kamboj project

8/6/2019 KAMBOJ PROJECT

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RETENTION STRATEGIESFOLLOWED BY VARIOUS

AUTOMOBILE COMPANIES &RECOMMENDATIONS TO

SONALIKA

In partial fulfillment of the requirements for theAwards of M A S T E R S O F B U S I N E S S

A D M I N I S T R AT I O N .

SUBMITTED TO PUNJAB TECHNICAL UNIVERSITY.

Lakhbir singhkamboj MBA

623221673

Session: 2006-2008


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AIMT AMBALA CITY


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It is my privilege to acknowledge profound

Gratitude & indebtedness towards my respected & learned

teachers for their inspirat ion, constructive crit icism &

valuable suggestions. Their precious guidance &

unrelenting support kept me on track through my training.

I want to thank a l l the employees of I N T E R N AT I O N A L

T RA CT OR S L IM IT ED ( IT L) , H OS HI AR PU R f or their


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warm support & co-operation in successful running of the

training work.

I am highly obliged to Ms. Manika Kalia,

Mr. Rajesh Kumar & Ms. Parul Malhotra my project

leaders , whose t imely advice & const ruct ive cri ticism

helped me in completing the project.

Manjot kaur saini

TABLE OF CONTENTS

Executive summary

Company Profile

Introduction

Objectives of the study & scope


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Research Methodology& Design

Data Presentation & Analysis

Findings

Conclusion

Recommendations

Limitations

Bibliography

Questionnaire

Economic factors across the nation have impacted the private

and public sectors regarding work force stability. Losing good

employees is expensive & has a direct impact on yours firms

products & services. Business managers & human resource

professionals know the cost of turnover. Many firms have been

able to establish some relationship between employees

satisfaction & customer satisfaction.


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Other firms are beginning to put actions

behind the words our people are our most important asset by

thinking of their employees as their customers.

The key is to drive retention by

motivating employees. One way to lay a foundation for an

employee-as-customer retention strategy is to base it on

Frederick Hertzbergs "hygiene and motivation" factors.

Retention strategies of various

automobile companies had taken into consideration & they formthe base for determining the retention strategies of sonalika

(ITL).


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Established in 1969, Sonalika group since the

inception has tired to understand customer need to be

facilitating them with its value for money products. The Company

has a state of art manufacturing facilities, spread in acres,

located in the free shrubs of Punjab and Himachal Pradesh.

Sonalika is one of the t o p f i v e tractor

manufacturing companies in India. The Sonalika Group product

listing does include the manufacturing of tractors, multi utility

vehicles, Engines and various farm equipments.

Today the group stands with an appropriate

t u rn o ve r o f 1 2 00 C r o r e I N R . A n a ve r ag e g ro w t h o f 3 0 %

makes it one of the fastest growing corporate in India. Its also

one of the free debt free company group strengthens an

approximate staff count o f 3 0 0 0 e m p l o y e e s .
http://www.sonalika.com/di60.htm


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No, Doubt that the sonalika products has created

a niche for themselves not in India but also in foreign market. As

at our production any defect even at micro level is been taken

care of and justified.

It has been our visions to cater the agriculture

and auto industry with qualify abrasive products through untiring

dedication and leadership.

The industry has gradually transformed itself into a world class player involved in building state of art products,

solutions and technologies.

International Tractors Limited (ITL)

Sonalika Agriculture Industries

Sonalika Capital Limited


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Punjab Agriculture Industries

Casting Corporation Of India

International Cars & Motors Limited (ICML)

International Auto-trac Finance Limited (IAFL)

At present the company has a strong nation wide

network of 528 dealers. The distribution in various states is:

states Dealers

network

1. Andhra Pradesh -------------- 26


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2. Assam--------------------------- 4

3. Bangladesh-------------------- 1

4. Bihar---------------------------- 37

5. Gujarat------------------------ 31

6. Haryana----------------------- 37

7. Himachal Pradesh------- 4

8. Jammu & Kashmir-------- 1

9. Karnataka------------------- 18

10. Kerala------------------------ 1

11. Madhya Pradesh--------- 68

12. Maharasthra--------------- 35

13. Mizoram-------------------- 1

14. Nepal------------------------- 9

15. Orissa----------------------- 10

16.

Punjab---------------------- 48 17. Rajasthan------------------ 53

18. Tamil Naidu--------------- 19

19. Uttar Pradesh------------- 131


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20. West Bengal------------- 14

The distribution of

dealers network has helped company to provide sales and

services to its customers. The company is catering to the market

not only throughout India but also various other countries like

Nepal & Sri Lanka.


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Sonalika Group believes in treating its

employees with care and concern. For an organization that is

primarily made up of human resources, treating them well and

with respect is our utmost concern.

When the systems, structure, policies,

procedures and practices of an organization are designed and

lived out so that employees genuinely feel that they come first,

trust is the result.

I T L G r o u p is synonymous with

fair business practices and ethics,

quality service and a commitment to society.


