ANNEXURE - 1

RETENTION STRATEGIES IN FAME INDIA LTD

PROJECT REPORT Submitted in partial fulfillment of the requirements for the award of the INTERNATIONAL MBA IN SPECIALIZATION Human Resource Management

By Deepti Shinde UBI/MBA/I/JAN11/11736

JARO EDUCATION
MUMBAI 2011

ANNEXURE -2

DECLARATION
I, Deepti Shinde hereby declare that this project report titled RETENTION

STRATEGIES IN FAME INDIA LTD submitted in partial fulfillment of the

requirement for the International MBA in Specialization Human Resource Management is my original work and it has not formed the basis for the award of any other degree.

(Signature of the Student) Deepti Shinde Student Name

Place:Mumbai Date: 13/11/2011

EXECUTIVE SUMMARY

The study of my project i.e. Retention Strategies aims at analyzing the need of Retention Strategies for HR Dept , its usefulness to the Organization & Employees at Fame India Ltd, thereby to find out various reasons of employee leaving the organization. The reason to select and study this topic is the need of the Organization to analysis the Data of attrited employees and in a way to minimize the attrition. Its also helpful for me as an aspiring HR professional to study about the different challenges face by the department. The project gives suggestive measure to making the Exit Interview process more effective and beneficial in terms analyzing the factors for future use. The later half of the project deals with Retention Practices for current employee at Fame India Ltd, to find out their experience at Fame India Ltd and based on their views giving various suggestions to the organization to take effective measure to reduce Attrition and use of practical Retention Practices. To do Exit Interview Analysis, the secondary data used here is the Data of the employee who left Fame India in Last Fiscal Year. Also, to find out Retention Practices I have used the Primary Data collected in the form of Answers to the Questionnaire, and focus group interview. Eventually People are our greatest asset is a mantra that companies have been chanting for years. But only a few companies have started putting Human Resources Management (HRM) systems in place that support this philosophy. Here I will try to contribute insights about Exit Process & better Retention practices.

ACKNOWLEDGEMENT

I would like to thank the teaching staff of the Specialization team of Human Resource department for their Help and support to make our project successful.

I am thankful to Prof. R.N.Patil and Prof. S.Bagchi whose continuous encouragement and support has made me to manage the project in best possible manner.

With sincere gratitude for all the knowledge, experience that I had gained within short period of time, I am eternally grateful to the person who had helped me in making my project successful

INDEX

S. No.

Topic

============================================
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. INTRODUCTION OBJECTIVES REVIEW ABOUT FAME RESEARCH METHODOLOGY TABULATION AND ANALYSIS SUMMARY OF FINDINGS RECOMMENDATIONS LIMITATIONS CONCLUSION BIBLIOGRAPHY Annexure : I Annexure : II

INTRODUCTION

Employee attrition is a very big problem not only in India but outside India too. It is considered to be one of the biggest challenges Indian corporate sector is facing today. All companies are working day and night to find out a long-term solution for this critical issue. However, very few of them are in a position to face this challenge successfully till date. According to these companies, it is a complex issue and has several dimensions. Attrition rate is increasing day by day and its especially the software, BPO, entertainment and insurance industry which is affected the most.A high attrition rate will lead to more people leaving the organization, while a lower rate will act as a retention strategy. It is therefore not surprising that most industry observers are skeptical when organizations disclose their employee turnover. Ideally, attrition should be calculated on a monthly basis for companies that have over 50 employees for the first five years of its business. The attrition rate has always been a sensitive issue for all organizations as it can have major fallout on the bottom-line. This is because the attrition rate is an indicator of many things intrinsic to the organization, and revealing it may affect it negatively. Companies must be projecting their attrition rate incorrectly because it tends to affect their brand image both internally and externally. Internally, it sends a wrong signal to their employees and the board of members; externally, it can affect the company in various ways such as developing a bad image or dissuading fresh talent from joining. Every Company calculates Employee attrition rate and takes measures to reduce it. The

facts and figures are not made public as it may tarnish the image of the company in front of its own employees and its loyal customers. Attrition does not only reflect the hiring policies of an organization, but also induction/retention strategies, training methodologies, work culture and many other factors. Some companies just look at the employee turnover in terms of the cost involved in the hiring and training of individuals. Others look at the opportunity lost and its cost. Hence big financial organizations tackle the problem by recruiting extra 10-15% managers /employees as buffer to fill up the vacuums created by sudden exit of key employees like front line sales in entertainment sector. Why an Employee leaves a company is the question asked by most of the employers. Companies even hire Private HR professionals to study the companys work and find out why an employee is dissatisfied. HR department does the recruiting of new employees and then send them for training so that they can understand work and work culture and become better professionals. Each and every company faces employee turn over problem whether big or small. An employee leaves his present job for another job to get better pay package and good working conditions. However Attrition is not always bad to the organization. Sometimes it becomes essential for its growth. This happens in case of Low performers which is essential for the growth of the organization.

From the above table it is clear that attrition is more at the lower level than at the higher level post in the organization. In entertainment sector the attrition is more in the front line sales.

