AN ANALYSIS OF EMPLOYEE ATTRITION IN AMARAJA BATTERIES LIMITED, TIRUPATI, AP
1 like231 views
This document analyzes employee attrition at Amaraja Batteries Limited in Tirupati, Andhra Pradesh, India. The study collected data through surveys from 360 operator employees. Statistical analysis found that salary was the most critical factor for attrition. Employees with more family dependents and lower salaries were more likely to experience attrition. Educational qualifications and area of residence were also associated with factors like perceived alternative opportunities and employee retention strategies. The study aims to help the company identify underlying attrition factors and develop policies to reduce costs associated with attrition.
![An Analysis of Employee Attrition in Amaraja Batteries Limited, Tirupati, AP
http://www.iaeme.com/IJM/index.asp 201 editor@iaeme.com
The above table 4 represents, here also Perceived Alternative Employment Opportunities (PAEO)
highly statistically significant with area. The t-test value obtained by 4.982, which is significant at 0.01
levels, which means that alternative employment opportunities difference with area. Employee Retention
Strategies (ERS) was also significant at 0.05 levels; the t-test is given by 3.02. Most of the employees
thinking about their career growth and earning and development opportunities in the organization.
5. CONCLUSION
This study emphasis on employee socio demographical variables which may be the possible reasons for
employee attrition. These are strongly associated with gender and family dependents. This analysis will
help the organization or management to study further on some lagging areas to develop or create
innovative plans to make the employees feel good policies. This study will help to identify underlying
factors which are controlling the attrition rate as well as help management to reduce the cost.
REFERENCES
[1] Schneer, J. (1993). Involuntary turnover and its psychological consequences: A theoretical model.
Human Resource Management Review, 3(1), 29-47.
[2] Davidson, M., & Wang, Y. (2011). Sustainable labor practices? Hotel human resource managers views
on turnover and skill shortages. 10(3), 235-253. Journal of Human Resources in Hospitality & Tourism,
10(3), 235-253.
[3] Ms. Alka Raghunath ,“Growth Achieved and Sustain by the BPO Sector in India , Global Journal of
Management and Business Research: Economics and Commerce Volume 14, Issue 1, 2014
[4] Ms. S. Janani, Employee Turnover : Present Scenario of Indian IT Industry, Indian Journal of Applied
Research, Volume : 4, Issue : 3, 2014
[5] Chakraborty. S (2008) HRD News letter, Vol 24, issue 6, Sep 2008, page no 34.
[6] Theme: Achieving Competitive Advantage , May, 2002, pp. 149- 164 Published by: Academy of
Management
[7] Gupta S.S. Employee Attrition and Retention: Exploring the Dimensions in the urban centric BPO
Industry”, unpublished Doctoral Thesis, Retrieved from http://www.jiit.ac.in/uploads/Ph.D-
shi%20Sen.pdf (2010)
[8] Dr. V. Antony Joe Raja and R. Anbu Ranjith Kumar, A Study to Reduce Employee Attrition in it
Industries. International Journal of Marketing and Human Resource Management, 6 (3), 2015, pp. 01-
14.
