1.

INTRODUCTION
The purpose of the research is to test the applicability of three strategies which could solve the problem of employee retention in the companies, especially in Small and medium scale industry in Bangalore. To find out this the researcher has approached managers of Small and Medium Scale Software companies and collected the data in a questionnaire. Three categories of employees have been identified. 1. Satisfied employees (showing the tendency to stay the company or retention). 2. Indifferent employees (Neither satisfied nor dissatisfied or indifferent). 3. Dissatisfied (showing the tendency to quit the company or attrition) To find out the applicability of the first retention strategy, the researcher has classified number of employees comes under the above three categories in to two other categories; the employees who prefer position titles when they change the company and employees who prefer all other benefits except position titles. To find out the applicability of the second retention strategy, the same three categories have been classified under the employees who prefer variable benefit structure and employees who do not prefer variable benefit structure. A questionnaire survey has been conducted and classified the respondents in to respective categories. Chi square tests (test for independence) has been conducted to find out the relation ship between satisfaction, dissatisfaction and Indifference to the perception of benefits of the employees.

Applicability of the third retention strategy has been tested by using an opinion survey conducted by the researcher and verified the result using sign test ( a non parametric test). This report is not exhaustive, one can innovate many new strategies to retain employees. These are just the basics and if implemented in a proper way can give good results. 1.1. THE FACTORS AFFECTING EMPLOYEE ATTRACTION 1. Intra organizational Factors. Factors which affect the job satisfaction of the employee inside the organization for example; strained superior subordinate relationship. 1. Personal reasons; These reasons are specific to each employee such as family responsibilities, personal preference for location of job etc. 2. Extra organizational factors When an employee compares his/her position with that of same position in another company, this may lead to an inequity in the mind of employees, this will result in employee attrition, for e.g. An employee comparing his salary, position, work environment, and benefits with that of same position in another company may lead to preference for the other company. The study concentrates only on extra organizational (3 rd reason) reason which is conventionally perceived to be uncontrollable. The researcher has formulated three new strategies to control this perceptional gap. The strategies are based on Adams Equity theory.

1.2. RETENTION - A BIG CHALLENGE

Fundamental changes are taking place in the work force and the workplace that promise to radically alter the way companies relate to their employees. Hiring and retaining good employees have become the chief concerns of nearly every company in every industry. Companies that understand what their employees want and need in the workplace and make a strategic decision to proactively fulfill those needs will become the dominant players in their respective markets. The fierce competition for qualified workers results from a number of workplace trends, including:

A robust economy Shift in how people view their careers Changes in the unspoken "contract" between employer and employee Corporate cocooning A new generation of workers Changes in social mores Life balance

Concurrent with these trends, the emerging work force is developing very different attitudes about their role the workplace. Today's employees place a high priority on the following:

Family orientation Quality of life issues Autonomy Social status of the job

To hold onto your people, you have to work counter to prevailing trends causing the job churning. Smart employers make it a strategic initiative to understand what their people want and need -- then give it to them.

division of the organization but it directly affects the Human Resource division as well. The organizations are competing each other to acquire the scarce talent pool. Internal advertisement simply meant to tell the employee that the organization which they are working is good and a company favorable comparison should be given to employees to solve the inequity they perceive. The major difference with internal advertisement is that the communication channel is different from that of marketing channels. Here the communication

1.3. RETENTION STRATEGIES In this study the researcher is particularly interested in three retention strategies and its applicability in the industry. This is not an exhaustive list, one can add or delete any of the below mentioned strategies. Secondly, the need of the hour is to have "right basics". Every individual is different, his needs are different, and his emotions, his problems are different. There are many employee retention strategies are available in the industry. I have classified retention strategies according to the solution offered by the strategies into three: 1. Unique organizational structure strategy 2. Variable benefit strategy 3. Internal advertisement strategy

1.3.1. Unique organizational structure strategy

Creating a company-specific organization structure and position title is the crux of this theory. This will reduce the employees tendency to compare his position title and benefits with that of same in other companies. Rather than force the employee to confine his talents to structured jobs, set job titles according to the knowledge, skill and ability of the employee. If an organization possess a unique structure with position titles and its responsibilities will keep the employee concentrated in the same company rather than choosing the job in other companies. following important factors must be present in the Unique organizational structure. a. Set Clear Expectations When people enter in a company for the first time as an employee, he/she may have many expectation regarding the salary, work environment etc. the primary need for the employee is to yearn a decent salary to live, when this objective is fulfilled the employee will look for social status such as attractive position titles and benefits structure which satisfy the egoistic needs of human being. So the company must manage this expectation by understanding the employees perception.
o

What is the employees attitude to other organization and its benefit structure for the same position? What are the employees expectations from employers/teammembers? What are the parameters to measure their performance?

o o

A good communication channel present in the organization. What will be the rewards, if the employees exceed the expected level?

If the employees are not having any expectations, how an employer is going to appraise, the employees? This must be based on some standard.

The employee must have the feeling that his role is important for the company. Also his position title must be socially acceptable. It should fulfill the egoistic needs of the employee.

Setting expectations initiates the process. Managers need to sit down with each employee and clearly define what's expected of them. When expectations are not clear, employees may not be in sync with their job's current demands and priorities. Setting expectations is not a once and done activity. Jobs change. Priorities change. Resources change. Managers need to revise and set new expectations throughout the year. Setting expectations revolves around the following three areas:
o o o

Key job responsibilities Performance factors and standards Goals

Why is a setting expectation important? Quite simply, this process can be the cornerstone of improving the motivational climate within your sphere of responsibility. If your employees know what is expected of them, it allows them to focus on results and to monitor themselves against the set standards. Environments in which expectations are not

clear, or change from week to week, seldom create high-performing work groups.

The three principles that should drive expectations are clarity, relevance, and simplicity. b. Clarity. Expectations should focus on outcomes, not activities. In other words, employee achieves clarity when the employer identifies the expected results rather than the method for achieving them. Managers often make the mistake of attempting to direct the process that an employee will use rather than being clear about results.. Defining the objective often requires some thought on the part of the manager because it is easy to fall into the "activities trap." While developing a strategic plan for a department or division is a worthy activity, it does not represent an outcome. In the activities trap, developing a plan is the goal, rather than increasing your market share.

c. Relevance. The principle of relevance helps define the "why" of the

assignment. If your employees have a full understanding of the project's importance, they can make adjustments as unanticipated factors crop up within the process. They probably also will be more committed to the result because they can see more easily how it fits into the big picture and how their efforts impact the company.

This understanding typically is accomplished through dialogue between the manager and subordinate, which allows for a more thorough review of the

situation and for feedback and discussion. This process builds good will with the employee and sets the stage for additional responsibilities. d. Simplicity. Simplicity creates a sense of grounding for employees as they endeavor to carry out assignments. If managers identify the work in simple, straightforward terms, employees will find it much easier to follow through on managers' wishes. To accomplish this, a manager must identify the key message in a fashion that the employee can embrace. e. Talent and skill utilization Talent and skill utilization is another environmental factor your key employees seek in your workplace. A motivated employee wants to contribute to work areas outside of his specific job description. How many people could contribute far more than they currently do? You just need to know their skills, talent and experience, and take the time to tap into it. As an example, in a small company, a manager pursued a new marketing plan and logo with the help of external consultants. An internal sales rep, with seven years of ad agency and logo development experience, repeatedly offered to help. His offer was ignored and he cited this as one reason why he quit his job. In fact, the recognition that the company didn't want to take advantage of his knowledge and capabilities helped precipitate his job search. In this case the manager can easily change the position title of the employee and include the relevant job description in the position title. f. Fairness and equitable treatment The perception of fairness and equitable treatment is important in employee retention. In one company, a new sales rep was given the most potentially successful, commission-producing accounts. Current staff viewed these

decisions as taking food off their tables. The employer can bet a number of them are looking for their next opportunity. In another instance, a staff person, just a year or two out of college, was given 20,000 in raises over a six month time period. Information of this type never stays secret in companies so the employer must know, beyond any shadow of a doubt; the morale of several other employees will be affected. g. Career growth The best employees, whom you want to retain, seek frequent opportunities to learn and grow in their careers, knowledge and skill. Without the opportunity to try new opportunities, sit on challenging committees, attend seminars and read and discuss books, they feel they will stagnate. A career-oriented, valued employee must experience growth opportunities within your organization .