OBJECTIVES

The entertainment industry has been seen as the next big employment generator in this decade. But on the other side, the toughest challenge for a HR professional is to handle High attrition rate in this sector. Hence, retaining employees has become a big challenge for them. Hence, the research problem, thereby attempts to find out the rate of attrition and the practices to maximize retention of the employee.

The main objective to this study is to provide Fame India Ltd with the different aspects of Exit interviews & to find out the factors which influenced employee to leave the organization, in particular with last fiscal year. Additionally, to find out the views of employees and to find out effective retention practices or strategies. And to meet the following criteria

To study reasons why employees are leaving the Organization. To study retention strategies used by organization to retain Employee Talent. To identify what professionals look from their jobs in their organization To identify the satisfier that will improve the level of employee satisfaction.

LITERATURE REVIEW

In the best of worlds, employees would love their jobs, like their co-workers, work hard for their employers, get paid well for their work, have ample chances for advancement, and flexible schedules so they could attend to personal or family needs when necessary. And never leave. But then there's the real world. And in the real world, employees, do leave, either because they want more money, hate the working conditions, hate their co-workers, want a change, or because their spouse gets a dream job in another state. So, what does that entire turnover cost? And what employees are likely to have the highest turnover? Who is likely to stay the longest? Definition of Attrition: "A reduction in the number of employees through retirement, resignation or death" Definition of Attrition rate: "the rate of shrinkage in size or number" REASONS FOR EMPLOYEE ATTRITION Employees do not leave an organization without any significant reason. There are certain circumstances that lead to their leaving the organization. The most common reasons can be:

Job is not what the employee expected to be: Sometimes the job responsibilities dont come out to be same as expected by the candidates. Unexpected job responsibilities lead to job dissatisfaction.

 Job and person mismatch: A candidate may be fit to do a certain type of job which matches his personality. If he is given a job which mismatches his personality, then he wont be able to perform it well and will try to find out reasons to leave the job. No growth opportunities: No or less learning and growth opportunities in the current job will make candidates job and career stagnant. Lack of appreciation: If the work is not appreciated by the supervisor, the employee feels de-motivated and loses interest in job. Lack of trust and support in co-workers, seniors and management: Trust is the most important factor that is required for an individual to stay in the job. Non-supportive coworkers, seniors and management can make office environment unfriendly and difficult to work in. Stress from overwork and work life imbalance: Job stress can lead to work life imbalance which ultimately many times lead to employee leaving the organization. Compensation: Better compensation packages being offered by other companies may attract employees towards themselves.

 New job offer: An attractive job offer which an employee thinks is good for him with respect to job responsibility, compensation, growth and learning etc. can lead an employee to leave the organization.

BENEFITS OF ATTRITION Attrition rates are considered to be beneficial in some ways:

If all employees stay in the same organization for a very long time, most of them will be at the top of their pay scale which will result in excessive manpower costs.

When certain employees leave, whose continuation of service would have negatively impacted productivity and profitability of the company, the company is benefited.

New employees bring new ideas, approaches, abilities & attitudes which can keep the organization from becoming stagnant.

There are also some people in the organization who have a negative and demoralizing influence on the work culture and team spirit. This, in the long-term, is detrimental to organizational health.

Desirable attrition also includes termination of employees with whom the organization does not want to continue a relationship. It benefits the organization in the following ways:
o o

It removes bottleneck in the progress of the company It creates space for the entry of new talents

It assists in evolving high performance teams

There are people who are not able to balance their performance as per expectations, lack potential for future or need disciplinary action. Furthermore, as the rewards are limited, business pressures do not allow the management to over-reward the performers, but when undesirable employees leave the company, the good employees can be given the share that they deserve.

Some companies believe attrition in any form is bad for an organization for it means that a wrong choice was made at the beginning while recruiting. Even good attrition indicates loss as recruitment is a time consuming and costly affair. The only positive point is that the realization has initiated action that will lead to cutting loss.

HOW TO MANAGE ATTRITION

Attrition can be best controlled by adopting retention policies. Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the project. Employee retention is beneficial for the organization as well as the employee. In traditional economy, retention of talent was viewed as a compensation package which is no longer relevant in knowledge economy.

Employees today are different. They are not the ones who dont have good opportunities in hand. As soon as they feel dissatisfied with the current employer or the job, they switch over to the next job. It is the responsibility of the employer to retain their best employees. If they dont, they would be left with no good employees. A good employer should know how to attract and retain its employees.

Retention of employees is one of the most critical challenges faced by many corporates worldwide and our Indian companies /entertainment industries are no exception to this phenomenon. The HR managers have been facing a tough time finding a suitable replacement with required experience and ability, to fill up the vacancies created on account of exit of key employees.

Now companies are realizing the fact that retaining and training the existing workforce is far better and beneficial than recruiting the fresh talent. The reasons can be varied like shortage of skilled manpower, growth in opportunities as a result of economic reforms and liberalized policies pursued by successive governments at the Centre. Attrition level can also be more due to rigid and unpopular HR policies pursued by the corporates.

