RETENTION STRATEGIES FOLLOWED BY VARIOUS AUTOMOBILE COMPANIES & RECOMMENDATIONS TO SONALIKA

In partial fulfillment of the requirements for the Awards of MASTERS OF BUSINESS ADMINISTRATION. SUBMITTED TO PUNJAB TECHNICAL UNIVERSITY.

Lakhbir singhkamboj MBA 623221673

Session: 2006-2008

AIMT AMBALA CITY

It is my privilege to acknowledge profound Gratitude & indebtedness towards my respected & learned teachers for their inspiration, constructive criticism & valuable suggestions. Their precious guidance &

unrelenting support kept me on track through my training. I want to thank all the employees of I N T E R N A T I O N A L TRACTORS LIMITED (ITL), HOSHIARPUR for their

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 timely advice & constructive criticism helped me in completing the project.

Manjot kaur saini

TABLE OF CONTENTS
Executive summary Company Profile Introduction Objectives of the study & scope

 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.

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 form the base for determining the retention strategies of sonalika (ITL).

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 top five 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 turnover of 1200 Crore INR. An average growth of 30% 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 of 3000 employees.

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

 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

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

3. Bangladesh-------------------- 1 4. Bihar---------------------------5. Gujarat-----------------------6. Haryana----------------------7. Himachal Pradesh-------

37 31 37 4

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

9. Karnataka------------------10. Kerala------------------------ 1

18

11. Madhya Pradesh--------- 68 12. Maharasthra--------------- 35 13. Mizoram-------------------14. Nepal------------------------15. Orissa----------------------16. Punjab----------------------

1 9 10 48

17. Rajasthan------------------ 53 18. Tamil Naidu--------------- 19 19. Uttar Pradesh------------- 131

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.

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.

ITL Group is synonymous with fair business practices and ethics, quality service and a commitment to society.

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.

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

Sonalika brand between 30 H.P. to 75 H.P.

&CERES

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 selling company in India and the number one company in Nepal.

These tractors are also exported to various other countries also including Sri France, South Africa, and

Australia,

Zimbabwe,

Lanka,

Canada,

Nepal,

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

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.

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.

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 ITL is open, participative & egalitarian. Learning is encouraged in the company. Every member respects 5 s formulas.

Seiri Seiso Seiton

5s
Shitsu ke Seiket su

5s:---1.
DISPOSE OFF:
Clear the useless Sort the useful

(SEIRI)=

CLEAN

OR

Transfer possibly the useful somewhere else.

2.
JUST UNDER THE HAND:

S (SEITION)=TIDY UP OR

 Use best the new free place Reduce the useless searches Easily picked for use

Improve the floes.

3.
THE QUALITY

(SEISO)=CLEANING OR

BY THE CLEANLINESS:
Cleanliness of items Cleanliness of environment

Regular cleaning Maintenance of equipments.

4.
RULES:
Maintaining

S (SEIKETSU)=DEFINE THE

the

standards

of

housekeeping

&

workplace organization
Avoids mistake Makes the work more pleasant

Formalizes some procedures.

5.
(SHITSUKE)=STRICTNESS AND RESPECT OF RULES:
Maintaining a regular surveillance of rules Remind of written rules

Correct the deviations.

Key - Points :
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 Total Quality Management System.

Sonalika Group of Companies (Rhino)

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 in India. It employs about 2500 people including some of the renowned names in the industry.

Situation
Campaign: Punjab, Haryana, Chandigarh.

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.

Results
Company 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 special scheme is been worked out for their buyers. RHINO

/TRAVELPORT - Travel discount cards.

Rhino set to hot up SUV market

To be priced between Rs.800, 000 and Rs.1 million, 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. The plant, being set up on a 100-acre plot, will have an automated assembly line. "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.

ViceChairman Mr. A.S. Mittal

Market ing

Chairman Mr. L.D. Mittal

Managing Director Mr. Deepak Mittal

Chief Executive Officer Mr. M.C. Sarkar

Head of Departments

Personal

Mechanical

Department Department

Quality Control

Research & Development

Logistics

Marketing

Assembly Division

Accounts

Paint Shop

Project & Material

DI 90 Four Wheel Drive

DI 75 Two wheel Drive

wheel Drive

DI 75 Four

DI 60 Four wheel Drive

DI 730 II

DI 750 III

DI 740 III Model

DI 340 S Export

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 the hands 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 Group Architect of a New World 8th Ernst & Young Entrepreneur.

