4 2 2 5 13
TOTAL 150
MEAN 15.0
As per the calculation of the pay sub-scale score and the Mean the following results were derived
Pay Score = 150
Mean = 15
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As per the norms suggested by Levenson (1972), following are the norms for the
Mean and Standard Deviation for Pay
Mean Norm = 10.50
The pay Mean of the 10 respondents is compared with the norms suggested by Levenson (1972).
According to the norms, a deviation of 2.55 to +2.55 is acceptable. Since the pay Mean (14.70)
does not fall within the range, Mean minus SD (7.95) and Mean plus SD (13.05), it is higher
than the upper limit of the range. The sample size, therefore exhibits a higher level of job
satisfaction in terms of pay and remuneration, when compared with the norms. A majority of
respondents feel they are paid a fair amount of for the work they do.
5.5.3 COMPARISON OF SUB SCALE PROMOTION WITH LEVENSONS

NORMS
EXHIBIT 7- TABULATED SCORE OF PROMOTION
71
10 19 28
1 6 6 6 4 22
2 5 6 6 4 21
3 3 6 4 6 25
4 2 5 3 3 13
5 4 5 6 3 18
6 5 4 6 6 21
7 6 4 6 6 22
8 4 6 3 5 18
9 3 4 6 6 25
10 4 4 6 6 22
TOTAL 186
MEAN 18.6
As per the
calculation of the promotion sub-scale score and the Mean the following results were
derived
72
Promotion Score = 186
Mean = 18.6
Standard Deviation for Promotion
Mean Norm = 11.50
According to the norms, a deviation of 2.55 to +2.55 is acceptable. Since the promotion mean
(18.2) does not fall within the range mean minus SD (8.95) and mean plus SD (14.05). It
exhibits a higher level of job satisfaction in terms of promotion, when compared with Levensons
norms. A majority of respondents feel that people get ahead in organizations, as they do in other
places. The respondents feel there are ample chances of promotion.
5.5.4 COMPARISON OF SUB SCALE SUPERVISION WITH LEVENSONS

(1972) NORMS
EXHIBIT8- TABULATED SCORE OF SUPERVISION
73
12 21 30
1 6 6 6 6 24
2 5 6 3 3 17
3 6 6 4 6 22
4 6 5 6 5 22
5 5 6 6 5 22
6 3 5 3 6 17
7 6 6 6 6 24
8 5 5 6 6 22
9 6 6 4 6 22
10 5 6 6 5 22
TOTAL 214
MEAN 21.4
As per the calculation of the supervision sub-scale score and the Mean the following results were
derived
Supervision Score = 214
74
Mean = 21.4
Standard Deviation for Supervision
Mean Norm = 19.90
The supervision mean of the respondents is compared with Levensons norms. According to the
norms, a deviation of2.30 to+2.30 is acceptable. Since the supervision mean (21.4), falls within
the range mean minus SD (17.60) and mean plus SD (22.20). It exhibits an acceptable level of
satisfaction in terms of immediate supervisor, when compared with the norms. The respondents
feel that their supervisors are fully competent in doing his/her work.
5.5.5 COMPARISON OF SUB SCALE FRINGE BENEFITS WITH

LEVENSONS NORMS
EXHIBIT 9- TABULATED SCORE OF FRINGE BENEFITS

75
13 22 29
1 3 6 6 4 19
2 3 4 5 3 15
3 3 4 5 3 16
4 5 5 3 4 17
5 4 5 5 5 17
6 3 3 5 4 15
7 4 3 6 6 19
8 3 4 5 5 17
9 3 6 4 3 16
10 4 5 5 3 17
TOTAL 168
MEAN 16.8
As per the
calculation of the fringe benefits sub-scale score and the Mean the following results were derived
Fringe benefits Score = 168

76
Mean = 16.8
Standard Deviation for Fringe benefits
Mean Norm = 13.10
The fringe benefits mean of the respondents is compared with the norms suggested by Levenson
(1972). According to the norms, a deviation of 2.50 to +2.50 is acceptable. Since the fringe
benefit mean (16.8),does not fall within the range mean minus SD (10.60) and mean plus SD
(15.60). Therefore, the sample size, exhibits a greater level of satisfaction, in terms of monetary
and non- monetary fringe benefits, when compared with the norms. The respondents feel that the
benefits they get are as good as most other organizations offer.
5.5.6 COMPARISON OF SUB SCALE CONTINGENT REWARDS WITH