2. Variable benefit strategy

Periodical change in the benefit structure leads to increased awareness and satisfaction with the benefits. One of the purpose of benefit structure is to motivating the employee. Unfortunately continues enjoyment of the benefits leads to reduced satisfaction and motivation. This can be solved by periodical change in benefit structure, i.e. periodically introduce new benefits and remove the old benefits. Following are the important factors present in the variable benefit structure. a. Proper Rewarding Proper rewarding is important for the employee to be motivated during the job. A research reports says that in today's scenario,

70% of the employees are less motivated today than they used to be. 80% of the employees could perform significantly better if they wanted to. 50% of the employees only put enough effort into their work to keep their job. Employee Reward covers how people are rewarded in accordance with their value to an organization. It is about both financial and non-financial rewards and embraces the strategies, policies, structures and processes used to develop and maintain reward systems. The ways in which people are valued can make a considerable impact on the effectiveness of the organization, and is at the heart of the employment relationship.

b. Attracting the employees The aim of employee reward policies and practices, if any in your organization is to help attract, retain and motivate high-quality people. Getting it wrong can have a significant negative effect on the motivation, commitment and morale of employees. Personnel and development professionals will be involved frequently in reward issues, whether they are generalists or specialize in learning and development or employee relations. Keep following parameters in mind, while designing a reward policy:

c. Recognition of the work

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Recognition is the most cost-effective motivator. While the high cost of other rewards forces us to give them sparingly, recognition can be given any time, at very little cost. Some very ordinary items and events can be imbued with extraordinary motivational significance, far in excess of their monetary value, motivation of a pizza or movie tickets can be high if it is given with sufficient appreciation. A sincere thank you can be delivered at any place and at any time, costs absolutely nothing and can be more motivationally powerful than a substantial monetary bonus. Organizations can provide innovative recognition in an infinite number of ways. For example, (A Hypothetical Incident) a small manufacturing company made its employees feel like heroes when they attained a major safety milestone - 100 days without a single accident. On the morning of day 100, it was announced that a catered lunch would be served the next day, if they made it to the 5:30 shift without an accident. At 5:15 anticipating was building. Managers took confetti and streamers to the balcony overlooking the shop floor. When the 5:30 whistle blew, there were congratulations all around, confetti flew through the air and banners were unfurled. It was a great moment for everyone - and one that was not soon forgotten. The recognition value of this celebration was extremely high, while the monetary cost was relatively low. Highly motivating organizations even celebrate small successes. A healthconscious company distributes fruit bowls to employees' work areas when key personal milestones are attained. Another company uses a more fattening approach: fresh-baked chocolate-chip cookies to say thank you.

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Clearly the traditional "pay for loyalty" systems in most organizations need to be changed. Don't let attendance be your major criterion for rewards. Most employees resent those who only put in their time and yet receive the same reward as those who go the extra mile. Today's employees have higher expectations for what work can and should be, and they want to receive rewards that reflect their personal efforts and contributions. This is why so many companies are moving toward performance-based rewards, including performance bonuses, gain-sharing and non-monetary recognition. Although not a panacea, companies are finding that these new reward systems do allow them to give substantial rewards to those who really deserve them. Smart organizations are looking for opportunities to reduce across-the-board entitlements, and thereby find more resources for discretionary performancebased rewards, without increasing the total cost of rewards. The Law of Rewards - "What you reward is what you get" - Is extremely powerful. No matter what your orientation materials or job description might say, it is the rewards your organization gives that communicate the real expectations. The most important question to ask in evaluating the reward system in your organization is, do the rewards we are giving elicit the performance we want? Start with the results you want to achieve and then pinpoint the types of behaviors needed to achieve them. For example: Also, don't confuse employees with too many rewards. It is better to focus rewards on the critical few behaviors and results, rather than diluting them by rewarding the trivial many. d. Timely action

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Rewards should be given as soon as possible after the performance has taken place. This is why the most successful gain-sharing programs pay employees monthly, rather than quarterly or annually as in the past. There is a well-accepted law of behavioral psychology, that if you want someone to repeat a behavior, you should positively recognize it immediately. From this law, smart supervisors and managers can learn a vital lesson: Look for any employee doing something right, right now, and recognizes it. e. Type of reward Rewards are as different as the people who receive them and it doesn't make sense to give rewards that recipients don't find rewarding. For example, some people prefer more pay, while others prefer more time off. A promotion might be more rewarding to one person, while a job-sharing arrangement might be more rewarding for another. Some people are excited about sports events, others about movies. Some employees would love a dinner in a romantic restaurant, others a book by their favorite author. Food, fun, education, improved work environment, gifts, travel, family-oriented activities - the options are endless. How do you know what will be rewarding to employees? Ask them. Smart organizations are also letting employees choose their own rewards from reward menus and catalogs. Personalizing rewards shows that a company cares enough to discover what "interests" each employee, rather than just distributing generic items. It also reduces the following danger: In one organization I was visiting, an employee opened a big drawer in his desk and disdainfully showed me all the "worthless trinkets" he had collected over the years.

f. Longevity of the reward

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Increase the longevity of rewards can be done in a number of ways: One of the keys to reward longevity is symbolism. The more symbolic an item is of the accomplishment, the more likely it is to continue reminding the employee of why it was given. For instance, a T-shirt of coffee mug with a meaningful inscription will continue rewarding those who wear it, or use it, long after its initial receipt. There are many tokens of appreciation I still keep on or near my desk that remind me of the joy of past accomplishments, while the monetary rewards I have received are long spent and long forgotten.

Another way to increase the longevity of rewards in your organization is by using some kind of point system. Rather than rewarding each individual behavior or accomplishment, points can be awarded, which employees can accumulate and eventually trade for items from a reward menu or gift catalog. This keeps the anticipation of rewards fresh for longer periods of time. It also addresses the need for reward individualization.

One company that designs motivational systems offers an electronic debit-card system to help larger clients cope with the complexity of distributing, tracking and redeeming employees' points. Employees can use their points to purchase virtually anything they want, from sports equipment and clothing to automobiles and overseas vacations. They only caveat for such programs is to make sure that the recognition value of the rewards isn't lost because of the impersonal nature of the technology.

g. Decrease the de-motivators

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Interestingly, when researchers have investigated the motivational dynamics of these workplace games, they have found that the major motivator is the playing, not the prize. Most de-motivators can be dramatically reduced by soliciting employee involvement in identifying highest-priority de-motivators and by enlisting topmanagement commitment to support their reduction. It is probably self-evident that considerable sensitivity is needed in the administration of any reward system. One de-motivator that is probably endemic in any reward system modification (especially as an organization moves from entitlements to more performance-based rewards) is a sense that something is being taken away. Employees need to be educated about the reasons that this is being done, understand the ultimate benefits to them and the organization, and should probably have some input into the change process. h. Avoid perception errors To avoid the perception of unfairness, it is important, first and foremost, that the process for allocating rewards is viewed by employees as being impartial. This requires an objective measurement system that few organizations have. Without such objective measurement, any reward system is probably destined to failure. 1.3.3. Internal advertisement strategy It communicates the advantages and benefits an employee received from the company. The theory holds that an organization must extend its marketing strategies to inside the organization. Competition is not just confined to marketing division of the organization but it directly affects the Human Resource division as well. The organizations are competing each other to acquire the scarce talent pool.

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Internal advertisement simply meant to tell the employee that the organization which they are working is good and a company favorable comparison should be given to employees to solve the inequity they perceive. The major difference with internal advertisement is that the communication channel is different from that of marketing channels. Here the communication

Communications Communication is the first step toward creating the kind of environment that people care about, and if they care, they just may stay. Keep the employees in the loop about what's happening with the company. At any time, all of your employees should have a pretty good idea of how business has been, and they should be aware of what issues the company is attempting to address. Regularly keep the employees up to date with important events affecting the company. If November was good, let them know, and while you're at it, tell them what you expect to happen in December. Share good news, as well as points of concern.

