Reasons Of Exit Of The Employees Commerce Essay
Having specialized in the HR department, studying the various HR functions, I learnt that there is attrition in GKB Hi-Tech Lenses Pvt.Ltd.
Need for study
Having discussions with HR manager, the reasons of exit of the employees were analyzed .But before drawing any random conclusion, there was a need to conduct “Employee Satisfaction Survey” to study the satisfaction levels of the employees at GKB Hi-Tech & suggest suitable retention strategies to manage attrition.
Research Objective:
The chief objective is to measure the employee’s level of satisfaction.
To study the employee behaviors, as to why they quit their job.
To find out the reasons of high employee turnover rate in the organization
To find out the attrition rate in its industry.
To recommend various employee retention techniques which are helpful in retaining an organization’s workforce
Methodology of study
Primary Data
Questionnaire (survey),
Discussions with department heads and employees was the primary source of data collection
Research design
Taking the objective into consideration one survey questionnaire was conducted to collect the necessary information. The survey was targeted only to employees, to know whether the employees are satisfied or not. The survey was not targeted to the managers and the top level management employees of the organization.
The Questions were framed in the form of:
Checklists
Rating scale
Likert scale
Semantic differential scale
Data collections
The primary data for the study was collected with the help of the research questionnaire designed. The necessary data was collected by means of face to face direct interviews with the employees in the key accounts while collecting the questionnaire to know them better.
Data analysis
Survey was completed and then the data was tabulated into database for further analysis with the help of programs. The data was then transferred into percentage form for easy in interpretation and presentation along with the report. Further the analysis and the interpretation of each variable from the questionnaire was done separately. And the interpretation was presented in graphical forms with the help of pie charts, bar graph and line graph for better understanding. Finally based on the analysis suggestions and recommendation have been forwarded through the report.
Secondary data
The data was successfully collected from various sources like web sites, reference guide, and material. The knowledge gain from the secondary data was finally combined with the primary data and hereby presented in this report.
Limitation
The study has been conducted in a systematic manner so as to achieve the objective of the stated under the “objective of the study with accurate results. Though all the possible care and precautions were taken, some of that were unaccountable are
1. The major limitation which was faced was the confidentiality of information among the employees.
2. They were lacking in the sense of answering to the certain questions and were not able to put forward the idea in front of me.
3. Some employee actually refused to answer the questionnaire
Sampling type: Random Sampling
Sample size: (Pilot survey of 30) & (Final survey of 100) = 130 employees
HISTORY OF GKB
The story of GKB (Gopal Krishna Brothers) commenced on a humble note with the setting up of just four hand-operated single spindle machines to surface ophthalmic lenses in the verandah of a house at Agra in 1959. By 1964 the company had moved into its own building. They were amongst the first manufacturing units in the country to have installed imported automatic generators and smoothing and polishing machines to produce ophthalmic lenses. They soon established an envious position as one of the leading manufacturers of quality ophthalmic lenses in the country and entered exports in a modest way in 1975. In 1980, the company received the special CAPEXIL Export award for Ophthalmic Lenses, for the first time in the country.
GKB was originally started by the four Gupta brothers, all of whom are today much respected and renowned figures in the ophthalmic optics business in India.
Mr. Mahendra K. Gupta, the youngest in the family was looking after exports in addition to other responsibilities. In 1982, he was the first to leave the nest when he moved to Goa to set up a 100% export oriented unit at a total project cost of Rupees 45 lakhs. In 1985, a prescription laboratory was started under the banner of Goa Optolab Pvt. Ltd. A branch-manufacturing unit at Delhi followed this.
When the family decided to part ways in 1991, Goa Optolab came under the wings of Mr. Mahendra K. Gupta. Under his dynamic vision and leadership the company has grown by leaps and bounds.
He founded the GKB Hi-Tech Group that soon came to be reckoned amongst the leading manufacturers in India for both glass and plastic ophthalmic lenses.