LEVENSONS (1972) NORMS
EXHIBIT 10- TABULATED SCORE OF CONTINGENT REWARDS
77
S. No. Item 5 Item 14 Item 23 Item 32 Total
1 6 6 3 1 16
2 5 6 3 2 16
3 6 6 3 3 18
4 3 5 4 2 14
5 2 3 4 2 11
6 4 6 4 2 16
7 6 2 6 2 16
8 2 4 2 3 11
9 6 5 4 3 18
10 3 3 6 2 14
TOTAL 150
MEAN 15.0
As per the calculation of the contingent rewards sub-scale score and the Mean the following
results were derived
Contingent rewards Score =150
Mean = 15.0
78
Standard Deviation for Contingent rewards
Mean Norm = 13.40
The contingent rewards mean of the respondents is compared with Levensons (1972) norms.
According to the norms, a deviation of 2.55 to + 2.55 is acceptable. Since, the contingent
rewards mean (15) falls within range mean minus SD (10.85) and mean plus SD (15.95). The
respondents exhibit an acceptable level of satisfaction in terms of appreciation, recognition, and
rewards for good work, when compared with the norms. Majority of respondents feel that when
they do a good job, they receive the recognition that they deserve and feel appreciated for the
work they do. The respondents also seem to feel that there are sufficient rewards for those who
work in the organization and that their efforts are rewarded.
5.5.7 COMPARISON OF SUB SCALE OPERATING PROCEDURES WITH

EXHIBIT11- TABULATED SCORE OF OPERATING PROCEDURES
79
1 4 1 1 2 8
2 4 5 2 4 15
3 6 4 2 4 16
4 4 4 5 2 15
5 6 2 2 2 12
6 2 5 4 4 15
7 1 1 4 2 8
8 6 2 2 2 12
9 6 4 2 4 16
10 5 4 4 2 15
TOTAL 132
As per the
MEAN 13.2
calculation of the
operating
procedures sub-scale score and the Mean the following results were derived
Operating procedures Score =132
80
Mean = 13.2
Standard Deviation for Operating procedures
Mean Norm = 12.50
The operating conditions Mean of the 10 respondents is compared with the norms suggested by
Levenson (1972). According to the norms, a deviation of 2.30 to +2.30 is acceptable. Since, the
operating procedures mean (13.2), falls within the range mean minus SD (10.20) and mean plus
SD (14.80), it is an acceptable level of satisfaction on the operating conditions sub-scale. This
exhibits that the respondents feel that rules and regulations in the organization do not act as a
hindrance in performing their jobs. They also feel that their efforts to do a good job are very
rarely blocked by red tape and the work that they are assigned is well within their capacities.
5.5.8 COMPARISON OF SUB-SCALE NATURE OF WORK WITH

81
EXHIBIT 12- TABULATED SCORE OF NATURE OF WORK
1 6 6 6 6 24
2 4 6 5 5 20
3 4 6 5 5 20
4 2 5 5 5 17
5 6 5 4 5 20
6 4 5 6 5 20
7 6 6 6 6 24
8 5 6 5 4 20
9 3 6 6 5 20
10 3 6 5 3 17
TOTAL 132
MEAN 13.2
As per the
calculation of the nature of work sub-scale score and the Mean the following results were derived
82
Nature of work Score =202
Mean = 20.2
Standard Deviation for Nature of work procedures
Mean Norm = 19.20
The nature of work mean of all the 10 respondents is compared with the norms suggested by
Levenson (1972). According to the norms, a deviation of 2.20 to +2.20 is acceptable. Since, the
operating procedures mean (20.2), falls within the range mean minus SD (17) and mean plus
SD (21.40), it is an acceptable level of satisfaction on the nature of work conditions sub-scale.
This shows that the employees like doing the things they do at work.
5.5.9 COMPARISON OF SUB-SCALE COMMUNIATION WITH


83
EXHIBIT 13- TABULATED SCORE OF COMMUNICATION
1 6 6 6 6 24
2 5 6 3 6 20
3 5 6 3 6 20
4 5 5 2 5 17
5 3 6 2 6 17
6 4 4 6 6 20
7 5 5 5 5 20
8 4 6 5 6 21
9 4 5 3 6 18
10 6 6 2 5 19
TOTAL 196
MEAN 19.6
As per the
calculation of the communication sub-scale score and the Mean the following results were
derived
84
Communication Score =196
Mean = 19.6
Standard Deviation for
Mean Norm = 14
Standard Deviation Norm = 5
The communication mean of the respondents is compared with norms of Levenson (1972).
According to the norms, a deviation of 2.50 to +2.50 is acceptable. Since, the communication
mean (20.2), does not fall within the range mean minus SD (11.50) and mean plus SD
(16.50), it exhibits a higher level of satisfaction. A majority of employees have a clear
understanding of goals in the organization. The information flow is smooth in the organization.
5.5.10 COMPARISON OF SUB-SCALE CO- WORKERS WITH

