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PROJECT REPORT

ON

Faculties Perception Regarding Retention Strategies in an Educational Institute

SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS OF BBA PROGRAM OF SCHOOL OF MANAGEMENT, ITM UNIVERSITY, GURGAON

ACADEMIC SESSION

2013-2014

UNDER THE GUIDANCE OF:

MS. SUNAINA SANGWAN

Assistant professor

SCHOOL OF MANAGEMENTITMU, GURGAON

SUBMITTED BY:

SHUBHANKAR CHHIKARA

ENROLMENT NO: 11BBA051

ITM UNIVERSITYSEC-23A, GURGAON – 122017, HARYANA, INDIA

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CERTIFICATE FROM GUIDE

This is to certify that the Project Work titled _ Faculties Perception Regarding Retention Strategies In An Educational Institute _ is a bonafide work carried out by __SHUBHANKAR CHHIKARA__, Enrolment No. _11bba051___, student of BBA 2011 – 2013 of School of Management, ITM University, Gurgaon under my guidance and direction.

Signature of Guide:

Name, Designation & Address: Date:

Place:

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DECLARATION

I hereby declare that the project report entitled Faculties Perception Regarding Retention Strategies in an educational institute: Submitted in partial fulfillment of the requirement for the degree of BBA, ITM University, Gurgaon is my original work and not submitted for the award of any other degree, diploma, fellowship, or any other similar title or prizes.

Place: Gurgaon

Date:

(SHUBHANKAR CHHIKARA)

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ACKNOWLEDGEMENT

The present work is an effort to throw some light on “FACULTIES PERCEPTION REGARDING RETENTION STRATEGIES IN AN EDUCATIONAL INSTITUE”. The work would not have been possible to come to the present shape without the able guidance, supervision and help to me by number of people.

With deep sense of gratitude I acknowledged the encouragement and guidance received by my Guide Ms. Sunaina Sangwan and other staff members.

I convey my heartful affection to all those people who helped and supported me during the course, for completion of my Project Report.

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Major Project Report

Table content

1. TITLE PAGE--------------------------------------------------------------------1

2. CERTIFICATE FROM GUIDE----------------------------------------------2

3. DECLARATION---------------------------------------------------------------3

4. AKNOWLEDGEMENT------------------------------------------------------4

5. INTRODUCTION-------------------------------------------------------------7

6. SCOPE OF STUDY----------------------------------------------------------10

7. LITERATURE REVIEW----------------------------------------------------14-16

8. UNIVERSITY PROFILE----------------------------------------------------17-18

9. OBJECTIVE------------------------------------------------------------------19

10.METHODOLOGY----------------------------------------------------------20-21

11.INTERPRETATION AND ANALYSIS--------------------------------22

12.1- GENDER PIE CHART-------------------------------22

12.2- AGE PIE CHART-------------------------------------23

12.3- DESIGNATION PIE CHART------------------------24

12.4- DEPARTMENT PIE CHAT--------------------------25

12.5- TEACHING EXPERIENCE PIE CHART----------26

13. BAR GRAPH-----------------------------------------------------------------27

13.1-GENDER------------------------------------------27

13.2-AGE-----------------------------------------------28

13.3- TEACHING EXPERIENCE--------------------29

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13.4-DESIGNATION---------------------------30

13.5-DEPARTMENT---------------------------31

14. FINDINGS---------------------------------------------------------32

15. CONCLUSION----------------------------------------------------33-34

16 SUGGESTIONS----------------------------------------------------35

16 REFERENCES-----------------------------------------------------36

17 QUESTIONNAIRES----------------------------------------------37-38.

Introduction

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According to Eva Kyndt & Filip Dochy & Maya Michielsen & Bastiaan Moeyaert :

“The contemporary global economic environment has changed drastically and continues to do so. Social developments such as continuing globalization, technological innovation, and growing global competition place pressure on companies and emphasize their need to maintain their competitive edge at least in part through maintaining the skills of their employees. This need makes important a company’s ability to evolve through the continuous learning and development of the employees. Having and retaining skilled employees plays an important role in this process, because employees’ knowledge and skills have become the key for companies to be economically competitive. Therefore, it is important that employers give employees the opportunity to develop and learn such that the workers maintain their capacities as effective employees, resist redundancy, and

are retained by their companies”Employee turnover take into consideration how much employee turnover will cost them: Ernst & Young estimates it costs approximately $120,000 to replace 10 professionals. According to research done by Sibson & Company, to recoup the cost of losing just one employee a fast food restaurant must Employee turnover is one of the largest though widely unknown costs an

Why is retention so important? Is it just to reduce the turn over costs? Well, the answer is a definite no. 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.