Listen to the employees when they have ideas for improvement. Again, the benefits extend beyond just making people feel appreciated for their contributions. These are, after all, the people who do the work every day. They may have some ideas to improve productivity, and when the employees do come up with one, let everybody know where it came from. Post a "brag board" in your break room, or circulate an internal newsletter that touts these

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contributions. The pay-off is a contagious feeling of pride and, perhaps, some new efficiency that saves the company money. Speak freely The ability of the employee to speak his or her mind freely within the organization is another key factor in employee retention. Does the organization solicit ideas and provide an environment in which people are comfortable providing feedback? If so, employees offer ideas, feel free to criticize and commit to continuous improvement. If not, they bite their tongues or find themselves constantly "in trouble" - until they leave.

1.4. THE CONCEPTS

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1.4.1. Applicability of Unique organizational structure strategy

Chart No 1.1

Employees who believe positional benefits will give job satisfaction (A)

(A) (B) (D)

Dissatisfied employees (B) Satisfied employees

Employees who believe various benefits will give job satisfaction (d)

Indifferent to satisfaction level The outer circle shows the number of employees who believe that various benefits provided by the company will give job satisfaction and this satisfaction will result in employee retention The top inner circle shows the number of employees who believe positional benefits will give job satisfaction. The position title shows the authorities and responsibilities in the organization structure. Employees feel that more authority and more responsibility mean more recognition from the society. This attitude triggers the employee to look for position title which represents more authority and responsibility. The small inner left and right circles represent number of dissatisfied and satisfied employees in the organization respectively. If the ratios between satisfied and dissatisfied employees inside and outside the top inner circle are

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different, it shows that job satisfaction level is depends on the employee belief on position title The exhibit No1.1 also shows to what extent the organizational structure contribute to the employee inequity. The unique organizational structure strategy can solve employee attrition in the shaded area. Larger shaded area in exhibit No1.1 shows greater percentage of applicability of the strategy.

1.4.2. Applicability of Variable benefit structure strategy

Chart No 1.2 Periodic change in existing benefit structure will give job satisfaction (A) (A) (B) (D) Dissatisfied employees (B) Satisfied employees (C)
Various benefit structures will give job satisfaction (D) Indifferent to satisfaction level(E)

Indifferent to satisfaction

The outer circle shows the number of employees who believe that various benefit structures provided by the company will give job satisfaction and this satisfaction will result in employee retention

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The top inner circle shows the number of employees who believe Periodic change in existing type of benefits will improve the job satisfaction and motivation to continue the job in the same company. The small inner left and right circles represent number of dissatisfied and satisfied employees in the organization respectively. If the ratios between satisfied and dissatisfied employees inside and outside the top inner circle are different, it shows that job satisfaction level is depends on the employees belief on periodic change in existing type of benefits. The exhibit No1.2 also shows to what extent the organizational structure contribute to the employee inequity. The variable benefit structure strategy can solve employee attrition in the shaded area. Larger shaded area in exhibit No1.2 shows greater percentage of applicability of the strategy.

1.4.3. Applicability of Internal advertisement strategy

The Important factors to retain the employees in an organization are; conducive organizational culture, emotional bond with organization and awareness of benefits receiving from the organization. advertisement strategy are: 1. Presence of internal communication channels. 2. Frequency of internal communication 3. Accessibility to internal communication channels These factors can be improved by effective communication. The important factors for implementing such an

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2. RESEARCH DESIGN

2.1 STATEMENT OF THE PROBLEM A significant problem faced by the small and medium scale software enterprises is retaining employees in the organization. In the wake of globalization, Small and medium scale enterprises (SMEs) are losing their 80% of the valuable managerial talent pool to big multinational companies. Often aspiring managers view these firms as tavern or just a stepping stone to climb to prestigious MNCs.

2.2. MANAGEMENT QUESTION Applicability of advanced employee retention strategies for middle management level in small and medium scale software enterprises in Bangalore.

2.3 RESEARCH OBJECTIVES Validity of Unique organizational structure strategy 1 To find out whether the unique organization structure increase retention 2. To what extent the unique organizational structure strategy can solve the problem of employee attrition. Validity of Variable benefit strategy 3. To find out whether the variable benefit strategy increases retention

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4. To what extent variable benefit structure strategy can solve the problem of Employee attrition Validity of Internal advertisement strategy 5. To what extent an internal advertisement strategy can be implemented in the companies. 2.4. RESEARCH QUESTIONS Validity of Unique organizational structure strategy 1. To find out whether Organizational structure is related to employee preference for staying the company. 2. What is the percentage of employee attrition can be solved by implementing unique organizational strategy. Validity of Variable benefit strategy 3. To find out whether employees belief on variable benefit is related to employee preference for staying the company. 4. What percentage of employee attrition can be solved by implementing Variable benefit strategy. Validity of Internal advertisement strategy 5. What is the opinion of employees on the success of implementation of internal advertisement strategy in small and medium scale software industry in Bangalore?

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2.5. HYPOTHESIS
a) Applicability of Unique organizational structure strategy Research question No1 To find out whether unique Organizational structure is related to employee preference for staying the company. In this research the main factor in the unique organizational structure is position titles. The hypothesis will test whether the position title and Employees preference for staying the company are associated or Independent. Variables in the chi square test Position title 1. Employees who believe Position title is important 2. Employees who believe Position title is not important Preference for staying the company 3. Retention 4. Attrition 5. Indifference The first question in the questionnaire will decide whether the respondent will prefer position title or other benefits other than position titles while planning to quit the company. The combined scores of 3, 4, 5 in the questionnaire will show the employees preference for, retention, attrition or Indifference (neither retention nor attrition) H0a: The positional benefit is not associated with employee preference for staying the company.

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2 2 (critical) H1a: The positional benefit is associated with employee preference for staying the company. 2> 2 (critical) b) Applicability of Variable benefit strategy Research question No. 3 To find out whether employees belief on variable benefit is related to employee preference for staying the company. The second question in the questionnaire will decide whether the respondent will prefer variable benefit structure. Variables in the chi square test Variable benefit structure 1. Employees who believe variable benefit structure is important 2. Employees who believe variable benefit structure is not important Preference for staying the company 6. Retention 7. Attrition 8. Indifference H0b: The employees belief on periodic change in benefit structure is not associated with employee preference for staying the company. 2 2 (critical) H1b: The employees belief on periodic change in benefit structure is associated with employee preference for staying the company. 2> 2 (critical)

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c) Applicability of Internal advertisement strategy Research question No 5 What is the opinion of employees on the success of implementation of internal advertisement strategy in small and medium scale software industry in Bangalore? H0c: Combined percentage score is 50 and above (Internal advertisement strategy is accepted) 0, 0=50% H1c: Combined percentage score is below 50 (Internal advertisement strategy is rejected) <0, 0=50%

2.6. POPULATION SIZE AND AREA OF STUDY

The study encompasses small and medium scale software enterprises in Bangalore. Total population size of lower and/or middle level managers (in all organizational divisions) in small and medium scale software enterprises in Bangalore.