Now that so much is being done by organizations to retain its employees, why is retention so important? Is it just to reduce the turnover costs? Well, the answer is a definite no. Its not only the cost incurred by a company that emphasizes the need of retaining employees but also the need to retain talented employees from getting

poached. The process of employee retention will benefit an organization in the following ways:

To maintain goodwill of the company. To reduce Loss of company Knowledge. To reduce cost of Turnover. To regain Organizational efficiency.

Attrition rate cannot become completely obsolete but it can surely be minimized.

RETENTION STRATEGIES TO BE ADOPTED

Understanding the causes for employee attrition is the first step in developing employee retention strategies. The best organizations recognize the fact that the retention techniques that will work best for them depend on the dynamics of the industry of which they are a part, and the level of management at which they wish to focus their efforts. These organizations tier their retention strategies to suit their employees at various levels of the organization. Often, recognizing the individuality of employees is the best retention strategy.

A focus on retention management can serve as a good starting-point for improving the quality of systems and processes in an organization. Retaining their best employees requires companies to launch initiatives along several dimensions: introducing good house-keeping practices in offices and shop-floors; making performance-appraisal systems transparent, objective, and participative; professionalizing the senior

management team; and ensuring that employees take pride in their work..

Fast-growth companies, which are among the top-performers in their industry, will find it easier to retain employees than others provided they practice the essentials of retention management: objective appraisal, and good pay-packages. Everyone loves to work for a winner. But the only way a company can improve its performance is by hiring and retaining the best human capital, and motivating it to deliver its best. If that isnt a vicious circle, nothing is. And best-in-class retention management is right at its center.

Select the right people in the first place through behavior-based testing and competency screening. The right person, in the right seat, on the right bus is the starting point.

Offer an attractive, competitive, benefits package with components such as life insurance, disability insurance and flexible hours.

Provide opportunities for people to share their knowledge via training sessions, presentations, mentoring others and team assignments.

Demonstrate respect for employees at all times. Listen to them deeply; use their ideas; never ridicule or shame them.

Offer performance feedback and praise good efforts and results. People want to enjoy their work. Make work fun. Engage and employ the special talents of each individual.

Enable employees to balance work and life. Allow flexible starting times, core business hours and flexible ending times.

Involve employees in decisions that affect their jobs and the overall direction of the company whenever possible.

Recognize excellent performance, and especially, link pay to performance. Base the upside of bonus potential on the success of both the employee and the company and make it limitless within company parameters. (As an example, pay ten percent of corporate profits to employees.)

Recognize and celebrate success. Mark their passage as important goals are achieved.

Staff adequately so overtime is minimized for those who dont want it and people dont wear themselves out.

Provide opportunities within the company for cross-training and career progression. People like to know that they have room for career movement.

Provide the opportunity for career and personal growth through training and education, challenging assignments and more.

Communicate goals, roles and responsibilities so people know what is expected and feel like part of the in-crowd.

Encourage employees to have good, even best, friends, at work.

IMPORTANCE OF EMPLOYEE RETENTION The process of employee retention will benefit an organization in following ways-

THE COST OF TURNOVER: The cost of employee turnover add hundreds money to a company's expenses. While it is difficult to fully calculate the cost of turnover (including hiring costs, training costs and productivity loss), industry experts often quote 25% of the average employee salary as a conservative estimate. LOSS OF COMPANY KNOWLEDGE:

When an employee leaves, he takes with him valuable knowledge about the company, customers, current projects and past history (sometimes to competitors).

Often much time and money has been spent on the employee in expectation of a future return. When the employee leaves, the investment is not realized. INTERRUPTION OF CUSTOMER SERVICE:

Customers and clients do business with a company in part because of the people. Relationships are developed that encourage continued sponsorship of the business. When an employee leaves, the relationships that employee built for the company are severed, which could lead to potential customer loss. TURNOVER LEADS TO MORE TURNOVERS:

When an employee terminates, the effect is felt throughout the organization. Coworkers are often required to pick up the slack. The unspoken negativity often intensifies for the remaining staff. GOODWILL OF THE COMPANY:

The goodwill of a company is maintained when the attrition rates are low. Higher retention rates motivate potential employees to join the organization. REGAINING EFFICIENCY:

If an employee resigns, then good amount of time is lost in hiring a new employee and then training him/her and this goes to the loss of the company directly which many a times goes unnoticed. And even after this you cannot assure us of the same efficiency from the new employee.

ABOUT COMPANY PROFILE

Fame India Ltd. (formerly Shringar Cinemas Ltd.) Shringar Cinemas made its foray into the world of multiplexes with Fame Adlabs, which was launched in Mumbai in 2002. In quick succession, within the next 2 years, doors of Fame Malad , Fame Nashik and Fame Kolkata were opened to the public. Not only did these multiplexes change the landscape of Mumbai and Nashik, they also set unparalleled benchmarks as the cities finest entertainment destinations. In near future, Shringar Cinemas will have presence across the country with Fame properties opening in Aurangabad, Pune, Surat, Allahabad, Hyderabad.