[9] Mike. Employee attrition in India [Online Exclusive], Sourcing Line, Retrieved from ingline.com
/resources accessed on January 7th, 2009
[10] Dr. M. Parveen and Ms. Shabnam. A Study on Employee Job Satisfaction in Bharat Heavy Electricals
Limited (BHEL), Tiruchirappalli. International Journal of Management, 7(2), 2016, pp. 795-801
[11] Bratton J. and Gold J., Human Resource Management Theory and Practice, Pal grave Macmillan
Publication, 3rd Edition, Newyork, 2008
[12] Kumar V., High Attrition rate attributed to pay package, Online Article Retrieved from
sourceportfolio.com /high-attrition-rate-attributed-to-pay-package on September 7, 2009
[13] www.amararaja.co.in
[14] http://www.coolavenues.com/know/hr/rajat_10.php3
[15] http://managedcare.medscape.com/viewarticle /518371_3
[16] http://www.findarticles.com
[17] http://www.equitymaster.com](https://image.slidesharecdn.com/ijm0801023-170310095841/85/AN-ANALYSIS-OF-EMPLOYEE-ATTRITION-IN-AMARAJA-BATTERIES-LIMITED-TIRUPATI-AP-6-320.jpg)
AN ANALYSIS OF EMPLOYEE ATTRITION IN AMARAJA BATTERIES LIMITED, TIRUPATI, AP
- 1. http://www.iaeme.com/IJM/index.asp 196 [email protected] International Journal of Management (IJM) Volume 8, Issue 1, January – February 2017, pp.196–201, Article ID: IJM_08_01_023 Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=8&IType=1 Journal Impact Factor (2016): 8.1920 (Calculated by GISI) www.jifactor.com ISSN Print: 0976-6502 and ISSN Online: 0976-6510 © IAEME Publication AN ANALYSIS OF EMPLOYEE ATTRITION IN AMARAJA BATTERIES LIMITED, TIRUPATI, AP K. Sreenivas Mahesh Ph.D - Research Scholar, Department of Business Management, Yogi Vemana University, Kadapa, Andhra Pradesh, India Dr. P.V. Vara Prabhakar Assistant Professor, Department of Business Management, Yogi Vemana University, Kadapa, Andhra Pradesh, India Dr. Shaik Nafeez Umar Assistant Professor, Department of Statistics and Mathematics, Agricultural College, Bapatla, Andhra Pradesh, India ABSTRACT In general, Competitive organization will depend on the inimitability of their human resources and the systems for managing human resources effectively to become successful. Managing of human resources of organization is very difficult task, in particularly part of attrition. The present study covered at addressing socio demographic factors with employee attrition factors for employee. Data has been collected through a well structured questionnaire survey. The study identified 3 factors influencing employee attrition in Amara Raja Batteries Limited, Tirupati (AP). Used Statistical Software SPSS for Statistical analysis, in this study we used Descriptive statistics, Chi-square test, t-test and F-test. It is found that the employee's salary is emerged as the most critical factor for Attrition. Key words: Employee Attrition, Job satisfaction, F and Chi-square test Cite this Article: K. Sreenivas Mahesh, Dr. P.V. Vara Prabhakar and Dr. Shaik Nafeez Umar, An Analysis of Employee Attrition in Amaraja Batteries Limited, Tirupati, AP. International Journal of Management, 8(1), 2017, pp. 196–201. http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=8&IType=1 1. INTRODUCTION The share of India’s manufacturing output to overall GDP was only 15.8% in 2010-11, as compared with 30% in China, 31% in Korea, 36% in Thailand, 26% in Malaysia, 25% in Indonesia and 22% in Singapore. The Indian manufacturing sector has significant potential to generate large scale employment especially in the organized sector. Historically, during the transition process, the manufacturing sector has been the main absorber of mass unskilled labour released from the agricultural sector. Unlike the East Asian economies, the country has not been able to draw employment from agriculture into manufacturing in any significant magnitude. Agriculture still remains the chief employment generator contributing 50% of the