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To be the leader in the chosen fields with reputation for

Performance, Customer Care and Transparency.

To be a dynamic growth oriented enterprise in which individuals

are highly motivated team players taking up challenges and

aiming towards excellence and leadership always.

To identify and further diversify into new and exciting businesses

which we enable translate into profitable environments for our

Partners, our People, and our Society within our markets.


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Thirty-three years ago we saw a dream that we have worked to

fulfill relentlessly. This dream was 'to make possible the total

mechanization of Indian agriculture,' so that Indian farmers can

also stand on the forefront of the world in terms of productivity

and technology. Our dream has been to give them a new future,

full of new hopes and challenges. Challenges, that Sonalika will

help every farmer meet' It is this inspiration that has encouraged

us to achieve a new every moment.

International Tractors Limited was incorporated on

October 17, 1995 for the manufacture of Tractors and has

since then built a distinct position for itself in the Tractor

industry. ITL is manufacturing various Tractors of


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S on al ik a br an d b et we en 3 0 H. P. t o 75 H. P. & CE RE S

brand between 60HP to 90HP. The Tractors manufactured by

the company have secured a reputation of performance, quality

and reliability in the market because of their maximum pulling

power, minimum fuel consumption and Emission. All this makes

ITL the fifth largest tractor sell ing company in India and

the number one company in Nepal.

These tractors are also exported to various

o ther count ri es a lso inc luding F rance, Sou th Afr ica,

Aus tr al ia , Z imbabwe, S ri Lanka , Canada, Nepal , and

Bangladesh etc.

The company's marketing efforts are

promoted by the network of 600 Dealers, 400 Sub dealers and 50

Stockiest supervised by various regional sales offices. Such a

networking has enabled the company to grow like a well-knit

family whose roots lie in its customers, who have been providing

constant feedback and support to allow the company to turn their

dreams into products.

It bears testimony to the fact that

company is having world-class R&D facilities , maintaining


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controls and systems of International Standards and

Environmental norms.

Sonalika International Tractors have also

been approved for subsidy under various schemes by Ministry of

Agriculture, Govt. of INDIA. A number of banks have approved

Sonalika Tractor for financing and entering into a tie Up for easy

financing.

ITL went into collaboration with Renault agriculture of

France in July 2000. Renault Agriculture is a subsidiary of the

Renault Group with 51% stake owned by CLAAS, Germany.

Renault Agriculture is the largest tractor manufacturing company

in Europe. It produces tractors in the range of 50-250 HP, having

worldwide distribution ands sales network.


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Renault Agriculture - ITL agreement

results in the production of Ceres and Solis tractor under Sonalika brand name.

With a turnover of more than 637 billion (2002), Renault is

one of the 30 largest companies in the world. Each year Renault

produces over two million vehicles and employs over 140,000

people. Renault has alliance with NISSAN to complement the

financial and technical strengths bringing in synergic growth.


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CLAAS is a leading manufacturer of farming

equipment with a global presence. It is the world market leader

in forage harvester. Apart from the farming products CLAAS also

produces hydraulic components and transmissions. CLAAS

purchased 51% stake in Renault Agriculture in March 2003. It

recorded the turnover of over 1,000 million in the last financial

year.

The ITL seeks to create a culture where each

employee, vendors and dealers feels himself responsible &

integral part of the enterprises. The work culture at I T L is open,

participative & egalitarian. Learning is encouraged in the

company. Every member respects 5 s formulas.


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5 s : - - - -

1. S ( S E IR I) = CLEAN OR

DISPOSE OFF:

Clear the useless

Sort the useful

Transfer possibly the useful somewhere else.

2. S ( SE I TI O N ) =TIDY UP OR

JUST UNDER

THE HAND:

Seiso

Shitsu

ke

Seiket

su

Seiton

Seiri

5s


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Use best the new free place

Reduce the useless searches

Easily picked for use

Improve the floes.

3. S ( S E I S O ) =CLEANING OR

THE QUALITY

BY THE CLEANLINESS:

Cleanliness of items

Cleanliness of environment

Regular cleaning

Maintenance of equipments.

4. S ( S E I K E T S U ) =DEFINE THE

RULES:

Maintaining the standards of housekeeping &

workplace organization

Avoids mistake

Makes the work more pleasant

Formalizes some procedures.


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5. S

( S H I T S U K E ) =STRICTNESS AND RESPECT

OF RULES:

Maintaining a regular surveillance of rules

Remind of written rules

Correct the deviations.

K e y - P o i n t s :

Inbuilt good manufacturing & maintenance practices.

Total employee involvement in the development of

system.

Minimum records are required to be maintained.

Attitudinal change towards positive direction.

It is the gateway for T ot a l Q u a li ty M a n a ge m e n tS y s t e m .

Sonalika Group of

Companies (Rhino)


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Client Profile

Sonalika Group is contributing to green revolution in India Since

1969 by Farm Equipments and Machineries. Sonalika Group is one

of the top five tractor manufacturers in India. An average growth

rate of 30% makes it one of the fastest growing corporate inIndia. It employs about 2500 people including some of the

renowned names in the industry.