MISSION STATEMENT Their sole mission is to provide our patrons a unique movie viewing experience. It will be their constant endeavour to improve and innovate every aspect of their theatres, in order to make it a truly distinctive experience.

ENTERTAINMENT AN EXPERIENCE Fame Cinemas constantly Endeavours to bring in the highest quality of entertainment to Mumbais film going audience. Fame has transformed the experience of cine goers into a pleasant, very user-friendly and delightful experience. Given the commitment to

the quality of service & films being screened, there is little wonder then that, Fame has a burgeoning set of loyal customers who love getting pampered here.

Fame India Ltd. (formerly Shringar Cinemas Ltd.) BACKGROUND In the late 1990s, they saw an opportunity in providing an outstanding movie viewing experience to the Indian audience. Combined with the availability of high quality retail space in India, the avid movie going habits of Indians and the paucity of good quality theaters in the country, they felt this was a viable opportunity for a successful business. They, therefore, reoriented their business model to increase their focus on the nascent Film Exhibition business, by leveraging on their strong Film Distribution experience.

They benchmark their selves with global multiplexes, and strive to enhance their service offering in line with the emerging trends globally. To provide exceptional consumer experience, they have introduced the Gold Class screens which feature natural leather recliners, where each recliner stretches to 150 degrees, super size screens, state of the art projection and sound systems. Apart from popcorn and soda, they also offer specialty food, which can be ordered and delivered on ones seat!

EVOLUTION: They were incorporated in 1999 and commenced operations in the same year. They were formed with the core objective of providing cinema goers a unique movie viewing experience.

In 2001 in order to encourage investment in the sector, the Maharashtra government announced significant tax benefits for multiplex operators, which made investments in this sector more attractive. Sensing this opportunity, they decided to invest further capital into the Multiplex business. They raised fresh equity capital from GW Capital (one of the leading venture capital funds, and now know as India Value Fund) and commenced operations.

Currently, they operate 70 screens and 20149 seats across 8 cities in India with presence in states of Maharashtra, Gujarat, West Bengal, Jharkhand and Karnataka.

No of screens Properties under Fame India Limited Mumbai Pune Nashik Aurangabad 26 3 3 3

No of seats

7506 1009 1318 1012

Kolkata Anand Bangaluru Dhanbad Bharuch

10 3 4 4 3 Properties under Joint Venture

2405 624 993 996 893

Mumbai

5 Properties under management model

1282

Surat Total

6 70

1841 20149

They expect to further roll out 25 screens in FY 08-11 as mentioned below No of screens Properties under Fame India Limited Mumbai Pune Bangaluru 10 3 1 2888 1010 612 No of seats

Chandigarh Vadodara Total

7 4 25

1683 1121 9255

STRENGTHS Market reputation: The FAME brand has been identified with professionalism and transparency in business practices. This is the core strength on which all their businesses are built.

Ability to identify locations: One of the biggest factors for the success of any multiplex is the location. They believe that their skill in identifying locations is one of their key strengths. They have a professional team with many years of experience in evaluating various locations in terms of catchments area, competing alternatives, expenditure patterns and demographic trends.

Proven project management skills: They have an in-house professional team for project implementation supported by project management consultants. This model of implementing projects has enabled them to complete properties within budgets and time. Capital-efficient project design and execution: Their projects are planned and conceived in a manner that each property is profitable on a stand alone basis. They use their internal skills to assess the location

and demographics and decide on capital expenditure accordingly. The properties on which they operate are not owned by them. They manage these properties pursuant to agreements entered into with the respective owners of the properties. Apart from stand-alone profitability of each site, it also ensures an efficient use of capital.

Selection of content: Due to their experience in content selection and programming for many theaters and a deep understanding of different film genres (developed in our distribution business), they are well-placed to exploit each film available in the market.

MARKETING STRENGTH: The brand Fame has been established in the consumers mind due to marketing through newspaper ads, radio spots, direct mailers, internet mailers, Purple Ribbon (our social initiative) and the use of promotions like paid previews, contests, movies merchandise, DJ in the lobby over the weekend etc. Premieres of films are also used as an important marketing tool.

Customer orientation: Fame has built a clear focus on customer orientation, by providing services such as, tele-bookings, home delivery of tickets, internet bookings, IVR and kiosk bookings.

 Long-standing experience in film distribution: Apart from the experience in areas of exhibition i.e. programming, theater management and running multiplexes, they have experience of over 25 years in film distribution. This distribution experience is particularly useful for the exhibition business in the following way:

Ability to identify under serviced areas and/or untapped locations, where unmet demand for a movie theater exists. This helps them in selecting locations.

Relationship with producers/distributors in getting access to content. Relationship with theater-owners enables retrofits properties. to have access to locations for

Understanding of different film genres and their box-office potential. This is important for content selection.

Integrated technology backbone: They have laid a lot of emphasis on a technology and systems.They use different softwares, which provide us a regularly updated MIS. This assists them in their day to day operations.