Company Profile
Currently, his two technocrat director sons, Mr. Shobit Gupta and Mr. Neeraj Gupta ably assist Mr. Mahendra K. Gupta in running the three companies under the GKB Hi-Tech Group umbrella. The three companies are: Goa Optolab Pvt. Ltd., which manufactures prescription lenses and directly supplies to Opticians worldwide; GKB Hi-Tech Lenses, which manufactures glass and plastic ophthalmic lenses for both export and the domestic market, and GKB Optolab Pvt. Ltd., which takes care of the growing retail operations.
GKB Hi-Tech’s turnover has risen at an exponential level, from Rupees 50 lakhs to over Rupees 120 crores, in a short span of just 16 years.
With its reputation of always keeping up-to-date with the latest technological advances in the industry, this forward looking company has grown to become one of the largest and most successful ophthalmic lens manufacturers in India, with a current market share of 40%. In India, the company can proudly boast off.
A total manufacturing area of more than 200,000 square feet, with 10 AR coating plants, 20 hard coating machines and 650 machines for the manufacture of glass and plastic ophthalmic lenses. State-of-the-art machinery imported from LOH, Coburn, Balzers and Satis Vacuum.
Being the first company in India to manufacture Progressive lenses, Hi-index lenses and multicoated lenses Producing lenses which have ISI specification and which also meet International standards including DIN of Germany, FDA of USA Capacity to manufacture 10,000 Rx lenses, 15,000 hard coated lenses, 12,000 AR coated lenses and 25,000 stock lenses Dispatching over 12,000 made-to order lenses daily, all over India.
Being the first company to set up a network of regional prescription laboratories. Currently, they have 18 laboratories in 18 major cities in the country. A well-knit marketing and distribution network of service centers in the cities of Ahmedabad, Bangalore, Chennai, Cochin, Hyderabad, Jaipur, Mangalore, Mumbai, Pune and Surat. These service centers facilitate booking of orders regionally. These orders are then transmitted via e-mail to the factory for processing. A chain of 86 retail showrooms across India. Exporting ophthalmic lenses to over 30 countries worldwide, including Europe, Middle East and Sub-Saharan countries. Almost 15,000 lenses are exported daily.
GKB Hi-Tech is a progressive company that has never been known to falter from its path of creating a well developed infra-structure in the optical trade.
At an early stage GKB Hi-Tech realized that creating awareness for the more expensive value added products like lightweight plastic lenses, progressive lenses and AR coated lenses could not be left alone to the traditional opticians. So they set about creating an awareness network for these value-added products by opening their own retail showrooms. Their first showroom opened at Porvorim in Goa in 1996 and today they have a chain of 86 retail showrooms. They have plans to expand this chain to a total of at least 200 showrooms spread all over India within the next one-year.
About Joint Venture
GKB Hi-Tech Lenses Ltd., India’s largest lens manufacturer joins hands with Carl Zeiss, a pioneer in the world of optics. Joining Hands, Joining Visions, in 2004.
GKB Hi-Tech has now joined hands with Carl Zeiss, global leader in the field of optics and opto-electronics, and is all set to scale new heights. It has been an endeavor of GKB Hi-Tech to bring the world’s best technologies in India. As a fallout to this joint venture, an exclusive laboratory, manufacturing multi coated and laser engraved ZEISS lenses has been set up in Goa, making them available to every optician in India, as well as worldwide.
On 27th February Carl Zeiss became a 50-50 joint venture with both companies GKB Hi-TECH LENSES PVT. LTD. and GKB OPTOLAB PVT. LTD.
About Carl Zeiss
Carl Zeiss a global player since 1846 today stands with 15 production units’ plants, more than 14,100 employees and worldwide sales organizations recently acquired Sola Optical, The second largest in consumer optics. Carl Zeiss lenses are the world’s most sought after manufacturer of lenses assuring you a 99.9% visibility. Each Carl Zeiss lens is laser engraved with ‘Z’ “The mark of Carl Zeiss quality”, also the wearer gets a Guarantee CD with every lens.