Situation

Campaign: Punjab, Haryana, Chandigarh.


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Solution

As the company had a limited marketing budget they were finding

it difficult to attract prospective target audience to visit company

dealers showroom for having the gleam of vehicles & to take a

test drive. So we suggested those Holiday incentives.

ResultsCompany decided to incentives the test drive and they found

Holiday incentive is the best. As the cost of the vehicle is in the

range of 5 lakhs plus a Holiday is the right incentive for the target

audience of this car segment.

Even a spec ia l scheme i s been worked

out for their buyers. RHINO

/TRAVELPORT - Travel discount cards.

Rhino set to hot up SUV market


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To be p r i c e d b e t w e e n R s . 8 0 0 , 0 0 0 a n d R s . 1 m i l l i o n ,

Rhino is a joint venture between Britain's MG Rover and

International Tractors, manufacturers of Sonalika tractors.

The new company is called International Cars and

Motors Limited. It will manufacture 24,000 SUVs annually at its

company's new plant at Kala Amb in Himachal Pradesh, 30 km

from here. T h e p l a n t , b e i n g s e t u p o n a 1 0 0 - a c r e p l o t , w i l l

h a v e a n a u t o m a t e d a s s e m b l y l in e .

"The plant is being set up with Rs.200crore (Rs. 2

billion) investments and the first vehicle will roll out in

December," Sonalika vice president Amrit S. Mittal said in a

statement.

Sonalika has, in the last eight years, become one of India's top five tractor manufacturers, selling 90,000 tractors

powered by its in-house developed engine. The company has

exported tractors to Algeria, Bangladesh, Ivory Coast, Nepal,

South Africa and Sri Lanka, as also to European countries.


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Personal Mechanical

Chairman

Mr. L.D.MittalVice-ChairmanMr. A.S.Mittal

ManagingDirector Mr. Deepak

Mittal

Chief ExecutiveOfficer

Mr. M.C.Sarkar

Head of Departments

Marketing


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DepartmentDepartment

Quality Research &Control Development

Logistics Marketing

Assembly Division Accounts

Paint Shop Project &Material


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D I 9 0 F o u r W h e e l D r iv e

D I 7 5 Tw o w h e e l D r i ve

D I 7 5 F o u r

w h e e l D r iv e
http://www.sonalika.com/di602wd.htmhttp://www.sonalika.com/di752wd.htmhttp://www.sonalika.com/di90.htm


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D I 6 0 F o u r w h e e l D r i v e

D I 7 3 0 I I

D I 7 5 0 I I I

D I 7 4 0 I I I D I 3 4 0 S E x p o r t

M o d e l
http://www.sonalika.com/di340-s.htmhttp://www.sonalika.com/7502.htmhttp://www.sonalika.com/7503.htmhttp://www.sonalika.com/730II.htmhttp://www.sonalika.com/di60.htm


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Pride of Country awarded to Sh. L.D. Mittal, Chairman Gold Medal Awarded to Sh. A.S. Mittal Vice Chairman

Udyog Bhushan Awarded to Sh. Deepak Mittal MD.

Shri Deepak Mittal, Managing Director,

International Tractors Limited received this coveted award at thehands of Shri Shanta Kumar, Honorable Minister for Rural

Development and Govt of India on the occasion of the Second

National Seminar on Quality Consciousness on 24th December,

2002 at New Delhi.

Shri L.D. Mittal , Chairman, Sonalika GroupArchitect of a New World 8th Ernst & Young

Entrepreneur.


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Sonalika group under the stewardship toShri L.D. Mittal, (Chairman) has made rapid strides within a short

span of 9 years. It has not only made its presence felt in the

tractor Industry but has made in-roads into the market share of

popular brands. Its valued and satisfied customers are

multiplying and have crossed 10, 0000 mark in year 2004.

CMERI (Central Mechanical Engineering Research

Institute) Govt. of India, which has many first to its credit in many

fields, has been helping Sonalika a lot in enriching the company


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with technological advancements based on their strenuous

efforts and research.

Honorable Former Prime Minister, Sh. Atal BihariVajpayee said to the science & Technology Institutions to go to

masses and make them aware of their activities while

inaugurating the Diamond Jubilee celebrations of the council of

Scientific and Industrial Research (CSIR).

Sonalika Tractor is marching ahead on the path of

success in which CSIR's contribution is very crucial. Sonalika is

the only Tractor in which technology of CSIR, Govt. of India has

been used and which is produced at the ultra-modern plant of

global Tractor Company Sonalika.

Resultantly, Sonalika has become the

first choice of Indian farmers. On close observation of the

features of Sonalika, one will find that at one hand it is fuel

efficient; on other hand it has got special position in pulling

power. The number of satisfied and proud customers is

increasing day by day and has crossed the figure of 100000. After


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all, there is something exclusive and unique so much of prestige

in just 9 Years.