Sonalika group under the stewardship to Shri 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

with technological advancements based on their strenuous efforts and research. Honorable Former Prime Minister, Sh. Atal Bihari Vajpayee 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

all, there is something exclusive and unique so much of prestige in just 9 Years. Kumari Savitri Kunadi H.H. Ambassador of India at that 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

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.

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.

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

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).

(Retention Strategies)
Sonalika (INTERNATIONAL TRACTORS LIMITED) are the leading manufacturers for tractors. Sonalika attains the 5th position in India.

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 wayspromises/commitments kept (strong link to loyalty). Considering Fit Factor- Values/ethics are a good fit. Considering Listening Factor- Are they heard and Valued?

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 recruitment tool!

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 :

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 define ourselves, 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

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 Strategies Followed By Automobile Companies: ----Tata

Escorts Toyota

Hyundai

Recommendati ons To Sonalika group

Escorts:
Once Hes Joined, Keep Him Involved
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

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 councils Admission 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 degree exemplifications 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.

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.

TOYOTA:
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

specifically for women or for employees in general, are beneficial to women." Including supervisors in a recognition and reward process increases the effectiveness of career development programs. Programs should encourage and facilitate the entrance of minorities and women into the management career ladder.

2. Mentoring Programs:
Women and minorities who establish successful engineering careers, almost without exception, have had important mentors who have encouraged them, provided them with advice, through early phases of their careers.

Corporate mentoring programs range from the formal to the informal. One-on-one mentoring is most often used, although group mentoring does occur. Several companies have set up mentoring programs, matched individuals by career track and discipline, but very few actually train their participants how to establish and maintain an effective relationship. And, even fewer companies evaluate the success of their mentoring programs on retention or job satisfaction.

3. Networks:
Formal and informal networks offer

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 1990 study traced "31 to 34 percent of gender differences in current salaries to difference in starting salary."

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 familyrelated 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 companywide 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.

In conclusion ,
Companies have employed a number 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 retaining Employees:

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

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

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. It is increasingly evident that people are reaching higher, faster. So where do you go when you approach the top? A company can take you only so far in your personal ambition 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.

A feel for people

With 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.

HYUNDAI:
More companies are deciding to focus on strategies that could help them create a more psychologically healthy workplace.

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.

Why institute a program that will lead to a psychology healthy workplace? Here are a few reasons for you to consider:
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.

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 the following Criteria:

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

In conclusion ,
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.

High levels of employee satisfaction were experienced when employees were involved in the decisionmaking 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.

Current retention programs :

(Sonalika group must consider)

Money (including compensation, benefits and stock options)

was the most frequently mentioned aspect of the retention programs. 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.

Objectives:

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.

Scope:
Research is related to the premises of ITL (INTERNATIONAL TRACTORS LIMITED) & research is restricted to retention strategies only.

Research formulating

comprising hypothesis

defining or

&

re-defining solutions;

problems, collecting,

suggested

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 data collection

Primary sources

Secondary sources

Primary sources :-

We can obtain primary data either through direct communication with respondents or through personal interviews. Various ways of collecting primary data
Observation Method Interviews Through Questionnaires Through Schedules etc..

Secondary 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..

Primary

According to our project report, Research has been conducted. (Source ---- Questionnaire.)

RESEARCH PROBLEM :

TO STUDY THE RETENTION

STRATEGIES OF AUTOMOBILE COMPANIES & RECOMMENDING SONALIKA GROUP ABOUT RETENTION.

TYPE

OF

RESEARCH:

Descriptive

Research
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:

Questionnair e

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 : ---

Universe Refers to the total of the items or units in the

field of inquiry i.e.

Sonalika Hoshiarpur .

Sample ----

Selection of some part of an aggregate on inference about

the basis of which a judgment or aggregate is made.

Sample Unit- --- Define unit of sample i.e. unit by which

sample is measured i.e.

No. of employees .

Sample size ----- Not too small or not too large. An

appropriate size. i.e.

50 employees of Sonalika . Convenience

Sampling Sampling.

Technique-----

B. Questionnaire Design: --A Questionnaire whether it is called a schedule, interview form or measuring instrument is a formalized set of questions for obtaining information from the respondent

How to design an effective Questionnaire? Specify Specify the Interviewi Informati ng on needed Method

Desi gn Ques tion Struc ture

Determi ne Content s of Questio ns Design Question Wording

Arrange Questions in proper order

Design the Questi ons

Decide Font & Layout

Reprodu ce Question naire

Represe nting Questio nnaire

Analysis:

Is there any importance of retention strategies in an automobile company?

Number of Respondents=50

Yes No

100% 0%

Importance Of Retention Strategies

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?