An Oscar in the ‘Scientific and Engineering category’ for the Movie “The Lord of the Rings”. The ‘Star of Vision Award’ for the invention of antireflection technology for optical surfaces. More than 22 Noble Laureates use optics from Carl Zeiss for their research. Sony, Rollei, Hasselblad, ALAP, Band Pro, ARRI use Zeiss lenses for their cameras. It’s just a few of the amazing achievements from the leader in the optical and opto-electronic industry; Carl Zeiss now arrives to India with spectacle lenses.
GKB IN GOA
GKB in Goa is situated at Tivim Industrial Estate, Karaswada, Mapusa-Goa have total manufacturing area of more than 25 lakhs sq.ft. Having three Anti Reflective Coating (AR coating) Plant, 26 hard coating machines for manufacturing of glasses and plastic ophthalmic lenses. The company has a capacity to manufacture 10,000 Rx- lenses, 150000 hard coated lenses, 12000 anti-reflective coated lenses and 25000 stack lenses weekly and per day 2000 lenses. Its total employee strength is 663. The market share of GKB is 40%. It’s turnover for year 2009-2010 is Rs 1.58 billion and net profit is Rs 22,99,79,056.
Vision Statement
GKB Hi-Tech lenses Pvt. Ltd. as leaders in the country’s spectacle industry are driven by a vision wherein every Indian has access to world class spectacles, at prices that are within their reach. The company endeavor to employ the most advanced technological and human resources to guarantee a no-complaints environment, through exemplary customer service and the pursuit of excellence in every challenge it encounter.
Competitors
POLO situated in PORTUGAL.
SOLAR situated in AMERICA.
Reliance Express vision.
Johnson & Johnson lens.
GKB Ophthalmic Pvt. Ltd.
Products
Glass lenses
Glass is a very special material, neither a gas, nor a liquid nor a true solid. It has a high transparency. The glass can also be hardened for safety reasons and tempering toughens the lens.
Plastic Lenses
Plastic lenses are made of a chemical. They are slightly thicker then glass lens.
Types of Lenses:
Single Vision Lenses:
Whatever we do – whether we are working, playing, reading or driving – we want to look great in our new eyeglasses. Essentially, we want perfect vision. These lenses are used to correct Myopia and Hypermetropia. They provide correction to the whole of the lens areas. A spherical lens has one dioptric power. A cylindrical or toric lens has a combination of two powers and this lens is used for correction of Astigmatism
Bi Focal Lenses:
These type of lenses have two segments – one for distance and one for reading, combined in one lens. There is a visible line between the two segments. They come in 2 different designs to suit different uses and the customer’s preference
Hi-Index Lenses:
Normal lenses of high power are very thick with full aperture and when fitted on the spectacle the wearer finds it heavy and bulky. To overcome this problem, hi-index lenses were introduced. These lenses are up to 40% thinner and lighter than standard lens, allowing the wearer better comfort when wearing
Progressives:
Progressive lenses have different prescription segments blended onto the lens, but without a visible line. There is a gradual change from the distance vision at the top of the lens to the near vision at the bottom. Many people find that the Progressive give them more natural vision from near to middle to distance, and are more relaxing to wear, as the progression imitates natural focusing and they can see better. In all Progressives, there are three main are: Distance, Reading and Intermediate.
Transition Lenses:
Everyone who needs protection from UV rays can benefit from the transitions lenses. Appropriate for children, adults and patient with special eye care needs. Especially children are excellent candidates for the transition lens. It is estimated that 80% of total lifetime expenses to UV rays during the age of 18.
Kryptok Bifocal:
The inner segment is round in shape, and usually 28mm in size
Flattop or ‘D’ Bifocal:
The segment is in English letter ‘D’ and the size of the segment is usually 28mm. The position of the segment is de-centered for right eye and towards the nasal for left eye.
Human Resource Department
The human resources (HR) segment contains the full sets of capabilities needed to manage, schedule, pay and hire the people who make the company run. It includes payroll, benefits administration, applicant data administration, personnel development planning, workforce planning, schedule and shift planning, time management and travel expense accounting.