Vista Vista is ERP software made by a developer in New Zealand and used internationally; which covers all aspects of managing and operating cinemas. The product line is scalable so as to be suitable to exhibitors who run from

one cinema to hundreds of cinemas. Apart from Box Office and F & B sales, the Vista suite is used for web ticketing, kiosks, employee scheduling etc.

Boss The Back Office Software System (BOSS) is a specialized Accounting System for the hospitality Industry / Service Oriented Companies. This software is integrated completely with Vista, thus enabling accounting to remain online on a daily basis. This helps in closure of books every month and preparation of MIS reports within 5 days of the month end.

GROWTH STRATEGY Their growth strategy is to increase number of patrons is through a pull innovative programming and push block booking and build a pan India presence is a cost effective manner, and furthering Fame as an experiential multiplex brand through a mix of multiplexes, retrofits and some standalone properties.

Year wise stages of evolution (Milestones) for the FAME Group 1950's 1960's Started off as Movie Financers Started acquiring and releasing films. Formed Maya & Co

and released movies like Dilli ka Thug, Sazaa etc 1975 Shyam Shroff and Balakrishna Shroff launched Shringar Films and focused on release of earlier released films; and released them in untapped markets with a focused marketing strategy. Upto 1990's Established itself as a leading distributor Pre-dominantly western India centric Released an average of 10-12 movies per annum. Also established a reputation of niche products. Distributed movies for leading actors like Amitabh Bachchan, Shah Rukh Khan etc 1995 Ventured into Exhibition business by signing contracts for program management for theaters such as Gemini, Maratha Mandir (Matinee) 1997 Signed contract for program management of Cinemax theater at Goregaon, Mumbai, under the lease model Upto 2000 Provided management of programming services for many theaters in Mumbai on a contract basis.

2001

Investment by India Value Fund Trustee Company Private Ltd to fund expansion

2002 2004 2005

Launched Fame Adlabs Multiplex at Versova Mumbai. Launched Fame Malad, Fame Nasik. Launched Fame Raghuleela Kandivali and Fame Hiland Park Kolkata.

2006

Launched Fame Jai Ganesh Pune, Fame Raj Empire Surat, Fame Nakshatra Dadar, Thakur Fame kandivali & Fame Tapadia Aurangabad

2007

Launched City Pulse Anand, Thakur Fame Dahisar & Thakur Fame Movie Kandivali

2008

Launched Fame Lido Bengaluru and Fame South City Kolkata, Fame Raghuleela Vashi, Fame Shalimar Bharuch, Fame Shri Ram Dhanbad, Fame Neelyog Ghatkopar and many more expected in the near future.

EMPLOYEE BENEFITS PROVIDED BY FAME INDIA LTD

A part from the legal and mandatory benefit such as Provident-fund, below is a list of other benefits insurance sales force are entitled to the following Group Term Life Insurance Policy Hospitalization ( Medi-claim ) Insurance Policy Travel benefits Fuel Reimbursement Employee Referral Scheme Leave or Holidays offered Performance Based incentives Flexible Salary Benefits

These are few benefits that the company offers to the new joiner. These benefits play a role to attract good pool of talented people for various posts in the organization and it also responsible for motivating the employees and a little bit in retaining them. Apart from the various benefits provided by the company to its employees, it practices few HR policies to curb Attrition.

It does not practice any special activity to retain its employees apart. Keeping in mind the various rates and reasons of attrition prevailing within the company; it has adapted certain practices to minimize the drop out and improve retention.

RESEARCH METHODOLOGY

Research can be defined as systematized effort to gain knowledge. A research is carried out by different methodology, which has its own pros and cons.

Research methodology is a way to solve research problem along with the logic behind them. Thus when we talk of the research methodology we not only take of research method but also context of our research study and explain why we are using a particular method or techniques and why we are not using other so that research result are capable of being evaluated either by the researchers himself or by others. Research methodology means the method carried out to study the problem. It shows the type of the sample design used, its size and the procedure used to dew sample. The extent of precision achieved and the method used for handling any special problem during the course of the study.

Research methodology has following steps: Step: 1 Step: 2 Step: 3 Step: 4 Step: 5 Step: 6 Step: 7 To decide the objective of the study. To design research design. To determine the source of data. To design data collection form. To determine sample size and sample design. To process and analyze the collected data. To prepare the research report.

EXPLANATION

Step: 1

To decide the objective of the study to be carried out. To study about Fame India Ltd, India Exit Process To analysis the Data based on Exit Interview of the company. To suggest effective retention strategies

Step: 2

To decided the research design. What is research design? Research design is a plan, structure, strategy of investigation

conceived so as to obtain answer to research question and control variance. There are three types of research design system. Explanatory Research. Descriptive Research Casual Research.

Among the above mentioned types descriptive research design has been chosen. Descriptive research is to find Retention Practices. In order the study the characteristics and variables, cross sectional analysis was conducted by Focus Group Interview & by a Questionnaire was developed and circulated to the respondents & and which formed the basis for entire research.

Step: 3

To determine the source of data. There are two types of data sources:

Primary Data: Secondary data:

Step 4: To design data collection. There are two types of mode to collect the data: Observation method. Survey method.

