Shivaji University, Kolhapur

CHAPTER 1

1. INTRODUCTION TO THE STUDY

Employees are the most valuable assets of an organization. It is they who add value
to the organization in terms of quantity and quality as well. To find, attract, develop
and retain the right talent is a major part of management. Therefore, it is
indispensable to maintain a permanent and promising workforce; which over the
years has become a tough task for employers and thereby increased attrition in the
organizations. Attrition is a major problem which highlights in all the organizations.
“Attrition is aid to be the gradual reduction in the number of employees through
retirement, resignation or death. It can also be said as Employee Turnover or
Employee Defection”. Whenever a well -trained and well-adapted employee leaves
the organization, it creates a vacuum. So, the organization loses key skills, knowledge
and business relationships. Modern managers and personnel administrators are
greatly interested in reducing Attrition in the organization, in such a way that it will
contribute to the maximum effectiveness, growth, and progress of the organization.
Attrition costs a lot. It's one of the largest costs in all types of organizations, yet it's
also one of the least understood. Organizations need to find new approaches to retain
the most effective manpower. Retaining the employees involves understanding the
intrinsic motivators as individuals differ a lot. Retaining employees is a critical and
on-going effort. Staffs require reinforcement, direction and recognition to grow and
remain satisfied in their positions. Managers must recognize this and understand that
establishing such fundamentals demonstrates their objectives to support nature and
motivate their employees. This research is an attempt to find out the causes of
attrition from different dimensions and have proposed some ways in which this issue
can be addressed. It undertakes the effect of the same on employer and employee
both.
Attrition is defined as a gradual reduction of the size of workforce through normal
means, such as retirement, resignation or death. This is normal in any business and
industry. Attrition rate is defined as the rate of shrinkage in size or number. This type
of reduction in staff is one way a company can decrease labour costs: the company
simply waits for its employees to leave and freezes hiring. Attrition of employees in a
limited measure is desirable for influx of new ideas in any type of organization. It
helps organizations to maintain their agility in fast changing environment. It brings in
new blood, opens up new vistas for change, development and improvement, shows
avenues to expand operations and add to the creative lines of the organizations.
Attrition in a limited measure can thus bring gains to the organization. However if
attrition increases beyond a certain level, the gains are transformed into pains.
Recruiters explain that high attrition rates significantly increase the investment made
on. Significant investments in time and money need to be made for acquiring

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Shivaji University, Kolhapur

employees in any organization. These can never be translated into profit when
attrition is high.
Effective employee retention is a systematic effort by employers to create and foster
an environment that encourages current employees to remain employed, by having
policies and practices in place that address their diverse needs. A strong retention
strategy, therefore, becomes a powerful recruitment tool. Retention of key employees
is critical to the long-term health and success of any organization. It is a known fact
that retaining the best employees ensures customer satisfaction, increased product
sales, satisfied colleagues and reporting staff, effective succession planning, and
deeply embedded organizational knowledge and learning. Employee retention matters
as organizational issues such as training time and investment, lost knowledge,
insecure employees, and a costly candidate search are involved. Hence, failing to
retain a key employee is a costly proposition for an organization. Various estimates
suggest that losing a middle manager in most organizations costs up to five times his
salary.
Intelligent employers always realize the importance of retaining the best talent.
Retaining talent has never been so important in the Indian scenario; however, things
have changed in recent years. In prominent Indian metros at least, there is no dearth
of opportunities for the best in the business, or even for the second or third best.
Retention of key employees and treating attrition troubles has never been so
important to companies.
1.1 Research Problem :

Comparative study of attrition and retention at Mutha Group of Foundries.

1.2 Objectives of the Study:

1) To study the reason why the attrition occurs and the possible way to reduce
it.

2) To study insight about why employee choose to stay at Mutha group of

Foundries.

3) To study impact factor of employee attrition.

1.3 Scope of The Study:

1.3.1 Geographical Scope:

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Shivaji University, Kolhapur

This study is confined at Mutha Group of Foundries -H21, Satara-415003,

Maharashtra, India.

1.3.2 Analytical Scope:

Analytical scope is related with use of different statistical tools. The study aimed to
find the feedback of employees regarding the attrition and retention in Mutha Group
of Foundries -H21.

1.3.3 Conceptual scope:

Study the attrition and retention on the basis of company information.

1.4 Research Methodology

The type of research work is the descriptive type of research work.

1.4.1 Sample Design:

a. Population- Sample size of minimum 30 samples.

b. Sample Unit- Samples are taken from different departments.
c. Sample Technique- Convenience sampling method has been used.

1.4.2 Data Required:

1. Primary data
The primary data collected through the communication with the employees and the
actual work in the company.

2. Secondary Data
The secondary data collected through books, websites.

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Shivaji University, Kolhapur

1.6 Chapterization:

Chapter Chapter Content

No Name
Chapter I INTRODUCTION TO THE Introduction
STUDY Objective and importance of the study
Scope of the study
Research Methodology

Chapter II THEROTICAL Attrition & Retention,

BACKGROUND Indian Scenario

Chapter III INTRODUCTION TO THE Name of the unit

ORGANIZATION Location or address of the unit
Brief history of the unit and present
position
Vision ,Mission ,Products, Services ,
Organization Chart
Chapter IV ANALYSIS AND Introduction
INTERPRETATION OF Data analysis & Interpretation- Tables
DATA Graphs & Data

Chapter V FINDINGS, Findings

SUGGESTIONS & Suggestions,
CONCLUSION Conclusion.

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