Objectives of Human Resource Department:
Effective utilization of human resources, desirable working relationships among the employees and maximum individual development. These objectives are fulfilled by hiring capable people, utilizing their efforts effectively to achieve the organizations goals.
Management of manpower planning, selection recruitment, training, internal mobility and welfare.
Sr. Administrative Officer
Assistant
Assistant
Assistant
Assistant
Assistant
Sr. Personnel officer
Personnel Manager
HUMAN RESOURCE HIERACHY
Minimum Wages
WAGE RATE
TYPES OF EMPLOYEE
Rs.150 per day
Unskilled
Rs. 164 per day
Semi Skilled
Rs. 184 per day
Skilled
Rs. 204 per day
Highly Skilled
Rs.182 per day
Clerk
Working hours:
First Shift
8.30 a.m. – 5.00 p.m.
General Shift
9.00 a.m. – 5.30 p.m.
Second Shift
5.00 p.m. – 1.30 a.m.
(Total Manpower in GKB – Hi-tech is 663)
Overtime
If you come for work on Sunday then they pay extra wages. If you do overtime on other working days then the production & technical staff are paid whereas accounts, administrative staff are not paid with overtime.
STATUTORY COMPLIANCES
Provident Fund (P.F)
Employer & employee contribute 12% each of basic wages to the P.F. They get the provident fund refund after retirement or leaving the organization.
Gratuity
Once the employee complete 5 years in the company at the rate of 15 days salary for every completed year is entitled.
Gratuity = Basic Salary X 15
Labor Welfare Fund
This is a kind of a welfare scheme by the government. The fund is kept as a deposit in safe for any welfare cause related to the employees. Out of every salary paid to the employees Rs. 5/- is deducted which is added to the fund for the welfare & employer contribute Rs. 15/- per employee.
Employees State Insurance Corporation ( E.S.I. )
Employee whose gross salary is less than 7,500 only that employee gets the E.S.I. benefit 1.75% from salary is contributed by employee and 4.75% is contributed by employer towards E.S.I. This is very beneficial at the time of any sickness, operation or maternity etc. every employee has to register the name to the E.S.I. doctor when a employee become sick. He has to get himself check from the E.S.I. doctor in order to get the benefits from E.S.I.
Bonus
In GKB Hi-tech every year employees get the 20% bonus. According to the payment of bonus act 1965 the employee should get 8.33% bonus every year.
Pension Scheme
When the employee retired he gets the pension through P.F account. The employer contributes 8.33% towards the pension Scheme to the P.F authorities on basic wages.
COMPANY POLICIES
Leave Policy: There are 7 casual leaves and 20 earn leaves for the employees in the company. Employee cannot take the leave again and again. The employee can finish the casual leaves before end of the year because they are not carry forward next year whereas earn leaves are carry forward next year.
Travel Policy: In GKB Hi-tech there is travel policy for the employees. There are different facilities provided by the company while traveling. Facilities are provided according to the classification of the employees.
Time attendance policy: In GKB Hi-tech attendance is very important. To keep check an attendance of the employees they kept punching card machine in the security room where the employee insert their card in the machine and register attendance.
Resignation: According to this policy if the employee wants to leave the company then he has to give one month intimation to the company and if he doesn’t give then the company deduct one month basic wage from his salary. Before leaving the company he has to clear everything i.e. loan taken or pending work or any other dues.
Recruitment: In GKB Hi-tech to recruit the people there is also a policy. They recruit people when there is any vacancy in the company. They cannot go on recruiting people without any requirement.
Attrition at GKB Hi-Tech Lenses Pvt. Ltd
Defining Attrition: “A reduction in the number of employees through retirement, resignation or death”
Defining Attrition rate: “the rate of shrinkage in size or number”
Attrition rate% formula:
(( Number of attritions x100) /(Actual employees +New joined)) /100
In the best of worlds, employees would love their jobs, like their co-workers, work hard for their employers, get paid well for their work, have ample chances for advancement, and flexible schedules so they could attend to personal or family needs when necessary. And never leave.