85
EXHIBIT 14- TABULATED SCORE OF CO- WORKERS
1 6 6 6 6 24
2 6 1 4 6 17
3 6 1 6 6 19
4 5 6 5 5 21
5 5 5 5 6 21
6 4 6 1 6 17
7 6 6 6 6 24
8 5 5 5 1 21
9 6 1 6 6 19
10 5 6 5 5 21
TOTAL 204
MEAN 20.4
As per the calculation of the co-workers sub-scale score and the Mean the following results were
derived
86
Co-workers Score =204
Mean = 20.4
Standard Deviation for
Mean Norm = 18.80
Standard Deviation Norm =3.70
According to the norms, a deviation of 1.85 to +1.85 is acceptable. Since, the co-workers mean
(20.4), falls within the range mean minus SD (16.95) and mean plus SD (20.65), its slightly
close to the upper limit. The sample size, therefore, exhibits an acceptable level of satisfaction, in
terms of people they work with, when compared with the norms. The employees are comfortable
working with their subordinates and superior
Chapter 6
CONCLUSION
87
In this final chapter, I have concluded the findings of the study, and formulated the findings in
generalized terms.
6.1 Conclusion- inference
6.1 CONCLUSION
INFERENCE
The research hypothesis, When job satisfaction is low, turnover will be high and, when job
satisfaction is high, turnover will be low, has been proved with JOB SATISFACTION
SURVEY.
This report fulfills the three research objectives, which are mentioned below--
1. The retention strategies adopted by various Indian IT Companies.
2. Propose strategies that these companies can adopt to get a better solution to this
Herculean problem.
3. To undertake analysis of Job Satisfaction scores of 10 respondents, in term of the
nine Job Satisfaction sub-scales, using mathematical tools like Mean and
Standard Deviation.
The project report addresses common problems across similar industries (IT , Construction,
manufacturing, engineering), which are high attrition rate and job dissatisfaction. These problems
affect not only employees, but also the whole organization.

88
89
FINDINGS
After the analysis of the JOB SATISFACTION SURVEY scores obtained from the employees
at Okaya Infocom , following can be concluded---
1. The majority of employees at Okaya are a happy bunch.
2. The employees are satisfied with the work they perform.
3. The respondents feel they are paid fair amount for the work they do and anticipate
chances of salary increase in the organization.
4. The employees feel comfortable working with their peer, subordinates, and superiors.
5. The scores clearly suggest that in future, Okaya would be able to achieve its goals.
6. The organization would also save costs in controlling attrition.
7. Costs on training, re-training, counseling sessions would be saved.
8 . On the other hand, it is important to keep in mind, that there can be compulsory
attrition due to other factors, which cannot be ignored.
The strategies suggested in the paper are not exhaustive to retain the human capital of
IT and Engineering companies. These are just the basics and if implemented in a
proper way can give good results.
Hire people, who are better than you are, then leave them to get on with it;
Look for people who will aim for the remarkable, who will not settle for the routine.
DAVID OGILVY
90
CHAPTER 7
BIBLIOGRAPHY & WEBLIOGRAPHY
Books/journals/articles/websites
Specter, P.E. (1985), Measurement of human service staff satisfaction:
Development of the Job Satisfaction Survey. American Journal of Community
Psychology, 13, 693-713.
CURRENCY (a quarterly newsletter for community bank executives) VOL.16,
NO.2 SPRING 2004.
Article on Salary Increase Budgets Below 4% for 2008 and 2009 . By
http://www.worldatwork.org/waw/adimComment?id=28127
Aniruddh Banerjee, Attrition & Informal Group: Have You Looked Inside the
Sleeves? www.iipmthinktank.com
Bavendam James. Managing job satisfaction, special reports Volume 6 (2000)
<http://www.employeesatisfactions.com/>
Wikipedia.
http://en.wikipedia.org/wiki/Motivation
www.tatamcgrawhillconsructions.com
http.www.dbrownonline.com/mt/mt-tb.cgi/273
Lyndsay Swinton, 'Management for the rest of us' (link to www.mftrou.com)
91
APPENDIX 1
HR MANAGER INTERVIEW PEROFORMA
Q-1. Do you collect exit interview data? If so, can we have the form? Who do you
collect it from? What do you do with the data?
Q-2. Do you offer any bonuses linked to company performance? (Retention bonuses)
Q-3. Where do most of your employees come from? What is the typical recruitment process?
Q-4. Do you operate teams?
Q-5. Roughly how many hours of training per annum do you provide for new
employees, current employees?
Q-6. Do you provide any job security guarantees?
Q-7. Does your firm have a particular set of values that it strongly promotes?
Q-8. Do you provide employees with detailed information on company performance?
What form?
92
Q-9. In your opinion, what are the main reasons for people leaving?
Q-10. What HR policies do you have in place to control turnover what was mean to
work but hasnt?
93

