PREFACE

1
 PREFACE

As we all know that there is reverse relationship between job satisfaction and
employee turnover. If the employees are not satisfied with their job then the employee
turnover occurs. If the employee satisfied with their job then the employee turnover does
not occurs. There are many reasons for employee turnover e.g. better designation, salary
etc. Employee turnover refers to rate of change in the workforce of an organization
during a given period of time. It is a measure of the extent to which old employees leave
the organization for an reason such as better future prospects, growth, further studies etc.
turnover in any organization can be viewed both in positive and negative ways. Turnover
can be considered positive in a way that at provides opportunities to new employees to
serve the organization.

Employee turnover is a ratio comparison of the number of employees a company

must replace in a given time period to the average number of total employees. A huge
concern to most companies, employee turnover is a costly expense especially in lower
paying job roles, for which the employee turnover rate is highest. Many factors play a
role in the employee turnover rate of any company, and these can stem from both the
employer and the employees. Wages, company benefits, employee attendance, and job
performance are all factors that play a significant role in employee turnover.

Companies take a deep interest in their employee turnover rate because it is a

costly part of doing business. When a company must replace a worker, the company
incurs direct and indirect expenses. These expenses include the cost of advertising,
headhunting fees, human resource costs, loss of productivity, new hire training, and
customer retention -- all of which can add up to anywhere from 30 to 200 percent of a
single employee's annual wages or salary, depending on the industry and the job role
being filled.

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 While lower paying job roles experience an overall higher average of employee
turnover, they tend to cost companies less per replacement employee than do higher
paying job roles. However, they incur the cost more often. For these reasons, most
companies focus on employee retention strategies regardless of pay levels.

Most companies find that employee turnover is reduced when they address issues
that affect overall company morale. By offering employees benefits such as reasonable
flexibility with work and family balance, performance reviews, and performance based
incentives, along with traditional benefits such as paid holidays or sick days, companies
are better able to manage their employee turnover rates. The extent a company will go to
in order to retain employees depends not only on employee replacement costs, but also on
overall company performance. If a company is not getting the performance it is paying
for, replacement cost is a small price to pay in the long run.

 High turnover is costly to the employers in the following ways:-

♦ Hiring cost involved in repeated recruitment, selection and placement of

employees.
♦ Expenditure incurred on orientation and training of employees goes waste.
♦ Smooth working of the organization and quality of the work suffer.
♦ The team spirit among employees is distributed as well as new employees
needs sometime to develop friendly relations with existing employees.
♦ Market reputation of the organization suffers due to high turnover.

 High turnover is harmful to the employees in the following way:-

 An employee who changes his job quite often looses the opportunity of
promotion on the basis of seniority.

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 The special skills and experience developed in an organization may become
meaning less in another organization.
 The work environment differs from one organization to another. The
shifting employees may not be able to adjust to the new organization.

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 CHAPTER 1:
EMPLOYEE TURNOVER

5
1: EMPLOYEE TURNOVER

1.1 INTRODUCTION

Turnover, in a human resources context refers to the characteristic of a given company

or industry, relative to rate at which an employer gains and loses staff.

If an employer is said to have a high turnover, it most often means that employees of that
company have a shorter tenure than those of other companies in that same industry.
Similarly, if the average tenure of employees in a particular sector is lower than that in
other sectors, that sector can be said to have a relatively high turnover.

In the U.S., for the period 2001-2006, the annual turnover rate for all industry sectors
averaged 39.6%, as compared to the Leisure and Hospitality sector which averaged
74.6%.

1.2 COSTS

When accounting for the costs (both real costs, such as time taken to select and recruit a
replacement, and also opportunity costs, such as lost productivity), the cost of employee
turnover to for-profit organizations has been estimated to be up to 150% of the
employees' remuneration package (Schlesinger and Heskett, 1991).

1.3 INTERNAL VS. EXTERNAL TURNOVER

Like recruitment, turnover can be classed as 'internal' or external. Internal turnover

involves employees leaving their current position, and taking a new position with the
same organization. Both positive (such as increased morale from the change of task and
supervisor) and negative (such as project/relational disruption, or the Peter Principle)
effects of internal turnover exist, and thus this form of turnover may be as important to

6
monitor as its external counterpart. Internal turnover might be moderated and controlled
by typical HR mechanisms, such as an internal recruitment policy or formal succession
planning.

1.4 SKILLED VS. UNSKILLED EMPLOYEES

Unskilled positions often have high turnover, and employees can generally be replaced
without the organisation or business incurring any loss of performance. The ease of
replacing these employees provides little incentive to employers to offer generous
employment contracts: conversely, contracts may strongly favour the employer and lead
to increased turnover as employees seek, and eventually find, more favourable
employment.

However, high turnover rates of skilled professionals can pose as a risk to the business or
organisation, due to the intellectual property (such as skills, training, and knowledge)
lost. Notably, given the natural specialisation of skilled professionals, these employees
are likely to be re-employed within the same industry by a competitor. Therefore,
turnover of these individuals incurs both replacement costs to the organisation, as well as
resulting in a competitive disadvantage to the business.

1.5 VOLUNTARY VS INVOLUNTARY TURNOVER

Practitioners can differentiate between instances of voluntary turnover, initiated at the

choice of the employee, and those involuntary instances where the employee has no
choice in their termination (such as long term sickness, death, moving overseas, or
employer-initiated termination).

Typically, the characteristics of employees who engage in involuntary turnover are no

different from job stayers. However, voluntary turnover can be predicted (and in turn,
controlled) by the construct of turnover intent.