Kumari Savitri Kunadi H.H. Ambassador of India atthat time in France visited the Sonalika- Renault stall and

expressed her happiness with the progress made by the Indian

company Sonalika both in domestic and foreign markets and

wished its joint venture with Renault Agriculture, France a grand

success .

International Tractors Ltd. with Sonalika brand of

tractors has been certified as ISO 9001 issued by International


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Standards Organization. This certification can be earned by those

organizations only who can establish and demonstrate strict

compliance of quality systems prescribed under ISO 9001 as

highest level of certification under which the organizations

possess capabilities in the area of design and, development and

in manufacturing and marketing functions. It is indeed a great

honor for the International Tractors Ltd. to have achieved this

distinction that too within short span of its inception. It is the 2nd

such company in India, which has received this certification.


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Sonalika has also been certified as ISO

14001 which is another golden feather in Company's Cap and

another stamp of quality.

We are the first Tractor manufacturing company in

the country to be accredited with ISO-14001.

It bears testimony to the fact that company is having

world-class R&D facilities, maintaining controls and systems of

International Standards and Environmental norms .

As part of diversification plans, the Rs 2,500-crore

tractor and farm equipment major Sonalika Group has ventured

into the auto finance sector.

The new company, named International Autotrac

Finance Ltd (IAFL), is a 100 per cent subsidiary of the group and

would finance the vehicles produced by International Tractors

Ltd (Sonalika brand tractor) & International Cars & Motors Ltd.


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The newly launched financial arm of the company is

hopeful of doing business worth Rs 300 crore by the end of the

fiscal year 2007-2008. The IAFL would be a very customer-

friendly company, which would give them auto loan on fewer

rates of interest and with least formalities.

He told that four different departments have

been created by the company to help the customers avail the

loan easily. The company will also provide the information and

handle the inquiries online.

The new company would achieve its goal in three

stages. At the first stage, the finance facility by IAFL will be

available only in Punjab and in second stage we would extend it

to northern India and finally we will cover the complete Indian

market, he added.

So, in order to strengthen their presence, the

finance company would open 24 new branches spread across

Northern region by the end of this fiscal year. The proposed

locations for the branches are Ambala, Karnal, Jaipur, Jodhpur,

Chandigarh, etc. At present, it has a branch each in Amritsar,

Ludhiana and Hoshiarpur in Punjab.

Moreover, to have a nationwide presence, the

company plans to open 24 new branches in southern part of


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India. By the end of 2009, we are hoping to do business worth Rs

1,000 crore through the finance company.

Recently, the group also announced investments of Rs

1,150 crore in its two subsidiaries International Cars and

Motors (ICML) and International Tractors Ltd (ITL).

Of the total, it would invest about Rs 700 crore

on capacity expansion, enhancing its design facility and

development of a new sports utility vehicle(currently it produce a

multi-utility vehicle having brand name Rhino).

(RetentionStrategies)

Sonalika (INTERNATIONAL TRACTORS LIMITED)

are the leading manufacturers for tractors. Sonalika attains the

5 th position in India.


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Sonalika is a growing company & it has lot of

manpower requirements at various levels & it all the times. In

view of this requirement & of the dynamic/ volatile job market.

Sonalika has a major challenge to hire good talent & more

challenging is to retain its current talent.

In order to suggest best strategies for retention let

understand what is Retention? & whats other company are doing

in this area.

Retention : ---- Developing Confidence Factor - so that they believe in

potential success/leadership strategies.

Developing Emotional Factor - through (Huge) contribution,

recognition, appreciation.

Developing Trust Factor - with the help of 2 ways-

promises/commitments kept (strong link to loyalty). Considering Fit Factor - Values/ethics are a good fit.

Considering Listening Factor - Are they heard and Valued?


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Retention Strategies are now recognized as mandatory in many

industries:

Leadership is critical! "Best Practices" Does Senior

Management: support (with skill), hire, manage, recognize,

communicate, include, reward, and make people feel significant.

A strong retention strategy

becomes a powerful recruitmenttool!

Have companies ever lost key personnel to other

companies? Was it expensive to find and train replacements?

Could companies have prevented the loss and at the same time

created a policy that actually helps to attract the best and the

brightest candidates? Retention has become an essential

business strategy for companies that wish to remain productive

into the future.

Retention Factors :


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Compensation & Benefits

(Money can not be ignored!), Clear business goals (where do I fit

in), well defined jobs, rewards & recognition, strong in

communication, "Well trained" management/leaders.

Does "Culture" Support: innovation-risk taking

(freedom from fears to try new innovative approaches - without

Put Downs,) encourage creativity, supportive accountability

(Culture is made up of: Organizational Values, how we defineourselves, how we interact.

Getting Employees to fall in

love with your company:

1. Capture the Hearts of your workforce with :

Compelling vision/Balance/Celebration-Fun.

2. Open Communication : Internal listening is a priority,

multiple lines of communication (various channels.) This is

essential for managing change in a positive way with less

sabotage, anger, resistance, and fear.