According to a research on employee retention in private sector they found out the following five strategies:

Retention involves five major things: Compensation

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Environment Growth Relationship Support

Compensation:Compensation constitutes the largest part of the employee retention process. The employees always have high expectations regarding their compensation packages.

Compensation packages vary from industry to industry. So an attractiveCompensation package plays a critical role in retaining the employees.Compensation includes salary and wages, bonuses, benefits, prerequisites, stockOptions, bonuses, vacations, etc. While setting up the packages, the followingComponents should be kept in mind:

Salary and monthly wage: It is the biggest component of the compensation package. It is also the most common factor of comparison among employees. It includes

Basic wage House rent allowance Dearness allowance City compensatory allowance

Salary and wages represent the level of skill and experience an individual has. Time to time increase in the salaries and wages of employees should be done. And this increase should be based on the employee’s performance and his contribution to the organization. Bonus: Bonuses are usually given to the employees at the end of the year or on a festival. Economic benefits: It includes paid holidays, leave travel concession, etc. Long-term incentives: Long term incentives include stock options or stock grants. These incentives help retain employees in the organization's start up stage.

Health insurance: Health insurance is a great benefit to the employees. It saves employees money as well as gives them a peace of mind that they have somebody to take care of them in bad times. It also

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shows the employee that the organization cares about the employee and its family.

After retirement: It includes payments that an Employee gets after he retires like EPF (Employee Provident Fund) etc.

Miscellaneous compensation: It may include employee assistance programs (like psychological counseling, legal assistance etc), discounts on company products, use of a company cars, etc.

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Scope of the studyIt is not about managing retention. It is about managing people. If an organization manages people well, employee retention will take care of itself. Organizations should focus on managing the work environment to make better use of the available human assets. People want to work for an organization which provides

Appreciation for the work done Ample opportunities to grow A friendly and cooperative environment A feeling that the organization is second home to the employee

Organization environment includes Culture Values Company reputation Quality of people in the organization Employee development and career growth Risk taking Leading technologies Trust

Types of environment the employee needs in an organization Learning environment: It includes continuous learning and

improvement of the individual, certifications and provision for higher studies, etc.

Support environment: Organization can provide support in the form of work-life balance. Work life balance includes:

Flexible hours Telecommuting Dependent care Alternate work schedules Vacations Wellness Work environment: It includes efficient managers, supportive co-

workers, challenging work, involvement in decision-making, clarity of work and responsibilities, and recognition. Lack or absence of such environment

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pushes employees to look for new opportunities. The environment should be such that the employee feels connected to the organization in every respect.Growth and Career Growth and development are the integral part of every individual’s career. If an employee can not foresee his path of career development in his current organization, there are chances that he’ll leave the organization as soon as he gets an opportunity. The important factors in employee growth that an employee looks

For himself are:Work profile: The work profile on which the employee is working should be in sync with his capabilities. The profile should not be too low or too high.

Personal growth and dreams: Employees responsibilities in the organization should help him achieve his personal goals also. Organizations cannot keep aside the individual goals of employees and foster organizations goals. Employees’ priority is to work for them and later on comes the organization. If he’s not satisfied with his growth, he’ll not be able to contribute in organization growth. Training and development: Employees should be trained and given chance to improve and enhance their skills. Many employers fear that if the employees are well trained, they’ll leave the organization for better jobs. Organization should not limit the resources on which organization’s success depends. These trainings can be given to improve many skills like:

Communications skills Technical skills Special project related skills

Need for such trainings can be recognized from individual performance reviews, individual meetings, employee satisfaction surveys and by being in constant touch with the employees.Importance of Relationship in Employee Retention ProgramSometimes the relationship with the management and the peers becomes the reason for an employee to leave the organization. The management is sometimes not able to provide an employee a supportive work culture and environment in terms of

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personal or professional relationships. There are times when an employee starts feeling bitterness towards the management or peers. This bitterness could be due to many reasons. This decreases employee’s interest and he becomes demotivated. It leads to less satisfaction and eventually attrition. A supportive work culture helps grow employee professionally and boosts employee satisfaction. To enhance good professional relationships at work, the management should keep the following points in mind.Respect for the individual: Respect for the individual is the must in the organization.

Relationship with the immediate manager: A manager plays the role of a mentor and a coach. He designs and plans work for each employee. It is his duty to involve the employee in the processes of the organization. So an organization should hire managers who can make and maintain good relations with their subordinates.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 Relationship among colleagues.Recruit whole heartedly: An employee should be recruited if there is a proper place and duties for him to perform. Otherwise he’ll feel useless and will be dissatisfied.

Employees should know what the organization expects from them and what their expectation from the organization is. Deliver what is promised. Promote an employee based culture: The employee should know that the organization is there to support him at the time of need. Show them that the organization cares and he’ll show the same for the organization. An employee based culture may include decision making authority, availability of resources, open door policy, etc.

Individual development: Taking proper care of employees includes acknowledgement to the employee’s dreams and personal goals. Create opportunities for their career growth by providing mentorship programs, certifications, educational courses, etc. Induce loyalty: Organizations should be loyal as well as they should promote loyalty in the employees too. Try to make the current employees stay instead of recruiting new ones. Lack of support from management can sometimes serve as a reason for employee retention. Supervisor should

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support his subordinates in a way so that each one of them is a success. Management should try to focus on its employees and support them not only in their difficult times at work but also through the times of personal crisis. Management can support employees by providing them recognition and appreciation. Employers can also provide valuable feedback to employees and make them feel valued to the organization.

The feedback from supervisor helps the employee to feel more responsible,Confident and empowered. Top management can also support its employees in their personal crisis by providing personal loans during emergencies, childcare services, employee assistance Programs, conseling services, etcEmployers can also support their employees by creating an environment of trustand inculcating the organizational values into employees. Thus employers cansupport their employees in a number of ways as follows:

By providing feedback By giving recognition and rewards By counseling them By providing emotional support

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Literature review

1) According to Shivangee Singh and Pankaj Kant dixit said in their title (employee retention: the art of keeping employee who keep you in business)

They have told that in today’s scenario retention is one of the major problem face by the employees. They said that companies want their employee to be in the organization for a long period of time or until the completion of a project. It is a known fact that retaining the best employees ensures customer satisfaction, increased sale etc.

They discussed the factors that keep employees in organization:-

1. Employee reward program2. Support3. Open communication4. Quality of work5. Recreation facilities

2) Rajeswari devadas said in his research title (employee motivation in organization: an integrative literature review)

That there are some other factors that that help in retaining employees in organization and they are as follows:-

1. Employee development2. Positive work climate3. Work objectivity4. Performance indicators5. Career path

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3) According to Michael D Jackson in his research title (employee retention) he carried out his research on fire department and found out the factors that will help in employee retention and they are:-

1. Time flexibility2. Job satisfaction3. Promotional opportunities

4) According to Professor Kate Hutchings, Professor Helen De Cieri, Dr Tracey Shea in their research title (employee attraction and retention in Australian sector)

Because people are graduating more towards the metropolitan cities instead of being in regional areas and do the mining work so companies in regional areas came up with different techniques that will help them retain their employees in organization are as follows:-

1. FIFO – its means fly in fly out. It’s a strategy in which employees are given weekends breaks so they can go and meet their families and if someone is from far they are given fly in companies own private jet.

2. Special privileges are given to families of these employees like medical facilities, education etc

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5) According to Madiha Shoaib, Ayesha Noor, sayed raja tirmizi, sajid basher in their research paper (determinants of employee retention in telecom industry of Pakistan) they came up with the following points :-

1. Career development opportunities2. Supervisor support3. Work environment4. Rewards5. Work life policies

6) According to Drake international they published a article on the topic (reducing recruitment by increasing retention) and they came up with the following points that will help the employees be in the organization:-

1. Top performer profile2. Orientation and on boarding3. Performance reviews4. Respect5. Competitive advantage and incentive

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University profileITM University (Institute of Technology and Management) is an autonomous university situated in Sector 23-A, Gurgaon, Haryana, India

It was founded in 1996 by Educate India Society, registered under the Registration of Societies Act of 1860 as an engineering institute, to provide education in Technical and Management. Formerly it was under Maharshi Dayanand University, Rohtak

The institute gained the status of private university in the academic year 2009-10, and was renamed ITM University under section 2(f) of the UGC Act 1956 and PRIVATE UNIVERSITIES ACT NO 25 OF 2009, Government of Haryana.

Founders

Mr Navdeep K dewan

Mr Avdhesh Mishra

Mr Vijay Daulet Singh

Mr Shiv Saran Mehra

Mr Vijay K Makhija

The campus

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The University is located in the heart of the industrial belt in Sector 23-A, Gurgaon, Haryana, which is about 10 km from Indira Gandhi International Airport

The campus is spread over an area of 5.2 acres of land in urban area. Besides spacious classrooms and Seminar Halls, the University has well equipped laboratories and workshops with the latest equipment and machinery for imparting practical training to its students.

The University is equipped with a fully air-conditioned Library and Information Resource Centre (LIRC) with a comprehensive collection of more than 60,000 volumes in all areas of Engineering, Law and Management and over 50,000 eBooks. The LIRC also subscribes to over 100 print journals from reputable publishers. The LIRC has fully computerized its services with the Libsys Software.

Objective

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1. To explore various strategies that lead to faculties retention in educational institute

2. To find impact of demographics on faculty retention strategies in educational institute.

Research Methodology

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Every project work is based on certain methodology, which is a way to systematically solve the problem or attain its objectives. It is a very important guideline and lead to completion of any project work through observation, data collection and data analysis.

According to Clifford Woody,

“Research Methodology comprises of defining & redefining problems, collecting, organizing &evaluating data, making deductions &researching to conclusions.”

Accordingly, the methodology used in the project is as follows: -

Defining the objectives of the study Framing of questionnaire keeping objectives in mind (considering the

objectives) Feedback from the faculties of ITM university Analysis of feedback Conclusion and findings.

Sampling technique used

The technique of Random Sampling has been used in the analysis of the data. Random sampling from a finite population refers to that method of sample selection, which gives each possible sample combination an equal probability of being picked up and each item in the entire population to have an equal chance of being included in the sample. This sampling is without replacement, i.e. once an item is selected for the sample, it cannot appear in the sample again.

DATA COLLECTION

To determine the appropriate data for research mainly two kinds of data was collected namely primary & secondary data as explained below:

PRIMARY DATA

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Primary data are those, which were collected afresh & for the first time and thus happen to be original in character. However, there are many methods of collecting the primary data; all have not been used for the purpose of this project. The ones that have been used are:

Questionnaire Observation

SECONDARY DATA

Secondary data is collected from previous researches and literature to fill in the respective project. The secondary data was collected through:

Articles Journals Websites Research paper

STATISTICAL TOOLS USEDThe main statistical tools used for the collection and analyses of data in this project are:

Questionnaire Pie Chart Bar Graph

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INTERPRETATION AND ANALYSIS

Count of gender

3633 MALE

FEMALE

i got my questionniare filled from the faculty of ITM university i targeted 65

faculty but was able to receive 69 feedback and from that 33% were male ans 36%

were female as shown in the graph.

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Count of Age

1

42

22

3

20-2526-3536-4546-55

In my questionnaire these were the following age group respondents and they are

marked with the number of respondents that filled the questionnaire according to

their age group.42% were from the age group of 26-35, 22% from 36-45, 3% from

46-55 and 1 % from 20-25

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Count of Teaching Experience

14

34

15

6

Less than 56 to 1011 to 15 More than 15

These were the following parameters on the basis of the teaching experience of the

faculty and they are marked with their identified experience in the pie chart with

different colour.34% were with the experience between 6-10, 15% from 11-15,

14% from less than 5 and 6% from more than 15

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Count of Designation

26

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23Asst Prof Assoc ProfProf

These were the demographic parameters based on the designation of the faculty

member.26% were the Asst professor, 23% were the professor and 20% were

associate professor.

Abbreviations:

Asst prof- Assistant professor

Assoc prof- Associate professor

Prof- Professor

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Count of Department

54

15

SOETSOL

The department pie chart shows what the ratio of faculty from the following

department was 54% from School of engineering technology and 15% from

School of law.

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Importance of Parameters categorized among:

Gender:

04080

120160

MALEFEMALE

On the basis of gender the most preferred parameters were the increment, growth opportunity, privacy, empowerment of decision making, time flexibility

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Age:

0123456

20-25yrs26-35yrs36-45yrs

With reference to age factor increment, working culture, good research environment were the most preferred parameters

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Teaching Experience:

Incremen

t

Working C

ulture

T&D Progra

m

Medi C

laim

Ind Visit- u

ni resp

Fair A

ppraisal

Unbiased

approach

of mid-le

vel m

gmnt

Growth Oppt

Privacy

Recogn

ition of work

Good Researc

h env

Sound & tr

ansp

arent e

mp policy

Effecti

ve & affi

rmitive

implem

entati

on of emp policy

Frequen

t flow of fe

edback

to str

ength

en em

p policy

Empowerm

ent o

f deci

sion m

akin

Time fl

exibilit

y0123456

<56 to 1011 to 15>15

With reference to teaching experience good research environment with 4.8 followed by working culture 4.6 and growth opportunity, recognition of work and privacy were 4.5 in area of best parameters and so on.

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Designation:

Incremen

t

T&D Progra

m

Ind Visit- u

ni resp

Unbiased

approach

of mid-le

vel m

gmnt

Privacy

Good Researc

h env

Effecti

ve & affi

rmitive

implem

entati

on of emp policy

Empowerm

ent o

f deci

sion m

akin

020406080

100120

Associate ProfAssistant ProfProf

On the basis of designation growth opportunity, frequent flow of feedback, increment were the highest chosen parameter by the Assistant professor and empowerment in decision making, increment, recognition of work, privacy were the most selected by Associate professor and recognition of work, time flexibility, increment, medi-claim were the most selected parameters by professors

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Department:

012345

SOETSOL

On the basis of department growth opportunity with 4.2, empowerment in decision making 4.5, time flexibility 4.3 were the most chosen by SOET and empowerment in decision making 4.5, growth opportunity 4.5, privacy 4.1 were the more selected parameters by SOL.

SOET- School Of Engineering and Technology

SOL- School Of Law

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FINDINGS

I have found from the above analysis done by me through which I came to know about how the demographics factors affects an employee in retention strategies. From the above analysis I came to know that female faculties gave more importance to parameters like growth opportunities, empowerment for decision making and flexibility in timings. Whereas male faculty gave more importance to parameters like increment, working culture, growth opportunities. And through my observation I found out that female faculties prefer that place which is near to their house, have flexibility in timings or an institute which provides some other facilities like hostel facility etc.

One of the main factor which I came to know about ITM UNIVERSITY is that the rate of attrition is very much less here. At the time of filling of the questionnaire I asked the faculties member for how long they have been in this university and I found that majority of the faculty are from long time here only and I asked why you are here for so long? So these are some factor which I came to know about ITM UNIVERSITY follow to retain their employee :-

Good package Work environment Growth opportunity Support Security Empowerment of decision making

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Conclusion:

The result shows that the respondents regarding leadership prefer leadership based

on relations were they feel appreciation. Both appreciations from the institute

management as well as the colleague’s influences employee job satisfaction in a

positive way. More money was the most common reason for wanting to change

jobs, and when asking how the remuneration system should be designed, base pay

with additional bonus and benefits were preferred. But also non financial factors

such as participation, feedback, autonomy, fairness, responsibility, development

and work-atmosphere must be taken in consideration to satisfy since they seem to

increase employees. As from above interpretation it is clear that most preference is

given to increment parameter as money plays an important factor in deciding

retention of an employee. More good packages more people will get attracted and

will retain themselves in organization. Second most preferred parameter was the

growth opportunity because employees look for their personal growth and

organization should focus on the personal growth of an employee also with the

organization goals. Where employees personal growth is taken care of they will

retain themselves in organization and they will have not to spend lot of money on

recruitment as they have their talented employees retained in organization.

Organizations spend lot of money on recruitment process due to high attrition rate

because of which they face high employee turnover and it is said also if 10

managers leave an organization it takes the employer 10 times of their salary on

recruiting new employees as it consumes more time, money, cost of training and

development incurred, orientation etc. So in way to not deal with this problem

employer and organization spend lot of money in retention process instead of

highring new employees as it is more costly than spending money on retention

processes.

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Organizations have come up with lot of retention strategies which help them in

retaining their best employees and some of them are follows:

1. Personal growth- organization take care of the their employees personal

growth as it plays an important part in retaining their employees and

employees do give much importance to this factor as they join an

organization on their personal growth also.

2. Support- supportive culture is now being build in organization as an

employee want support from their seniors and colleagues

3. Packages- good packages are being given by the employer to their

employees as money is the major factor that plays an important role in

retention of employees.

A person wants their personal need to be fulfilled under the Maslow hierarchy

theory and he mentions the following things which a employee wants and they are:

Food

Home

Cloth

Security.

Suggestion

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From the above data, research and my work which I have done in my project I

came to know about the following strategies which plays an important role and I

would like to suggest them and they are:

1. Packages

2. Growth opportunity

3. Privacy

4. Flexibility in timings

5. Medi-claim

6. Empowerment of decision making

7. Security

8. Bonuses

9. Incentives

10.Working culture

So these are my following suggestion which every organization should follow

which will help them in retaining employees in the organization and their

employee turnover cost will decrease and profit margin and standing of the

organization will increase.

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References:1. Shivangee Singh and Pankaj Kant Dixit(2011),employee retention: the art of

keeping the people who keep you in business,VSRD-IJBMR,VOL 1 (7)

2. Rajeswari Devadass(2011), Employees Motivation in Organizations: An integrative literature review, IPEDR vol.10

3. Professor Kate Hutchings et.al(2011), Employee Attraction And Retention In Australian Resources Sector

4. Madiha Shoaib , Ayesha Noor , Syed Raza Tirmizi, Sajid Bashir , 2009 Proceedings 2nd CBRC DETERMINANTS OF EMPLOYEE RETENTION IN TELECOM SECTOR OF PAKISTAN

5. Michael D. Jackson, 1999 Executive Leadership6. Drake International, 2008, REDUCING RECRUITMENT BY

INCREASING RETENTION

Websites:

1. www.google.com 2. www.itmindia.edu 3. Search.ebscohost.com

I am undertaking a research project “Faculties Retention – ITM University” Kindly complete the following questionnaire, it should take no longer than 10

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minutes of your time. Your response is of the utmost Importance and your details will not be shared with anyone.

Questionnaire1. Gender: Male Female

2. Age : 20-25 26-35 36-45 46-55 55 above

3. Department: SOM SOL SOET

4. Designation: Asst. Professor Associate Professor Professor

5. Teaching Exp (in years): Less than 5 6-10 11-15

More than 15

6. Please indicate how important are the following parameters:

S.NO

Parameters Not Important

Slightly Important

Moderately Important

Very Important

Extremely Important

1. Increment2. Working

Culture3. Training and

Development Program

4. Medi- Claim5. Industrial Visit

- university’s responsibility

6. Fair Appraisal Evaluation

7. Unbiased approach of mid-level management

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8. Growth opportunity

9. PrivacyS.NO

Parameters Not Important

Slightly Important

Moderately Important

Very Important

Extremely Important

10. Recognition of work

11. Good research environment

12. Sound and transparent emp policy

13. Effective and affirmative implementation of emp policy

14. Frequent floe of feedback to strengthen the existing emp policy

15. Empowerment of decision making

16. Flexibility in timings