- 2. An Analysis of Employee Attrition in Amaraja Batteries Limited, Tirupati, AP http://www.iaeme.com/IJM/index.asp 197 [email protected] total employment (2007). This is the highest among most Asian and emerging market economies (Brazil 19%, China 44%, Indonesia 41%, Korea 7%, Malaysia 15%, and Thailand 42%) with the industry contributing to only 20% of overall employment. Manufacturing employs 12% of the Indian workforce or about 53 million people. 2. DEFINITION OF EMPLOYEE ATTRITION Turnover can be either voluntary or involuntary. Voluntary turnover happens when the employees initiate the termination of employment regardless the reasons, while involuntary turnover happens when a termination is initiated by the employers. Involuntary turnover may help improving productivity because underperforming employees were removed (Davidson & Wang, 2011). Most of the research on turnover is devoted to the causes and consequences of voluntary turnover (Schneer, 1993). The impact of involuntary turnover to the company is minimal because it is under employer’s control. In this study, only voluntary leave of employees is considered and brought into the discussion of turnover, regardless of whether a replacement is successfully prepared or not. To align with Wheelhouse’s (1989) argument, turnover happens only if the left employees must be replaced. Therefore, those temporary workers who were hired to meet seasonal flow of business are not a part of in this study. 3. METHODOLOGY The research was aimed at analyzing the demographical and attrition rate in Amara Raja Batteries Limited, Tirupati (AP). Further on the research focused on determining the impact of socio-demographic factors on turnover intention, association between job satisfaction, organization commitment, and Perceived alternative employment opportunities, Distributive Justice, Procedure Justice and Employee Retention Strategies on turnover intention. The research also delved upon the factors prompted to opt career in Amara Raja Batteries Limited, the factors that attract to stay in the organization and factors that may lead to leaving an organization. The present study is a descriptive in nature. Research method used for the present study is both descriptive as well as ex post facto method. The population of the study is all Operator Cadre Employees who are designated as Amara Raja Trainees (ARTs) of Amara Raja Batteries Limited. The total no of Amara Raja trainees are 3000. There is Four departments viz., Continues Improvement, Stores & Internal logistics, Production and Maintenance. Each department consists of 750 employees. The sample of respondents is selected based on Stratified Random Sampling with equal proportional allocation technique. From Each department, 90 employees (ARTs) have been chosen. Likewise from Four departments total 360 employees (ARTs) are taken. The main sources of data for the present research consist of both primary and secondary sources. The primary data was collected through the field survey. The respondents were administered a structured questionnaire. In this study, the data analysis is performed with the help of Statistical Package for Social Sciences (SPSS 20.V ) The study utilizes both descriptive as well as inferential statistics for data analysis like Descriptive Statistics, Chi-Square test, t-test and Analysis of Variance (ANOVA). 4. RESULTS AND DISCUSSION From the Statistical analysis, we observed that among the 360 samples was collected including socio demographical variables with attrition factors of the employees.
- 3. K. Sreenivas Mahesh, Dr. P.V. Vara Prabhakar and Dr. Shaik Nafeez Umar http://www.iaeme.com/IJM/index.asp 198 [email protected] Table 1 Association between genders with number of dependents Number of Dependents Gender TotalMale Female No dependents 67 (18.60) 6 (1.70) 73 (20.30) 2 - 3 members 192 (53.3) 4 (1.10) 196 (54.40) More than 3 members 87 (24.20) 4 (1.10) 91 (25.30) Total 346 (96.10) 14 (3.90) 360 (100) Chi square value 5.516* and Parenthesis indicate percentages Note: * Significant at 0.05 levels Graph 1 Distribution of respondents of family dependents and gender The above table:1 and graph 1shows very clearly, Highly 96.10% of the male employees and 3.90% of females employees were collected in the study. In the part of family dependents 54.40% of employees has 2 to 3 family dependents next followed by 25.35% more than 3 family members. The chi-square found