1.6 CAUSES OF HIGH OR LOW TURNOVER

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High turnover often means that employees are unhappy with the work or compensation,
but it can also indicate unsafe or unhealthy conditions, or that too few employees give
satisfactory performance (due to unrealistic expectations or poor candidate screening).
Low turnover indicates that none of the above is true: employees are satisfied, healthy
and safe, and their performance is satisfactory to the employer.

Many psychological and management theories exist regarding the types of job content
which is intrinsically satisfying to employees and which, in turn, should minimise
external voluntary turnover. Examples include Hertzberg's Two factor theory,
McClelland's Theory of Needs, and Hackman & Oldham's Job Characteristics Model

Investments

Alternatively, low turnover may indicate the presence of employee 'investments' (also
known 'side bets') in their position: certain benefits may be enjoyed while the employee
remains employed with the organisation, which would be lost upon resignation (i.e.
health insurance, discounted home loans, redundancy packages, etc). Such employees
would be expected to demonstrate lower intent to leave than if such 'side bets' were not
present.

1.7 PREVENTING EMPLOYEE TURNOVER

It’s almost always a surprise when employees hand in their notice. They keep their plans
a secret because they don’t trust their managers. They fear that their lives will be made
miserable if they let the manager know that they are not 110% committed to their jobs,
the employer and to them personally. They fear they will be sidelined or treated like
traitors. It is for good reason that the number one cause of employee dissatisfaction is
their relationship with their manager. The truth is that this can be a very personal

8
relationship, not unlike a marriage, and any discussion about possibly severing ties can
unleash strong emotions on both sides.

How to Discuss Employee Dissatisfaction

The first step toward discussing such any taboo subject is to create an atmosphere of
trust. Managers need to make employees feel safe to say anything without fear of reprisal.
They need to make it clear that they want to hear everything their employees have to say
about the job and their relationship. They must then reinforce this message by never
reacting negatively to unwelcome news. They need to thank employees for being open,
explore their concerns supportively and commend them for having the courage to be so
open.

Career stocktaking discussions must be held regularly. The first one or two will be
stressful. The advantage of regular talks is that the fear of them will decrease over time as
both sides learn to manage them calmly and openly. Too long a gap between them will
also make the next talk uncomfortable. They should be once a month with new
employees for the first year, then once a quarter thereafter.

Managers need to be skilled at encouraging employees to open up. They should begin by
asking questions that elicit positive feedback. This makes it easier for both sides to then
move on to less positive territory. Here are some positive questions:

“What do you most enjoy about your job?”

“What do you most like about working here?”

“What are the positive things you have learned or gained so far by working here?

“What things are working well for you about the way you are managed?”

Here are some more difficult questions:

The above questions can be rephrased in the negative. But the well known scale question
is also useful: “On a scale of 1 to 10, how happy are you with your job, career, pay,
colleagues, this company, how you are being managed?” Naturally, these topics are
raised in separate questions. A scale question is much better than “How are you feeling

9
about …?” This is too easy to answer by “OK.” If employees answer a scale question
with a low number, say 4, a good follow on question is: “What would it take to move you
to 7?” First, however, managers must thank the employee for being so honest.

Another difficult question to ask is: “What would you like me to stop doing, start doing
or do more of?” Managers could prepare the ground for this question by making it clear
that all employees are unique and like to be managed in ways that are not important to
other employees.

Coaching Skills for Managers

Managers need to convey the message that these delicate discussions need to be regarded
as coaching sessions, that they are sincerely interested in the employee’s development,
job satisfaction and general wellbeing at work. An excellent coaching technique is the
magic wand question: “If you could wave a magic wand to change something about your
job here, what is the one thing you would change about …?” Fill in the blank with
anything to do with their employment relationship.

Coaching requires active listening, paying attention to subtle clues and asking for
elaboration. Questions must come across as supportive, not accusatory. For example, a
good follow up to a hint dropped by an employee might be: “That’s interesting. Would
you mind saying more about that?”

There are things managers cannot change. They can’t grant career moves or more pay
easily. But employees thinking about leaving can often be retained by other means. If
they feel genuinely valued and appreciated by their manager they will feel a stronger
sense of loyalty. By giving them more interesting work and learning opportunities, many
employees who might leave will stay around, at least a while longer.

The Secret of Employee Retention

To retain employees it is not enough to be a cheerleader, a nice person or a good role

model. Deep communication is the real secret of employee retention. Career satisfaction

10
is critically important to employees and they need someone who will listen supportively
to their hopes and concerns. This needs to be the manager, not someone in HR, because
the manager-employee relationship is critical to long term employee retention.

1.8 REDUCING EMPLOYEE TURNOVER

With today's baby boomer generation beginning to retire from the labor market, many
companies are finding it increasingly difficult to retain employees. Turnover is becoming
a serious problem in today's corporate environment. The employment culture is changing
as well. It is now relatively common to change jobs every few years, rather than grow
with one company throughout the employment life as was once commonplace. In
addition, employees are increasingly demanding a balance between work and family life.

Turnover costs for many organizations are very high and can significantly affect the
financial performance of an organization. Direct costs include recruitment, selection, and
training of new people. Much time and expense go into this process. Indirect costs
include such things as increased workloads and overtime expenses for coworkers, as well
as reduced productivity associated with low employee morale. Estimated costs vary from
organization to organization, some as low as a few hundred dollars to as high as four
times the annual salary of the employee.

It has been estimated that, on average, it costs a company one-third of a new hire's annual
salary to replace an employee .Therefore, at minimum wage, the cost to replace an
employee is estimated at $3,700.

