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RESERCH REPORT
ON
RETENTION STRATEGIES
IN
WIPRO
Submitted in partial fulfillment of
MASTERS OF BUSINESS ADMINISTRATION
PROGRAME
Conducted by
G B TECHNICAL UNIVERSITY, LUCKNOW
Under the guidance of : Submitted by:
Ms. RINKI VERMA RICHA RUPALI
(Asstt. Professor) MBA IV SEMESTER
LBSIMDS
(Lucknow)
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LAL BAHADUR SHASTRI INSTITUTE OF
MANAGEMENT & DEVELOPMENTSTUDIES, LUCKNOW
PREFACE
Research report is an internal part of MBA program. It helps the students to
understand the practical aspects of Marketing and Human Resource (HR). As a part of my MBA program at “Lal Bahadur Shashtri Institute of Management and
Development Studies Lucknow. I was supposed to make the report. I have made
report on the topic “RETENTION STATEGIES”.
In this report I have studied various strategies which the company should use in
order to increase retention of employees.
Retention of Key employees is critical to the long term health and success of any
organization. It is a known fact that retaining your best employees ensures
customer satisfaction increased product sales, satisfied colleagues and reporting
staff, effective succession planning and deeply imbedded organizational
knowledge and learning.
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ACKNOWLEDGEMENT
Every work needs to be followed by a deep sense of gratitude to those who
made is through success. It takes the opportunity to thanks all those people who
render their immense help and guidance for completion of this report. Indeed
this page of acknowledgement shall never be able to touch the generosity of
those who rendered their cooperation.
I also want to thanks head of department of LBSIMDS, Prof. TRIPTI
BARTHWAL, my faculty guide Ms. RINKI VERMA for enlightening my ways
for the completion of this report. Without her able guidance I would not have
been able to complete this report.
One of the biggest challenges companies are facing the attraction and retention of
the good employees and top performers. The purpose of this project study was
also to prove how employees’ retention is essential in this day and age, and if the
organization are not awake to the situation and immediate action are not taken to
that effect, what repercussions lay ahead and how they would affect the
organization and the industry.
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INDEX
TABLE OF CONTENTS
S.No Page No.
1 INTRODUCTION TO REPORT1(i) Executive summary
1(ii) Introduction
2 LITRETURE REVIEW
2(i) Benefits of retention
2(ii) Importance of employee retention
2(iii) Factors affecting employee retention
2(iv) Retention strategy process map
2(v) Retention strategies
2(vi) Unique organizational structure
2(vii) Variable benefit strategy
2(viii) Internal advertisement strategy
2(ix) Retention tool
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3. ABOUT WIPRO
3(i) Overview
3(ii) Human Resource Planning
INDEX
TABLE OF CONTENT
S.NO PAGE NO.
4. HUMAN RESOURCE POLICIES
5. RETENTION STARTEGIES
5(i) Pay and Benefit5(ii) Career Growth
5(iii) Work Environment
5(iv) Training
5(v) Job Satisfaction
6. RESEARCH METHODOLOGY
Objective
Sample Design
7. ANALYSIS AND
INTERPRETATION
8. CONCLUSION AND
SUGGESTION
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9. COMPARIOSION
Comparison between strategies
10. BIBLIOGRAPHY
INTRODUCTION TO THE
REPORT
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Executive Summary
Employee retention is a process in which the employees are encouraged to remain
with the organization for the maximum period of time or until the completion of
the project. Employee retention is beneficial for the organization as well as the
employee. 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. It is the responsibility of the
employer to retain their best employees. If they don’t, they would be left with no
good employees. A good employer should know how to attract and retain its
employees. Most employees feel that they are worth more than they are actually
paid. There is a natural disparity between what people think they should be paid
and what organizations spend in compensation. When the difference becomes too
great and another opportunity occurs, turnover can result. Pay is defined as the
wages, salary, or compensation given to an employee in exchange for services the
employee performs for the organization. Pay is more than "dollars and cents;" it
also acknowledges the worth and value of the human contribution. What people
are paid has been shown to have a clear, reliable impact on turnover in numerous
studies. Employees comprise the most vital assets of the company. In a work place where employees are not able to use their full potential and not heard and
valued, they are likely to leave because of stress and frustration. In a transparent
environment while employees get a sense of achievement and belongingness from
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a healthy work environment, the company is benefited with a stronger, reliable
workforce harboring bright new ideas for its growth
INTRODUCTION
Effective employee retention is a systematic effort by employers to create and
foster an environment that encourages current employees to remain employed by
having policies and practices in place that address their diverse needs. Also of
concern are the costs of employee turnover (including hiring costs, training costs,
productivity loss). Replacement costs usually are 2.5 times the salary of the
individual. The costs associated with turnover may include lost customers,
business and damaged morale. In addition there are the hard costs of time spent in
screening, verifying credentials, references, interviewing, hiring, and training the
new employee just to get back to where you started.”
Employee retention matters as organizational issues such as training time andinvestment; lost knowledge; insecure employees and a costly candidate search are
involved. Hence failing to retain a key employee is a costly proposition for an
organization.
Employee retention refers to policies and practices companies use to prevent
valuable employees from leaving their jobs. How to retain valuable employees is
one of the biggest problem that plague companies in the competitive marketplace.
Not too long ago, companies accepted the “revolving door policy” as part of
doing business and were quick to fill a vacant job with another eager candidate.
Nowadays, businesses often find that they spend considerable time, effort, and
money to train an employee only to have them develop into a valuable commodity
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and leave the company for greener pastures. In order to create a successful
company, employers should consider as many options as possible when it comes
to retaining employees, while at the same time securing their trust and loyalty so
they have less of a desire to leave in the future.