As for as the data collection method for this project is concerned, designing the data collection forms or survey forms is applicable to the project. The method selected survey method. A survey can be conducted by: Focus Group Interview Questionnaire

Step 5 To determine sample design sample size. Sample size specification 40 Employees Based in Fame India Ltd (Mumbai branch)

TABULATION AND ANALYSIS

The Tabulation & Analysis is based on the following details: Organization Number of Employees Number of Employees left the Organization - Fame Ltd India - 532 - 96

Table 1: Top five reasons given by employees at the time of resigning. Frequency Percentage Career Change Career chances would take too long within FedEx Basic Pay Insufficient Unsatisfactory working environment (e.g. the place) Unsatisfactory working conditions (e.g. working hours/shifts) 15 6 49 26 25 17 18 10 9 6

20 18 18 16 14 12

Percentage

10 8

10

6 6 4 2 0 6

Career Ch

1.00

2.00

3.00

4.00

Basic Pay

Reasons

Unsatisfactory W ki C di i

5.00

Inference: From the above fact, 18% of the employees left organization due to career change, 10 % of employee left organization due to lack of growth opportunities, 9% of employees left due to insufficient pay, and 6 % of employee left due to unsatisfactory working environment and unsatisfactory working conditions respectively.

Table 2: Turn over based on the Age of the Employee

Age 20-30 30-40 Above 40 Total employees

Frequency 53 37 6 96

Percentage 55 39 6

6%

39%

55%

20-30

30-40

Above 40

Inference: The above reveals the fact that Majority of the respondents, about 52% belong to the category of 2030 years of age and 32% belong to the category of 30-40 years of age and 8% belong to the category of above 40 years of age.

Table 3: Most Affected Departments due to Attrition

Num.of Employees Attrited Sales Operations CFS Customer Service 28 26 16 9

30 20 10 0

28

26 16 9 Num.of Empl oyes s Attri ted Cus tomer Servi ce

Sal es

Operati ons

CFS

Num.of Empl oyes s Attri ted

Inference: From the above reveals the fact that 28 employees left from sales department, 26 employees left from operations, 16 employees left from CFS Dept and rest 9 left from Customer services.

Table 4: Gender wise Attrition Total Number of Females Num. of Females Attrited Total Number of Males Num. of Males Attrited % Of Males Attrited % of Females Attrited 96 21 435 75 17 22

500 450 400 350 300 250 200 150 100 50 0 Total Number of Female Num. of Females Attrited Total Number of Males Num. of Males Attrited % Of Males Attrited % of Females Attrited 96 21 75 17 22 435

Inference:Out of 96 female employees, 21 employees left in last fiscal year, where in out of 435 male employees 75 employees left in last fiscal year. The % of male & females leaving the organization is 17 % and 22% respectively.

Table 5: Tenure of Attrited Employees at Fame India Ltd

0 -1 year 1-2 years 2-3 years 3-4 years 4-5 years 5-6 years 6-7 years 7-8 years 8-9 years 9-10 years 10 -11 years 11-12 years

5 6 25 33 11 5 3 2 1 1 1 3

35 30

Num. of Employees

25 20 15 10 5 0 0 -1 year Seri es 1 5 1-2 2-3 3-4 4-5 5-6 years years years years years 6 25 33 11 5 6-7 7-8 8-9 9-10 years years years years 3 2 1 1 10 11-12 11 years years 1 3

Inference: The above graph reveals that the number of employees leaving Fame India Ltd after 3-4 years of service. There is heavy downfall can be seen in above graph.

Table 6: Tenure of Employee in Customer Service Num of employees up to 1 year Num of employees more than 1 year Num of employees more than 2 years Num of employees more than 3 years Num of employees more than 4 years Num of employees more than 5 year 3 12 8 5 4 1

14 12 10
Axis Title

8 6 4 2 0 Num of employees upto 1 year 3 Num of employees more than 1 12 Num of employees more than 2 8 Num of employees more than 3 5 Num of employees more than 4 4 Num of employees more than 5 1

Series1

Inference: The tenure of customer service employees graph shows high amount of down fall after 2 years. There is less number of employees being in service after two years which shows the more attrition after two years service into Customer service.

DATA ANALYSIS AND INTERPETATION

Fame India Ltd. is known for its brand. Its products are readily identified by the people in the market. Almost every young enthusiastic person who wants to make a career in entertainment industry opts for this brand. The attrition rate is high among the front line sales force which comprises of Development Managers, Business Development Managers and Assistant Sales Managers. Among which Development Managers are more in number and are involved in retail sales.

Development Managers growth path depends on targets they achieve within certain vintage (Duration). Their growth path is given as-

The development Managers should be a graduate and have minimum 6months to 1 years of experience.

The front line sales forces have to meet up with high targets within stipulated period. Most of them who join in enthusiastically, spurred by dreams of getting full reward for the hard work and other such motivational spiel, meet reality soon enough. Then attrition occurs.

The Attrition rates are generally expressed as a percentage for a specific period of time. Like any other percentage, the attrition rates are a function of what goes into numerator and denominator.