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SUMMER TRAINING PROJECT REPORT

Strategic Planning Employee Retention Policies &

Submitted to Mahamaya Technical University, Noida in the partial

ABES INSTITUTE OF TECHNOLOGY

Under the Guidance of: Submitted By:

2012-2014), Roll No:1229070016 has undergone her Summer Training on the

topic RETENTION POLICIES AND JOB SATISFACTION under my

guidance and supervision from 18 June 2013 to 18 August 2013 .

Signature of Project Guide

have had the ability to complete my report.

accomplish my summer internship at OKAYA. Special thanks to my project guide

members at ABES IT.

Date: Karishma Rai

Place: MBA (2013-2014)

specializes in enhancing organizational performance through the effective and competent

advantages that drive future growth and success.

1.2Outline of the thesis... 14

2.OKAYA INFOCOM-Company Profile.. 16

2.3Why People leave Job. 29

2.4Present strategies adopted to retain employees... 33

2.5Strategies suggested to retain talent 40

OBJECTIVES & HYPOTHESIS.... 44

4.2Data Collection Techniques 48

4.3A Qualitative Study. 49

4.3.2Interview with HR Manager 49

4.4.1Job Satisfaction Survey (JSS).. 50

4.5.3Sources of Data Used In the Thesis.. 52

5.2Models of Job Satisfaction 55

5.3Measuring of Job Satisfaction 57

5.4Job Satisfaction Survey.. 58

5.4.2 Interpretation of scores.. 67

5.5.1 Comparison of JSS scores with Levensons norms.. 69

5.5.3Comparison of sub-scale PROMOTION with Levensons norms 72

5.5.4Comparison of sub- scale SUPERVISION with Levensons norms. 74

5.5.5Comparison of sub-scale FRINGE BENEFITS with Levensons norms.. 76

5.5.6Comparison of sub-scale CONTINGENT REWARDS with

5.5.7Comparison of sub-scale OPERATING PROCEDURES with

5.5.8Comparison of sub-scale NATURE OF WORK with Levensons norms.. 82

5.5.9Comparison of sub-scale COMMUNICATION with Levensons norms... 83

5.5.10Comparison of sub-scale CO-WORKERS with Levensons norms... 86

6.1 Conclusion- inference & Findings... 88

7.2 Annexure .... 93

FIGURE 1: The Outline of the Thesis.

FIGURE 3: Organization Structure.

FIGURE 4: Hierarchy of Needs (MASLOW).

FIGURE 5: Total Rewards.

FIGURE 6: Retention of Employees

FIGURE 7: Pearls of thought for employee retention

FIGURE 8: Research Design of the Project Report.

EXHIBIT 1: Job Satisfaction Survey Form.

EXHIBIT 2: JSS Scoring.

EXHIBIT 3: Distribution of Items in Job Satisfaction Survey.

EXHIBIT 4: Job Satisfaction Sub-Scales.

EXHIBIT 5: Levensons (1972) JSS norms.

EXHIBIT 6: Tabulated score of Pay Sub-Scale.

EXHIBIT 7: Tabulated score of Promotion Sub-Scale.

EXHIBIT 8: Tabulated score of Supervision Sub-Scale.

EXHIBIT 9: Tabulated score of Fringe benefits Sub-Scale.

EXHIBIT 10: Tabulated score of Contingent rewards Sub-Scale.

EXHIBIT 11: Tabulated score of Operating procedures Sub-Scale.

EXHIBIT 12: Tabulated score of Nature of work Sub-Scale.

EXHIBIT 13: Tabulated score of Communication Sub-Scale.

EXHIBIT 14: Tabulated score of Co-workers Sub-Scale.

APPENDIX 1: HR Manager Interview Performa