to be 5.516 which is statically significant at 0.05 levels. It is strongly association between gender and number of dependents. More family defenders leads to more financial commitment, it is one of the attrition rate of employees who are working very low salary. When family defenders are more in family it si caused by employee attrition rate is very high. Table 2 Association between Marital status with monthly income Monthly Income Marital Status TotalMarried Unmarried Below Rs 10000 per month 18 (5.00) 59 (16.40) 77 (21.40) Above Rs 10000 per month 75 (20.80) 208 (57.80) 283 (78.60) Total 93 (25.80) 267 (74.20) 360 (100.00) Chi square value 0.309NS, Parenthesis indicates percentages Note: NS Not Significant at 0.05 levels 18.6 53.3 24.2 1.7 1.1 1.1 0 10 20 30 40 50 60 No dependents 2 - 3 members More than 3 members % family dependents and gender Male Female
- 4. An Analysis of Employee Attrition in Amaraja Batteries Limited, Tirupati, AP http://www.iaeme.com/IJM/index.asp 199 [email protected] Graph 2 Distribution of respondents of marital status and income From the above table:2 and graph:2 shows, 78.60% of the employees getting more than Rs10000 salary next followed by 21.40% below Rs10000. Unmarried employees getting more salary (57.80%) next followed by married employees (20.80%). The Chi square value obtained 0.309 which is not statistically significant at 0.05 levels. There is no association between marital status and income of the employees. Table 3: Descriptive statistics between Educational level and different factors Education Qualification and factors SSC / Intermediate with ITI SSC / Intermediate without ITI F-test Mean SD Mean SD Basic Reasons for The People to Stay in The Organization (BRSO) 43.221 8.325 46.283 8.278 1.308* Prime Reasons for Leaving Employment (PRLE) 62.338 11.249 62.500 13.135 0.015NS Employee Retention Strategies (ERS) 59.233 6.802 53.383 7.663 2.147* Perceived Alternative Employment Opportunities (PAEO) 16.078 6.082 13.639 5.576 4.929** Job Satisfaction (JS) 42.429 11.988 43.900 13.056 1.134NS Organizational Commitment (OC) 22.142 7.412 22.367 7.621 0.072NS Distributive Justice (DJ) 10.300 3.751 10.617 3.911 0.554NS Procedural Justice (PJ) 19.838 6.256 19.917 6.986 0.012NS Turnover Intention (TI) 8.317 2.761 8.258 3.091 0.033NS Note: ** Significant at 0.01 levels, * Significant at 0.05 levels and NS Not significant 0.05 levels 5 16.4 20.8 57.8 0 10 20 30 40 50 60 70 Married Unmarried % Maritial Status Below Rs 10000 per month Above Rs 10000 per month
- 5. K. Sreenivas Mahesh, Dr. P.V. Vara Prabhakar and Dr. Shaik Nafeez Umar http://www.iaeme.com/IJM/index.asp 200 [email protected] From the above table: 3 shows descriptive statistics for various attrition factors with educational qualifications. The study focus on changes in attrition rate with respect to educational qualifications, we observed that the mean values of Perceived Alternative Employment Opportunities (PEAO) and educational qualifications is ITI passed is 16.078 and failed ITI 13.639 and F – value is given by 4.929, which is highly significant difference between both each other. It means employees thinking about their current job quit the chance may be able to find or get better than as present job. In Employee Retention Strategies (ERS) with educational qualifications, ITI passed out employees mean score was 59.233 and followed by failed ITI employees 53.383. The F-value is obtained 2.147, which is statistically significant at 0.05 levels. It means strongly associated with educational qualifications their employee retention strategies. The remaining factors are not significant at 0.05 levels. Job Satisfaction, Prime Reasons for Leaving Employment, Organizational Commitment, Distributive Justice, Procedural Justice and Turnover Intention. Table 4 Test between Area and native place Area t-test Factors Mean SD Basic Reasons for The People to Stay in the Organization (BRSO) Rural 43.238 8.330 1.117NS Urban 44.284 8.269 Prime Reasons for Leaving Employment (PRLE) Rural 62.402 11.410 0.023NS Urban 62.371 12.900 Employee Retention Strategies (ERS) Rural 59.213 6.771 3.02* Urban 58.397 7.751 Perceived Alternative Employment Opportunities (PAEO) Rural 16.078 6.082 4.982** Urban 13.639 5.576 Job Satisfaction (JS) Rural 42.361 11.993 1.246NS Urban 44.095 13.060 Organizational Commitment (OC) Rural 22.209 7.495 0.08NS Urban 22.233 7.458 Distributive Justice (DJ) Rural 10.307 3.760 0.71NS Urban 10.612 3.898 Procedural Justice (PJ) Rural 19.857 6.248 0.031NS Urban 19.879 7.026 Turnover Intention (TI) Rural 8.320 2.784 0.215NS Urban 8.250 3.058 Note: ** Significant at 0.01 levels, * Significant at 0.05 levels and NS Not significant 0.05 levels 43.221 62.338 59.233 16.078 42.429 22.142 10.3 19.838 8.317 46.283 62.5 53.383 13.639 43.9 22.367 10.617 19.917 8.258 0 10 20 30 40 50 60 70 BRSO PRLE ERS PEO JS OC DJ PJ TI Meanscores Attrition factors with Educational qualifications SSC / Intermediate with ITI SSC / Intermediate without ITI
- 6. An Analysis of Employee Attrition in Amaraja Batteries Limited, Tirupati, AP http://www.iaeme.com/IJM/index.asp 201 [email protected] The above table 4 represents, here also Perceived Alternative Employment Opportunities (PAEO) highly statistically significant with area. The t-test value obtained by 4.982, which is significant at 0.01 levels, which means that alternative employment opportunities difference with area. Employee Retention Strategies (ERS) was also significant at 0.05 levels; the t-test is given by 3.02. Most of the employees thinking about their career growth and earning and development opportunities in the organization. 5. CONCLUSION This study emphasis on employee socio demographical variables which may be the possible reasons for employee attrition. These are strongly associated with gender and family dependents. This analysis will help the organization or management to study further on some lagging areas to develop or create innovative plans to make the employees feel good policies. This study will help to identify underlying factors which are controlling the attrition rate as well as help management to reduce the cost. REFERENCES [1] Schneer, J. (1993). Involuntary turnover and its psychological consequences: A theoretical model. Human Resource Management Review, 3(1), 29-47. [2] Davidson, M., & Wang, Y. (2011). Sustainable labor practices? Hotel human resource managers views on turnover and skill shortages. 10(3), 235-253. Journal of Human Resources in Hospitality & Tourism, 10(3), 235-253. [3] Ms. Alka Raghunath ,“Growth Achieved and Sustain by the BPO Sector in India , Global Journal of Management and Business Research: Economics and Commerce Volume 14, Issue 1, 2014 [4] Ms. S. Janani, Employee Turnover : Present Scenario of Indian IT Industry, Indian Journal of Applied Research, Volume : 4, Issue : 3, 2014 [5] Chakraborty. S (2008) HRD News letter, Vol 24, issue 6, Sep 2008, page no 34. [6] Theme: Achieving Competitive Advantage , May, 2002, pp. 149- 164 Published by: Academy of Management [7] Gupta S.S. Employee Attrition and Retention: Exploring the Dimensions in the urban centric BPO Industry”, unpublished Doctoral Thesis, Retrieved from http://www.jiit.ac.in/uploads/Ph.D- shi%20Sen.pdf (2010) [8] Dr. V. Antony Joe Raja and R. Anbu Ranjith Kumar, A Study to Reduce Employee Attrition in it Industries. International Journal of Marketing and Human Resource Management, 6 (3), 2015, pp. 01- 14. [9] Mike. Employee attrition in India [Online Exclusive], Sourcing Line, Retrieved from ingline.com /resources accessed on January 7th, 2009 [10] Dr. M. Parveen and Ms. Shabnam. A Study on Employee Job Satisfaction in Bharat Heavy Electricals Limited (BHEL), Tiruchirappalli. International Journal of Management, 7(2), 2016, pp. 795-801 [11] Bratton J. and Gold J., Human Resource Management Theory and Practice, Pal grave Macmillan Publication, 3rd Edition, Newyork, 2008 [12] Kumar V., High Attrition rate attributed to pay package, Online Article Retrieved from sourceportfolio.com /high-attrition-rate-attributed-to-pay-package on September 7, 2009 [13] www.amararaja.co.in [14] http://www.coolavenues.com/know/hr/rajat_10.php3 [15] http://managedcare.medscape.com/viewarticle /518371_3 [16] http://www.findarticles.com [17] http://www.equitymaster.com