2.7. SAMPLING METHOD AND SAMPLE SIZE

Sampling method is convenient sampling; the study was designed to be descriptive in nature.. Sample size Calculating the sample based on critical investigative questions The formula for determining sample size is: n = S/ x x = Standard error of the mean or the standard deviation of all possible x s At 95% (0.5) confidence level z=1.96

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 x 2 =(0.5/1.96)2 = 0.065 S n = Standard deviation of the pilot study sample. = Sample size required

The required number of samples can be calculated by conducting a sample questionnaire survey. Here n is the minimum required sample size for each question in the questionnaire.
Q3 SD xi 0 1 2 3 4 fi 4 5 6 7 8 30 d=x-2 -2 -1 0 1 2 fd -8 -5 0 7 16 10 n= fd2 16 5 0 7 32 60 1.888889 29.05983

x = 0.065
Q4 SD xi 0 1 2 3 4

S S/ x

fi 2 4 10 8 6 30

d=x-2 -2 -1 0 1 2

fd -4 -4 0 8 12 12

fd2 8 4 0 8 24 44 1.306667 20.10256

x = 0.065
Q5 SD xi 0 1 2 3 4

S n= S/ x

fi 2 6 2 9 11 30

d=x-2 -2 -1 0 1 2

fd -4 -6 0 9 22 21 n=

fd2 8 6 0 9 44 67 1.743333 26.82051

x = 0.065

S S/ x

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Q6 SD xi 0 1 2 3 4

fi 0 3 12 8 7 30

d=x-2 -2 -1 0 1 2

fd 0 -3 0 8 14 19 n=

fd2 0 3 0 8 28 39 0.898889 13.82906

x = 0.065
Q7 SD xi 0 1 2 3 4

S S/ x

fi 0 3 10 10 7 30

d=x-2 -2 -1 0 1 2

fd 0 -3 0 10 14 21

fd2 0 3 0 10 28 41 0.876667 13.48718

x = 0.065
Q8 SD xi 0 1 2 3 4

S n= S/ x

fi 1 9 7 10 3 30

d=x-2 -2 -1 0 1 2

fd -2 -9 0 10 6 5 n=

fd2 4 9 0 10 12 35 1.138889 17.52137

x = 0.065
Q9 SD xi 0 1 2 3 4

S S/ x

fi 5 6 3 3 13 30

d=x-2 -2 -1 0 1 2

fd -10 -6 0 3 26 13 n=

fd2 20 6 0 3 52 81 2.512222 38.64957

x = 0.065

S S/ x

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From the analysis table it is clear that maximum sample size is required for Question number 9 (38.64, i.e. 39 samples) To get an accurate sample and to increase the number of frequencies in the Chi 2 table the sample size is 50.

2.8. DATA COLLECTION DESIGN

The questionnaire for research included a combination of the following kinds of question
Close-ended Direct question

Responses from middle level managers of Small and medium scale software companies for each question in the questionnaire will be collected. A single questionnaire will contain 8-9 questions.

Primary data will be collected through questionnaire survey of lower and/or middle level managers (in all organizational divisions) from small and medium scale software enterprises in Bangalore. In this method questionnaire was prepared and given to the sample population to fill.

2.9. METHOD OF ANALYSIS

The data collected through questionnaire and the records available was examined in detail. It was further classified and tabulated with the help of Microsoft excel software. Statistical tools Chi-square test and Sign test are used for testing the hypothesis

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The non-parametric tests used for the testing the hypothesis is Chi-square test (m*n tables) and Sign test It is suitable for the test for independence of attributes. Chi-square test

2 = [(O-Ej)2 Ej]
O = Observed number of frequencies categorized in the category E = Expected number of frequencies in the ith category under Ho

One sample Sign Test

Total number of Plus signs (+) Total Number of signs (+&-)

p z.

z= value In the normal distribution table for normal curve

= p.q/n
p=1/2, (probability of getting sample value less than mean) q=1/2, (probability of getting sample value higher than mean)
n= Number of Signs

2.10. SCOPE OF THE STUDY

Through this study the researcher is trying to probe the applicability of three new HR strategies in Small and medium scale software enterprises. This will help the SMEs to retain the talent pool.

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2.11. LIMITATION OF THE STUDY 1. The study only concentrates on urban industrial area in Bangalore.
Employees in other urban and rural areas may have different behavior pattern in terms of job preferences. So the applicability of the research is confined to Bangalore city only.

2. The findings and conclusions drawn out of the study will reflect only
existing trends in the organization.

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3. PROFILE

3.1. BACK GROUND OF THE STUDY A general idea of the retention measures present in the industry is important to understand the research environment. Apart from the legal and mandatory benefits such as provident-fund and gratuity, below is a list of other benefits IT professionals are entitled to the following: 1. Group Medi-claim Insurance Scheme: This insurance scheme is to provide adequate insurance coverage of employees for expenses related to hospitalization due to illness, disease or injury or pregnancy in case of female employees or spouse of male employees. All employees and their dependent family members are eligible. Dependent family members include spouse, non-earning parents and children above three months 2. Personal Accident Insurance Scheme: This scheme is to provide adequate insurance coverage for Hospitalization expenses arising out of injuries sustained in an accident. This covers total / partial disablement / death due to accident and due to accidents. 3. Subsidized Food and Transportation: The organizations provide transportation facility to all the employees from home till office at subsidized rates. The lunch provided is also subsidized. 4. Company Leased Accommodation: Some of the companies provides shared accommodation for all the out station employees, in fact some of the IT companies also undertakes to pay electricity/water bills as well as

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the Society charges for the shared accommodation. The purpose is to provide to the employees to lead a more comfortable work life balance. 5. Recreation, Cafeteria, ATM and Concierge facilities: The recreation facilities include pool tables, chess tables and coffee bars. Companies also have well equipped gyms, personal trainers and showers at facilities. 6. Corporate Credit Card: The main purpose of the corporate credit card is enable the timely and efficient payment of official expenses which the employees undertake for purposes such as travel related expenses like Hotel bills, Air tickets etc 7. Cellular Phone / Laptop: Cellular phone and / or Laptop are provided to the employees on the basis of business need. The employee is responsible for the maintenance and safeguarding of the asset. 8. Personal Health Care (Regular medical check-ups): Some of the IT companys provides the facility for extensive health check-up. For employees with above 40 years of age, the medical check-up can be done once a year. 9. Loans: Many IT companies provide loan facility on three different occasions: Employees are provided with financial assistance in case of a medical emergency. Employees are also provided with financial assistance at the time of their wedding. And, the new recruits are provided with interest free loans to assist them in their initial settlement at the work location. 10. Educational Benefits: Many IT companies have this policy to develop the personality and knowledge level of their employees and hence reimburses the expenses incurred towards tuition fees, examination fees, and purchase of books 11. Performance based incentives: In many IT companies they have plans for, performance based incentive scheme. The parameters for calculation

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are process performance i.e. speed, accuracy and productivity of each process. The Pay for Performance can be as much as 22% of the salary. 12. Flexi-time: The main objective of the flextime policy is to provide opportunity to employees to work with flexible work schedules and set out conditions for availing this provision. Flexible work schedules are initiated by employees and approved by management to meet business commitments while supporting employee personal life needs .The factors on which Flexi time is allowed to an employee include: Child or Parent care, Health situation, Maternity, Formal education program 13. Flexible Salary Benefits: Its main objective is to provide flexibility to the employees to plan a tax-effective compensation structure by balancing the monthly net income, yearly benefits and income tax payable. It is applicable of all the employees of the organization. The Salary consists of Basic, DA and Conveyance Allowance. The Flexible Benefit Plan consists of: House Rent Allowance, Leave Travel Assistance, Medical Reimbursement, Special Allowance 14. Regular Get together and other cultural programs: The companies organizes cultural program as and when possible but most of the times, once in a quarter, in which all the employees are given an opportunity to display their talents in dramatics, singing, acting, dancing etc. Apart from that the organizations also conduct various sports programs such as Cricket, football, etc and regularly play matches with the teams of other organizations and colleges. 15. Wedding Day Gift: Employee is given a gift voucher of Rs. 2000/- to Rs. 7000/- based on their level in the organization. 16. Employee Referral Scheme: In several companies employee referral scheme is implemented to encourage employees to refer friends and relatives for employment in the organization.

33

17. Employee Stock Option Plan. Employees will be entitled to get the shares of the company. This will make employee directly related to the profit. Now, the actual question, why people are leaving? What types of retention strategies are required? What is expected from HR Professional and how they can address this issue?