But then there’s the real world. And in the real world, employees, do leave, either because they want more money, hate the working conditions, hate their co-workers, want a change, or because their spouse gets a dream job in another state.
Staff attrition and absenteeism represent significant costs to most organizations. It is odd, therefore, that many organizations neither measure such costs nor have targets or plans to reduce them. Many organizations appear to accept them as part of the cost of doing business a sign of increasing job mobility and decreasing staff loyalty perhaps, a matter to be regretted but just ‘one of those things.’ They add a sum in their budgets for ‘temp staff’ and ‘recruitment’ and forget about it. However, it seems to be one of the areas in which HR can make a difference – and one that can be measured in quantifiable, financial terms against targets.
Data Analysis
How long have you worked for the company?
This question was asked to calculate approximately how long an employee was working in the organization. The above graph shows that only 6% of employees are working in GKB for more than eight years. Majority of the employees are working from less than 1years i.e. 41%, .24% of employees are working for 2 years, 18% of employees fall in the range of 5 month and 13% of the employees in the range of 5 years. From this, you can make out that employees don’t stay for long period in GKB organization.
Are the management is taking any decision regarding changes in the work environment?
This question helps us to understand the whether the management is taking any i decision for work environment. 59% of workforce agrees that management is involved in taking any decision regarding work place. This will directly affect their health. From above chart we can make out that the company is involving most of the employees while taking any decision which directly or indirectly affect their work or job.
.
Is the management of the company treats equally to all the employees?
This question was asked to find overall how the company management treats their employee. Majority of the employees said that they feel satisfied with the management and 14% said they feel dissatisfied.22% fells that they were neutral whereas only 7% of the employees said they are highly satisfied. 10% of the employees said that they feel extremely dissatisfied.
Are the management is giving rewards for the best performance given by the employees.
This question was asked to identify the employee’s level of satisfaction i.e. whether they are satisfied with the reward they are getting from the company in return of their work. Above chart shows that 42% of the employees are happy whereas 19% of the employees are dissatisfied with it.
Are you happy with training & development provided by the company?
The above chart shows the satisfaction level regarding their training. Majority (56) of the employees are satisfied. 6% of the employees are extremely satisfied as well as 27% are neither satisfied nor dissatisfied. 6% and 6% are dissatisfied and extremely dissatisfied respectively.
Are you happy with the facilities provided by the company? (canteen, transport)
This question was asked to find out whether the employees are happy with their facilities. (51) Majority of the employees are satisfied whereas 22% of the employees are dissatisfied with the facilities offered by the company.
Are you happy with the relationship between the management & employees?
The above chart shows that whether they are satisfied with the relationship with the supervisors, co-workers, sub-ordinates and officer. Majority of the employees receive high level of co-operation and support from their supervisors, co-workers and sub-ordinates. Whereas 54% of the employees are high satisfied .26% feels they receive medium support whereas 10% and 7% of employees feel they receive low and extremely low level of support respectively.
The benefits which are given by the company that makes you happy (PF, Gratuity, bonus, pension scheme)
In the above chart we can see that the majority of the employees are satisfied with their welfare policies. I.e. 46% of the employees are satisfied. Whereas 16% of the employees are dissatisfied. This shows that the maximum number of employee don’t have any issues regarding the welfare policies of the company. This is the good point for the company.
Are you happy with the salary for what you are working in the company?
This question was asked to understand whether the pay policy of company is one of the reason for high attrition rate in accompany. Majority of the employees don’t fell so i.e. 42%, whereas 31% of employees neither satisfied nor dissatisfied. 13% of the employees are dissatisfied whereas minority of the employees highly satisfied and only 4% of the employee highly dissatisfied. From this statistics we can make out that some of employees are dissatisfied with the pay policy of the company and company has to take certain steps to please the employees
I would like to recommend others to work for this company?