3. Create partnerships : Squash status barriers/Open the


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books/pay for performance (not titles), share the "bad" times the

"good" times.

4. Drive Learning : "Guarantee Employability," Encourage

Life Long Learning (Train outside of job description). Loyalty

comes from trusting your employees to develop their skills for the

good of the company and for their needs for personal growth and

satisfaction.

5. Emancipate Action : Freedom to Fail, reduce

bureaucracy. Breathe life into your organization. Do not let your

employees stagnate.

Retention StrategiesFollowed By AutomobileCompanies: -----

Tata

EscortsToyota


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Hyundai

E s c o r t s :

Once Hes Joined, Keep HimInvolved

Proposing a new member is a terrific achievement.

But, turning over a completed Membership Document (#100) to

the grand knight is not the end of the job. A proposer needs to

maintain a personal relationship with the new Knight to see that

R e c o m m e n d a t i

o n s

T o

S o n a l i k a

g r o u p


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he is integrated and stays involved in council activities. There

are several steps proposers can take to ensure this:

After signing up a prospect, explain to him that the councilsAdmission Committee will examine his qualifications for

membership. Accompany the prospective member to the

Admission Committee meeting. Introduce him to the

members present.

Once the prospect has been accepted by the council, escort

him to his First Degree and remain with him throughout the

event. Introduce him to his fellow council members after the

exemplification.

Take the newly initiated member and his family under your

wing. See that he learns council procedures (such as

meeting times, committee assignments, etc.) and meets

other council members.

Accompany your recruit to his Second and Third degreeexemplifications and stay with him throughout the day.

Introduce him and his family at council events. Encourage

him to involve his family in council-sponsored activities.


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Always contact the new member before each council

meeting and bring him to a meeting if necessary. If the new

member becomes inactive in council activities. Call and ask

to visit with him.

Explain your concern about his absence and offer support or

assistance, find out the reasons for his lapsed interest and

to work to conserve his membership.

With a little personal effort you can help guarantee that your

recruit becomes not only an active member of the Knights of Columbus, but a member for life.

T O Y O TA :

1. Career Development: US companies have aggressively begun to provide

incentives for women and minorities to join and remain in their

workforce. One of the incentives is career development

programs. A report from a survey of women engineers indicated

that "Active career development programs, whether targeted


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the opportunity for women and minorities to share experiences,

mentor each other, and learn about the unwritten rules to

success. While once frowned upon as subversive or detracting

from career opportunity, corporations now see the benefits of

special interest groups in their organization. Many companies

have assisted in the establishment of these groups and have

even come to rely upon them for information and guidance in

management.

4. Compensation:

Recognizing that salary disparities do exist, some

companies have initiated salary studies to identify such

disparities.

In addition, compensation has a strong influence on the

retention of women and minorities, especially at the early stages

of their careers.

While most students are not taught about

negotiating compensation packages, women and minorities are

often even more naive about the potential impact of what an

initial salary has upon subsequent career opportunities. A 1990study traced "31 to 34 percent of gender differences in current

salaries to difference in starting salary."


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5. Family Policies :

In an effort to make companies "family-friendly" for

both male and female employees, a number of creative strategies

have been implemented. Flexible work schedules and maternity

leave are examples of the most commonly tried.

Others include: staggered work

schedules; excused absence for emergencies or

unpredictable situations; unpaid personal leave for family-

related matters; part-time employment; job sharing; vacation

carryover; on-site child care; career-family balancing training;

child-care referral; and, paid and unpaid sabbaticals.

6. Diversity Training: Several companies provide and require diversity

training on an on-going basis to all employees and have found

that it is most successful.

Implementing the training as a company-

wide initiative has assisted in changing the workplace culture.

As an extra boost to effect workplace climate, a few

companies have made strident efforts to change the format of

meetings so that minority and women manager's ideas and

thoughts are not over-shadowed by traditional males .


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In conclusion ,

Companies have employed anumber of different types of strategies to recruit and retain

women and minorities. Although there are a number of strategies

such as creating family friendly policies that are generalizable

across all types of companies. Conducting an initial needs

assessment or analysis of a particular work environment is a

critical first step. Top management must commit to the value of

a diverse workforce, demonstrate that commitment in financial

and human resources, and must be visible to the employees as

partners in change.

TATA :

Attracting and retainingEmployees:

Compensation has been, and will

continue to be, the big driver in retaining people. But I feel the

importance of money varies at different stages of life and in


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different roles that people play. Once people reach a minimum

level of compensation, what matters to them are their aspirations

and this is where role planning and the work environment are

critical.

Goals and targets need to be clear so

that people can know what they are going to do and what they

have achieved. These two rules have been in focus for the last 25

years of my life and they will continue to be important. It's also

universally true that people join companies but work with bosses.

And, equally true, people leave bosses; not a company.

What people will also look for is a comfort level that they

have a good job to do in the company and that what they do

matters to the company.

A company needs to create a good employer brand,

internally as well as externally, by ensuring that people have

good jobs which make them feel proud of working for the

organization.