4. DATA ANALYSIS AND INTERPRETATION

4.1. SAMPLE QUESTIONS AND ITS VALUATION
1. If you look for a new Job, (in a new company) what will be your preference? (1) Position title is important (0) Position title is not important

34

2. What is your opinion about replacing the old benefits with new benefits on a monthly basis in your organization? (1) Improve the job satisfaction (0) No improvement in the job satisfaction 3. Are you satisfied with the current job (0) Not at all 1 (1) Very less (2) Moderately satisfied (3)Farley satisfied (4)Very highly satisfied 4. To what extend do you feel that quitting the present job will give you a satisfied job. (0) Not at all (1) Very less (2) Moderately (3) Farley (4) Very highly 5. To what extend you are emotionally attached to your company. (0) Not at all (1) Very less (2) Moderate (3) Farley enough (4) Very high The total score 0f question Numbers 3, 4, 5 will be calculated and the region will be specified by the researcher on the scale given below. Result 0.4..8.12 Retention Indifference Attrition

35

Reference table Common internal communication channels in the organization Channels 1. E-mail/printed circulars 2. Employee meetings and celebration of special occasions of the 3. employee 4. others

6. Is there any internal communication channel in your organization? (0) No channel (1) Any one channel (2) Any two channels (3) Any three channels (4) Four channels and above 7. What is the frequency of the internal communication in your organization? (0) Nil (1) Very less (2) Moderate (3) High (4) Very high frequency

36

8. Do you have accessibility to the communication channels present in your organization? (0) No accessibility (1) Very less (2) Moderate (3) High (4) Very high 9. What is your opinion about creating awareness on company values and Employee benefits to its own employees to retain them? (0) Not useful (1) Very less (2) Moderate (3) Good (4) Very high Result Total

37

4.1.1. Sample analysis of applicability of unique organizational structure

OBJECTIVE NO: 1To find out whether the unique organization structure increase

retention Step 1 Finding employees position in the row of the Chi-square test table The first question in the questionnaire will decide whether the employee belongs to employees who believe Improvement in Positional benefit gives Job satisfaction (1st row) or job satisfaction ( 2nd row) Step 2 Finding employees position in the column of the Chi-square test table Combined score of Question numbers 3, 4, 5, in the questioner will decide the employees position in the column (I.e. Satisfied (1 st column), Indifferent (2nd column), dissatisfied (3rd column). If the total response value of question number 3, 4, 5, is equal &/or larger than 0 and less than 4 (0 Value >4) indicate a dissatisfied employee and if the value is between 4 and 8 (4 Value >8) indicates an indifferent employee, but if the value is between 8 and 12 (8 Value >12) indicates a satisfied employee. employees who believe increase in other benefits give

38

Example: Table No 4.1 Sample Chi-squire test table Employee Retention choice of staying the company C1 Preference for benefits (when looking for a new job) Improvement in 5 (frequency) Position (Q1) R1 Not 2 Improvement in position (Q1) R2 Total 7 R3 Indifferent C2 Attrition) C3 Total C4

10

20

35 (Number of 1s)
See Exhibit Page No:76 No.7.2.

10

15 (Number of 0s)

13

30

50

Assumptions 1. There must be employees who believe positional benefits give job satisfaction (1st row) 2. There must be dissatisfied people among employees who believe positional benefits give job satisfaction (1 st row, 3rd column, exhibit No 4.1)

39

Step3 Hypothesis testing Test statistics Chi2 = [(O-Ej)2 Ej] O = Observed number of cases categorized in the category E (Expected number of cases in the ith category under Ho)
Possible findings

Unique organizational structure strategy will solve the dissatisfaction in the shaded area (exhibit No1.1). This in turn will improve the retention of the employee in the organization. Unique organization structure increase retention if: 1. The chi-square table must meet all the Minimum Conditions for applying the theory in Industry 2. The number of employees in the 1st row, 4th column must be higher than that of 2nd row, 4th column. 3. Number of dissatisfied in the 1st row must be higher than satisfied and indifferent employees in the same row. 4. The hypothesis test must reject the H0: i.e. it should prove that preference for positional benefits and employee choice of staying the company are dependent.
OBJECTIVE 2. To what extent the unique organizational structure can contribute

to the employee retention. The exhibit No1.1 also shows to what extent the organizational structure contribute to the employee inequity. The unique organizational structure strategy

40

can solve employee attrition in the shaded area. Larger shaded area in exhibit No1.1 shows greater percentage of applicability of the strategy.
INTERPRETATIONS

1. Number of employees in the 1st row, 3rd column (dissatisfied employees) as a percentage of 3rd row, 4th column (sample size) in exhibit No 4.1 will give exact size of applicability of the strategy.

Graphical representation of the findings Example; Chart No 4.2

The number of solvable attrition by unique org. structure in SMSI as a percentage of total employees in SMSI

40% 60%

Attrition among employees who prefer positional improvement Other Catogaries(Retention, Indiffrent, and attrition among other catogaries)

Interpretation of the graph 1. 40% of the employees in the small and medium scale software industry are dissatisfied with their current position and benefits, when they compare their position and benefits with that of other organizations.

41

4.1.2. Sample analysis of applicability of variable benefit strategy

OBJECTIVE NO3 To find out whether the variable benefit strategy increases

retention. Step 1 Finding employees position in the row of the Chi-square test table The second question in the questionnaire will decide whether the respondent belongs to employees who believe Periodic change in existing type of benefits will Improve the job satisfaction (1st row ,exhibit No 4.3) or employees who believe other benefit structures will Improve the job satisfaction ( 2nd row)

Step 2 Finding employees position in the column of the Chi-square test table Combined score of question numbers 3, 4, 5, in the questioner will decide the respondents position in the column (I.e. Satisfied (1 st column), Indifferent (2nd column), dissatisfied (3rd column). If the total response value of question number 3, 4, 5, is equal &/or larger than 0 and less than 4 (0 Value >4) indicate a dissatisfied employee and if the value is between 4 and 8 (4 Value >8) indicates an indifferent employee, but if the value is between 8 and 12 (8 Value >12) indicates a satisfied employee.

42

Sample Chi-square test table for Variable benefit structure strategy Table No 4.3 Employee choice Retention of staying the company employees belief on periodic change in existing type of benefits (Improve the job 4 satisfaction) (Q2) (No 3 Improvement in the job satisfaction (Q2) Total 7 Indifferent Attrition Total

10

19 (Number of 1s)
See Exhibit No.7.2. Page No:76

20

31 (Number of 0s)

13

30

50

Assumptions 1. There must be employees who believe periodic change in existing type of benefits will Improve the job satisfaction (1st row exhibit No 4.3)

43

2. There must be dissatisfied people among employees who believe Periodic change in existing type of benefits will Improve the job satisfaction (1 st row, 3rd column, exhibit No 4.3)

Step3 Hypothesis testing Test statistics Chi2 = [(O-Ej)2 Ej] O = Observed frequencies categorized in the category E (Expected frequencies in the ith category under Ho)
INTERPRETATIONS

Variable benefit structure strategy will solve the dissatisfaction in the shaded area (exhibit No1.2). This in turn will improve the retention of the employee in the organization. Variable benefit structure will increase retention if: 1. The chi-square table must meet all the Minimum Conditions for applying the theory in Industry 2. The number of employees in the 1 st row, 4th column must be higher than that of 2nd row, 4th column (exhibit No 4.3). 3. Number of dissatisfied in the 1 st row (exhibit No 4.3). must be higher than satisfied and indifferent employees in the same row. 4. The hypothesis test must reject the H0: i.e. it should prove that employee choice of staying the company and employees belief on periodic change in existing type benefits are dependent

44

OBJECTIVE 4. To what extent variable benefit structure strategy can solve the

problem of Employee attrition. The exhibit No1.2 also shows to what extent the benefit structure contribute to the employee inequity. The variable benefit structure strategy can solve employee attrition in the shaded area. Larger shaded area (exhibit No2) shows greater percentage of applicability of the strategy.
INTERPRETATIONS

1. Number of employees in the 1 st row, 3rd column (dissatisfied employees) as a percentage of 3rd row, 4 th column (sample size) in exhibit No 4.3 will give exact size of applicability of the strategy. Graphical representation of the findings Chart No 4.4 The number of solvable attrition by variable benefit structure In SMSI as a percentage of total employees in SMSI
17%

83% Attrition among employees who prefer variable benefit structure Other Catogaries(Retention, Indiffrent, and attrition among other catogaries)

Interpretation of the graph

45

1. 17% of the employees in the small and medium scale software industry are dissatisfied with their current benefit structure.