There are many potential causes for turnover. Area economic conditions and labor market
conditions affect general turnover rates and can be very difficult to manage. However,
certain causes associated with turnover in any specific job or organization can be
managed. These include such things as non-competitive compensation, high stress,
working conditions, monotony, poor supervision, poor fit between the employee and the
job, inadequate training, poor communications, and organization practices.

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For a company to develop a retention strategy, several steps must be taken. First, they
must assess the current situation and measure the turnover rate in their company.
Turnover is calculated simply by dividing the number of annual terminations by the
average number of employees in the work force. The average employee turnover rate is
14.4 percent annually, according to the Bureau of National Affairs. How does your
company compare?

A company must also measure the cost of turnover, develop retention strategies, and plan
for some expected turnover and a changing workforce culture. Employers must recognize
that quality of work life is becoming more and more important to employees.

What initial steps can be taken to reduce turnover? First, hire the right people and
continue to develop their careers. Does your company have an ongoing career
development program, tuition reimbursement, or skills training program? An investment
in upgrading the workforce is one of the best investments a company can make when
looking at long-term growth. Hiring the people that are a good "fit" with the culture of the
organization—meaning that their values, principles, and goals clearly match those of the
company—and then training as necessary will go a long way toward ensuring employee
loyalty and retention.

Second, most companies with low turnover rates are very employee oriented. They
solicit input and involvement from all employees and maintain a true "open-door" policy
that avoids closed-door meetings. Employees are given an opportunity for advancement
and are not micro-managed. Intrinsic rewards are critical. Employees must believe they
have a voice and are recognized for their contribution. Remember that "trust" and
"loyalty" are a two-way street. Does your company's culture encourage open
communication and employee input?

Third, develop an overall strategic compensation package that includes not only base
and variable pay scales, but long-term incentive compensation, bonus and gain-sharing
plans, benefit plans to address the health and welfare issues of the employees, and non-
cash rewards and perks as well. To be competitive in today's labor market, most

12
companies find it necessary to offer a standard benefit package, including health, dental,
and life insurance, vacation and leave policies, and investment and retirement plans. But
what more could be done that would be cost effective toward creating an employee-
oriented work environment?

Creativity in compensation and benefits can make quite a difference to the welfare of the
employee. A company should assess overall employee needs when addressing retention
issues.

If employee welfare is a genuine concern, what about child care? How much employee
absenteeism is attributable to not having a dependable babysitter? Although the costs and
liabilities involved in providing onsite day care can be prohibitive, perhaps a company
could subsidize childcare in some manner. Sometimes, just negotiating rates for your
employees with area childcare providers could be very helpful. Maybe some kind of a
company match would be possible. Household chore assistance is another possibility that
is being used by some companies.

Consider other options—such as alternative work schedules or flextime, or perhaps

preventative health care and wellness programs such as fitness center memberships—as
possible cost-effective benefits. Don't forget that perks or non-cash rewards to recognize
exceptional performance can be critical. Service recognition, event tickets, trips, and
public recognition can send strong messages to the public regarding company culture and
values. Simply examine the issues and needs of your employees and try to develop
creative programs to address these needs.

Although many costs associated with these suggestions may seem prohibitive, as well
they may be, the company must evaluate the costs of current turnover, analyze the
reasons for the individual organization, and develop strategies that in the long term are
less costly than continued turnover. Some of these suggestions may not be so costly in
comparison. Just a word of caution: Be fair and consistent in establishing compensation.
Promote from within if possible. Attempt to avoid bringing new people on board at a
higher rate than current employees. Policies to prevent discussion of wages simply do not

13
work. Furthermore, such policies are in complete opposition of "open-door"
communications.

Although many companies use contract employees to address fluctuations in business,

working side by side with someone who is making twice the rate of pay without any
commitment or loyalty to the company can be a real morale killer. Avoid this if at all
possible!

If your company follows these steps and shows a genuine concern for the well being of
your employees, you may not have to pay the highest wages in town to have the lowest
employee turnover rate.

14
CHAPTER 2:

REVIEW OF

LITERATURE

15
2: REVIEW OF LITERATURE
Employee turnover is a much studied phenomenon. There is a vast literature on the
causes of voluntary employee turnover dating back to the 1950s. By developing
multivariate models that combine a number of factors contributing to turnover and
empirically testing the models researchers have sought to predict why individuals leave
organisations. Many studies are based on only a small number of variables which often
only explain a small amount of variability in turnover. Another criticism of turnover
studies is that they do not adequately capture the complex psychological processes
involved in individual turnover decisions. A recent study of turnover by Boxall et al
(2003) in New Zealand confirmed the view that motivation for job change is
multidimensional and that no one factor will explain it.
However, over time there have been a number of factors that appear to be
consistently linked to turnover. An early review article of studies on turnover by Mobley
et al (1979) revealed that age, tenure, overall satisfaction, job content, intentions to
remain on the job, and commitment were all negatively related to turnover (i.e. the higher
the variable, the lower the turnover). In 1995, a meta-analysis of some 800 turnover
studies was conducted by Hom and Griffeth, which was recently updated (Griffeth et al,
2000). Their analysis confirmed some well-established findings on the causes of
turnover. These include: job satisfaction, organisational commitment, comparison of
alternatives and intention to quit. These variables are examined in more detail below, as
are a number of other factors where the evidence on the link to turnover is less
conclusive.

