Latest Activity In Study Groups

Join Your Study Groups

VU Past Papers, MCQs and More

We non-commercial site working hard since 2009 to facilitate learning Read More. We can't keep up without your support. Donate.

A PROJECT REPORT ON  AN OVERVIEW OF HR  PROCESSES  & ATTRITION ANALYSIS

See the attached file please

Views: 333

Attachments:

Replies to This Discussion

The process then followed is:

 

Setting Individual Objectives:

 

These objectives are set through a dialogue between each manager and their subordinates at the beginning of the year. The manager clearly defines his expectations and realistic goals. He then records the commitment of his subordinates and also identifies their competencies and behavioral patterns. Finally he considers areas of professional growth and appropriate action.

 

Interim Review:

 

In this stage the manager provides feedback on performance and development. The subordinates get an opportunity to review his progress and to adjust objectives. Also the manager suggests corrective measures to overcome the problems.

 

 

Final Appraisal:

 

-Herein the manager evaluates the achievement levels:

  • For each business objective
  • For the behavioral effectiveness items
  • And professional growth targets

-He then establishes joint understanding of how performance is perceived, both what is accomplished and how it is done.

 

Role of Coaching:

 

CCIL gives a lot of importance to the role of coaching. It is –

  • An on-going guidance to help people do their work more effectively
  • A planned approach to provide feedback and encouragement
  • Consists of periodic feedback sessions that directly relates to performance
�8pn�d �_` ![endif]>Aligning individual objectives and individual acting to organisational objectives

 

 

The PDI intends to support active communication between manager and subordinate. It’s about the dialogue. It gives list of competency Areas which is common to all around the globe. The main difference between the PDI and the earlier model is that this one is based on SAP system. The PDI has various sections like Group Performance Indicators, Business Performance, Competencies and Professional growth.

 

 It follows the following Competency Model:

a� te�d �_` :p>

 

The HR dept. maintains personnel file for all the employees. These files consist of all the documents relating to the employees starting from his resume till his check in form. All the other documents given by him to the HR during the course of his employment are also maintained along with all the communication through mails. These can be used by the organization for any further references.

On joining the organization, the employee is given a 6 digit unique number which is called the employee no. This becomes his identity in the organizations database. An e-mail ID is created for all the management employees by the IT department which can be used by the employee.  

  • Induction and Orientation

 

The main objective of induction and orientation is to ensure full utilization of the inherent skills of the new entrants and provide them with comprehensive foundation needed for efficient performance in their job.

The HR person will receive the new employee on the first day of joining and introduce him/her to the department head after completion of all formalities and paperwork. The 2 days induction program is held once every 3 months and it is mandatory for all the new joinees to attend it. The Induction Schedule comprises of the respective Business/Function with respect to the following:

 --Organization Structure of the Div / Function

 --Overview of Business / Function

 --Salient features / Characteristics of each Business / Function

 --Overview of Products & Sales growth (for Businesses)

 --Successful Business initiatives during recent past / Major Challenges ahead

 --Issues (if any)

The input in the program is provided through classroom presentation, discussions and sharing of experiences which will be followed by visit to various departments.

e� n<�d �_` span lang=DE style='font-size:12.0pt;line-height:115%;font-family:"Bookman Old Style"; mso-bidi-font-family:Arial;mso-ansi-language:DE'>

 

 

3.3.3 Compensation and Benefits:

 

CCIL believes that compensation is an employer’s human capital investment strategy that considers all aspects of rewards in creating a competitive compensation package for the workforce, thereby improving business outcomes.

 

The compensation structure:

 

  1. Fixed components includes:
  • Basic
  • Cash Allowance
  • Retirals

 

  1. Variable components are:
  • Local Bonus Plan
  • Sales Incentive Scheme
  • Top Performer Bonus

 

  1. Perquisites & Benefits

 

Details of Fixed Compensation

 

Basic: This component of the compensation directly impacts the statutory deductions and HRA only.

 

Cash Allowances

  1. House rent Allowance (HRA)
  2. Conveyance Allowance
  3. Medical Assistance
  4. Reimbursement of Mediclaim Premium.
  5. Special Allowance

 

Retirals

  1. Provident Fund
  2. Superannuation
  3. Gratuity

 

Perquisites and Benefits include Housing Loans and higher education loan for employee’s children. There is band wise eligibility for the cumulative benefit of these schemes.

Employees in the Functional Band and above are entitled for a company maintained car which has to be used as a work tool. Similarly telephone connection for official purposes is provided to certain employees irrespective of their bands.

Gross Pay: Basic +Cash Allowance

 

Net Pay: Gross Pay – Relevant Deductions

 

Cost To Company (CTC): It refers to all the expenses that the company bears for it’s the employees. Generally all increments are made on CTC.

 

Process Flow

 

CCIL has a centralised system for payroll management. It uses SAP as the software to maintain its database and process the payments. This database contains all the relevant information about the employee. Also his payment details are entered into the system the moment he joins the company.

 

There are 3 major processes in Payroll Management:

 

  1. Master Maintenance:

 

This process starts with the new employee joining the organization. The check in form, appointment letter along with the salary working is submitted to the payroll section which in turn updates the database.

Herein the following details about the employees are updated:

 

  • Personal details - DOB, details of dependents
  • Salary with the breakup of different components
  • Reporting line, Cost Centre, location  

 

Similarly when an employee resigns his HOD informs the HR. On completion of his check out formalities his swipe card is taken back and his employee code is deactivated in the SAP master files

 

  1. Attendance Recording and Payroll:

 

Every employee is given a swipe card on his joining the company. This card has to be swiped everyday on entry and exit from the company premises. These details are maintained by the time office which is there at every site. The entry and exit time gets automatically recorded in VBSTAR. This software gives complete information to the time office about leave, over time, half days taken and the outdoor activity. The over time are verified with the respective HOD while leaves are verified with leave cards which is approved by their HOD’s.

 

Leave without pay (LWP), OT etc. are manually entered in the required format which forms an input for the payroll processing done with the help of SAP.

 

  1. Payroll Processing And Disbursement Process:

 

The payroll is processed based on the data input from Time Office containing LWP and other details. The SAP system processes the payroll and disbursement file is generated. There are two modes of salary payments:

 

  • Direct bank transfers-Wherein payment details are uploaded in banker’s website. Confirmation of the same is obtained from the bank.
  • Direct Cheques-Wherein cheques are issued directly in the employee’s name.

 

In most cases, direct bank transfers takes place.

 

  1. Variable Inputs Processing:

 

Apart from the regular fixed data there can be certain variable inputs like canteen dues, credit society dues etc which are maintained by the Time Office for respective employee in a specific format. Then this data is uploaded into the SAP system which deducts the same from the salary of the respective employees.

 

3.3.4 Training and Development

 

Training and development is perhaps one of the fastest growing fields in any company. The significance and value of training has been recognised by the corporate world to a great extent. Training is an act of increasing the knowledge and skills of an employee which they need to perform their jobs.

 

Need for Training and Development in an Organization:

 

  • Contributes towards organizational objectives.
  • Acquiring the requisite knowledge, skill and attitude
  • To achieve individual growth
  • Need for cross functional managers
  • Prepare employees for higher level jobs

 

CCIL too recognises the importance of training for its employees and has a very systematic approach towards it.

 

The first step toward training and development is TNI – Training Need Identification.

The need for training is identified in the following manner:

 

  • Probation Appraisal Forms: The appraiser appraises the performance of the employee and gives the recommendations as to the kind of training required by the individual. Thus the training need identified.

 

  • Through PMS: In the system, the individuals are supposed to identify training areas for themselves along with their superiors doing the same. This is utilized by the HR.

 

  • Departmental Needs: If a new system is started in a particular department, the employees of that dept. are required to be trained for using the same.

 

  • Transfer: If an individual is transferred from one dept. to other, he needs to be trained.

 

  • Promotion: If an employee is promoted, he may require training in the skills to handle the new position. Also a gap arises in his current position and to fill this gap, training may be required.

 

  • Succession planning: Training has to be imparted to groom a person to occupy a new position identified for him. 

 

After identifying the training needs of the employees, HR forms a summary of the same and compiles the data in a tabular form showing the number of people requiring training in a on a particular topic (division wise & band wise).

After this, the HR personnel designs a training calendar for the entire year. This calendar has a schedule of various internal and outbound training programmes to be conducted for the employees throughout the year. This is made considering the training needs identified.

 

The HR circulates this calendar to the various Bus/Div Heads who in turn inform their subordinates. Then nominations for various Training programs are received by the HR from the various Bus/Div Heads.

A month prior to the training program, reminders are sent and confirmations are received from the candidates and their heads.

 

CCIL has a set of trainers who are invited for conducting various workshops and training sessions. Along with this, the HR keeps on scanning various other trainers from outside and evaluates them and if required invites them for conducting training programmes.

 

Getting feedback about the training program conducted is emphasized at CCIL. The candidates are given a feedback form wherein they evaluate the various aspects of the session according to its usefulness in their professional life. A summary of this is made and kept for further reference and is also sent across to the trainer which could be useful to him for improving the training sessions in future.

 

st�7 'o�d �_` 12.0pt;mso-bidi-font-size:11.0pt;font-family:"Bookman Old Style"'> include Housing Loans and higher education loan for employee’s children. There is band wise eligibility for the cumulative benefit of these schemes.

 

Employees in the Functional Band and above are entitled for a company maintained car which has to be used as a work tool. Similarly telephone connection for official purposes is provided to certain employees irrespective of their bands.

Gross Pay: Basic +Cash Allowance

 

Net Pay: Gross Pay – Relevant Deductions

 

Cost To Company (CTC): It refers to all the expenses that the company bears for it’s the employees. Generally all increments are made on CTC.

 

Process Flow

 

CCIL has a centralised system for payroll management. It uses SAP as the software to maintain its database and process the payments. This database contains all the relevant information about the employee. Also his payment details are entered into the system the moment he joins the company.

 

There are 3 major processes in Payroll Management:

 

  1. Master Maintenance:

 

This process starts with the new employee joining the organization. The check in form, appointment letter along with the salary working is submitted to the payroll section which in turn updates the database.

Herein the following details about the employees are updated:

 

  • Personal details - DOB, details of dependents
  • Salary with the breakup of different components
  • Reporting line, Cost Centre, location  

 

Similarly when an employee resigns his HOD informs the HR. On completion of his check out formalities his swipe card is taken back and his employee code is deactivated in the SAP master files

 

  1. Attendance Recording and Payroll:

 

Every employee is given a swipe card on his joining the company. This card has to be swiped everyday on entry and exit from the company premises. These details are maintained by the time office which is there at every site. The entry and exit time gets automatically recorded in VBSTAR. This software gives complete information to the time office about leave, over time, half days taken and the outdoor activity. The over time are verified with the respective HOD while leaves are verified with leave cards which is approved by their HOD’s.

 

Leave without pay (LWP), OT etc. are manually entered in the required format which forms an input for the payroll processing done with the help of SAP.

 

  1. Payroll Processing And Disbursement Process:

 

The payroll is processed based on the data input from Time Office containing LWP and other details. The SAP system processes the payroll and disbursement file is generated. There are two modes of salary payments:

 

  • Direct bank transfers-Wherein payment details are uploaded in banker’s website. Confirmation of the same is obtained from the bank.
  • Direct Cheques-Wherein cheques are issued directly in the employee’s name.

 

In most cases, direct bank transfers takes place.

 

  1. Variable Inputs Processing:

 

Apart from the regular fixed data there can be certain variable inputs like canteen dues, credit society dues etc which are maintained by the Time Office for respective employee in a specific format. Then this data is uploaded into the SAP system which deducts the same from the salary of the respective employees.

 

3.3.5 Leave

 

The leaves granted to the employees will be of four kinds:

 

      Type of Leave

         Number of Days

Casual Leave (CL)

7 days per year

Sick leave (SL)

10 days per year

Privilege Leave (PL)

30 days per year

Maternity Leave (ML)

84 days per occasion

 

 

Casual Leave is granted for urgent, unforeseen personal reasons.CL is not encashable and cannot be accumulated. Unavailed CL gets lapsed at the end of the year.

 

Sick Leave is allowed if the executive is sick and unable to report on duty. SL can be accumulated up to 50 days but cannot be encashed. Medical certificate is compulsory.

 

Privilege Leave is weekly offs and paid holidays which fall during the period. It refers to planned holidays which are applied to the management at least 15 days before the date of commencement of leave. An executive can accumulate PL up to 120 days. PL in excess of 120 days will be encashable automatically after the end of the calendar year.

Apart from this at the time of final settlement, the limit for PL is 135 days.

 

Maternity Leave is allowed to female executives for 84 days which includes weekly offs and paid holidays.ML will be allowed only twice during the service tenure.

 

  • Leave management system (LMS):

 

The complete process of leave management is done through an automated LMS i.e. Leave Management System. This system is being used in CCIL since the beginning of 2007. The system is fed with the database of all the employees. This is accessible by all the management employees through the intranet.

When an employee wants a leave, he can apply for leaves online on the system. The leave application gets notified to the immediate superior who is supposed to approve the same. Once approved, the approval is reflected on the system and applicant gets a notification of it.

The Human Resource Dept. does the work of an administrator. First and foremost, after the check in formalities, the HR dept. creates the account of the new joinee in the leave management system. Here details like his employee number, date of joining, band structure, senior, approver I, approver II and cost centre are entered.

Also details regarding how many CL’s, PL’s and SL’s are available throughout the year are entered. In case an employee joins in between the current financial year, the leaves are granted to him on pro rata basis.

After this the HR keeps a track record of the LMS in a day. In case a leave is applied for and the approver fails to respond for a certain number of days, the leave can be approved by the HR dept. 

The LMS has come as a helping hand to the HR dept. which gives them ready information regarding leaves. This is useful at the time of final settlement for making payments.  

This automated system has reduced the paper work done at CCIL and is an example of automation of HR processes.

However it is not advisable to completely rely on the system and thus the HR dept. conducts monthly audit on a random basis to check the accuracy. Also once in a year, inputs are taken from the IT Dept. to cross check the leaves of all the employees.

the e� nye�d �_` ms a summary of the same and compiles the data in a tabular form showing the number of people requiring training in a on a particular topic (division wise & band wise).

 

After this, the HR personnel designs a training calendar for the entire year. This calendar has a schedule of various internal and outbound training programmes to be conducted for the employees throughout the year. This is made considering the training needs identified.  

 

The HR circulates this calendar to the various Bus/Div Heads who in turn inform their subordinates. Then nominations for various Training programs are received by the HR from the various Bus/Div Heads.

A month prior to the training program, reminders are sent and confirmations are received from the candidates and their heads.

 

CCIL has a set of trainers who are invited for conducting various workshops and training sessions. Along with this, the HR keeps on scanning various other trainers from outside and evaluates them and if required invites them for conducting training programmes.

 

Getting feedback about the training program conducted is emphasized at CCIL. The candidates are given a feedback form wherein they evaluate the various aspects of the session according to its usefulness in their professional life. A summary of this is made and kept for further reference and is also sent across to the trainer which could be useful to him for improving the training sessions in future.

 

st�7 'o�d �_` 12.0pt;mso-bidi-font-size:11.0pt;font-family:"Bookman Old Style"'> include Housing Loans and higher education loan for employee’s children. There is band wise eligibility for the cumulative benefit of these schemes.

 

Employees in the Functional Band and above are entitled for a company maintained car which has to be used as a work tool. Similarly telephone connection for official purposes is provided to certain employees irrespective of their bands.

Gross Pay: Basic +Cash Allowance

 

Net Pay: Gross Pay – Relevant Deductions

 

Cost To Company (CTC): It refers to all the expenses that the company bears for it’s the employees. Generally all increments are made on CTC.

 

Process Flow

 

CCIL has a centralised system for payroll management. It uses SAP as the software to maintain its database and process the payments. This database contains all the relevant information about the employee. Also his payment details are entered into the system the moment he joins the company.

 

There are 3 major processes in Payroll Management:

 

  1. Master Maintenance:

 

This process starts with the new employee joining the organization. The check in form, appointment letter along with the salary working is submitted to the payroll section which in turn updates the database.

Herein the following details about the employees are updated:

 

  • Personal details - DOB, details of dependents
  • Salary with the breakup of different components
  • Reporting line, Cost Centre, location  

 

Similarly when an employee resigns his HOD informs the HR. On completion of his check out formalities his swipe card is taken back and his employee code is deactivated in the SAP master files

 

  1. Attendance Recording and Payroll:

 

Every employee is given a swipe card on his joining the company. This card has to be swiped everyday on entry and exit from the company premises. These details are maintained by the time office which is there at every site. The entry and exit time gets automatically recorded in VBSTAR. This software gives complete information to the time office about leave, over time, half days taken and the outdoor activity. The over time are verified with the respective HOD while leaves are verified with leave cards which is approved by their HOD’s.

 

Leave without pay (LWP), OT etc. are manually entered in the required format which forms an input for the payroll processing done with the help of SAP.

 

  1. Payroll Processing And Disbursement Process:

 

The payroll is processed based on the data input from Time Office containing LWP and other details. The SAP system processes the payroll and disbursement file is generated. There are two modes of salary payments:

 

  • Direct bank transfers-Wherein payment details are uploaded in banker’s website. Confirmation of the same is obtained from the bank.
  • Direct Cheques-Wherein cheques are issued directly in the employee’s name.

 

In most cases, direct bank transfers takes place.

 

  1. Variable Inputs Processing:

 

Apart from the regular fixed data there can be certain variable inputs like canteen dues, credit society dues etc which are maintained by the Time Office for respective employee in a specific format. Then this data is uploaded into the SAP system which deducts the same from the salary of the respective employees.

 

3.3.6 Separation and Exit Management

 

The employees may be separated from the organization due to the following reasons:

 

-Resignation

-Retirement

-Death

-Termination by Organization

 

Resignation:

An employee who is not willing to continue his service in the organization, can give his resignation letter to his Division / Function head and the same will be forwarded to the HR after comments from the division head.

Every employee is required to adhere to a notice period mentioned in the appointment letter. However under certain circumstances, the HR after discussions with the Division head can relieve him earlier.

 

After the receipt of the resignation, the HR would discuss this with the division head and then convey the acceptance of the same to the employee. It is the responsibility of the employee to get clearance from the various departments on the check out form and submit it to the HR for the final settlement. 

 

Check out form consists of four parts:

 

-Part A of check out form has to be filled by the division head of the employee. It has a list of all the company materials which an employee has to return (if applicable). The division head has to sign against each saying that the same have been returned.

-Part B has to be signed in a similar manner by the finance department stating that any amount pertaining to advances, canteen dues, engineering store dues or any other dues have been cleared by the employee.

-Part C has to be signed by the administrative office confirming whether the employee has surrendered the company flat, furniture/equipments, telephone and car to the company.

-Part D has to be filled by the payroll and the HR department wherein his loan dues, notice pay is adjusted against the final settlement amount.

Only after all these have been cleared, the employee is relieved. After this he is given the relieving letter and the experience certificate.

 

Filling of the check out form is a process that remains the same for all employees including employees who have resigned, retiring employees, as well as for those who have been terminated from the organization.

 

The employee, who has resigned, is asked to either withdraw or get his/her PF and SA transferred to his/her new company.

 

  • Exit Interviews:

CCIL has a policy to conduct an Exit interview for the employees. These are conducted for employees who have resigned from their posts and have decided to leave the organization.

Once an employee resigns, he has to contact the HR dept for his check out formalities. During this time he has one-on-one dialogue with the HR manager who tries to understand the reason for his resignation. He also needs to fill in an exit interview form.

 

The Exit interview form has a list of reasons for which an employee may leave an organization. The employee is asked to rank the reasons for leaving from the mentioned list according to their order of significance form 1 to 5. (1 being the most significant and 5 being the least).

 

He is asked to mention some positives and negatives of working with Clariant and give his suggestions to make it a better place to work. Generally at the time of resignation people are reluctant to disclose the actual reasons. So the HR plays a major role to convince them and find out the actual reasons which have forced the employees to quit the organization. This in turn will help HR to take corrective steps to retain their valuable employees in case the attrition rate is too high. This form concludes with the comments of the HR manager or the VP-HR.

 

These interviews help the HR to have a healthy dialogue with the resignees and thus work on the suggestions given by them. It also enhances the image of the company.

�y>�d �_` le='font-size:12.0pt;mso-bidi-font-size:16.0pt; line-height:115%;font-family:"Bookman Old Style"'>The HR circulates this calendar to the various Bus/Div Heads who in turn inform their subordinates. Then nominations for various Training programs are received by the HR from the various Bus/Div Heads.

 

A month prior to the training program, reminders are sent and confirmations are received from the candidates and their heads.

 

CCIL has a set of trainers who are invited for conducting various workshops and training sessions. Along with this, the HR keeps on scanning various other trainers from outside and evaluates them and if required invites them for conducting training programmes.

 

Getting feedback about the training program conducted is emphasized at CCIL. The candidates are given a feedback form wherein they evaluate the various aspects of the session according to its usefulness in their professional life. A summary of this is made and kept for further reference and is also sent across to the trainer which could be useful to him for improving the training sessions in future.

 

st�7 'o�d �_` 12.0pt;mso-bidi-font-size:11.0pt;font-family:"Bookman Old Style"'> include Housing Loans and higher education loan for employee’s children. There is band wise eligibility for the cumulative benefit of these schemes.

 

Employees in the Functional Band and above are entitled for a company maintained car which has to be used as a work tool. Similarly telephone connection for official purposes is provided to certain employees irrespective of their bands.

Gross Pay: Basic +Cash Allowance

 

Net Pay: Gross Pay – Relevant Deductions

 

Cost To Company (CTC): It refers to all the expenses that the company bears for it’s the employees. Generally all increments are made on CTC.

 

Process Flow

 

CCIL has a centralised system for payroll management. It uses SAP as the software to maintain its database and process the payments. This database contains all the relevant information about the employee. Also his payment details are entered into the system the moment he joins the company.

 

There are 3 major processes in Payroll Management:

 

  1. Master Maintenance:

 

This process starts with the new employee joining the organization. The check in form, appointment letter along with the salary working is submitted to the payroll section which in turn updates the database.

Herein the following details about the employees are updated:

 

  • Personal details - DOB, details of dependents
  • Salary with the breakup of different components
  • Reporting line, Cost Centre, location  

 

Similarly when an employee resigns his HOD informs the HR. On completion of his check out formalities his swipe card is taken back and his employee code is deactivated in the SAP master files

 

  1. Attendance Recording and Payroll:

 

Every employee is given a swipe card on his joining the company. This card has to be swiped everyday on entry and exit from the company premises. These details are maintained by the time office which is there at every site. The entry and exit time gets automatically recorded in VBSTAR. This software gives complete information to the time office about leave, over time, half days taken and the outdoor activity. The over time are verified with the respective HOD while leaves are verified with leave cards which is approved by their HOD’s.

 

Leave without pay (LWP), OT etc. are manually entered in the required format which forms an input for the payroll processing done with the help of SAP.

 

  1. Payroll Processing And Disbursement Process:

 

The payroll is processed based on the data input from Time Office containing LWP and other details. The SAP system processes the payroll and disbursement file is generated. There are two modes of salary payments:

 

  • Direct bank transfers-Wherein payment details are uploaded in banker’s website. Confirmation of the same is obtained from the bank.
  • Direct Cheques-Wherein cheques are issued directly in the employee’s name.

 

In most cases, direct bank transfers takes place.

 

  1. Variable Inputs Processing:

 

Apart from the regular fixed data there can be certain variable inputs like canteen dues, credit society dues etc which are maintained by the Time Office for respective employee in a specific format. Then this data is uploaded into the SAP system which deducts the same from the salary of the respective employees.

 

ANALYSIS OF

ATTRITION TRENDS

4.1 WHAT IS ATTRITION?

Attrition has been a major concern for most of the companies in the current competitive scenario.

The word Attrition means, a reduction in the number of employees through resignation or separation at the employees will. Retirement, VRS and employee leaving due to end of contract are not considered as attrition.

 Attrition rate is the rate of shrinkage in size or number. It is the mathematical representation of the attrition in a particular organization or an institution.

Attrition leads to dual loss to an organization:

  • Firstly, company loses on a talent and thus costs incurred on them are a waste.
  • Secondly it employees a new employee and thus needs to incur costs on them.

Thus the following costs:

  1. A.    Recruitment cost


The cost to the business when hiring new employees includes the following six factors plus 10 percent for incidentals such as background screening: 

  • Time spent on sourcing replacement
  • Time spent on recruitment and selection
  • Travel expenses, if any
  • Re-location costs, if any n Training/ramp-up time
  • Background/reference screening
  • Recruitment cost for the new recruit to replace the employee leaving

 

  1. B.    Training and development cost

 To estimate the training and development costs, the expenses incurred on training of the employee who is leaving should be taken as well as that to be incurred to train the new employee is also to be considered.
To estimate the cost of training and developing new employees, cost of new hires must be taken into consideration. This will mean direct and indirect costs, and can be largely classified under the following heads: 

  1. Administration cost

         They include:

  • Set up communication systems
  • Add employees to the HR system
  • Set up the new hire’s workspace
  • Set up ID-cards, access cards, etc.

Thus it can be clearly evident from the above that loosing an employee causes an organization a large amount of expenses. An organization thus tries to retain its work force.

� rv�d �_` aining programs are received by the HR from the various Bus/Div Heads.

 

A month prior to the training program, reminders are sent and confirmations are received from the candidates and their heads.

 

CCIL has a set of trainers who are invited for conducting various workshops and training sessions. Along with this, the HR keeps on scanning various other trainers from outside and evaluates them and if required invites them for conducting training programmes.

 

Getting feedback about the training program conducted is emphasized at CCIL. The candidates are given a feedback form wherein they evaluate the various aspects of the session according to its usefulness in their professional life. A summary of this is made and kept for further reference and is also sent across to the trainer which could be useful to him for improving the training sessions in future.

 

st�7 'o�d �_` 12.0pt;mso-bidi-font-size:11.0pt;font-family:"Bookman Old Style"'> include Housing Loans and higher education loan for employee’s children. There is band wise eligibility for the cumulative benefit of these schemes.

 

Employees in the Functional Band and above are entitled for a company maintained car which has to be used as a work tool. Similarly telephone connection for official purposes is provided to certain employees irrespective of their bands.

Gross Pay: Basic +Cash Allowance

 

Net Pay: Gross Pay – Relevant Deductions

 

Cost To Company (CTC): It refers to all the expenses that the company bears for it’s the employees. Generally all increments are made on CTC.

 

Process Flow

 

CCIL has a centralised system for payroll management. It uses SAP as the software to maintain its database and process the payments. This database contains all the relevant information about the employee. Also his payment details are entered into the system the moment he joins the company.

 

There are 3 major processes in Payroll Management:

 

  1. Master Maintenance:

 

This process starts with the new employee joining the organization. The check in form, appointment letter along with the salary working is submitted to the payroll section which in turn updates the database.

Herein the following details about the employees are updated:

 

  • Personal details - DOB, details of dependents
  • Salary with the breakup of different components
  • Reporting line, Cost Centre, location  

 

Similarly when an employee resigns his HOD informs the HR. On completion of his check out formalities his swipe card is taken back and his employee code is deactivated in the SAP master files

 

  1. Attendance Recording and Payroll:

 

Every employee is given a swipe card on his joining the company. This card has to be swiped everyday on entry and exit from the company premises. These details are maintained by the time office which is there at every site. The entry and exit time gets automatically recorded in VBSTAR. This software gives complete information to the time office about leave, over time, half days taken and the outdoor activity. The over time are verified with the respective HOD while leaves are verified with leave cards which is approved by their HOD’s.

 

Leave without pay (LWP), OT etc. are manually entered in the required format which forms an input for the payroll processing done with the help of SAP.

 

  1. Payroll Processing And Disbursement Process:

 

The payroll is processed based on the data input from Time Office containing LWP and other details. The SAP system processes the payroll and disbursement file is generated. There are two modes of salary payments:

 

  • Direct bank transfers-Wherein payment details are uploaded in banker’s website. Confirmation of the same is obtained from the bank.
  • Direct Cheques-Wherein cheques are issued directly in the employee’s name.

 

In most cases, direct bank transfers takes place.

 

  1. Variable Inputs Processing:

 

Apart from the regular fixed data there can be certain variable inputs like canteen dues, credit society dues etc which are maintained by the Time Office for respective employee in a specific format. Then this data is uploaded into the SAP system which deducts the same from the salary of the respective employees.

 

4.2 ATTRITION AT CCIL:

CCIL belongs to the manufacturing sector and thus attrition is a major concern. As very well known, salary has always been a major issue in the manufacturing sector. But apart from the salary issues there are many reasons why people resign. Some of these are lack of co-operation from superiors or subordinates, organization culture, family reasons etc.

In order to understand the reasons for attrition at CCIL a classification of the data is done and represented in the form of various tables and charts.     

The following data shows the number of people who resigned (management cadre). For easy understanding of the trend, a comparison of half yearly data for 2006, 2007 and 2008 has been made.  

 

MANAGERIAL STAFF RESIGNATIONS

(HALF YEARLY)

 

 

2006

2007

2008

 

 

 

 

NO. OF EMPLOYEES

37

31

43

 

 

 

 

 

 

 

There was a subsequent reduction in the number of resignees in the first half of 2007 as compared to that in 2006 for the same period. But comparing the data for 2008 to both the years, it can be noted that this year has the highest number of resignees. The trend line in the above graph shows an increasing trend based on simple average.

 

CALCULATING THE ATTRITION RATE:

“WHAT CANNOT BE MEASURED CANNOT BE IMPROVED’’ is an old management aphorism. So if we want to improve attrition, we need to bring it to measurable terms.

 

Attrition in any particular organization can be quantified by finding out the attrition rate for that organization. After this it can be analysis can be done as to where is the maximum attrition happening and then finding out reasons for the same to form a retention strategy.

 

There is no standard formula to calculate the attrition rate of a company. This is because of certain factors as:

  • The employee base changes each month.
  • Many firms may not include attrition of fresher’s who leave because of higher studies or within three months of joining.
  • In some cases, attrition of poor performers may also not be treated as attrition.

Yet, as a generalised formula the following can be used:

Attrition = (No. of employees who left in the year / Average employees in the year) x 100

n      Attrition Rate 2008 (Half Year) : 

                      43/601 X 100 = 7.15 approx 7%

 

The above percentage is based on the data for the first half of 2008. In order to compare it to that of the previous years, it is important to have the data at par. Thus, finding out the rate of attrition for 2006 and 2007 based on half yearly data. 

 

n      Attrition Rate 2006:

          (Half Year)   37/632 X 100 = 5.85 approx 6%

          (Annual)      86/632 X 100 = 14%                     

 

n      Attrition Rate 2007:

          (Half Year)   31/596 X 100 = 5.20 approx 5%

          (Annual)      57/596 X 100 = 9%

The trend in attrition rate also shows an increase in the same in the current year. 

In order to understand the problem clearly, I have attempted to make various comparisons classifying the number of resignees band wise, month wise and division wise.

 

4.2.1       MANAGERIAL STAFF RESIGNATIONS

(BAND WISE CLASSIFICATIONS)

(JAN – JUNE)

;font6�iy�_` 0n New";mso-fareast-font-family:"Courier New"'>o       Direct Cheques-Wherein cheques are issued directly in the employee’s name.

 

 

In most cases, direct bank transfers takes place.

 

  1. Variable Inputs Processing:

 

Apart from the regular fixed data there can be certain variable inputs like canteen dues, credit society dues etc which are maintained by the Time Office for respective employee in a specific format. Then this data is uploaded into the SAP system which deducts the same from the salary of the respective employees.

 

As in 2006 and 2007, even in 2008 the maximum resignations were received from 0perational Band.

In order to understand the reasons for these resignations, a detailed analysis of the exit interview forms was done. During Exit Interviews, the employees are assured by the HR manager that the reason for their leaving will be kept confidential. The HR Manager conducting the exit interview keeps important notes of the information provided and records the same in the exit interview form along with proper justifications. The information recorded acts as a reliable source for the study.

It is generally found that at the lower level and initial years of the career, salary remains low. If the persons are not kept motivated, they prefer to leave the organisation at formative years of their career for better prospects in terms of salary and role.

At CCIL, the same trend has been observed. At the operational level, which includes executives with less experience and young at age, employees have resigned mostly due to absence in challenging roles (which have been offered by their new companies) as well as salary dissatisfaction. As we go up the hierarchy level i.e. Professional and Tactical band, the reasons for employee resignation took a shift from the hygiene factors to the motivation factors. Salary growth became the secondary reason for these resignations while other factors like change in role, lack of co-operation form superiors, inadequate recognition, training needs, no personal growth strategies, no feeling of belongingness etc. became a primary reason.  Some of the resignees have even blamed the work culture where people work as individuals and not as teams.

 

 

 

 

 

 

 

4.2.2         MANAGERIAL STAFF RESIGNATIONS

(MONTH WISE CLASSIFICATION)

 

MONTH

2006

2007

2008

 

 

 

 

JANUARY

5

5

6

FEBRUARY

6

2

6

MARCH

2

11

7

APRIL

6

5

6

MAY

7

4

9

JUNE

11

4

9

 

 

 

 

TOTAL

37

31

43

 

 

The above graph shows the trends in number of resignations per month in the year 2006 and 2007. It is observed that the trend line is highly fluctuating.

This could be because of the fact that 2006 was a pre merger period and people were not sure about their future in the company after the merger. While 2007 being post merger period, there were problems like non satisfaction by the given role, no co-ordination etc.

Comparatively, the number of resignations in 2008 is distributed almost evenly in the first 6 months. But it can also be seen that the resignations during May and June are higher than the remaining four months in 2008.

As per the discussion with the HR manager, employees tend to leave the organisation after a salary revision period. She informed that employees wait for their final appraisals/increment/promotion/upgradation of profile, after which they take a decision to continue or quit. In 2008, the salary revision took place in April and hence the increasing trend as many employees decided to take an exit from the organization.

 

4.2.3      MANAGERIAL STAFF RESIGNATIONS

(DIVISION WISE CLASSIFICATIONS)

(JAN – JUNE)

DIVISION/FUNCTION

2006

2007

2008

 

 

 

 

Div TLP : (Textile, Leather & Paper)

18

12

18

Div P&A : (Pigments & Additives)

0

4

4

Div MB : (Masterbatches)

2

2

2

Div FUN : (Functional Chemicals)

6

2

6

FINANCE

4

6

3

PRS

4

2

8

SCM

1

2

0

SOURCING

2

0

2

HR

0

0

0

IT

0

1

0

 

 

 

 

TOTAL

37

31

43

 

 

 

The above graph compares the attrition in the first half of 2006, 2007 and 2008 in each division. It can be observed from the same that, in division TLP, the attrition has been maximum. It had dipped down during 2007, but again increased during 2008. In Div. Finance too, there has been an increase in 2008 after a decrease in the previous year. While in the PRS division, the attrition has increased by an alarming rate after a reduction in 2007. HR has been a division where, there is no attrition in the first half of any of the three years.    

 

 

The maximum number of resignations during Jan-June 2008, are from TLP division, In order to understand the reasons for the same, an analysis of the exit interview forms of the executives who have resigned during this period is made.

Considering the priority given to the reasons for leaving in the exit interview forms, it can be concluded that executives have left the organization mainly because of a better role/compensation offered.  But by making a summary of suggestions made by the executives being interviewed, it could be understood that people were not satisfied with the kind of environment prevalent in the division.

Most of the executives have indirectly mentioned about the presence of partial behaviour of the Seniors in the division. Employees have expressed the lack of team spirit and lack of leadership qualities at senior level.

Few executives expressed that there is lack of appreciation for good work done.  All these along with the existence of low salary structure compared to market trends, have become the reasons for employees to leave the organization.

PRS (Product Safety) division had the second largest number of resignations during the first six months of 2008. Here it is observed that an attractive job offer and better salary became the main primary reason for attrition. Higher education is also one of the reasons. (4 out of 8 employees considered this reason as important). 

4.3 REASONS FOR ATTRITION

Form the exit interview forms and the comments of the HR Manager the overall reasons for attrition can be summarised as follows:

F     Better prospects outside CCIL in terms of salary and responsibilities,

F     Lack of Team spirit,

F     No career growth,

F     No role clarity,

F     Attrition due to competition,

F     Lack of support from Superiors.

 

Below is a representation of the reasons of attrition at CCIL in the form of a chart:

 

REASONS FOR ATTRITION

FACTORS LEADING TO ATTRITION AT CCIL

INDIVIDUAL

ORGANIZATIONAL

HIGHER EDUCATION

BETTER PROSPECTS

PARENTS / SPOUSE MOBILITY

NO ROLE CLARITY

NO LEARNING

JOB/ROLE STRESS

ROLE DIFFERENT THAN DEFINED

CULTURAL MISMATCH

PAY PACKAGE

ROLE RELATED

OTHERS

STYLE OF BOSS

NO GROWTH/ STAGNATION

LACK OF FREEDOM

MONOTONOUS JOB

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

4.4 RETAINING THE EMPLOYEES 

Employees today are different. They are not the ones who don’t 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. In prominent Indian metros, there is no dearth of opportunities for the best in the business, or even for the second or the third best.

Importance of retaining employees remains the same irrespective of the size of the organization, its nature of business or the country of operation. The only difference lies in realizing the fact that frequent employee attrition means there is something, which needs immediate attention and cure.

Employee Retention involves taking measures to encourage employees to remain in the organization for the maximum period of time. It involves being sensitive to people's needs and demonstrating the various strategies in the five families detailed in Roger Herman's classic book on employee retention, Keeping Good People.

  • Compensation: It is said that money isn't a motivator, but it is an effective de-motivator. The employees always have high expectations regarding their compensation packages. So an attractive compensation package plays a critical role in retaining the employees.
  • Growth: No one joins an organization to just do the same work till the end of his career. If an employee does not see growth in his own organization, there are high chances that he might opt for leaving the organization. So such strategies must be framed where an employee can see his bright future in the company.

 

  • Relationship: The management is sometimes not able to provide an employee a supportive work culture and environment in terms of personal or professional relationships. The organization culture should be such that encourages healthy relationship between all the employees.
  • Support: Sometimes not getting the right kind of support and co-operation also leads an employee to be frustrated and provokes him to leave the organization. This should be taken care of by providing healthy work relationships.

 

  • Environmental: An organization needs to have an environment where individuals learn and get support from colleagues and seniors along with the healthy mixture of authority and responsibility.

Based on the above five points, a retention strategy can be framed after understanding the reasons for attrition in a particular organization.

4.5 RETENTION MEASURES

At CCIL, after analysing the reasons of attrition, it could be concluded that there are problems related to compensation, growth, work environment as well as relationships.

In order to reduce the amount of attrition, the HR as well as all the business/division heads need to join hands and come together and take actions.

The following measures can be taken:

  • Designing a competitive compensation package:

Most of the executives at CCIL are not satisfied with the salary that they are being paid. Thus there is a need of a systematic comparison of the compensation paid at CCIL with the market trends. An analysis should be done keeping in mind the kind and scope of work and the salary packages offered at CCIL and other companies in the same industry. For this purpose, external help can be taken. There are many agencies which carry out such research work for organizations. CCIL can hire one such agency for this work.

Thus it would be possible for CCIL to provide a very competitive pay package which would restrict the attrition to some extent.

  • Learning Environment:

The seniors in all the divisions should try to create an environment of learning in their division/department. Knowledge gained should be shared with the others. E.g. If an individual from the HR department has gone for a training program on Interpersonal Skills, he should be encouraged to share the contents of the program with his colleagues through a presentation on the same. The same kind of environment should be created in the whole organization.

  • Career Graphs for employees:

Many of the employees in their exit interviews form have mentioned that they do not see any personal growth in the organization. Thus it is recommended that the superiors of employees should take the responsibility to show his subordinate a career graph projecting his growth in the next 5 years. This would bring enough confidence in the employee to stay with the company and motivate him to achieve the targets placed before him.

 

  • Inculcate Team Work:

All the employees need to trained and motivated to work as teams and not individuals. This can be done with the help of the division heads. They need to bring all the employees in the particular division together and show them the ultimate goal for which they all are working. When a combined vision is shown, it plays an important role in motivating the employees to work together.

  • Making employees accountable:

There should be fairness in the working of the company. If an individual has made a mistake he should be made accountable for it irrespective if his relations with the seniors. The HR can play a role here by bringing in rules of punishing the offenders.

  • Fun at work:

“All work and no play makes Jack a dull boy”. Employees spend almost 8-9 hours of the day at their work place. It is very important that the employees are given opportunities to have fun at work. For this, HR can organize gaming events between the various departments as well as within the various departments. They can have events like chess tournament, table tennis tournament, quiz competition, best of waste competition etc. these can be done first at the departmental level and then at the organizational level.

This will enhance their sense of belongingness for their division/function as well as increase the interaction between and within the departments/divisions.     

  • Achieving a match between individual and organisational goals:

 CCIL has at times expected its employees to subsume their individual objectives before the organisational one. This has forced the employees to leave. The company thus needs to achieve a balance between the two. This can be done at the initial level while recruiting the employee only if his / her personal goals can be aligned to the organizational goals.  

  • Increasing organisational transparency:

There is a need for transparency in the working of the company. The employees should be given reasons and answers to the question which arise in to their minds. If this is not done, they give it the name of a partial environment, start having grudges against others and spoil the organizational culture.

 

  • Helping employees acquire new skills:

There is an increasing need for keeping the employees up dated about the new techniques and technologies. Thus there is a need for increasing the number of training programs which at this point of time are very less. Training signals employees that the organisation values their contribution, and is willing to invest in upgrading their skills. These would also mean increase in interaction between the employees which is again a requirement at CCIL.

  • Celebrations and Social and cultural Networks:

In some of the surveys and audits it has been found that employees get a sense of belongingness if the organization encourages some form of social networks, cultural programs, team celebrations. These can be done with very little investments by encouraging employees to have picnics, social gatherings, celebrations and festivals etc. When the person feels at home with a company he would think twice before leaving the company.

HR at CCIL can encourage the formation of different clubs like the golf club, social service club, sports club, where the employees from all divisions can register as per their likings. These clubs can then have their own gatherings and interactions. This would increase the interactions between employees from different departments.

  • Change of Styles through 360 Degree Feedback and Internal Customer satisfaction Surveys:

Many times the style of manager has been responsible for employees in certain departments to leave. With supportive managers and Head of departments employees think several times before they leave. Some managers may not realize that their coercive style, excessive task centeredness, and the way they assign tasks including the clarity with which they give instructions, respect etc to employees have tremendous impact on their staying with the company. Thus a 3600 feedback system can be implemented for the senior level managers and corrective actions can be taken to improve the problem areas.

The supervisors must be prepared to be collaborative, supportive, and nurturing of their people. The old style of "my-way-or-the-highway" style of management is a thing of the past. Most new supervisors need training to understand what it really takes to retain employees. 

  • Periodic rewards or gifts for work done:

If an employee is appreciated for the work he does, it acts as a motivating factor for him to perform well at his work. This ultimately benefits the organization. Thus the employees should be motivated by appreciation form the senior level. His work can also be acknowledged by giving him/her a small token of appreciation for the work done.  

  •  Measuring employee satisfaction:

Obsessed with catering to the demands of their external customers, companies ignore their internal customers. Periodic employee satisfaction surveys can highlight the potential flash-points, and enable the company to take corrective action.

  • Stress Management:

The employees face a lot of stress in their day to day personal and professional life. If the employees remain stressed out, their efficiency is reduced. So HR can take measures to reduce this stress level and improve the efficiency. This can be done by organizing seminars on stress reduction, yoga, one day camps, picnics etc.

Employees should be taught as to how they themselves can fight the stress that they are experiencing. This would bring a dual advantage to the company. Firstly, the employees will realise that the company is taking the responsibility of the stress that are experiencing due to the company’s work. Secondly, their productivity will increase which will again benefit the company.

 

  • Today’s employees are different. They are the ones who have ample of opportunities. So if the company wants to retain its employees it has to start taking responsibility of its employees. HR needs to make the employees realize that they are an important part of the company. The employees cannot be retained only by giving them high pay packages. They need to see their own growth and have a feeling of belongingness in the company. 

Employee retention takes effort, energy, and resources. But the results are worth it.

te�+ 5t�d �_` er-left-alt:solid windowtext .5pt; mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;height:2.25pt'>

37

31

43

 

 

 

The above graph compares the attrition in the first half of 2006, 2007 and 2008 in each division. It can be observed from the same that, in division TLP, the attrition has been maximum. It had dipped down during 2007, but again increased during 2008. In Div. Finance too, there has been an increase in 2008 after a decrease in the previous year. While in the PRS division, the attrition has increased by an alarming rate after a reduction in 2007. HR has been a division where, there is no attrition in the first half of any of the three years.    

 

 

The maximum number of resignations during Jan-June 2008, are from TLP division, In order to understand the reasons for the same, an analysis of the exit interview forms of the executives who have resigned during this period is made.

Considering the priority given to the reasons for leaving in the exit interview forms, it can be concluded that executives have left the organization mainly because of a better role/compensation offered.  But by making a summary of suggestions made by the executives being interviewed, it could be understood that people were not satisfied with the kind of environment prevalent in the division.

Most of the executives have indirectly mentioned about the presence of partial behaviour of the Seniors in the division. Employees have expressed the lack of team spirit and lack of leadership qualities at senior level.

Few executives expressed that there is lack of appreciation for good work done.  All these along with the existence of low salary structure compared to market trends, have become the reasons for employees to leave the organization.

PRS (Product Safety) division had the second largest number of resignations during the first six months of 2008. Here it is observed that an attractive job offer and better salary became the main primary reason for attrition. Higher education is also one of the reasons. (4 out of 8 employees considered this reason as important). 

5. CONCLUSION

The Human Resource Dept. at CLARIANT CHEMICALS INDIA LTD. is a perfect example of integration of HR and systems. Though CCIL has come out from a merger phase recently, all the systems are already in place. Their systems and procedures are well defined and work is made easy. But at times this proves as a disadvantage to the company because, employees might not think much and go on with the processes and systems as they are. They may not think rationally. This can lead to stagnation.

I would ultimately conclude that the HR department at CCIL has to be a link between the employees and the management. It also has the responsibility to bridge the gap between the various departments in the organization.  HR needs to change its role from a facilitator to a strategic business partner. 

My involvement with the HR processes:

I was involved with almost all the HR processes and so I gained knowledge regarding all the processes.

  • Firstly I was involved with the joining formalities of a new recruit i.e. helping in the check in formalities.

 

  • Secondly I was involved for completing the reference checks of around 20 new recruits who had joined recently.

 

  • After this, I co-ordinated for the two training programs which were conducted during my training period.

 

  • I was involved in doing an audit of the leaves taken by the employees through the leave management system.

 

  • I was then taught to make the entries regarding tax exempted investments made by the employees into the SAP system for calculation of tax of all the employees.

 

  • I was also made to understand the making of a Training Calendar for the year by amassing all the information regarding the training needs identified. 

BIBLIOGRAPHY

 

ACADEMIC BOOKS:

  • K. ASHWATHAPPA - “ HUMAN RESOURCE MANAGEMENT ”

 

 

ARTICLES:

  • BRUCE FERN AND B. LYNN WARE THE CHALLENGE OF RETAINING TOP TALENT: THE WORKFORCE ATTRITION CRISIS”
  • MS. SUMANA BOSE, FACULTY, SINHGAD INSTITUTE OF BUSINESS MANAGEMENT AND RESEARCH, “HR A CAUSE OF ATTRITION”
  • MS. RITU ARORA, DAV INSTITUTE OF MANAGEMENT, “MANPOWER RETENTION IN BPO INDUSTRY

 

PUBLICATIONS:

  • CLARIANT HR MANUAL

 

  • CLARIANT ANNUAL REPORT – 2007

 

 

 

 

 

 

 

WEBLIOGRAPHY

 

 

ARTICLES FORM THE WEB:

 

 

  • SUDIPTA DEV  “IS ATTRITION ALWAYS BAD FOR AN ORGANIZATION?”

 

HTTP://WWW.EXPRESSCOMPUTERONLINE.COM/20071029/TECHNOLOGYLIFE01.SHTML

 

 

WEBSITES:

 

 

 

RSS

Looking For Something? Search Below

Latest Activity

VIP Member Badge & Others

How to Get This Badge at Your Profile DP

------------------------------------

Management: Admins ::: Moderators

Other Awards Badges List Moderators Group

© 2021   Created by + M.Tariq Malik.   Powered by

Promote Us  |  Report an Issue  |  Privacy Policy  |  Terms of Service