4.1.3. Sample analysis of applicability of internal advertisement strategy

OBJECTIVE NO 5 To what extent an internal advertisement strategy can be implemented in the companies. Average of the total values of question numbers 6,7,8,9 from all respondents will give the industry opinion of applicability of internal advertisement strategy. Step NO1 Find the total value of question number 6, 7, 8, 9 of each respondent

Example Questionnaire analysis for Internal advertisement strategy Table No 4.5

Question 1. Is there any internal communication channel in your organization? 2. What is the frequency of the internal communication channels 3. Do you have access to the communication channels present in your organization? 4. What is your opinion about creating awareness on company values and Employee benefits to its own employees to retain them? Values 2 3 4 1

46

Total

10

Step NO:2 Hypothesis testing H0c: Combined percentage score is equal or above 50% (Internal advertisement strategy is accepted) 0, 0=8 (50%) H1c: Combined percentage score is below 50% (Internal advertisement strategy is rejected) <0, 0=8 (50%) One sample Sign Test The one sample sign test is a very simple non parametric test applicable when we sample a continuous symmetrical population in which case the probability of getting a sample value less than mean in .5 and the probability of getting sample value higher than mean is also .5. To test the null hypothesis = 0 against an appropriate alternative on the basis of a random size n we replace the value of each and every item of the sample with plus sign if it is greater than 0 and with a minus sign if it is less than 0. TEST STATISTICS Hypothesis will be acceptable if Total number of Plus signs (+)

47

Total Number of signs (+&-)

>

p z.

z= value In the normal distribution table for normal curve

= p.q/n
p=1/2, (probability of getting sample value less than mean) q=1/2, (probability of getting sample value higher than mean)
n= Number of Signs Step2 Horizontal analysis of each of the questions 6, 7, 8, 9. This will give more insight in to the problems or barriers to implement internal advertisement strategy. Example

Table No 4.6

Horizontal analysis of each of the questions for internal advertisement Questionnaire No

Is there any internal communication channel in your organization? What is the frequency of the internal communication channels Do you have access to the communication channels present in your organization? What is your opinion about creating awareness on company values and Employee benefits to its own employees C1 C2 3 C3 4 120 to retain them? C4 1

1 2 3 Total

INTERPRETATIONS

1. Accepting the H0c (hypothesis) indicate that the small and medium scale software industry can implement internal advertisement strategy.

48

2. Horizontal analysis of the questions in the questionnaire will give the exact percentage of availability of each of the factors such as Presence, awareness, accessibility of communication channel and the opinion of the employees on the effective ness of internal advertisement strategy.

Sample Graphical representation Example: Chart No 4.7 Opinion about implimentation of Internal advertisement strategy

Not useful 10% very high 35% very less 20%

Good 5%

Moderate 30%

Interpretation of the graph The opinion of 35 %( vey high ) of the employees in the small and medium scale software industry is the implementation of internal advertisement strategy will be useful.

49

4.2. ANALYSIS OF ACTUAL DATA 4.2.1. Validity of Unique organizational structure strategy
OBJECTIVE No 1 :To find out whether the unique organization structure increases

retention. Research question No 1 To find out whether positional benefit is related to employee preference for staying the company. Hypothesis testing Step 1 H0a: The positional benefit is not associated with employee preference for staying the company. 2 2 (critical) H1a: The positional benefit is associated with employee preference for staying the company. 2 > 2 (critical) Step 2

50

The level of significance is 5%

Step 3 Test statistics Table No 4.8 Chi-squire test table for unique organizational structure Employee Retention choice of staying the company Preference for benefits (when looking for a new job) Improvement in 4 Position Indifferent Attrition Total

19

32

Not 9 Improvement in Position Total 13

18

13

24

50

Chi2 = [(Oij-Eij)2 Eij] O = Observed number of cases categorized in the category E (Expected number of cases in the ith category under Ho) With Yates correction factor

51

The correction factor is being used because some of the values in the chi squire table are below 5

Chi2 = [(|Oij-Eij|-.5)2 Eij]

Table No 4.9 Calculation table for chi square test (Unique organizational structure)
Observed frequency Oij 4 9 19 9 4 5 Expected frequency Eij 8.32 8.32 15.36 4.68 4.68 8.64

(Oij-Eij) -4.32 0.68 3.64 4.32 -0.68 -3.64

|Oij-Eij| 4.32 0.68 3.64 4.32 0.68 3.64

|Oij-Eij|-.5 3.82 0.18 3.14 3.82 0.18 3.14

[|Oij-Eij|-.5] 2 14.5924 0.0324 9.8596 14.5924 0.0324 9.8596 Total

[|Oij-Eij|-.5]2 /Eij 1.753894 0.003894 0.641901 3.118034 0.006923 1.141157 6.665804

Step 4 Degrees of freedom = (r-1). (c-1), here r= number of rows and c = number of columns (2-1). (3-1) = 2 Critical value = Chi2 (Probability under Ho, Degrees of freedom)

Chi2 (.05,2) = 5.99

Step 5 Since Chi2 value calculated is higher than the critical value, the hypothesis has been rejected. And H1 is being accepted.

Chi2 (calculated) > Chi2 (Critical value)

52

6.665804

> 5.99

Conclusion From the above test we can conclude that the unique organizational structure is associated to retention of the employee.
OBJECTIVE 2. To what extent the unique organizational structure can contribute

to the employee retention.

Research question No.2 What is the percentage of employee attrition can be solved by implementing unique organizational strategy. ANSWER From the Chi2 table it is clear that total observed attrition in the Small and medium scale industry is 24 and in that 24 respondents 19 respondents are employees who prefer positional benefit. So 19 as a percentage of total sample population (50) is 38%. Since the Unique organization structure strategy can be applied to 38% of the population, this will increase the retention of the employees in small and medium scale software industries.

4.2.2. Validity of Variable benefit strategy

OBJECTIVE 3. To find out whether the variable benefit strategy increases

retention Research question No.3 To find out whether employees belief on variable benefit is related to employee preference for staying the company.

53

Hypothesis testing Step 1 H0b: The employees belief on periodic change in benefit structure is not associated with employee preference for staying the company. . 2 2 (critical) H1b: The employees belief on periodic change in benefit structure is associated with employee preference for staying the company. 2> 2 (critical) Step 2 The level of significance is 5% Step 3 Test statistics Table No 4.10 Chi-square table (Variable benefit) Employee Retention choice of staying the company employees belief on periodic change in existing type of benefits (Improve the job 9 satisfaction) (No 4 Improvement in the job satisfaction Total 13 Indifferent Attrition Total

18

20

32

13

24

50

54

Chi2 = [(Oij-Eij)2 Eij] O = Observed number of cases categorized in the category E (Expected number of cases in the ith category under Ho) With Yates correction factor The correction factor is being used because some of the values in the chi square table are below 5

Chi2 = [(|Oij-Eij|-.5)2 Eij]

Table No 4.11 Calculation table for chi square table (Variable benefit)
Observed frequency Oij 9 5 4 4 8 20 Expected frequency Eij 4.68 4.68 8.64 8.32 8.32 15.36

(Oij-Eij) 4.32 0.32 -4.64 -4.32 -0.32 4.64

|Oij-Eij| 4.32 0.32 4.64 4.32 0.32 4.64

|Oij-Eij|-.5 3.82 -0.18 4.14 3.82 -0.18 4.14

[|Oij-Eij|-.5] 2 14.5924 0.0324 17.1396 14.5924 0.0324 17.1396 Total

[|Oij-Eij|-.5]2 /Eij 3.118034 0.006923 1.98375 1.753894 0.003894 1.115859 7.982355

Step 4 Degrees of freedom = (r-1). (c-1), here r= number of rows and c = number of columns (2-1). (3-1) = 2 Critical value = Chi2 (Probability under Ho, Degrees of freedom)

Chi2 (.05,2) = 5.99

Step 5

55

Since Chi2 value calculated is higher than the critical value, the hypothesis has been rejected. And alternative hypothesis H1 is being accepted.