Organisational commitment
Many studies have reported a significant association between organizational commitment
and turnover intentions (Lum et al, 1998). Tang et al’s (2000) study confirmed the link
between commitment and actual turnover and Griffeth et al’s (2000) analysis showed that
organisational commitment was a better predictor of turnover than overall job
satisfaction.

16
Job satisfaction
The relationship between satisfaction and turnover has been consistently found in many
turnover studies (Lum et al, 1998). Mobley et al 1979 indicated that overall job
satisfaction is negatively linked to turnover but explained little of the variability in
turnover. Griffeth et al (2000) found that overall job satisfaction modestly predicted
turnover. In a recent New Zealand study, Boxall et al (2003) found the main reason by far
for people leaving their employer was for more interesting work elsewhere. It is generally
accepted that the effect of job satisfaction on turnover is less than that of organisational
commitment.

Wages and conditions

The research conducted on the link between dissatisfaction with pay and voluntary
turnover appears to be inconclusive. Mobley et al (1979) concluded that results from
studies on the role of pay in turnover were mixed but that often there was no relationship
between pay and turnover. Other studies found no significant relationship.

Training and career development

Martin (2003) detected a complex relationship between turnover and training. He
suggested that establishments that enhance the skills of existing workers have lower
turnover rates. However, turnover is higher when workers are trained to be multiskilled,
which may imply that this type of training enhances the prospects of workers to find
work elsewhere. The literature on the link between lower turnover and training has found
that off-the-job training is associated with higher turnover presumably because this type
of training imparts more general skills (Martin, 2003).
Other factors contributing to turnover
Turnover studies have highlighted the relationship between turnover and a range of other
factors. Some of these findings are presented briefly below.

The role of ‘shocks’

17
Lee & Mitchell’s (1994) ‘unfolding model’ of employee turnover represented a
significant departure from the previous labour market- and psychological-oriented
turnover literature. This model is based on the premise that people leave organizations in
very different ways and it outlines four decision pathways describing different kinds of
decisions to quit. A notable feature of the unfolding model is its emphasis on an event or
‘shock’ (positive or negative) that prompts some decisions to quit.
Morrell et al (2004) tested the unfolding model by studying the voluntary turnover of
nurses in the UK. Their findings indicated that shocks play a role in many cases where
people decide to leave. Furthermore, they found that shocks not only prompted initial
thoughts about quitting but also typically had a substantial influence over the final
leaving decision. They also noted that decisions to quit prompted by a shock are typically
more avoidable. The authors suggest that their research illustrates the importance for
managers of understanding avoidability i.e. the extent to which turnover decisions can be
prevented.

Organisational size
Kirschenbaum & Mano-Negrin (1999) indicated that turnover is affected by
organisational size, with size being the key mediator of an organisation’s internal labour
market. They suggest that organisational size impacts on turnover primarily through wage
rates but also through career progression paths. Developed internal organisational labour
markets produce lower departure rates since promotion opportunities have a strong
negative influence on departures for career-related reasons.
Unionisation
Martin (2003) looked at the effect of unions on labour turnover and found clear evidence
that unionism is associated with lower turnover. He suggested that lower turnover is a
result of the ability of unions to secure better working conditions thus increasing the
attractiveness for workers of staying in their current job. According to Martin, the
relationship between lower turnover and unionisation has been well
established by researchers using both industry-level and individual data.

18
Influence of co-workers
A 2002 study by Kirschenbaum and Weisberg of 477 employees in 15 firms examined
employees’ job destination choices as part of the turnover process. One of their main
findings was that co-workers’ intentions have a major significant impact on all
destination options - the more positive the perception of their co-workers desire to leave,
the more employees themselves wanted to leave. The researchers suggest that a feeling
about co-workers’ intentions to change jobs or workplace acts as a form of social
pressure or justification on the employee to make a move.

Supervision/management
Mobley et al (1979) concluded that a number of studies offered moderate support for a
negative relationship between satisfaction with supervision and turnover (ie the higher
the satisfaction with supervision, the lower the turnover).

Behavioural predictors
Some research (Hulin cited in Griffeth et al, 2000) implies that lateness and absence can
be predictors of turnover because they represent withdrawal responses from the
organisation.

19
 CHAPTER 3:

BANK PROFILE

20
CHAPTER 3: BANK PROFILE

HDFC BANK

HDFC Bank Ltd.

Type Public (BSE: 500180, NYSE: HDB)

Banking
Industry Insurance
Capital Markets and allied industries

Founded 1994

Founder(s) Mr Deepak Parekh of HDFC

Headquarters Mumbai, India

Mr. Aditya Puri, Managing Director

Key people
Mr. Harish Engineer, Executive Director

Products Financial services[1]

Revenue ▲ Rs. 197.5 billion (2009)[2]

Net income ▲ Rs. 2.24 billion (2009)

Total assets ▲ Rs. 1.8 trillion (2009)

Employees 52,687 (2009)

Website www.hdfcbank.com

HDFC Bank Ltd. (BSE: 500180, NYSE: HDB) is a commercial bank of India, incorporated in
August 1994, after the Reserve Bank of India allowed establishing private sector banks. The
Bank was promoted by the Housing Development Finance Corporation, a premier housing
finance company (set up in 1977) of India. HDFC Bank has 1,412 branches and over 3,295

21
ATMs, in 528 cities in India, and all branches of the bank are linked on an online real-time basis.
As of September 30, 2008 the bank had total assets of INR 1006.82 billion.[3] For the fiscal year
2008-09, the bank has reported net profit of Rs.2,244.9 crore, up 41% from the previous fiscal.
Total annual earnings of the bank increased by 58% reaching at Rs.19,622.8 crore in 2008-09.[4]

History

HDFC Bank was incorporated in the year of 1994 by Housing Development Finance Corporation
Limited (HDFC), India's premier housing finance company. It was among the first companies to
receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the
private sector.The Bank commenced its operations as a Scheduled Commercial Bank in January
1995 with the help of RBI's liberalization policies.