THEORITICAL VIEW ABOUT
RETENTION STRATEGIES
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RETENTION STRATEGY
DEFINITION:-
According to Get Les Mckeown’s employee retention is define as “ effective
employee retention is a systematic effort by employers to create and foster an
environment that encourages current employees to remain employed by having
policies and practices in place that address their divers needs. Also of concern are
the costs of employee turnover (including hiring costs. productivity loss).
Replacement costs usually are 2.5 times the salary of the individual. The costs
associated with turnover may include lost customers, business and damaged
morale. In addition there are the hard costs of time spent in screening, verifying
credentials, references, interviewing, hiring, and training the new employee just to
get back to where you started.”
Typically, high attrition also leads to a chronic or systemic cycle—attrition
brings decreased productivity, people leave causing others to work harder and this
contributes to more attrition. All this has a significant impact on the company’s
strength in managing their business in a competitive environment.
Productivity and profitability are both impacted, either negatively and positively,
according to the type of attrition. The cost of hiring is sometimes not less than two
to three times the salary of the employee.
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BENEFITS OF EMPLOYEE RETENTION.
Every company should understand that people are their best commodity. Without
qualified people who are good at what they do, any company would be in serious
trouble. In the long un, the retention of existing employees saves companies
money. As Beverly Kaye and Sharon Jordan- Evan stated in Training and
Development:
“Studies have found that the cost of replacing lost talent is 70 o 200 percent of
that employee’s annual salary. There are advertising and recruiting expenses,
orientation and training of the new employee, decreased productivity until the
new employee is up to speed, and loss of customers who were loyal to the
departing employee. Finding, recruiting, and training the best employees
represents a major investment. Once a company has captured talented people, the
return-on-investment requires closing the back door to prevent them from walking
out.”
When an employee leaves a company for a direct competitor, there is
always a chance that they will take important business strategies and secrets with
them to be explained by the competition. This is yet another reason why the
retention of employees is so crucial to some businesses. While this practice seems
a bit unscrupulous, it skills happens quite frequently. As Bill Leonard stated in
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HR Magazine: “ Because employers know that the best-qualified applicants will
come directly from competitors, recruiting and hiring employees away from
mother of inventive and sometimes controversial business practices. Recruiting
and hiring from your competitors is probably as old as business itself. But what is
new—and a hot topic among employers – is how to attract and retain qualified
candidates in a highly competitive labor market while also preventing their own
intellectual capital from winding up in the hands of competitors.
One way for a company to prevent employees from giving valuable information
to competitors is to make it a policy to enforce strict non compete andconfidentiality agreements amongst its employees. The existence of such
agreements could in fact deter a competitor from hiring a valuable employ
because they might not want to risk possible legal entanglements with the other
company.
Of course, all this could possibly lead to animosity with the employee who could
feel that his or her options are being limited. Many employees don’t always
remember signing such a document, so a copy of it should always be kept on file
for the employee to refer to. This area could prove to be a highly sensitive one
between employer and employee, so extreme caution is suggested in all instances.
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IMPORTANCE OF EMPLOYEE RETENTION
Why is retention so important? Is it just to reduce the turnover costs? It’s not only
the cost incurred by a company that emphasizes the need of retaining employees
but also the need to retain talented employees from getting poached.
The process of employee retention will benefit an organization in the following
ways:
1. The Cost of Turnover: The cost of employee turnover adds hundreds of
thousands of money to a company's expenses. While it is difficult to fully
calculate the cost of turnover (including hiring costs, training costs and
productivity loss), industry experts often quote 25% of the average employee
salary as a conservative estimate.
2. Loss of Company Knowledge: When an employee leaves, he takes with him
valuable knowledge about the company, customers, current projects and past
history (sometimes to competitors). Often much time and money has been
spent on the employee in expectation of a future return. When the employee
leaves, the investment is not realized.
3. Interruption of Customer Service: Customers and clients do business with a
company in part because of the people. Relationships are developed that
encourage continued sponsorship of the business. When an employee leaves,
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the relationships that employee built for the company are severed, which
could lead to potential customer loss.
4. Turnover leads to more turnovers: When an employee terminates, the
effect is felt throughout the organization. Co-workers are often required to
pick up the slack. The unspoken negativity often intensifies for the remaining
staff.
5. Goodwill of the company: The goodwill of a company is maintained when
the attrition rates are low. Higher retention rates motivate potential employees
to join the organization.
6. Regaining efficiency: If an employee resigns, then good amount of time is
lost in hiring a new employee and then training him/her and this goes to the
loss of the company directly which many a times goes unnoticed. And even
after this you cannot assure us of the same efficiency from the new employee
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FACTORS AFFECTING EMPLOYEE RETENTION
1. Internal Factors:
Factors which affect the job satisfaction of the employee inside the
organization for example; strained superior subordinate relationship. Certain
factors are employee centric such as:
• Family responsibilities,
• Personal preference for location of job etc.
2. External 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 these include:
• An employee comparing his salary,
• position,
• work environment,
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• benefits with that of same position in another company may lead to
preference for the other company.
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:
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• Family orientation
• Quality of life issues
• Autonomy
• Social status of the job
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RETENTION STATEGIES PROCESS
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TYPES OF RETENTION STAREGIES
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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. The companies should adopt these strategies to retain their
employees into the organization.
Retention strategies are classified into 3 major types these are:-
1. Unique organizational structure strategy
2. Variable benefit strategy
3. Internal advertisement strategy
UNIQUE ORGANIZATIONAL STRUCTURE
ORGANIZATIONAL STRATEGY
Creating a company-specific organization structure and position title is the crux of
this theory. This will reduce the employee’s 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.
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a. Set Clear Expectations
When people enter in a company for the first time as an employee, he/she mayhave 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 employee’s
perception.
o What is the employee’s attitude to other organization and its
benefit structure for the same position?
o What are the employee’s expectations from employers/team-
members? What are the parameters to measure their performance?
o A good communication channel present in the organization.
o 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.
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outcome. In the activities trap, developing a plan is the goal, rather than
increasing your market share.