Chi2 (calculated) > Chi2 (Critical value)

7.982355 >

5.99

Conclusion From the above test we can conclude that Variable benefit structure is associated to retention of the employee. OBJECTIVE No.4 To what extent variable benefit structure strategy can solve the problem of employee attrition. Research question 4 What is the percentage of employee attrition can be solved by implementing Variable benefit strategy. ANSWER From the Chi2 table it is clear that total observed attrition in the Small and medium scale industry is 24 and in that 24 respondents only 4 respondents prefer periodic change in benefits. So 4 as a percentage of total sample population (50) is 8%. Since the Variable benefit strategy can be applied to 8% of the population, this will increase the retention of the employees in small and medium scale software industries. This strategy will not be able to solve the remaining (as 33.3% of 24) 2/3 of the attrition tendency.

56

4.2.3. Validity of Internal advertisement strategy

OBJECTIVE 5. To what extent an internal advertisement strategy can be implemented in the companies. Research question 5. What is the opinion of employees on the success of implementation of internal advertisement strategy in small and medium scale software industry in Bangalore? Step 1 H0c: Combined percentage score is 50 and above (Internal advertisement strategy is accepted) 0, 0=8 (50%) H1c: Combined percentage score is below 50 (Internal advertisement strategy is rejected) <0, 0=8 (50%) Step 2 The level of significance is 5% Step 3 Test statistics Total number of Plus signs (+)

57

Total Number of signs (+&-)

>

p z. (prop)

z= value In the normal distribution table for normal curve

(prop) = p.q/n
p=1/2, (probability of getting sample value less than mean) q=1/2, (probability of getting sample value higher than mean)
n= Number of Signs

Table No 4. 12
Questionnaire analysis table for internal advertisement strategy RESPONDNT NO
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Total Q1+ Question Question Question Question Q2+ Q3+ No Q1 No Q2 No Q3 No Q4 Q4

4 3 3 4 3 2 2 4 4 3 4 2 2 2 2 2 4 3 2 2 1 1 3 4 3 4 3 4 3 2 4 2 3 3 3 4 3 3 3 4 2 2 4 2 3 1 2 2 1 2 4 3 2 4 3 3 3 0 3 2 4 3 3 3 3 2 3 1 1 1 1 2 1 1 1 4 1 4 4 3 4 4 4 4 4 4 4 4 2 4 4 1 0 3 0 2 2 1 1 0 16 10 13 15 11 13 11 11 14 12 16 12 12 10 13 10 10 8 8 6 5 7 7 7 6

Values not equal to 8

16 10 13 15 11 13 11 11 14 12 16 12 12 10 13 10 10 Total 6 5 7 7 7 6 5

Plus/minus sign
+ + + + + + + + + + + + + + + + + 17 -

58

26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 Totals

2 2 1 2 3 4 1 0 2 3 2 1 2 2 3 2 3 2 2 2 1 3 3 2 0 119

1 4 3 2 2 1 1 0 3 1 2 2 2 4 2 2 1 3 2 2 1 1 2 3 1 117

2 1 2 2 1 1 1 1 1 1 2 2 2 1 1 2 1 2 1 3 1 1 1 1 0 91

0 0 3 1 1 0 1 4 1 2 2 3 1 1 0 2 1 0 1 0 1 0 2 0 0 95

5 7 9 7 7 6 4 5 7 7 8 8 7 8 6 8 6 7 6 7 4 5 8 6 1

7 9 7 7 6 4 5 7 7 7 6 6 7 6 7 4 5 6 1 Total

N= 26 43

Table No 4.13 Calculation table for sign test

Number Number n of + of values values 17 26

(Prop)

p z. No. (prop)

of+

p.q/n
43 0.5 0.5 0.005814

values/n

1.64 0.490465 0.395349

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Step 4 Critical value = 0.490465 Step 5 Since probability of values greater than 8 calculated is lower than the critical value, the hypothesis has been rejected. And alternative hypothesis H1 is being accepted. Critical value
0.490465

> Calculated value > 0.395349 (17/43)

Conclusion From the above test we can conclude that the opinion of Small and medium scale software industry employees are not favorable for the implementation of Internal advertisement strategy

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5. FINDINGS RECOMMENDATIONS AND CONCLUSION

5.1 FINDINGS AND RECOMMENDATIONS
Chart No 5.1

Employee preference for staying the company In SMSI

26% 48% 26%

Employees prefering retention Employees prefering Attrition

Indifferent employees

The above graph shows that 48% of the employees prefer to leave the job to improve their current status. This 48% is not satisfied with their current status. 26% of the employees are indifferent to retention or attrition. Another 26 percentage are satisfied with their current job and they prefer to stay the job and the company.

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5.1.1 Findings from the research on Unique organizational structure strategy

Chart No 5.2 Reasons for attrition in SMSI as a percentage of total Attrition in SMSI

21%

79%

Attrition among employees who prefer positional improvement Attrition due to other reasons

The small and medium scale software industry (SMSI) in Bangalore shows 48% attrition and in that 48 percentage 79% (above graph) is quitting the company to improve their position. All other reasons are only 21%. The chi2 test analysis confirmed that there is a relationship between position titles and employee retention. So the organizational structure is related to employee preference for staying the company.

62

To retain the talent in the organization companies can give position titles which convey high social status and responsibility.

Another benefit of applying the unique organizational structure strategy is to minimize the comparison tendency of the employee with his benefit structure with that of other employees in other companies. Chart No 5.3

The number of solvable attrition by unique org. structure in SMSI as a percentage of total employees in SMSI

38%

62%

Attrition among employees who prefer positional improvement Other Catogaries(Retention, Indiffrent, and attrition among other catogaries)

This graph shows that in the total population the unique organizational structure strategy can be applied to 38% of the total Small and medium scale software industry. So the extent to which the unique organizational strategy can be applied is 38% of the total employees in the SMSI.

63

 Since the Unique organization structure strategy can be applied to 38% of the population, this will increase the retention of the employees in small and medium scale software industries.

5.1.2. Findings from the research on Variable benefit structure strategy

Chart No 5.4 Attrition among employees who prefer different benefit structures

17%

83%

Attrition among employees who prefer variable benefit structure Attrition among employees who prefer existing benefit structure

The chi2 test analysis confirmed that there is a relationship between employees preferences for benefit structure is related to employee preference for staying the company.

64

 The small and medium scale software industry in Bangalore shows 48% attrition and in that 48 percentage 17% (above graph) prefers periodic change in benefit structure, i.e. they prefer variable benefit structure strategy.

Chart No 5.5

The number of solvable attrition by variable benefit structure In SMSI as a percentage of total employees in SMSI
8%

92% Attrition among employees who prefer variable benefit structure Other Catogaries(Retention, Indiffrent, and attrition among other catogaries)

But the employees attrition problem solvable by variable benefit structure strategy is only 8% when comparing it to the total employees in the SMSI. So the extent to which this strategy can be applied is only 8%. Applying this strategy is not economical as only 8% of the total employees can be stopped from attrition by implementing Variable benefit strategy.

65

5.1.3. Findings from the research on internal advertisement strategy

From the sign test we can conclude that the opinion of Small and medium scale soft ware industry employees is not favorable for the implementation of Internal advertisement strategy The main hurdles are: Chart No 5.6 Access to the communication channels present in the SMSI
No accesibility 4%

very high 6% Farley Enough 22%

very less 44%

Moderate 24%

66

1. Very less accessibility to the communication channels. In small and medium scale software industry. 48% of the employees have either very less or no access to the communication channels present in the organization.

Chart No 5.7

Opinion about implimentation of Internal advertisement strategy

very high 28%

Not useful 24%

Good 8% Moderate 14%

very less 26%

2. Second Around

reason 50% of

is the

the

general

opinion dont agree

about with

the the

implementation of internal advertisement strategy is negative. employees implementation of the strategy.