In a milestone transaction in the Indian banking industry, Times Bank Limited (promoted by
Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank Ltd., in 2000. This was
the first merger of two private banks in India. As per the scheme of amalgamation approved by
the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank
received 1 share of HDFC Bank for every 5.75 shares of Times Bank.

In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more than
1,000. The amalgamated bank emerged with a strong deposit base of around Rs. 1,22,000 crore
and net advances of around Rs. 89,000 crore. The balance sheet size of the combined entity is
over Rs. 1,63,000 crore. The amalgamation added significant value to HDFC Bank in terms of
increased branch network, geographic reach, and customer base, and a bigger pool of skilled
manpower.

Business Focus

HDFC Bank deals with three key business segments - WholesaleBanking Services, Retail
Banking Services, Treasury. It has entered the bankingconsortia of over 50 corporates for
providing working capital finance, tradeservices, corporate finance and merchant banking. It is
also providingsophisticated product structures in areasof foreign exchange and derivatives,
money markets and debt trading and equityresearch.

Wholesale Banking Services

22
The Bank's target market ranges from large, blue-chip manufacturing companies in the Indian
corporate to small & mid-sized corporates and agri-based businesses. For these customers, the
Bank provides a wide range of commercial and transactional banking services, including
working capital finance, trade services, transactional services, cash management, etc. The bank is
also a leading provider of structured solutions, which combine cash management services with
vendor and distributor finance for facilitating superior supply chain management for its corporate
customers. HDFC Bank has made significant inroads into the banking consortia of a number of
leading Indian corporates including multinationals, companies from the domestic business
houses and prime public sector companies. It is recognised as a leading provider of cash
management and transactional banking solutions to corporate customers, mutual funds, stock
exchange members and banks.

Retail Banking Services

The objective of the Retail Bank is to provide its target market customers a full range of financial
products and banking services, giving the customer a one-stop window for all his/her banking
requirements. The products are backed by world-class service and delivered to customers
through the growing branch network, as well as through alternative delivery channels like
ATMs, Phone Banking, NetBanking and Mobile Banking.

HDFC Bank was the first bank in India to launch an International Debit Card in association with
VISA (VISA Electron) and issues the Mastercard Maestro debit card as well. The Bank launched
its credit card business in late 2001. By March 2009, the bank had a total card base (debit and
credit cards) of over 13 million. The Bank is also one of the leading players in the “merchant
acquiring” business with over 70,000 Point-of-sale (POS) terminals for debit / credit cards
acceptance at merchant establishments. The Bank is well positioned as a leader in various net
based B2C opportunities including a wide range of internet banking services for Fixed Deposits,
Loans, Bill Payments, etc.

Treasury

Within this business, the bank has three main product areas - Foreign Exchange and Derivatives,
Local Currency Money Market & Debt Securities, and Equities. These services are provided
through the bank's Treasury team. To comply with statutory reserve requirements, the bank is

23
required to hold 25% of its deposits in government securities. The Treasury business is
responsible for managing the returns and market risk on this investment portfolio.

Distribution Network

HDFC Bank is headquartered in Mumbai. The Bank has an network of 1,725 branches spread in
771 cities across India. All branches are linked on an online real-time basis. Customers in over
500 locations are also serviced through Telephone Banking. The Bank has a presence in all
major industrial and commercial centres across the country. Being a clearing/settlement bank to
various leading stock exchanges, the Bank has branches in the centres where the NSE/BSE have
a strong and active member base. The Bank also has 3,898 networked ATMs across these cities.
Moreover, HDFC Bank's ATM network can be accessed by all domestic and international
Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge
cardholders.

24
ICICI BANK

ICICI Bank

Private
Type
BSE & NSE:ICICI, NYSE: IBN

Banking
Industry Insurance
Capital Markets and allied industries

Founded 1955 (as Industrial Credit and Investment Corporation of India)

ICICI Bank Ltd.,

ICICI Bank Towers,
Headquarters
Bandra Kurla,
Mumbai, India

K.V. Kamath,Chairman
Chanda Kochhar, Managing Director & CEO
Sandeep Bakhshi, Deputy Managing Director
Key people
N.S. Kannan, Executive Director & CFO
K. Ramkumar, Executive Director
Sonjoy Chatterjee, Executive Director

Products Loans, Credit Cards, Savings, Investment vehicles, Insurance etc.

Revenue ▲ USD 15.06 billion

Total assets ▲ USD 120.61 billion (at March 31, 2009.)

Website www.icicibank.com

ICICI Bank (BSE: ICICI) (formerly Industrial Credit and Investment Corporation of India)
is India's largest private sector bank by market capitalisation and second largest overall in terms
of assets. total assets of Rs. 3,562.28 billion (US$ 77 billion) at December 31, 2009 and profit

25
after tax Rs. 30.19 billion (US$ 648.8 million) for the nine months ended December 31, 2009. [1]
The Bank also has a network of 1,640+ branches (as on February 11, 2010) and about 4,721
ATMs in India and presence in 18 countries, as well as some 24 million customers (at the end of
July 2007). ICICI Bank offers a wide range of banking products and financial services to
corporate and retail customers through a variety of delivery channels and specialised subsidiaries
and affiliates in the areas of investment banking, life and non-life insurance, venture capital and
asset management. (These data are dynamic.) ICICI Bank is also the largest issuer of credit cards
in India.[2]. ICICI Bank has got its equity shares listed on the stock exchanges at Kolkata and
Vadodara, Mumbai and the National Stock Exchange of India Limited, and its ADRs on the New
York Stock Exchange (NYSE). The Bank is expanding in overseas markets and has the largest
international balance sheet among Indian banks. ICICI Bank now has wholly-owned
subsidiaries, branches and representatives offices in 18 countries, including an offshore unit in
Mumbai. This includes wholly owned subsidiaries in Canada, Russia and the UK (the subsidiary
through which the HiSAVE savings brand[3] is operated), offshore banking units in Bahrain and
Singapore, an advisory branch in Dubai, branches in Belgium, Hong Kong and Sri Lanka, and
representative offices in Bangladesh, China, Malaysia, Indonesia, South Africa, Thailand, the
United Arab Emirates and USA. Overseas, the Bank is targeting the NRI (Non-Resident Indian)
population in particular.

ICICI reported a 1.15% rise in net profit to Rs. 1,014.21 crore on a 1.29% increase in total
income to Rs. 9,712.31 crore in Q2 September 2008 over Q2 September 2007. The bank's
current and savings account (CASA) ratio increased to 30% in 2008 from 25% in 2007.[4][5]

ICICI Bank is one of the Big Four Banks of India with State Bank of India, Axis Bank and
HDFC Bank.[6]

History

ICICI Bank HQ at BKC Mumbai

26
 This article is in a list format that may be better presented using prose. You can help by
converting this article to prose, if appropriate. Editing help is available. (June 2008)

History of ICICI

• 1955: The Industrial Credit and Investment Corporation of India Limited (ICICI) was
incorporated at the initiative of World Bank, the Government of India and representatives
of Indian industry, with the objective of creating a development financial institution for
providing medium-term and long-term project financing to Indian businesses.
• 1994: ICICI established Banking Corporation as a banking subsidiary.formerly Industrial
Credit and Investment Corporation of India. Later, ICICI Banking Corporation was
renamed as 'ICICI Bank Limited'. ICICI founded a separate legal entity, ICICI Bank, to
undertake normal banking operations - taking deposits, credit cards, car loans etc.
• 2001: ICICI acquired Bank of Madura (est. 1943). Bank of Madura was a Chettiar bank,
and had acquired Chettinad Mercantile Bank (est. 1933) and Illanji Bank (established
1904) in the 1960s.
• 2002: The Boards of Directors of ICICI and ICICI Bank approved the reverse merger of
ICICI, ICICI Personal Financial Services Limited and ICICI Capital Services Limited,
into ICICI Bank. After receiving all necessary regulatory approvals, ICICI integrated the
group's financing and banking operations, both wholesale and retail, into a single entity.
At the same time, ICICI started its international expansion by opening representative
offices in New York and London. In India, ICICI Bank bought the Shimla and Darjeeling
branches that Standard Chartered Bank had inherited when it acquired Grindlays Bank.
• 2003: ICICI opened subsidiaries in Canada and the United Kingdom (UK), and in the UK
it established an alliance with Lloyds TSB. It also opened an Offshore Banking Unit
(OBU) in Singapore and representative offices in Dubai and Shanghai.
• 2004: ICICI opened a representative office in Bangladesh to tap the extensive trade
between that country, India and South Africa.
• 2005: ICICI acquired Investitsionno-Kreditny Bank (IKB), a Russia bank with about
US$4mn in assets, head office in Balabanovo in the Kaluga region, and with a branch in
Moscow. ICICI renamed the bank ICICI Bank Eurasia. Also, ICICI established a branch
in Dubai International Financial Centre and in Hong Kong.
• 2006: ICICI Bank UK opened a branch in Antwerp, in Belgium. ICICI opened
representative offices in Bangkok, Jakarta, and Kuala Lumpur.
27
 • 2007: ICICI amalgamated Sangli Bank, which was headquartered in Sangli, in
Maharashtra State, and which had 158 branches in Maharashtra and another 31 in
Karnataka State. Sangli Bank had been founded in 1916 and was particularly strong in
rural areas. With respect to the international sphere, ICICI also received permission from
the government of Qatar to open a branch in Doha. Also, ICICI Bank Eurasia opened a
second branch, this time in St. Petersburg.
• 2008: The US Federal Reserve permitted ICICI to convert its representative office in
New York into a branch. ICICI also established a branch in Frankfurt.

Controversy

ICICI Bank has been in focus in recent years because of alleged harassment of customers by its
recovery agents. Listed below are some of the related news links:

• Farmers vent ire on bank after suicide. ICICI Bank officials used goondas to seize the
tractor [7]
• ICICI Bank was fined Rs. 55 lakh for hiring goons (known coloquially as "goondas") to
recover a loan. Recovery agents had ,allegedly, forcibly dragged out a youth (who was
not even the borrower) from the car, beaten him up with iron rods and left him bleeding
as they drove away with the vehicle. "We hold ICICI Bank guilty of the grossest kind of
deficiency in service and unfair trade practice for breach of terms of contract of hire-
purchase/loan agreement by seizing the vehicle illegally,""No civilised society governed
by the rule of law can brook such kind of conduct" said Justice J D Kapoor, president of
the consumer commission.[8][9][10][11] [12][13][14][15]
• Four ICICI loan employees arrested on theft charges in Punjab [16]
• ICICI Bank told to pay Rs. 1 lakh as compensation for using unlawful recovery methods.
[17]