After that, depending on the demography and age of

the person, companies need to add certain benefits that create a

social status for the person, give him or her recognition outside


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the company. People want their place under the sky. Employees

can be given opportunities to make presentations at international

forums, or made members of academic institutes or industry

associations. This will increase retention.

I t is increasingly evident that people are

reaching h igher, fas te r. So where do you go when you

approach the top?

A company can take you only so far in your personalambition and growth. After that the company should allow you to

move to an internal or external company.

In this respect, the Tata Group has a phenomenal

advantage. We have more than 90 companies, and there is good

opportunity for mobility within the Group.

For the Group, the Tata brand will continue to be a

magnet for people looking for a job. In the Indian ethos there is a

certain value attached to the Tata brand. It was there when I

joined TCS many years ago and it continues to be there today

also. I am always proud to say I am a part of Tata.


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A feel for peopleWith some 2, 46,000 members in its diverse and

widespread family, the Tata Group is more than just another

employer. The Group's many pioneering initiatives to benefit and

empower employees have few parallels anywhere in the world,and it has blended its traditional benevolence with evolving

human resource methodologies to deliver a whole lot beyond

mere jobs.

H Y U N D A I :

More companies are deciding to focus on

strategies that could help them create a more psychologically

healthy workplace.


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Each year, the American Psychological Association

recognizes companies that work proactively to provide

employees with an opportunity to feel more in control of their

lives both at work and in their homes. These programs not only

benefit the employee, but they pay large dividends to the

employer.

W h y i n s t i t u t e a p r o g ra m t h a t w i l l l e a d t o

a p s y c h o l o g y h e a l t h y w o r k p l a c e ? H e r e

a r e a f e w r e a s o n s f o r y o u t o c o n s i d e r :

1. Two-thirds of both men and women say, Work has a

significant impact on their stress level.

2. One-fourth of employees view their jobs as the No. 1 stressor

in their lives.

3. Productivity losses related to personal and family health

problems cost U.S. employers $1,685 per employee year or

$225.8 billion annually.

4. Employers could save $3.50 for every dollar spent on improving

their work environment in terms of reduced absenteeism and

health care costs.


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The results were as follows:

Employee satisfaction rate of 90 percent.

Employee turnover rate of only 3 percent.

High levels of productivity and financial performance.

Health care savings and a low rate of workplace accidents

and injuries.

Annual Awards are based on thefollowing

Criteria:

Employee involvement

Work-Life balance Employee growth & development Health & safety Employee recognition

I n c o n c l u s io n ,

This focus on the employee at Health wise creates

a positive work environment and builds relationships between

employees that lead to higher levels of synergy.


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High levels of employee satisfaction were

experienced when employees were involved in the decision-

making process, participated in self-directed teams and had clear

performance measures, and where there were open channels of

communication to management.

Employee retention levels and satisfaction are

higher, because employees are being trained for the next job as

part of an ongoing process of employee development.

Government statistics have shown that as many as

1 million workers or almost 1 percent of the workforce is absent

each day due to physical or mental health reasons.

C u r r e n t r e t e n t i o n

p r o g r a m s :

( Sonalika group mustconsider )


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Money (including compensation, benefits and stock options)

was the most frequently mentioned aspect of the retentionprograms.

Second was the executive/management team

The third was the opportunity for growth , both through the

challenge of work assignments and individual development.

Two elements comprised the fourth aspect: the work

environment in general, and the trust existing between people in

the organization.


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O b j e c t i v e s :

To analysis the retention strategies followed by various

automobile companies & recommendations to Sonalika.

To know the reactions of the employees towards retention

strategies followed in todays era.

To study whether retention strategies help in reducing

labour turnover ratio.

Whether recruitment cost also reduced if proper retention

strategies are followed.

Recommendations given to Sonalika in regards to retention

strategies.

S c o p e :

Research is related to the premises of ITL (INTERNATIONAL

TRACTORS LIMITED) & research is restricted to retention

strategies only.


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Research comprising defining & re-defining problems,

formulating hypothesis or suggested solutions; collecting,

organizing & evaluating data; making deductions & reaching

conclusions; & at last carefully testing the conclusions to

determine whether they fit the formulating hypothesis or not.

Clifford &Woody

Sources of datacollection

Primaryrimary sources :: -

PrimaryPrimarysourcessources

SecondarySecondarysourcessources


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We can obtain primary data either through direct communication with respondents or through

personal interviews.

Various ways of collecting primary data

Observation Method

Interviews Interviews

Through Questionnaires Through Questionnaires

Through Schedules etc..Through Schedules etc..

Secondaryecondary sources : -Secondary data means data that are already

available i.e. data which have already been collected & analyzed

by someone else. It may either be published or unpublished.

Like books, magazines, newspapers, journals, Historical documents etc..