67

5.2 CONCLUSIONS
The research shows that there is a relationship between Positional benefits and employee retention in the organization. It also concluded that internal advertisement cannot be used in the small and medium scale software enterprises. Though there is an association between benefit structure and employee preference for staying the company, the research revels that this relationship is not conducive for implementing the variable benefit structure strategy. My dissertation for retention strategies in the software industry was highly informative and supportive to my future it has helped me to gain knowledge of conducting study of human resource function in an organization. Many HR professionals feel that work performance is a contemplation of how employees feel about themselves and their work, If an employee experience a sense of pride in the job then the work quality, efficiency, and retention increases significantly. Employees who suffer from low self esteem and display lack of enthusiasm exhibits negative feelings at the work place. Protecting the self esteem of the employee will be top agenda for future organization. One of the

68

best ways to achieve that is by providing socially acceptable positions titles to the employees.

6. BIBLIOGRAPHY AND APPENDIXES Bibliography

Books
1. C. R. Kothari, Research Methodology methods and techniques, Second edition, Wishwa Prakashan year 1997 2. Donald R. Cooper, Pamela S. Schindler. Business Research methods, : Eight editions Tata McGraw-Hill year 2004

3. K. Aswathappa, Organizational Behavior , Fifth editions, Himalaya Publishing House year 1989

4. V.S.P Rao, The Human Resource management text and cases, second editions , Excel Books year 1992

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Journals
1. The ICFAIn Journal of management and research,Volume V No:2 Februvary 2007, ICFAI university press, Page no 65: Human resource development climate in IT companies in India.

2. HRM review, Employers brand, ICFAI university press,June 2006

Websites
http://www.employeeretentionstrategies.com/bottomline.htm http://www.ioma.com/audioconferences/471.html http://www.bpoindia.org/research/retention-strategies-call-center-industry.shtml

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Appendix No.1
6.2.1. Questionnaire

KRISTU JAYANTI COLLEGE OF MANAGEMENT & TECHNOLOGY

Dear Sir,

We at Kristu Jayanti College of management and technology are conducting a research study on the Applicability of advanced employee retention strategies for middle management level in small and medium scale software enterprises in Bangalore. Your help with the few questions on the attached pages will take only few seconds and will make a real contribution to the accuracy and success of this study. Your reply will be treated in strict confidence and will be available only to my research guide and me. Any publication will be only of statistical totals and inferences. Sincerely, Under the Guidence of Prof. A. M. Tatti MBA coordinator Kristu Jayanti College

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Study Conducted by Mathew Abraham MBA IV SEM Kristu Jayanti College

QUESTIONAIRE
Name of the employee.. Designation. . Name of the company...

1. If you look for a new Job, (in a new company) what will be your preference? (1)Improvement in Position (0)Not improvement in position (Increase in other benefits)

2. What is your opinion about replacing the old benefits with new benefits on a monthly basis in your organization? (1) Improve satisfaction from the benefits (0) No improvement in satisfaction from the benefits 3. Are you satisfied with the current job (4) Not at all (3) Very less (2) Moderate (1) Farley enough

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(0) Very high 4. To what extend do you feel that quitting the present job will give you a satisfied job. (0) Not at all (1) Very less (2) Moderate (3) Farley enough (4) Very high 5. To what extend you are emotionally attached to your company. (4) Not at all (3) Very less (2) Moderate (1) Farley enough (0) Very high Common Internal communication channels organizations 1. E-mail/printed circulars 2. Employee meetings 3. celebration of special occasions of the employee 4. print media 5. others In the

6. Is there any internal communication channel in your organization? (0) No channel

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(1) Any one channel (2) Any two channels (3) Any Three channels (4) Four channels and above 7. What is the frequency of the internal communication in your organization? (0) Nil (1) Very less (2) Moderate (3) Farley enough (4) Very high frequency 8. Do you have accessibility to the communication channels present in your organization? (0) No accessibility (1) Very less (2) Moderate (3) Farley enough (4) Very high 9. What is your opinion about creating awareness on company values and Employee benefits to its own employees to retain them? (0) Not useful (1) Very less (2) Moderate (3) Good (4) Very high

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Thank You Mathew Abraham

Table No 7.1 6.2.2. PILOT STUDY TABLE FOR SAMPLE SIZE ANALYSIS (30 RESPONDENTS)
Q3 0 4 2 0 3 4 2 3 4 4 2 4 3 1 1 0 2 Q4 4 2 4 2 2 3 2 3 0 4 4 3 3 1 2 1 2 Q5 4 1 4 1 3 4 4 3 4 4 3 3 3 3 1 3 2 Q6 4 3 3 4 3 2 2 4 4 3 4 2 2 2 2 2 4 Q7 4 3 4 3 2 4 2 3 3 3 4 3 3 3 4 2 2 Q8 4 3 2 4 3 3 3 0 3 2 4 3 3 3 3 2 3 Q9 4 1 4 4 3 4 4 4 4 4 4 4 4 2 4 4 1

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2 1 3 3 0 1 4 3 4 1 2 3 4 Number of 0s Number of 1s Number of 2s Number of 3s Number of 4s Total 4 5 6 7 8 30

0 1 3 3 1 2 4 2 2 4 3 2 3 2 4 10 8 6 30

1 1 0 1 2 0 4 4 3 4 4 4 3 2 6 2 9 11 30

3 2 2 1 1 3 4 3 2 2 1 2 3 0 3 12 8 7 30

4 2 3 1 2 2 1 2 1 4 3 2 2 0 3 10 10 7 30

1 1 1 1 2 1 1 1 2 1 2 2 1 1 9 7 10 3 30

0 3 0 2 2 1 1 0 0 0 3 1 1 5 6 3 3 13 30

Table No 7.2 6.2.3 QUESTIONNAIRE DATA ANALYSIS TABLE FOR CHI-SQUIRE TESTS
Q1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Q2 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 Q3 0 4 2 0 3 4 2 3 4 4 2 4 3 1 1 0 Q4 4 2 4 2 2 3 2 3 0 4 4 3 3 1 2 1 Q5 4 1 4 1 3 4 4 3 4 4 3 3 3 3 1 3 Total (Q3+Q4+Q5) 8 7 10 3 8 11 8 9 8 12 9 10 9 5 4 4 RETENTION INDIFFERENT 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 ATTRITION 1

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1 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 Number of 1s =32 Number of 0s =18

0 0 0 0 0 1 1 1 1 1 1 0 0 0 0 1 1 1 1 1 0 0 0 0 0 0 1 1 1 1 1 0 0 0 Number of 1s =18 Number of 0s =32

2 2 1 3 3 0 1 4 3 4 1 2 3 4 0 2 0 0 0 1 2 3 4 1 2 0 1 0 3 4 1 0 3 4

2 0 1 3 3 1 2 4 2 2 4 3 2 3 4 0 3 0 2 1 4 2 4 2 0 3 1 4 2 0 3 2 4 3

2 1 1 0 1 2 0 4 4 3 4 4 4 3 4 3 0 0 0 1 4 4 4 0 1 0 2 1 1 1 1 0 3 2 Total

6 3 3 6 7 3 3 12 9 9 9 9 9 10 8 5 3 0 2 3 10 9 12 3 3 3 4 5 6 5 5 2 10 9

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 24

13

13

Table No 7.3 6.2.4. Chi-square table for unique organizational structure

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Employee Retention choice of staying the company Preference for benefits (when looking for a new job) Improvement in 4 frequencies Position (Q1) Not 9 Improvement in position (Q1) Total 13

Indifferent

Attrition

Total

19

32 (Number
1s)

of

18 (Number
of 0s)

13

24

50

Table No 7.4 6.2.5 Chi-square table for Variable benefit structure Employee choice of Retention staying the company Indifferent Attrition Total

employees belief on periodic change in existing type of benefits (Improve the job 9 satisfaction) (Q2)

18 (Number of
1s)

78

(No Improvement in 4 the job satisfaction (Q2) Total 13

20

32 (Number of
0s)

13

24

50

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