2. 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.
3. 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.
b. Talent and Skill utilization
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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 knowledgeand 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.
c. 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 potentiallysuccessful, 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.
d. Career Growth
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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.
VARIABLE BENEFIT STATEGY
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.
b. Attracting the Employees
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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
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 shiftwithout 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
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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 health-
conscious 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.
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 performance-
based 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?
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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
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 senseto 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
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discover what "interests" each employee, rather than just distributing generic
items.
f. Longevity of the reward
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.
While the monetary rewards received are spent and 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 top-
management 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.
INTERNAL ADVERTISING STRATEGY
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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 with 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 communicationchannel is different from that of marketing channels. Here the communication
1. 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 theyshould 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 employee’s 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
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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
contributions. The pay-off is a contagious feeling of pride and, perhaps, some
new efficiency that saves the company money.
2. 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.
RETENTION TOOL
Apart from the legal and mandatory benefits such as provident-fund and gratuity,
below is a list of other benefits employees should get.
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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 companies also undertakes to pay electricity/water bills as well as 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
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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
company’s 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 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 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 companies they have plans for,
performance based incentive scheme. The parameters for calculation 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
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ABOUT WIPRO
WIPRO
Overview
Wipro started as a vegetable oil company in 1947 from an old mill founded
by Azim Premji's father. When his father died in 1966, Azim, a graduate in
Electrical Engineering from Stanford University, took on the leadership of the
company at the age 21. He repositioned it and transformed Wipro (Western India
Vegetable Products Ltd) into a consumer goods company that produced
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hydrogenated cooking oils/fat company, laundry soap, wax and tin containers and
later set up Wipro Fluid Power to manufacture hydraulic and pneumatic cylinders
in 1975. At that time, it was valued at $2 million.
In 1977, when IBM was asked to leave India, Wipro entered the information
technology sector. In 1979, Wipro began developing its own computers and
in 1981, started selling the finished product. This was the first in a string of
products that would make Wipro one of India's first computer makers. The
company licensed technology from Sentinel Computers in the United States and
began building India’s first mini-computers. Wipro hired managers who werecomputer savvy, and strong on business experience.
In 1980 Wipro moved in software development and started developing
customized software packages for their hardware customer s. This expanded
their IT business and subsequently invented the first Indian 8086 chip.
Since 1992, Wipro began to grow its roots off shore in United States and by
2000 Wipro Ltd ADRs were listed on the New York Stock Exchange.
With over 25 years in the Information Technology business, Wipro Technologies
is the largest outsourced R & D Ser vices provider and one of the pioneers in the
remote delivery of IT services. Being a global provider of consulting, IT
Services, outsourced R&D, infrastructure outsourcing and business process
services, we deliver technology- driven business solutions that meet the strategic
objectives of our Global 2000 customer s. Wipro today employs 96,000 people
in over 50 countries. A career at Wipro means to learn and grow continuously,
opportunities to work on the latest technologies alongside the finest minds in the
industry, competitive salaries, stock options and excellent benefits.
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Human Resource Planning
(HRP)
Human resources planning is an important component of securing future
operations. For sustainability, plans must be made to ensure that adequate
resources are available and trained for all levels of an organization. Although
police organizations are stretched to meet current service requirements, it is
important that they also spend time to create plans to ensure there will be
officers to fill future positions. These plans must be prepared well in advance,
with targets set for the short, mid and long term. Not only must adequate
resourcing be considered for the bulk of the workforce but special
consideration must be given for the leadership of each organization. This
requires developing specialized succession plans for identifying and
grooming potential future leaders. The leader candidates must receive
management, leadership, and all relevant knowledge and skills training. Plansshould also be created to leverage the knowledge of those leaving today’s
leadership roles so that future leaders are fully informed. Securing future policing
operations requires careful planning and a clear implementation strategy.
“When I look at where we have come, what gives me tremendous satisfaction is
not so much the success, but the fact that we achieved this success without
compromising on the value we defined for ourselves. Values combined with a
powerful vision can turbo-charge a company to scale new heights and make it
succeed beyond one’s wildest expectations.”
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Azim Premji
The basic purpose of having a manpower plan is to have accurate estimate of
required manpower with matching skills requirements. The main objectives are:
• Forecast manpower requirements.
• Cope with changes ± environment, economic, organizational.
• Use existing manpower productively.
• Promote employees in a systematic way.
Wipro is the first People Capability Maturity Model (PCMM) Level 5, SEI
Capability Maturity Model (CMM) Level 5 and version 1.1 of CMMi
certified IT Services Company globally. Wipro¶s people processes are based on
the cur rent best practices in human resources, knowledge management and
organization development, giving a great focus to match changing business needs
with development of employee competencies.
Capability Maturity Model (CMM)
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Wipro has expertise in Six-Sigma methodologies, which have been put in
use to streamline and enhance existing people processes in organizations,
enabling decision making based on metrics and measurements.
• The central idea behind Six Sigma is that if you can measure how many
defects´ you have in a process, you can systematically figure out how to
eliminate them and get as close to ³zero defects´ as possible.
• Six Sigma starts with the application of statistical methods
for translating information from customers into specifications for
products or services being developed or produced. Six Sigma is the
business strategy and a philosophy of one working smarter not harder
Wipro is the first Indian company to adopt Six Sigma. Today, Wipro has one of the most mature Six Sigma programs in the industry ensuring that91% of the projects are completed on schedule, mush above the industryaverage of 55%. As the pioneers of Six Sigma in India, Wipro has
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already put around ten years into process improvement through Six Sigma.Along the way, it has scaled Six Sigma ladder, while helping to roll out over 1000 projects. The Six Sigma program spreads right across verticals and
impacts multiple areas such as project management, market developmentand resource utilization
Evolution of Six Sigma at Wipro :-
Six Sigma at Wipro simply means a measure of quality that strives for near
perfection. It is an umbrella initiative cover ing all business units anddivisions so that it could transform itself in a world class organization. AtWipro, it means:
(i) Have products and services meet global benchmarks(ii) Ensure robust processes within the organization(iii) Consistently meet and exceed customer expectations(iv) Make Quality a culture within.As timely reviews play a very crucial role to judge the success of a project. Wiprohad to develop a team of experts for this purpose. The task assigned was to see thetimeliness, find out gap, week areas and to check the outcome as per the plan.