The above graphs basically help us in learning the mind of the employees. Their perception about the company whether they look their future in this company. Majority of the employees will recommend i.e. 50% whereas 15% of the employees not recommend. 22% of the employees are not sure, 3% of the employees will definitely not recommend and 7% will definitely recommend
Findings
As per the Employee Satisfaction Survey conducted at the GKB Hi-tech, it has been found out that the employees show “Satisfaction & dissatisfaction” in the overall analysis.
Irrespective of whatever differences the overall result shows, some of the employees are dissatisfied with the organization and so think of quitting the job.
1. I feel the main reason for high attrition in GKB Hi-Tech. Pvt. Ltd. is “Lack of Motivation”
There is no appreciation for performing well in the company .Even after working hard and giving in their 100% in performing the job, employee’s work is not appreciated. An employee who is performing better than the other employee is not recognized and also not given any incentives. He does not get any extra monetary as well as non-monetary benefits for performing well so the employee gets de-motivated.
The employees are dissatisfied with their salary as well. Compared to their qualification, knowledge and experience the employees are paid less. Besides the yearly increment, which is very less, there is no other increment happening in their salary even if they perform well. So the employees get de-motivated.
Also there is no employee promotion done in the company so the employees don’t see any growth aspirations in the company and so get de-motivated.
Suggestions
It is not possible to change someone’s mind if he is stern on his decision, however attempt have been made to change people’s mind. If someone has to leave, he has to leave. Losing out on employee is not a problem but when the number exceeds the limit it becomes a problem. Same in the case of GKB; management would not mind a losing out on some employees but still is a loss of talent.
Contribute:
Give opportunities to employees to contribute in the management decision making process. Ask for suggestions, new ideas, and ways of improvement.
Connect:
Managers should make their employees feel valuable and important.
Recreation facilities:
Recreational facilities help in keeping employees away from stress factors. Various recreational programs should be arranged. They may include taking employees to trips annually or bi-annually, celebrating anniversaries, sports activities, etc
Relationship with colleagues:
Promote team work, not only among teams but in different departments as well. This will induce competition as well as improve the relationships among colleagues.
Work Culture
According to a popular saying – employees never leave the company, they leave their bosses. An inefficient boss creates poor work culture, which is one of the frequent reasons for quitting. A transparent work environment can serve as one of the primary triggers to facilitate accountability, trust, communication, responsibility, pride and so on. Create an environment where the employees want to work and have fun.
Occupational health care:
The safe work environment provides the basis for the person to enjoy working. The work should not pose a health hazard for the person.
Gifts at Some Occasions:
Giving out some gifts at the time of one or two festivals to the employees making them feel good and understand that the management is concerned about them.
Conclusion
Attrition is not bad because when one goes out another enters with new talent new skills that can be of use. As a fresher joins he will have new ideas that will match current scenarios, he will have new creative ideas that will be valuable and worth implementing as things need to be upgraded with the pace of life. Neither is attrition good because with an exist of an associate there also goes a pool of information, knowledge and experience, the new joined employee takes time to adjust with the new organization, also he needs to be trained etc. and lot of time is wasted in this. It brings along cost apart from emotional attachments that could change things.
It is not about managing retention. It is about managing people. If an organization manages people well, employee retention will take care of itself. Companies should have a similar approach to employees & customers. If a company strives to retain an employee in the same way it tries to retain a customer, him leaving the organization could be out of question.
Learning Derived
My experience at the GKB hi-tech was a very memorable and enriching one. The placement undergone this year was for the third time I did have an idea of what I needed to construct my project, but even though this was my third time it was still a new organization and new people to deal with.
This was my second project in the field of Human Resource and I gained a lot of knowledge on my topic from the various people I interacted with. I learn how the HR department functions. A department which looks so easy and simple, but from within its so challenging and interesting. All the HR staff members I interacted with were very cooperative and assisted me in whatever difficulty I had regarding the project. I cannot forget to mention about the other employees of HR department. They were helpful and very much friendly.
In the process of gaining knowledge, I had a lot of fun and interacted with great staff. Overall I had a fantastic time in the company. The journey in GKB Hi-tech has played an important mark in my life that has helped me to realize my vision in life of what I want to be.
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