The attrition rate of front line sales was different for different regions and diffrent branch. In the Mumbai region, there are 9 branches. On account of information collected of

exits for the month of April, May and June 2008, i.e for a quarter for Mumbai region and by doing the following analysis, the attrition rates in branches for the region was found out.The Attrition Rate is calculated with the help of the following formulae-

(Number of employees resigned in the quarter/ Average manpower) * 100

Where, Average Manpower = (Opening Manpower + Closing Manpower) / 2

With the application of the above formulae, the attrition rates for the Mumbai region is given as:

Attrition Rate in Mumbai

35 30 25 20 Pecentage 15 10 5 0

Fa m e

Fa m e R ag Fa A d h u m lab le e M s e Fa l a a la Fa m me Kan d e N d Fa Tha ak iva s li Fa me kur ha m Th C tra in e R aku em ag r a hu M s ov le i Fa el a es Va m Fa e D s h m ah i e i N sa r ee ly og

Attrition Rate

This gives us a view on the attrition rates. But it was also observed in entertainment industry high at the start .i.e. among the new joinees in the sales force. Because they are new to the sector and usually take time to meet the high targets. It was also found during the research that on change of an immediate reporting; the attrition increases among the sales force as they are not able to get guidance and therefore fail to meet up with the desired business targets thereby showing non-performance.

It is clearly seen from the above diagram, that the attrition rate was high among the sales force during 0-3 months slot and for the new Territory manager (TM ). The attrition of the employees is because of various reasons. It is clearly seen that the attrition is high among the employees who are new to the company whereas once the employee is in the system for more than 6 months, the attrition gradually decreases.

At the Start, the employees mostly leave as they cannot handle the work pressure, nonperformance, role mismatch etc. The employees, who leave the organization after being in the system for long that is around 1 year, leave mostly for better opportunities, and better compensation.

On the basis of exit interviews carried out, the most common reason for attrition in FAME INDIA LTD is non performance and absconding. When the front line sales fail to achieve targets set for them, they suddenly leave without informing the company, basically for work pressure. This is absconding case.

Reasons for Attrition

Personal issues 23% Leadrship Issues 2% Integrity 8%

others 6%

Better prospects 12%

Absconding 26% Terminated 23%

When they dont perform, they are terminated by their immediate reporting boss and the TMs for better employees to come in, as retaining a non-performing employee is not good for the growth of the company. There were various other reasons for attrition found out from exit interview of leaving employees.

The most common reasons being Better Prospects. Personal issues. Terminated. Integrity issues. Leadership issues. Absconding. Others.

Others reasons include Higher Education, role mismatch, got shifted to other location, policies and procedures of the company are not conducive etc.

SUMMARY OF FINDINGS

Following are the findings which are based on Employee suggestion and views.

It was observed that the company FAME INDIA LTD, maintained a quarterly record of attrition rates of various branches at its regional office.

It was also observed that the non-performers were counseled and reviewed by the HR personnels every month as a practice to make them aware of their performance and to look into the difficulties or problems faced by them.

Employees are satisfied with their current role because of the culture of the organization, new learning & Team support but on the other hand they are unsatisfied because of not proper utilization of their knowledge & skills to full extent.

Employees wanted approval process should get shorter & prefer paperless organization & all employees feel they should be getting more training about different online systems used in Fame India Ltd and its interrelation with other departments.

Employee is seeking multi tasking role & wish to handle different duties & responsibilities.

RECOMMENDATIONS

STAY INTERVIEW In case of Stay Interview there should Proper counseling should be held for all the employees with HR Representative along with or without their immediate manager. This interviews should be mandatory to conduct, and can be conducted on periodically basis. This will help organization & employees to find out each others problems and to find out measures to help employee retain in the organization for longer time.

DIFFERENT LEAVE PATTERN There should Different number of allotment to employees at each level. For instance, if the employee joining in the organization who is liable for 25 days leave in year so as he grows with the company and if he/she is performing up to organizations standards he/she should be given more number of leaves every year. This will attract employee to perform better & stick with the organization for longer time.

LEAVE WITHOUT A REASON In this concept, if the Employee is allotted 10 casual leaves in each fiscal year, then the employee should be allowed to take a leave without giving reason to his Line manager. Its been observed that employee giving various counterfeit reasons for not turning up to work. Rather to avoid this till the employee is not exceeding the leave which have been

allotted to him/her the manager should not ask employee for the reason of leave but employee can just inform his/ her manager that he/she will be taking a casual leave.

JOB ROTATION

This is one of the ways to reduce attrition in an organization. Job rotation is one such popular administrative control tool that was introduced during the 1950s by the founder of IBM, Thomas Watson. It endeavors to move employees from one job function to another at a specific interval. Whenever an employee finds an activity unchallenging, he is rotated to another job at the same level with similar skill requirements. Job Rotation can be advantageous to reduce absenteeism in following ways:-

Reduction in stress Reduction in Boredom and monotony Increase in Production. Increases innovation and motivation Job Satisfaction

FAIR COMPENSATION

Remuneration package is the driving force of any employment. Handsome package as a platform for people to take new initiatives.