A c c o r d i n g t o o u r p r o j e c t r e p o r t ,

P r i m a r y

R e s e a r c h h a s b e e n c o n d u c t e d .( S o u r c e - - - - Q u e s t i o n n a i r e . )( S o u r c e - - - - Q u e s t i o n n a i r e . )


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RESEARCH PROBLEM : TO STUDY THE RETENTIONSTRATEGIES OF AUTOMOBILE COMPANIES & RECOMMENDING

SONALIKA GROUP ABOUT RETENTION.

T YPE O F RE SE ARC H: D e s c r i p t i v e

R e s e a r c h

Blend of Descriptive & Conclusive

method has been used in this research for the collection of data.

As the research is related to the study of employees views, which

can more effectively be studied through direct questions,

personal interview and informal talks- experimental research will

not much effective. Also, considering the time constraints,

descriptive research leading to conclusive result is the most

suitable design for this research.

SOURCES OF DATA COLLECTION:

Q u e s t i o n n a i r

e


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The data has been collected through

questionnaire method. The questionnaire was designed in such a

way to cover as many aspects as possible.

(Data Presentation)

A. Sampling Design : ----

U n i v e r s e Refers to the total of the items or units in the

field of inquiry i.e. S o n a l ik a H o s h i a r p u r .

S a m p l e - - - - Selection of some part of an aggregate on

the basis of which a judgment or inference about

aggregate is made.

S a m p l e U n i t - --- Define unit of sample i.e. unit by which

sample is measured i.e. N o . o f e m p l o y e e s .


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A n a l y s i s :

Is there any importance of retention strategies in an

automobile company ?

Number of Respondents=50

Determine

Contents of Questions

DesignQuestion

Wording

ArrangeQuestionsin properorder

DecideFont &Layout

ReproduceQuestionnaire

RepresentingQuestionnaire

DesigntheQuestions

DesignQuestionStructure


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Yes 100% No 0%

Importance Of RetentionStrategies

yes no

Interpretation: - The above analysis shows that retention strategies are

the important element of auto mobile companies.

Are you aware of various retention strategies followed in

todays era?


Yes 98% No 2%


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Aw are ne ss About Retention StrateFollow ed In Toda y's Era

yes

no

Interpretation: - The above analysis shows that most of the employees are

aware of the retention strategies followed in todays era.

Is retention strategies help in reducing labour turnover

ratio?


Below 25% 10%25% - 50% 30%50% - 75% 45%


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Above 75% 15%

Retention Strategies Helped InReducing Labour Turnover Ratio

Below 25%

25% - 50%

50% - 75%

Above 75%

Interpretation: - The above analysis shows that 50% - 75% labour turnover

ratio reduced with the help of retention strategies.

Which factor influence more while considering retention

strategies?


Communication 32%


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Above 75% 18%

To What Extent Factors Have An ImpactOn Retention Of Employees

Below 25%

25% - 50%

50% - 75%

Above 75%

Interpretation: - The above analysis shows that 50%- 75% factors influence

Retention Strategies most.

Are recruitment cost reduced due to consideration of

retention strategies properly?


Yes 97% No 3%


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R etention S trategies ProvH elpful In R edu cing Re cruit

Cos t

Y es

No

Interpretation: - The above analysis shows that 97%respondent thinks that

Retention Strategies help in reducing recruitment cost.

What are retention strategies of Sonalika?


Rewards 18%Work Culture 34%

Games 70%


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Employees Grievances Cell

Introduce Incentives

Organize Trips.

How retention strategies do benefits employees?

Motivation Level Increase

Grooming Environment

Work Home Balance

Rewards

Work Appreciated

Personality Develops Through Training

How retention strategies do benefits employers?

Reduce Attrition Rate

Recruitment Cost Reduce


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Motivated Team Work

Healthy Work Culture

Loyalty Increases

Completion of Projects on Time.

Retention Strategies the important element of auto mobile

companies.

Most of the employees are aware of the retention strategies


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followed in todays era .

50% - 75% labour turnover ratio reduced with the help of

retention strategies.

Work Culture & Compensation factors influence retention

strategies most .

97% respondent thinks that Retention Strategies help in

reducing recruitment cost.

Club Membership & Work Culture is the most favored retention

strategies followed. Employees Recognition, Improve Work Culture Employees

Grievances Cell, Introducing Incentives & Organizing Trips are

Strategies which must be followed at sonalika.

High levels of employee satisfaction were experienced when

employees were involved in the decision-making process.

High levels of productivity and financial performance.

In the end after completing the project in

nutshell I would conclude that R e t e n t i o n S t r a t e g ie s are very

important for each & every organization. Retention plays vital


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role for the development of human resources as well as the

organization as whole.

Retention Strategies are being used by the HODs in order

t o b o os t t h e e m p lo y ee m o r a le & m o t i va t i on . T h a t

r e s u l t e d i n j o b s e cu r i t y & r e d uc ti o n i n l a b o ur

t u r n o v e r r a t e .

Organization may not able to attain the required

results which are expected if retention strategies are not

followed properly. Proper control should be implemented in the

organization in order to check whether strategies are followed or

not.

While working on the project, I came to

know that for retaining the employees in the organization

retention strategies play significant role & should not be

neglected at any cost.

At end I would say that S o n a l i k a G r o u p must

follow the retention strategies that would help in reducing labour

turnover rate & cost incurred on recruitment.


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Club Membership & Work Culture is the most

favored retention strategies followed. Employees Recognition,

Improve Work Culture Employees Grievances Cell, Introducing

Incentives & Organizing Trips are Strategies which must be

followed at sonalika.

High levels of productivity and financial performance &

High levels of employee satisfaction were experienced when

employees were involved in the decision-making process.

I had 7 weeks summer training in S o n a l i k a

( I N T E R N AT I O N A L T R A C T O R S L T D .) . It was a great

working experience to work in such a reputed organization.

Proper rules & regulations are being followed. Working

atmosphere is co-operative & friendly. Co-ordination between

different departments & top, middle, lower levels of management

exist.


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The following are strategiesrecommended to Sonalika Group foremployee retention:

How do you get your employees tofall in Love" with your organization? This is a greatquestion. The answer to the question would be thatcompanies must follow Top 10 Retention Tips:

1. Treat your employees l ike you treat yourmost valuable clients.

It is cheaper to keep your good employees than it is to hireand train new ones. Your top 20-25% should be courted as youwould court and then service your top customers.

2. Get your employees to fa ll i n Love wi th

your organization.

Communicate your vision in a compelling way.Show everyone the role they have to contribute to this vision.Create opportunities for people to connect with each other for support and to improve communication in work teams.

3. Strong retention strategies become strongrecruit ing advantages.

4 . Retent ion is much more effect ive when youput the r ight person in to the r ight job . Know


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the job! Know the employee and theirmotivations.

5. M on ey i s i mp or ta nt b ut i t i s n ot t he o nl yreason people stay with an organization.

If your compensation plan is in the top 20-30% of your industry,then money will often not be the reason why people leave.

6. Employee committees to help develop

retention strategies are a very effectivestrategy.

Get their input! Ask, what dopeople like about working here? What would you like changed tomake your company a better place to work?

7. Leadership must be deeply invested inretention.

Management must be skillful communicating companypolicies in a way that creates "buy-in" from their staff and beopen to employee input. Help create "ownership" in your employees .

The companies with the best retention percentages are thesame companies that are actively committed to retention.

8. Recognition, in various forms, is apowerful retention strategy.


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It does not have to cost a lot. US Dept. of Labor - 46% of people leave their jobs because they feelunappreciated.

9. Remember, the "Fun Factor" is veryimportant to many employees.

The FUN Factor is part of the generation of workersthat use activities as stress management in highly chargedproduction environments where long hours are required. Greghas encouraged Ping-Pong tournaments and basketball leaguesfor interpersonal interaction, fun, and stress management.

10. Know the t r ends in benef i t packages . Doy ou r b es t t o o ff er t he o ne s y ou r e mp lo ye esneed?

Consider offering the best of the rest.


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Lack of knowledge----- Employees of HR department

was only aware of retention concept & other departments

employees have no clarity about the term retention strategy.

Non response error ------- Response rate was low asterm is not clear & lack of interest also exist.

Sampling----- It is not possible to cover each & every

department as in many departments females entry is

prohibited.

Lack of time---- As training period limited to 6-7

weeks only. So its difficult to cover all the aspects.

Personal biasness----- Employees not discloses the

information about strategies & policies of organization being

a policy matter.


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Daily Dairy helped me a lot in

preparing my project report. The majority of material has

been taken from it.

Sources of Information: ----

A. Websites

A n s w e r s . c o m

G o o g l e . c o m

A l t a v i s t a . c o m

S o n a l i k a . c o m

B. Books..

H R M ( s y m b i o s i s c e n t r e ) p u n e

H R M ( G a r ry D e s s l e r )

R e s p e c t e d s i r / m a d a m : - -


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I am the student of MBA; for the sake of my

summer training I undertook the project on the topic

RETENTION STRATEGIES FOLLOWED BY AUTOMOBILE

COMPANIES & RECOMMENDATIONS TO SONALIKA. I will be

highly obliged if you provide me the following required

information.

QUESTIONNAIRENAME:

SEX:

DESIGNATION:

Is there any importance of retention

strategies in an automobile company?

Yes no

Are you aware of various retention

strategies followed in todays era?Yes no


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Is retention strategies help in reducing

labour turnover ratio?Below 25% 50% - 75%

25% - 50% Above 75%

Which factor influence more while

considering retention strategies?

Communication Listening

Compensation Work

culture

To what extent the above mentioned

factors have an impact on retention of

employees?

Below 25% 50% - 75%

25% - 50% Above 75%


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Are recruitment cost reduced due to

consideration of retention strategies

properly?Yes no

What are retention strategies of Sonalika?

Rewards Work culture

Games Club

membership

What other strategies does Sonalika

follows?

How retention strategies do benefits

employees?


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How retention strategies do benefits

employers?

T

hank you

kamboj project

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