Number of Respondents=50 Yes No 98% 2%

Aw a re ne ss About Re te ntion S tra te gie s Follow e d In Toda y's Era y es 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?

Number of Respondents=50

Below 25% 25% - 50% 50% - 75%

10% 30% 45%

Above 75%

15%

Retention Strategies Helped In Reducing 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?

Number of Respondents=50

Communication

32%

Listening Compensation Work Culture

20% 44% 54%

Factors Influences The Retention Strategies

Communication Listening Compensation Work Culture

Interpretation: - The above analysis shows that Work Culture & Compensation factors influence retention strategies most.

To what extent the above mentioned factors have an impact on retention of employees? Number of Respondents=50

Below 25% 25% - 50% 50% - 75%

12% 34% 36%

Above 75%

18%

To What Extent Factors Have An Impact On 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?

Number of Respondents=50

Yes No

97% 3%

R eten tio n S trateg ies P ro ved H elp fu l In R ed u cin g R ecru itm en t C o st

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?

Number of Respondents=50

Rewards Work Culture Games

18% 34% 70%

Club Membership

42%

Retention Strategies Follow ed In Sonalika

Rewards W ork Culture Games Club Membership

Interpretation: - The above analysis shows that Club Membership & Work Culture is the most favored retention strategies followed.

What other strategies does Sonalika follows?

Employees Recognition

Improve Work Culture

 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

 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

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 Retention Strategies are very important for each & every organization. Retention plays vital

role for the development of human resources as well as the organization as whole.

Retention Strategies are being used by the HODs in order

to boost the employee morale & motivation. That resulted in job security & reduction in labour

turnover rate.

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 Sonalika Group must follow the retention strategies that would help in reducing labour turnover rate & cost incurred on recruitment.

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 Sonalika

(INTERNATIONAL
Proper rules &

TRACTORS
are

LTD.). It was a great

being followed. Working

working experience to work in such a reputed organization. regulations

atmosphere is co-operative & friendly. Co-ordination between different departments & top, middle, lower levels of management exist.

The following are strategies recommended to Sonalika Group for employee retention:
How do you get your employees to fall in Love" with your organization? This is a great question. The answer to the question would be that companies must follow Top 10 Retention Tips:

1. Treat your employees like you treat your most valuable clients.
It is cheaper to keep your good employees than it is to hire and train new ones. Your top 20-25% should be courted as you would court and then service your top customers.

2. Get your employees to fall in Love with 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 strong recruiting advantages.

4.

Retention is much more effective when you put the right person into the right job. Know

the job! Know motivations.

the

employee

and

their

5. Money is important but it is not the only reason 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 effective strategy.
Get their input! Ask, what do people like about working here? What would you like changed to make your company a better place to work?

7. Leadership must be deeply invested in retention.

Management must be skillful communicating company policies in a way that creates "buy-in" from their staff and be open to employee input. Help create "ownership" in your employees. The companies with the best retention percentages are the same companies that are actively committed to retention.

8. Recognition, in various forms, is a powerful retention strategy.

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

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

The FUN Factor is part of the generation of workers that use activities as stress management in highly charged production environments where long hours are required. Greg has encouraged Ping-Pong tournaments and basketball leagues for interpersonal interaction, fun, and stress management.

10. Know the trends in benefit packages. Do your best to offer the ones your employees need?
Consider offering the best of the rest.

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 as

term 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----a policy matter.

Employees not discloses the

information about strategies & policies of organization being

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

Answers.com Google.com Altavista.com Sonalika.com

B. Books..
HRM (symbiosis centre) pune HRM (Garry Dessler) Respected sir / madam:--

I am the student of MBA; for the sake of my summer training I undertook the project BY on the topic

RETENTION

STRATEGIES

FOLLOWED

AUTOMOBILE

COMPANIES & RECOMMENDATIONS TO SONALIKA. I will be highly obliged if you provide me the following required

information.

QUESTIONNAIRE
NAME: 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

Is retention strategies help in reducing labour turnover ratio? Below 25% 25% - 50% 50% - 75% Above 75%

Which factor influence more while considering retention strategies? Communication Compensation Listening Work

culture

To what extent the above mentioned factors have an impact on retention of employees? Below 25% 25% - 50% Above 75% 50% - 75%

Are recruitment cost reduced due to consideration of retention strategies properly? Yes no

What are retention strategies of Sonalika? Rewards Games membership Club Work culture

What other strategies does Sonalika follows?

How retention strategies do benefits employees?

 How retention strategies do benefits employers?

T hank you