Build the Culture:
Implementation of Six Sigma required support from the higher level managers. Itmeant restructuring of the organization to provide the infrastructure, training and
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the confidence in the process. Wipro had to build this culture and that took time inimplementation.
Project selection:The first year of deployment was extremely difficult for Six Sigma success. Theydecided to select the project on the basis of high probability of their success and targeted to complete them in a short period to assess thesuccess. These projects were treated as pilot projects with a focus to learn.For the selection of the right project the field data was collected, processmap was developed and the importance of the project was judged from theeyes of customers.
Training:
After the set up, the first step of implementation was to builda team of professionals and train them for various stages of Six sigma. Thetraining was spread in five phases:
• Defining,
• measuring,
• analyzing,
• improving and controlling the process and
• lastly increasing customer satisfaction.
These phases consisted of statistics, bench marking and design of
experiments. To find the r ight kind of people and train them was a difficult job. This motivated Wipro to start their own consultancy to train the people.
Resources:
It was difficult to identify resources that required for short-term basis and long-term basis as it varied from project to project. Wipro did it on the basis of seriousness and importance of the project.Human Resource Policies :-
• Manpower Planning
• Recruitment & Selection
• Training & Development
•Performance Appraisal
• Promotion, Transfer, & Demotion
• Welfare Activities
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HUMAN RESOURCE POLICIES OF
WIPRO
RECRUITMENT
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Recruitment refers to the process of screening, and selecting qualified people for a job at an organization or fir m, or for a vacancy in a volunteer-basedorganization or community group. While generalist managers or administratorscan undertake some components of the recruitment process, mid- and large- sizeorganizations and companies often retain professional recruiters or outsourcesome of the process to recruitment agencies. External recruitment is the process of attracting and selecting employees from outside the organization.
A. Internal Sources:-
• Promotions and Transfer
•
Job postings• Employee Referrals
B. External Sources:-
• Advertisement
• Employment Agencies
• On campus Recruitment
• Employment exchanges
• Education and training institute
Recruitment process :-
WIPRO recruitment process consists of three rounds.
Round 1 : Written test
1. Verbal:This section will have 15 questions related to synonyms, antonyms, Analogies,SC, Prepositions and reading comprehension.
2. Aptitude:This section will have 15 questions related to aptitude topics like Time &
Work, Time & Distance, Blood Relations, Series Completion, Puzzles,Calendars, Clocks, Percentages, Ratio proportions, Ages, Pipes and Cisterns etc.
3. Technical:
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This section will have 20 questions related to basic technical concepts fromC, C++, Java, Linux, UNIX, DBMS, SQL, Programming fundamentals,Hardware, Software Engineering, Micro Processors etc. Candidates are
informed to brush up their technical skills which were covered in their regular academic curriculum.
Round 2: Technical Interview:-
This is a major elimination round. Candidates should be thorough with their basictechnical skills to clear this round. Candidates are here by informed to be prepared with their core subjects.
Round 3: HR Interview:-
Candidates can expect basic HR inter view questions like Tell me about your self, Why should I hire you, Why only WIPRO, What is SIX sigma level.Candidates will be tested in their communication and vocabulary during technicaland HR interviews.
Round 4: Placement:-
Upon Joining, the incumbent shall be given an employee code number by
Manager(HR) and he shall fill up the joining for ms and shall submit the same tothe Manager(HR) for further course of action.
Wipro recruit 40% employees from campus recruitment. Another popular source for Wipro’s Recruitment is the Online Placement throughNSR (National Skill Registry).
TRAINING
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TrainingThe term training refers to the acquisition of knowledge, skills, and competenciesas a result of the teaching of vocational or practical skills and knowledgethat relate to specific useful competencies.Training & Development of individuals is a key focus area at Wipro. Our Talent Transformation Division handles this. For those with less than one year of
experience a well-structured induction training program is conducted. This willcover all aspects of software development skills that are required. _
• As a PCMM Level 5 organization, there is also high focus onCompetency Development. Talent Transformation has a mandate to provide technical & business skill training based on the departmental anddivisional need. All employees are eligible to take training based on thecompetency gap identified or Project need.
• In addition to class room training one can take e-Learning with out waitingfor class room training.
• Compliance and Regulatory training is an important aspect intoday’s regulated environment and is often implemented as part of
corporate initiatives. All large companies have mandatory trainings be itin the field of Environment, Health & Safety, Ethics, Risk-Management,Finance, Law, etc.
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Rapid Learning:-At Wipro, we know how critical time is for fulfilling training needs and hence we
have developed competency in the area of Rapid Learning. An emerging formof content development, Rapid Learning helps to develop content in a shortspan of time using various tools; the content deliver y can be both synchronousas well as asynchronous. Wipro has strategic partnerships with leadingtechnology providers to help you choose the tool that suits your requirement best. Based on research conducted in this area, Rapid ContentDevelopment can be used for any of the following content areas:
Critical Training when the training requirement is critical and must beaddressed immediately
Minor change when the difference between what is known and what isnew is minimal
Short shelf life when the content in question has a very short shelf life
Frequent updates when the content needs to be updated frequently.