Besides basic package, there can also be performance-based incentives-relating to targets achieved, accuracy and productivity.

RECREATION

Recreation is an important as any other tool. It helps in creating a conducive environment making fun for everyone.

Thus, it is necessary to introduce consistent recreation initiatives like Sports, Activities, family get together and unwinding zones at the workplaces

Besides this, cultural programs and Birthday celebrations break the monotony of everyday work pressure.

INTERPERSONAL RELATIONSHIP AT WORK

Its been said that and which is mostly true that great people stay in bad jobs with great bosses & great people leave great jobs with bad bosses. Its necessary that the relationship with employee and boss should be smooth enough. If the relationship of a manger with the employee is strong enough even the employee will support the manager in bad times and will give results putting extra efforts resulting in being with organization for longer time.

WALK THE RECOGNITION TALK

This is nothing but to make every employees feel its importance in the organization and recognize him for all his work done. This can be done with showing following gestures like Certificates of Recognition Wall of Fame Best Employee of the Month Recognition Voice Mail Thank a Family Member card Thanks for a job well done card Take a person to lunch Candy, Balloons, Popcorn, Movie Tickets

LIMITATIONS

Though the study aims to achieve the above mentioned Objective in full earnest and accuracy, it may be hampered due to certain limitation. Some of the limitations are as follows:

To cover the all the employees of the Organization. Respondents may not give the genuine feedback There is a time limitation, it is not possible to study whole thing so I have covered some special aspect as well as some topics.

Secondary Data used over here is only of last fiscal here hence unable to find out the pattern of employees leaving in rest of fiscal years

CONCLUSION

The unbridled growth of the new economy, the emergences of the knowledge worker and the high demand for talent in the domestic and global markets have rewritten the rules of the game.

Though hiring good employees is a nightmare, it is more difficult to retaining good employees. The talent management is the key area in every organization worth its HR department and CEOs are more worried about intellectual capital than working capital.

As to the customer, the employee serving them is the company, similarly to the employee, the manager is the employer.

Retaining the employees especially your best ones require more than Goodies and Gimmicks.

It requires understanding their needs which can drive satisfaction and high performance in them, and then use his knowledge to create an intrinsically motivating work experience, by doing this organization can become what we say in true words , Retention worthy.

BIBLIOGRAPHY
Books

Retaining Top Employees, by J. Leslie Mckeown Employee Retention, Hand book 2005, by Stephen Taylor. Business Process Outsourcing (strategies and contracts), by Edward E. Lawler

WEBSITES
www.keepemployee.com www.employeeretentionstrategies.com www.retentionsystems.com

Annexure : 1
Questionnaire

Age: __________________

Gender: ________________________

Department : ________________

Designation: ______________________

1) Are you satisfied with your current role? a. Yes. b. No.

If No, Why _________________________________________ 2) Are you satisfied with the working environment? List the important factors which keep you satisfied? Also, List the two most important things you are unsatisfied with. ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ 3) Is there any other department you would like to join in besides your own dept? a. Yes. b. No.

If Yes, Which and Why ____________________________________________

4) What are the two things you like and dislike about your current Job Profile? Likes a.__________________ b.__________________ Dislikes a. __________________ b. __________________

5) Do you think if you are being treated fairly at the time of compensation comparing with you previous organization? a. Yes. b. No.

If No, Why _________________________________________

6) Are you satisfied with the way you performance is measured? a. Yes. b. No.

If No, Why _________________________________________

7) Will you refer your friend or Ex colleagues to join Fame India Ltd? a. Yes. b. No.

If No, Why _________________________________________

8) Apart from current benefits, mention any two benefits you would like receive at Fame India Ltd?

1_______________________________________________________________

2_______________________________________________________________

9) What suggestion you would like to give it to Management to improve Growth opportunities for you? ________________________________________________________________ ________________________________________________________________ ________________________________________________________________

Annexure : 2
EXIT INTERVIEW FORM Employee Name Division Dept. Termination Hire Date Date / Job Title Employee Num

1. Why are you leaving this Organization?

2. What circumstances would have prevented your departure?

3. What did you like most about your job?

4. What did you like least about your job?

5. What did you think of your Manager on the following points? Sometimes Almost Always Usually Never Was consistently fair Provided recognition Resolved complaints Was sensitive to employees' needs Provided feedback on performance Was receptive to open communication

6. How would you rate the following? Excellent Cooperation division/department Cooperation with other divisions within your Good Fair Poor

Personal job training Company's performance review system Company's program Rate of pay for your job Career opportunities Physical working conditions Comments: development/Advancement new employee orientation

7. Would you consider returning to our organization? ( ) Yes ( ) No

Comments:

8. Was your workload usually: ( ) Too heavy ( ) About right ( ) Too light 9. Would you recommend the company to a friend as a good organization to work for?

( ) Most definitely ( ) With reservations ( ) No 11. What suggestions do you have to make this organization a better place to work?

HRS:

Employee:

Date:

Date: