BA PROJECT REPORT

Submitted By:
Aseem Bajpai (FT153049)
Divyam Prakash (FT153060)
Mayank Modh (FT151057)
Mohit Gupta (FT153082)
Shikha Gupta (FT153023)
Sumit Chaudhary (FT153101)

Contents
PROBLEM DESCRIPTION .......................................................................................................................... 2
LITERATURE REVIEW ............................................................................................................................... 2
CONCEPTUAL FRAMEWORK ................................................................................................................... 3
UNOBSERVED VARIABLES/CONSTRUCTS ................................................................................................ 3
RESULTS .................................................................................................................................................. 4
Model from SEM ................................................................................................................................. 4
Indicators of Good fit and Model Summary ....................................................................................... 5
Model Fit Summary............................................................................................................................. 6
Critical Ratios and Links ...................................................................................................................... 6
Structural model with critical links ..................................................................................................... 7
QUESTIONNAIRE ..................................................................................................................................... 7

PROBLEM DESCRIPTION
HBAT is a big organisation that operates in a variety of business areas and employees a large
workforce spread in different offices world over. It is a big challenge for the firm to hire and retain
skilled employees who also share the organisations goals, values and business strategy. On an
average, a person stays in the organisation for less than 3 years which implies a high attrition rate
that leads to the organisation spending significant amount of time and money on finding
replacements for outgoing employees and training these replacements so as to be able to employ
them productively. Also, studies have shown that productivity level of employees reaches high
enough to start rewarding the organisation after 1 year spending one year on job. Therefore, it is in
HBATs best interests to retain productive employees as far as possible. The management, therefore
is keen to identify the factors that impact job retention. To identify these factors, HBAT wants to
develop a set of key constructs and design a model to measure the significance between these
constructs and the intentions of an employee about staying in the organisation.

LITERATURE REVIEW
Employee retention issue in organisations is gaining much importance in current times when there is
a trend of job switching among employees. HBAT undertook a research study to resolve the problem
of high employee attrition. An initial study revealed that a significant percentage of HBATs
employees are seeking job change and would leave the firm if presented with a suitable offer
elsewhere. Based on a review of literature published on this subject and some brief interviews with
employees, a questionnaire on employee turnover study was designed. The employees were then
asked to fill this questionnaire and their responses were recorded. This study focuses on five key
constructs which are discussed in the next section.

CONCEPTUAL FRAMEWORK

UNOBSERVED VARIABLES/CONSTRUCTS
The five constructs are defined as:
1. Job Satisfaction (SJ) The extent to which an employee is satisfied with work at HBAT.
2. Organizational Commitment (CO) the extent of involvement and commitment of an
employee towards the organisation.
3. Staying Intentions (IS) the extent of an employees intentions to stay at HBAT as opposed to
the intention of seeking job opportunities elsewhere
4. Environmental Perceptions (PE) outlook of an employee towards everyday working
conditions.
5. Employee Attitudes toward Coworkers (CA) attitudes of an employee towards coworkers
he/she regularly works together with.
The indicative variables for each of the five constructs are specified below:1. Organizational Commitment
(i)
(ii)
(iii)
(iv)

CO1 = Feeling of a sense of achievement.

CO2 = Desire to work hard beyond normal expectations to help HBAT achieve its goals.
CO3 = Loyalty towards HBAT.
CO4 = Sense of pride in working for HBAT.

2. Staying Intentions
(i)
IS1 = Not actively seeking other job opportunities.

(ii)
(iii)
(iv)

IS2 = Do not browse job listings online or in newpapers.

IS3 = Not intending to look for a new job in the next year.
IS4 = Likelihood of being at HBAT a year from now

3. Attitudes Towards Co-Workers

(i)
(ii)
(iii)
(iv)

AC1 = How content are you with the performance of your colleagues?
AC2 = How is your relationship with your coworkers?
AC3 = How frequently do you interact with your coworkers outside of office?
AC4 = The extent of similarities between you and your colleagues

4. Environmental Perceptions
(i)
(ii)
(iii)
(iv)

PE1 = Level of satisfaction with physical work environment at HBAT.

PE2 = Setup at workplace contributes to improving my performance.
PE3 = There are few issues that hamper productivity at work
PE4 = What term would you associate best with your work environment

5. Job Satisfaction(language still needs to be changed)

(i)
(ii)
(iii)
(iv)
(v)

SJ1 = Overall, I feel very satisfied when I think about my job.

SJ2 = When you think of your job, how happy do you feel?
SJ3 = Level of satisfaction with current job at HBAT?
SJ4 = Level of satisfaction with HBAT as an employer?
SJ5 = Please suggest your level of satisfaction with your current job with HBAT by
placing a percentage in the blank, with 0% = not satisfied at all and 100% = highly
satisfied.

RESULTS
We intend to estimate a converging significant measurement model that links the various
behavioural characteristics of employees to employee retention prediction. The unobserved latent
variables and their corresponding manifest variables have been already defined. The measurement
model estimation through CFA and SEM technique has revealed the following results.

Model from SEM

Indicators of Good fit and Model Summary

The above research data has revealed a structural model with the below mentioned figures:
Degrees of freedom (df) = 167
Chi-square = 135.525

Indicator Good Fit

Chi-square/df
Overall p-value
CFI
GFI
AGFI
NFI

0 chi-square/df 2
0.05 < p 1.00
0.97 CFI 1.00
0.95 GFI 1.00
0.90 AGFI 1.00
0.95 NFI 1.00

Acceptable Fit

Model
Value

Result

2 chi-square/df 3
0.01 p 0.05
0.95 CFI < 0.97
0.90 GFI < 0.95
0.85 AGFI < 0.90
0.90 NFI 0.95

0.812
0.965
1.000
0.970
0.958
0.969

Good Fit
Good Fit
Good Fit
Good Fit
Good Fit
Good Fit

Model Fit Summary

CMIN
Model

NPAR

CMIN

DF

CMIN/DF

64

135.525

167

.965

.812

231

.000

21

4441.436

210

.000

21.150

Default model
Saturated model
Independence model
RMR, GFI
Model

RMR

GFI

AGFI

PGFI

Default model

.521

.970

.958

.701

Saturated model

.000

1.000

2.362

.342

.277

.311

NFI
Delta1

RFI
rho1

IFI
Delta2

TLI
rho2

CFI

.969

.962

1.007

1.009

1.000

Independence model
Baseline Comparisons
Model
Default model
Saturated model

1.000

Independence model

.000

1.000
.000

.000

1.000
.000

.000

Critical Ratios and Links

IntentionofStaying
IntentionofStaying
IntentionofStaying
IntentionofStaying
CO1
CO2
CO3
CO4
IS1
IS2
IS3
IS4
PE1
PE2
PE3
PE4

<--<--<--<--<--<--<--<--<--<--<--<--<--<--<--<---

Commtoorganization
Perceptiontoenviron
Coworkerattitudes
WorkSatisfaction
Commtoorganization
Commtoorganization
Commtoorganization
Commtoorganization
IntentionofStaying
IntentionofStaying
IntentionofStaying
IntentionofStaying
Perceptiontoenviron
Perceptiontoenviron
Perceptiontoenviron
Perceptiontoenviron

Estimate
.163
.186
.046
.056
1.000
1.321
.764
1.154
1.000
1.086
1.140
1.287
1.000
1.067
.742
.844

S.E.
.030
.032
.028
.032

C.R.
5.413
5.877
1.615
1.743

P
***
***
.106
.081

.108
.070
.097

12.187
10.844
11.908

***
***
***

.055
.077
.075

19.928
14.889
17.135

***
***
***

.075
.059
.063

14.309
12.552
13.400

***
***
***

Label

SJ1
SJ2
SJ3
SJ4
CA1
CA2
CA3
CA4
SJ5

<--<--<--<--<--<--<--<--<---

WorkSatisfaction
WorkSatisfaction
WorkSatisfaction
WorkSatisfaction
Coworkerattitudes
Coworkerattitudes
Coworkerattitudes
Coworkerattitudes
WorkSatisfaction

Estimate
1.000
1.031
.904
.913
1.000
1.247
1.045
1.159
15.061

S.E.

C.R.

.075
.072
.070

13.721
12.588
13.045

***
***
***

.068
.055
.063
1.123

18.462
18.912
18.373
13.417

***
***
***
***

Label

All the links that have P labelled as *** are significant.

From the values of C.R from the above table, we conclude that the measurement model is highly
significant. For the structural model, only commitment towards organization and perception to the
work environment are significantly related to staying intentions of the employee. Work satisfaction,
attitudes of co-workers though seemingly and intuitively important factors to employee retention,
do not statistically significantly contribute towards staying intentions of the employees.

Structural model with critical links

QUESTIONNAIRE
The construct created for collecting huge data from the employees, were created after rigorous
efforts by higher management and HR team. They created five indicative variables on which

different questions were made. It was taken care that correct measuring instrument was used so
that efficient result can be measured.

Organizational Commitment
CO1 = My work at HBAT gives me a sense of accomplishment.
CO2 = I am willing to put in a great deal of effort beyond that normally expected to help be
successful.
CO3 = I have a sense of loyalty to HBAT.
CO4 = I am proud to tell others that I work for HBAT.
Staying Intentions
IS1 = I am not actively searching for another job.
IS2 = I seldom look at the job listings on monster.com.
IS3 = I have no interest in searching for a job in the next year.
IS4 = How likely is it that you will be working one year from today?
Attitudes towards Co-Workers
CA1 = How happy are you with the work of your co-workers?
CA2 = How do you feel about your co-workers?
CA3 = How often do you do things with your co-workers on your days off?
CA4 = Generally, how similar are your co-workers to you?
Environmental Perceptions
PE1 = I am very comfortable with my physical work environment at HBAT.
PE2 = The place I work in is designed to help me do my job better.
PE3 = There are few obstacles to make me less productive in my workplace.
PE4 = What term best describes your work environment?
Job Satisfaction
SJ1 = All things considered, I feel very satisfied when I think about my job.
SJ2 = When you think of your job, how satisfied do you feel?
SJ3 = How satisfied are you with your current job at HBAT?
SJ4 = How satisfied are you with HBAT as an employer?
SJ5 = Please indicate your satisfaction with your current job with HBAT by placing a
percentage in the
blank, with 0% = not satisfied at all and 100% = highly satisfied