Process Training:Large enterprises keep updating their processes to improve the efficacies of their systems. Business process training is typically a part of any organization’ overall
change management plan. Wipro provides Process Training in several fieldsincluding HR, Quality, Operation, Payroll, Recruitment, and more. For ameaningful transition of the process, quality training is extremely critical.Understanding the complexities involved in rolling out these processtrainings, we bring you quick solutions that help deliver effective training for your organization.The components of process training are:1. Analyze2. Inform3. Involve4. Support
DEVELOPMENT
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Wipro Leaders Qualities Survey, which started in 1992, is one of our oldestleadership development initiatives. It has successfully contributed in our endeavor to nurture top class business leaders in Wipro. We have 8 WiproLeadership Qualities, which are based on Wipro vision, values and businessstrategy. In order to identify and help leaders develop these competencieswe adopt a 360-degree survey process. This is an end-to-end program, whichstarts with the obtaining of feedback from relevant respondents and ends witheach leader drawing up a Personal Development Plan (PDP) based on thefeedback received. The PDP is developed through³Winds of Change´which is a seven-step program that helps in identifying strengths
and improvement areas, and deter mining the action steps.The Leadership developmental framework
Leadership Lifecycle ProgramsWipro has developed an approach for Life Cycle Stage Development Plan.Training and development programs at various stages have been designed bymapping the competencies to specific roles. Competencies specify the specific
success behaviors at every role.
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Entry-level program (ELP)
• The program covers the junior management employees with theobjective of developing managerial qualities in the employee. The targetgroup is campus hires and lateral hires at junior level. - It is popular lyknown as NLP and aims at developing New Leaders¶ Program (NLP) potential people managers, who have taken such roles or are likely to getinto those roles in the near future.
Wipro Leaders Program (WLP)
• This program is for middle level leader with people, process, businessdevelopment and project management responsibilities. These leadersare like the flag bearers of Wipro values and Wipro way of doing business.
• This is for senior leaders with business
Business Leaders¶ Program (BLP)
At this level, people are trained up for revenue generation; and Profit & Lossresponsibilities. The program covers commercial orientation, clientrelationship development, and team building and performance managementresponsibilities among other things.
Strategic Leaders Program (SLP)
- This program covers top management employees.
• The focus is on Vision, Values, Strategy, Global Thinking and Acting,Customer Focus and Building Star Performers. Wipro ties up withleading business schools of international repute to conduct this programfor Wipro leaders.
Custom Content Development
As a part of the Custom Content Development Service, Wipro providesinnovative and affordable learning content solutions. This ser vice is customizedspecially to meet your requirements and help you get a competitive edge. Wipro’sCustom Content Development Service goes through a rigorous development cycleto ensure Quality and Timely Delivery of the solution.
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Custom Content Development Service includes:
• Application Training
• Process Training
• Compliance and Regulatory Training
• Product Training
• Rapid Training Solutions
PERFORMANCE APPRAISAL
Performance appraisal is a method by which the job performance of anemployee is evaluated in terms of quality, quantity, cost and time.Performance appraisals are regular reviews of employee performance withinorganizations.
Aims of a per formance appraisal :-
• Give feedback on performance to employees.
• Identify employee training needs.
• Document criteria used to allocate organizational rewards.
• Form a basis for personnel decisions: salary increases, promotions,disciplinary actions, etc.
• Provide the opportunity for organizational diagnosis and development.
• Facilitate communication between employee and administrator.
• Validate selection techniques and human resource policies to meet federalEqual Employment Opportunity requirements.
Wipro’s solution aims at strategic value delivery in the least possible timeincorporating rich functional features, aided by smooth workflow, notification,authorization, etc.
•
Align employee objectives to the business goals. Enable strategicPerformance Management through Management by Objectives (MBO)
• Measure and Assess employee performance periodically and providefeedback and support to achieve quantitative, qualitative and processtargets
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• Evaluate and track Hi-Performance and achievers based on Competencydriven practices.
• Enable online Reward and Recognition. Performance Appraisal
PROMOTION
Promotion is the advancement of an employee's rank or position in an
organizational hierarchy system. Promotion may be an employee’s reward for good performance i.e. Positive appraisal. Before a company promotes an
employee to a particular position it ensures that the person is able to handlethe added responsibilities by screening the employee with inter views and testsand giving them training or on-the-job experience.As per Guidelines for supervisory employees promotion/up gradation, applicableto the present year, Manager (HR) prepares the list of eligible employees.Simultaneously, V P (HR) also asks for recommendations from HODs. Acomprehensive list is then prepared by Manager(HR) and submitted to the EPPPwhich is announced by the Site President, for Executive and Manager family,and by the Group President ( MSD), for Leader Family.
Bases Of Promotion :-
• Seniority: - Seniority simply depends upon how long the employees isdoing job with the company. The length of service and talent are bothinterrelated with each other. It is based on the tradition of respect for older people. It creates a sense of security among employees andavoids conflict arising from promotion decision
• Merit: - Merit implies the knowledge, skill and performance recordsof an employee. It helps to motivate competent employee to work hardand acquire new skills. It helps to attract and retain young and promising employees in the organization.
On the above basis, promotion of employees is done in Wipro. Wipro also promptemployee by conducting different case studies on different aspects of Information Technology. Working at Wipro is very comparative & to get promotion required smart work and projection.
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TRANSFER Transfers are generally effected to build up a more satisfactory work team and Tomeet the Organizational requirement / Employees request the employees has been transfer from one assigned job to another or one location to another location.
A transfer is a horizontal or lateral movement of an employee from one job,section, department, shift, plant or position to another at the same or another place where his salary, status and responsibility are the same or may be vary.Generally does not involve a promotion, demotion or a change in job status other than movement from one job or place to another.´
Purposes of Transfers :-
• To satisfy needs of an organization
• To met employees own needs
• To utilize workforce
• To increase the versatility of employees
• To provide relief
• Transfer s for the maintenance of a tenure system
Every organization should have a just and impartial policy which should be
known to each employee. The responsibility for effecting transfers is usuallyentrusted to an executive with power to prescribe the conditions under requestsfor transfers are to be approved. For successful transfer policies, it is necessaryto have a proper job description and job analysis.
A good transfer policy should contain following.i. Specifically clarify the type of transfers and why they are madeii. Deciding the authorized person who may initiate and implement transfer siii. Indicate the basis of transfer iv. Decide the rate of pay to be given to the transfereev. Intimate the fact of transfer to the person concerned well in advance
vi. Be in writing and duly communicated to all concernedvii. Not be made frequent and not for the sake of transfer only.
COMPENSATION
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Compensation is a systematic approach to providing monetary value toemployees in exchange for work performed. Compensation may achieveseveral purposes assisting in recruitment, job performance, and job satisfaction.
Wages and salaries structure is very vital for the retention of the employees as dueto stiff competition, if proper salary is not given then the employees will goto those organization offering higher salaries. Jivraj Tea Ltd is activelyinvolved in retaining good manpower in the organization by providing proper salary and incentive methods.
Wipro runs 50 offices in India.
It has a br anch office in USA, Canada, Europe, Middle east, Africa etc.Payscal of Employee at Wipro
Employee Class No of Employee Salary (Rs/Month)A+ Class 128 120000 U.S $A Class 1240 150000B+ Class 33000 60000B Class 22000 40000Technician 4000 35000Zero level 3440 10000Total 63808
EMPLOYEE WELFARE
Employee Welfare According to the Oxford dictionary, employee welfare or labour welfare means the efforts to make life worth living for workmen.´ Labour Welfare means anything done for the comfort and improvement, intellectual or social, of the employees over and governmental, which is not a necessity of theindustry.
Welfare Activities:-
1.Education : Wipro has its own institute, where the education is given to theemployees children absolutely free. The school has classes from JR. kg to class-XII in English medium. Free transportation facility is also provided to them.
2.Medical Company’s philosophy is Nobody should die without fund´. Company believes its responsibility towards health services to provide to the
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employees go beyond the statutory provision. Being the petrochemicalindustry and some of their process are considered ³Hazardous .́ Companyrecognizes the importance of good occupational health services. Therefore,
at the manufacturing sites, they have well equipped, full fledged medicalcentre, which are manned round the clock.
3. Housing :Company has it¶s own township at different location inBangalore. If house is available, the new employees are allotted the houseotherwise the company can also hire house. All the maintenance in houses provided to employees by company is done by the company.
4. Canteen: The Company gives canteen facility under which food is provided to the employees but it is not compulsory for them. They get theallowance in their salary. The Contract Cell at Wipro invites tenders and the
Contract cell signs detailed agreement with the contractor. The operation of thecanteen is given on the contract.
5. Sports : To motivate the employees of the company organizes different sportstournaments i.e. Cricket, Volleyball, Table Tennis, Badminton Etc.
6. Recreation activities : For the recr eation of the employee, company organizedgets to gather once in a year with their family. And also arranged shortdistance picnic. For picnic they get Rs. 100/- and free transportation once in ayear.
7. Club membership: The purpose of the club membership is to meet theother members of the industrial community and inter act with them for r elation personnel leisure. This facility is provided only to the SMC and above.
8. Insurance Policy: Wipro provides personal accident insurance policy of Rs100000 for employees. Premium of the company is half pay by employeeand other will pay by Wipro
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RETENTION STATEGIES USED BY
WIPRO
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STUDY FOR RETENTION STRATEGY:-
Study of Wipro various reasons for attrition of the employees and also strategies
to retain the employees. This study includes general study and also case study of
Wipro.
Retention management is the latest and most pressing problem of the new
Millennium. Each and every business in this economy has now become
knowledge based. It has therefore become essential for the top management to
preserve the dynamic repositories of learning, which are their employees.
Staff retention in the current economic environment is a major challenge. Themajor focus for employees in hyperinflation environment is survival. If the
organization cannot provide enough to enable the employee to survive, the
employee is likely to look elsewhere for survival. However if organizations
manage to identify causes of staff turnover that they can control, they should
target those areas for change or making improvements.
NEED FOR THE STUDY:
Employers have a need to keep employees from leaving and going to work for
other companies. This is true because of the great costs associated with
hiring and retraining new employees. The best way to retain employees is by
providing them with job satisfaction and opportunities for advancement in
their careers. It’s not only the cost incurred by a company that emphasizes the
need of retaining employees but also the need to retain talented employees from
getting poached.
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A study of employee retention in Wipro is taken for the following reasons:
1. Wipro is emerging as one of the top global player in the IT sector.
2. The number of projects in Wipro has been increasing the last two years.
3. Wipro has the highest attrition r ate in the IT industry at 20.3%.
4. The cost of attrition is very high and eats into the profits of the company.
5. The loss from the knowledge pool is very high and can lead to bringing projects
to a standstill.
6. The cost and time involved in replacing an employee is very high and it mighteffect the reputation of the company.
7. Wipro uses a combination of these to succeed in their talent management
efforts. The various talents management strategies and the success achieved by
Wipro uses following retention strategies:
1. pay and benefits
2. career growth
3. work environment
4. training
5. job satisfaction
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PAY AND BENEFITS:
Pay constitutes the largest part of the employee retention process. The employees
always have high expectations regarding their compensation Packages. Pay
includes salary and wages, bonuses, benefits, prerequisites, stock options,
bonuses, vacations, etc. Employee benefits typically refer to retirement plans,
health life insurance, life insurance, disability insurance, vacation, employee stock
ownership plans etc. Pay is the most important factor responsible for
keeping the employees in the organizations. It should be kept competitive to
ensure that the employees do not defect to competitors. IT & ITES players areusing variable pay as a strategic tool not only to retain but also for taking the best
out of their employees.
Hewitt’s research also shows that the services sectors offer variable pay
more than capital intensive sectors. The success of a services company lies in its
people, and therefore service-oriented organizations are more willing to include a
higher variable pay component in their compensation structures. Offering flexible
benefits is another way to raise employee satisfaction. In India, some 10-15
percent of companies allow executives to make their own mix of salary packages
the study in Wipro was conducted on two factors, viz. Performance based pay and
the benefits given to the employees. Performance based pay is accepted well by
majority of the employees. The component of Performance based pay in the pay
in the pay structure is increasing year by year. However, on one hand when
performance based pay motivates an employee to work to his best, care should
also be taken to make sure that the component of performance based pay should
not be too stressful for the employee. It might so happen that an employee was
unable to perform for a particular period considered due to some personal issues,
however, he is generally at the top of the performance rating.
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Chart 1: Responses For Pay and Benefits
The above shown graph shows that Pay and benefits is significant for retention of
employees
CAREER GROWTH:
Career Growth can be defined as a way of success where at every regular
interval we must have new challenges to face, new activity to do, responsibilities
to handle and most importantly new process to learn.
A promotion is the advancement of an employee's rank or position in an
organizational hierarchy system Before the company promotes an employee to a
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particular position it ensures that the per son is able to handle the added
responsibilities by screening the employee with interviews and tests and giving
them training or on-the-job experience. As per Guidelines for supervisory
employees’ promotion/up gradation, applicable to the present year, Manager (HR)
prepares the list of eligible employees.
Bases of Promotion:-
1. Seniority: - Seniority simply depends upon how long the employees is doing
job with the company. The length of service and talent are both interrelated witheach other. It is based on the tradition of respect for older people. It creates a
sense of security among employees and avoids conflict arising from promotion
decision.
2. Merit:- Merit implies the knowledge, skill and performance records of
an employee. It helps to motivate competent employee to work hard and
acquire new skills. It helps to attract and retain young and promising
employees in the organization. Wipro also prompts employee by conducting
different case studies on different aspects of Information Technology.
Working at Wipro is very competitive and smart work and projection is
required for growth.
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Chart 2: Responses for Career Growth
The above shown graph that career growth is significant for retention of
employees
TRAINING AND DEVELOPMENT:
According to the recent review by Harvard Business Review, there is a direct link
between training investment of the companies and the market capitalization.
Those companies with higher training investment had higher market
capitalization. It clearly indicates that the companies which have
successfully implemented training programs have been able to deliver
customer goals with effective results.
With the growing investment by IT companies in the development of their
employees many companies have now started their own learning centers.
Companies are investing in both the technical training, which has always been an
essential part in IT industry, as well as in managerial skills development.
Companies now keep aside 3-5% of revenue for training programs. As an
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example, some of the major players like Accenture and Wipro are allocating 7%
and 3% respectively of the company’s overall revenue.
Training & Development of individuals is a key focus area at Wipro. Wipro
invests about 4 percent of its annual revenues in Learning and Development, to
build competency capital within the company in cutting edge technologies,
domain and functional areas. Special emphasis is placed on providing
necessary learning interventions to associates with potential of being leaders in
the company. Wipro has state of the art training facilities in all its delivery
centers. The centers are equipped with world- class infrastructure. The Talent
Transformation Division handles this in Wipro. For those with less than one year of experience a well-structured induction training program is conducted. This will
cover all aspects of software development skills that are required.
Chart 3: Responses for Training and Development
The above given graph proves that training and development is significant for employee retention
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WORK ENVIRONMENT
A healthy corporate culture of caring for the workers, community and
environment will strengthen the social spiritual capital, leading to a positive work
climate of empowered and supported workers.
Father N. Casimir Raj, XLRI, and Founder Director of LIBA, said, "There has
been a clear shift in the values and this has emerged as one of the key areas of
concern as this is being increasingly neglected. A new breed of self approach
stands out where the focus is on monetary benefits."
Feedback system also plays a major role in building positive work culture in
organizations as it provides a channel by which the problems and grievances can be heard by the top management an also a medium by which top management can
be updated by the market conditions by the employees which are in direct contact
with the market. Wipro as an organization believes in connecting and listening
people. There are various communication and feedback programs at Wipro.
Chart 4. Response for work environment
This graph proves that a good work environment is significant for retention of employees
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JOB SATISFACTION:
Benefits and high profits are key essentials when it comes to having a high job
satisfaction among the company’s employees and a low turnover rate.
Job satisfaction describes how content an individual is with his or her job. The
happier people are within their job, the more satisfied they are said to be Job
satisfaction is in regard to one's feelings or state-of- mind regarding the nature of
their work. Job satisfaction can be influenced by a variety of factors, e.g., the
quality of one's relationship with their supervisor, the quality of the physicalenvironment in which they work, degree of fulfillment in their work, etc..́ This
company goes above and beyond the typical benefits, providing free gourmet
meals, onsite oil changes, onsite car washes, a $500 voucher for takeout food after
the birth of a child, a free annual ski trip, unlimited sick days, and more. Wipro
focuses on job satisfaction in order to keep employees with their company and
receive a better output from their employees. Wipro realizes that providing
flexible timings to employees is not the only way of increasing job
satisfaction. Wipro endows responsibilities to its employees and lets the
employee utilize his responsibility. Another measure taken is to respect and
nurture every employee’s work life balance.
Sessions are conducted on the importance of work life balance. In Wipro, every
employee career path is marked out, helping the employee work correctly and
therefore giving the company very satisfied employees.
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Chart 5: Responses for Job Satisfaction
The above given graph proves that on job satisfaction is highly important for
employees.
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RESEARCH METHODOLOGY
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RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the problem .For this
purpose, Objectives (research problem) should be clearly defined. Finally, the
data is collected in order to meet the objectives of research problem.
WHAT IS RESEARCH-
The ADVANCED LEARNER’S DICTIONARY of Current English lays down
the meaning of research as “a careful investigation or inquiry especiallythrough search for new facts in any branch of knowledge.”
OBJECTIVES OF THE STUDY
1. To study the factors that affect employee retention in WIPRO.
2. To study the attributes that can be adjusted to retain employees in
Wipro Technologies
3. The understand the nature of the work, employment, and labour
relationships in WIPRO.
4. To prove how employees’ retention is essential in this day and age
RESEARCH DESIGN
It is a conceptual structure with in which research would be conducted. The
function of research design is it provide for the collection of maximal relevant
information with minimal expenditure of effort, time, and money. In this
research problem the research design would be OBSERVATORY in nature.
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OBSERVATORY RESEARCH:
This type of research design is rigid in nature. It understands problems creates
findings and produces a report for it. In this the researcher must be able to define
clearly what he wants to measure and must find adequate method for measuring it
with clear definition of population he wants to measure.
The main aim is to obtain complete and accurate information. The research design
must provide provision for protection against biasness and maximize reliability.
SAMPLE DESIGN:
TYPE OF SAMPLING : Convenient sampling
DATA TYPE : SECONDARY DATA
TYPE OF RESEARCH : It is an OBSERVATORY Research,
in which the researcher has
no control over the variables he
can only report what
has happened or what is
happening
DATA COLLECTION TOOL : Secondary data includes reports
and records of the organizations for the
past two years and the data collected
from the NASSCOM website on the rates
of attrition. Research studies conducted by
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individuals, institutions and agencies, and
various other journals were considered
ANALYSIS AND
INTERPRETATION
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FINDINGS
• PAY AND BENEFIT: Wipro has adopted a flexible pay system in which
all managerial employees can design their own compensation package
based on their individual needs like car, furnishings, etc. the graph shows
that compensation pays a vital role in employee retention.
• CAREER GROWTH: every employee of the organization wishes to have
a job profile which will help them to grow further in their career and thus
have a bright future.
• TRAINNG AND DEVELOPMENT: to make employees understand kind
of work in the company training is highly important. Proper training
session should be conducted for employees.
• WORK ENVIRONMENT: A friendly working atmosphere needs to be
maintained to ensure a healthy working atmosphere.
•JOB SATISFACTION: employees should be satisfied with the work culture and environment so that they are satisfied with the job and work
properly.
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CONCLUSION:
A huge fraction of the people have less experience only one to two years in
Wipro and hence high level of importance should be given to employee
retention All the factor s viz. Pay and Benefits, Career Growth, Training and
Development, Work Environment and Job Satisfaction are important for
employee retention.
For retaining a talent from an age group of 20 to 30 years, the HR manager must
concentrate more on career growth and charting out a good career plan When it
comes to an employee of an age group of 30 to 40 years, more emphasis must be
paid on training and development as without training, this cadre of employees
may not be on par with the current technology.
• Performance Based Pay should be given utmost importance. Employees
are happier if they are paid according to their performance and this
encourages them to perform better. Benefits are important for retention
however with varied opinions.
• Career Aspirations of all employees have not been met uniformly.
However, mentoring in Wipro is pretty successful as most employees feel
its being done in the right direction.
• The data reveals that equal opportunity is not being given to all employees
to attend the training programs of their choice. Therefore this aspect
should be taken care.
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• The opinions regarding the friendliness and approachability of managers
seem varied.
SUGGESTIONS:
• The younger group of employees should be well appreciated to increase
their morale to enable them to work better.
• The experienced group of employees should be exposed to the current
case technology to enable them to move forward and not be redundant in
the industry.
• The HR managers should check on the career paths drawn for all
employees.
• To retain the good talent who are new to the industry, they must
be given a pay package according to industry standards.
• Employees should be rated correctly according to their performance and
paid accordingly.
•
The career aspirations of all employees should be carefully under stood bythe HR managers and career paths should be designed accordingly.
• Training provided should be at par with industry standards. All employees
should be provided the training of their choice, and no favoritism should
be shown amongst the employees
• The managers should be friendly and approachable so as to realize the first
signs of attrition. If attrition is stopped at the preliminary stage then steps
can be taken to curb the same.
• Employees should be encouraged to take pride in the work they do
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COMPARISION
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COMPARISION BETWEEN MAIN STRATEGIES AND STRATEGIES
USED BY WIPRO
1. CLEAR EXPECTATIONS:-
The company should set clear expectations
in front of its employees. Everything should be clearly mentioned in the
code of conduct of the company. This activity is not performed by either of the companies. There are certain changes which are made by the
company without giving any prior notice. This creates problem among the
employees.
2. TALLENT AND SKILL:-
There are certain cases where talent
and skills of the employees are not encouraged. They are not given a
change to prove themselves. There are certain people who are capable
enough to get promoted but they are not promoted due to certain clauses
of the company. This activity de-motivates the employees. The
management should try to motivate its employee to perform well.
3. TIMELY ACTION:-
It should be always kept in mind that if any activity
is performed it should be done on time otherwise it does not have any
relevance. In same way if any decision is to be taken regarding employee
welfare it should be prompt, so that timely advantage is gained out of it.
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4. LONGETIVITY OF REWARD:-
The reward given to the employees should
be such that they are prolonged and the advantage of it is gained for longer
duration of time.
5. REGOGNITION OF WORK:-
The work assigned to the employeesshould be initially taught to them, so that in case of any doubt they can
clarify it Companies should move toward performance-based rewards,
including performance bonuses, gain-sharing and non-monetary recognition.
Company should give substantial rewards to those who really deserve them.
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BIBLIOGRAPHY
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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 19894. V.S.P Rao, The Human Resource management text and cases, second editions ,
Excel Books year 1992
Journals
1. The ICFA In Journal of management and research,Volume V No:2
February 2007, ICFAI university press, Page no 65: Human resource development
climate in IT companies in India.
2. HRM review, Employer’s brand, ICFAI university press, June 2006
Websites
http://www.employeeretentionstrategies.com/bottomline.htm
http://www.ioma.com/audioconferences/471.html