• RBI warns ICICI Bank for coercive methods to recover loans[18][19]

• ICICI Bank drives customer to suicide - Four men including an employee of ICICI Bank
[20]
booked under sections 452, 306, 506 (II) and 34 of IPC for abetting suicide .
According to the suicide note they advised him, "If you cannot repay the bank loan, sell
off your wife, your kids, yourself, sell everything at your home. Even then if you cannot
not pay back the due amount, then it's better if you commit suicide."[21] India biggest
private bank has compensated the life by money [22]
28
• ICICI Bank on huge car recovery scam in Goa - ICICI Bank invest in car-jackers to
recover loans in Goa. A half an hour investigative report on CNN-IBN's 30 Minutes. The
under cover report was executed by CNN-IBN's Special Investigations Team from
Mumbai, led by Ruksh Chatterji [23] [24]
• Family of Y. Yadaiah alleged that he was beaten to death by ICICI Bank’s recovery
agents, for failing to pay the dues. Four persons were arrested in this case. [25]
• A father while talking to Times of India, alleged that "ICICI Bank recovery agents visited
his house and threatened his family. And his son Nikhil consumed poison because of the
tension". [26]
• Oppressed by ICICI Bank's loan recovery agents, Shakuntala Joshi (38), committed
suicide by hanging. The suicide note stated that she was upset with the ill-treatment
meted out by ICICI Bank's recovery agents and had thus decided to end her life. [27]
• In another case of a suicide it is alleged that ‘goondas’ sent by ICICI Bank abused
Himanshu and his wife in front of the entire residential colony before taking away his
vehicle. Feeling frustrated and insulted, he reportedly committed suicide. [28]
• C.L.N Murthy, a scientist with the Hyderabad-based Indian Institute of Chemical
Technology, was allegedly tortured by recovery agents of ICICI Bank after he defaulted
on his loan.“They humiliated me no end. They ripped my shirt, shaved my moustache,
cut my hair and gave electric shocks on my chest and even spat on my face" adds
Murthy. [29]
• A dozen recovery agents of ICICI Bank, riding on bikes, allegedly forced a prominent
lawyer, Someshwari Prasad, to stop his car. They held Prasad at gunpoint and also
slapped him to force him. A manager of the ICICI Bank branch, Rakesh Mehta, along
with four other employees were arrested. [30]
• A recovery agent allegedly working for ICICI Bank was injured in an exchange of
gunfire with Lucknow police. Police said that miscreants opened fire at the police, who
returned the fire. The agent, along with three others, was trying to escape after allegedly
stealing cash and a cheque from the defaulter. [31]
• In a landmark case, Allahabad High Court had ordered registration of an FIR against
ICICI Bank's branch manager, President, Chairman and Managing Director on a
complaint of 75-year-old widow Prakash Kaur. She had complained that “goondas” were
sent by the bank to harass her and forcibly took away her truck.[32] [33] When the Supreme
Court wanted to know about the procedure adopted by the Bank, ICICI Bank counsel said

29
 notice would be sent to a defaulter asking him either to pay the instalments or hand over
the vehicle purchased on loan, failing which the agents would be asked to seize it. When
the Bench pointed out that recovery or seizure could be done only legally, ICICI Bank
counsel said, "If we have to go through the legal process it would be difficult to recover
the instalments as there are millions of defaulters". [34]
• Taking strong exception to ICICI Bank's use of 'goondas' against a defaulter, the
president of Consumer Disputes Redressal Forum said, "The fact leaves us aghast at the
manner of functioning and goondaism in which the bank is involved for a petty amount
of Rs 1,889... such attitude is deplorable and sends chills down the spine....The bank had
the option to recover dues through legal means. They have no legal right to snatch the
vehicle in such a manner which amounts to robbery,". In this case recovery agents
pointed a pistol at a defaulter when he tried to resist. ICICI bank argued that they had
taken peaceful possession of the vehicle "after due intimation to the complainant as he
was irregular in remitting the monthly instalments". But the court found out that the
records proved otherwise.[35]
• Two senior ICICI Bank officials were booked for abducting one Vikas Porwal from his
house and keeping him hostage in the Bank's premises.[36] [37]
• The credit card division of the ICICI Bank allegedly threatened a senior citizen in
Chandigarh with a fictitious arrest warrant on account of a default that never was. [38]
• A Consumer Commission has asked ICICI Bank MD K V Kamath to appear before it in
respect a complaint. A borrower on protesting against the forceful dispossession of his
car, as seen in the post-incident photographs, was roughed up and sustained injuries. [39]
• An 18-year-old boy was allegedly kidnapped and detained at the Pune branch of ICICI
Bank.[40]
[41]
• There have been several other minor legal cases accusing harassment by ICICI Bank
[42] [43] [44][45][46]

• A consumer court imposed a joint penalty of Rs. 25 lakh on ICICI Bank and American
Express Bank for making unsolicited calls.[47]

30
31
 CHAPTER 4:
OBJECTIVES OF THE
STUDY

32
CHAPTER 4: OBJECTIVES OF THE STUDY

 Compare the labour turnover level of the private Banks.

 To analysis the assessment of congeniality of environment and challenging job regarding

labour turnover.

 To analysis the autonomy and role of reality and conflict to analyse labour turnover.

 To study the growth opportunity and job security in private banks working environment
for labour turnover.

 To study the work-life balance, wages and commitment of the employees regarding
labour turnover.

 To suggest the banks to decrease the labour turnover level of the employees.

33
 CHAPTER 5:
RESEARCH
METHODOLOGY

34
CHAPTER 5: RESEARCH METHODOLOGY
Meaning of Research: -
Research in common parlance refers to a search for knowledge. And according to
Redman and Mory “systematized effort to gain new knowledge.” And some people consider
research as movement, a movement from known to the unknown. Thus Research is an original
contribution to the existing stock of knowledge making for its advancement. It is the pursuit of
truth with the help of study, Observation, comparison and experiment. In short, the search for
knowledge through objective and systematic method of finding solution to a problem is research.

Objectives of Research
The purpose of research is to discover answers to questions through the
application of scientific procedures. The main aim of research is to find out the truth which is
hidden and which has not been discovered as yet. Research objectives as falling into a number of
following broad groupings:
1. To gain familiarity with a phenomenon or to achieve new insights into it (studies with
this object in view are termed as exploratory or formulative research studies).
2. To portray accurately the characteristics of a particular individual, situation or a group
(studies with this object in view are known as descriptive research studies).
3. To determine the frequency with which something occurs or with which it is associated
with something else ( studies with this object in view are known as diagnostic research
studies)

Type of Research
The Research will Descriptive Research which is fact finding in nature.

Descriptive Research
Descriptive research includes survey and fact-finding enquiries of different kinds.
The major purpose of descriptive research is description of the state of affairs, as it exists at
present.
Basis of study
The study will be based on both primary and secondary data.

Primary Data

35
 Interview with employees of the banks and the information will be collected from the
employees with the help of a structured questionnaire.

Secondary Data
Secondary data will be magazines, articles, journals, newspapers, books and bank documents
related to labour turnover.

SAMPLING DESIGN

Research Design is the conceptual structure within which research is conducted. It

constitutes the blueprint for collection, measurement and analysis of data. The design

used for carrying out this research will be Exploratory and Diagnostic.

 SAMPLING UNIT
Employees (HDFC Bank and ICICI Bank)

 SAMPLE SIZE
100 employees each from HDFC Bank and ICICI Bank

 SAMPLING TECHNIQUE
In this study, the respondents will be chosen through convenience sampling.

STATISTICAL TOOL
Data collection through survey was analyzed with the help of simple % Tabular & graphic
method that includes both graphs & Pie Charts.
LIMITATIONS
This study too will be subject to certain limitations, just like any other study would be.
The limitations are mentioned below, so that the findings of the present study can be perceived in
their correct perspective:-

36
1. Due to time constraint and lack of resources, the research will be concentrated to
Chandigarh branches of HDFC Bank and ICICI Bank.
2. The selection of respondents will be based on the convenience; it might not be true
representative of entire universe.
3. Although almost care will be been taken to get accurate results, yet because of the
risk of ambiguities and misinterpretation on the part of the responds, some element of
inaccuracy might have crept in.
4. Since a small size will be taken, the possibility of sampling errors couldn’t be ruled
out in research study.
5. Not all the respondents will be always forthcoming with their view on certain
questions.

37
CHAPTER 6: ANALYSIS

38
CHAPTER 6: ANALYSIS
1. What according to you are the types of employee turnover?
HDFC ICICI
Functional Turnover 49 47
Dysfunctional Turnover 31 30
Avoidable Turnover 69 67
Unavoidable Turnover 52 50

140

120
67
100

80 47 50

60
30
40 69
49 52
20 31
0
Functional Dysfunctional Avoidable Unavoidable
Turnover Turnover Turnover Turnover

HDFC ICICI

Interpretation: According to the 100 employees of HDFC Bank 49 of them say that
functional turnover is one of the types of employee turn over, 31 of them suggested
dysfunctional turnover, 69 of them suggested avoidable turnover and rest 52 of them
suggested unavoidable turnover is one of the type of employee turn over.
According to the 100 employees of ICICI Bank 47 of them say that functional turnover is
one of the types of employee turn over, 30 of them suggested dysfunctional turnover, 67 of
them suggested avoidable turnover and rest 50 of them suggested unavoidable turnover is
one of the type of employee turn over.

39
 2. What are the various reasons for employee turnover?
HDFC ICICI
Management demands that one person do the jobs of two or more people 44 41
Management doesn't allow the rank and file to make decisions about their work 39 37
Management constantly reorganizes, shuffles people around and changes direction
constantly 33 31
Management doesn't take the time to clarify their decisions 57 55
Management promotes departments to compete against each other 29 25
Management throws a temper tantrum, points fingers and assigns blame 51 50

120
100
55
80 50
41
60 37
31
25
40
57 51
44 39
20 33 29
0
M anagement M anagement M anagement M anagement M anagement M anagement
demands that one
doesn't allow the constantly doesn't take the promotes throws a temper
person do the rank and file to reorganizes, time to clarify departments to tantrum, points
jobs of two or make decisions shuffles people their decisionscompete against fingers and
more people about their work around and each other assigns blame
changes direction
constantly

HDFC ICICI

Interpretation: According to the 100 employees of HDFC Bank 44 of them say management
demands that one person do the jobs of two or more people is one of the various reasons of
employee turn over, 39 of them say management doesn’t allow the rank and file to make decisions
about their work is one of the various reasons of employee turn over, 33 of them say management
constantly reorganizes is one of the various reasons of employee turn over, shuffle people around
and change direction constantly is one of the various reasons of employee turn over, 57 of them
say management doesn’t take the time to clarify their decisions is one of the various reasons of
employee turn over, 29 of them say management promotes departments to compete against each
other is one of the various reasons of employee turn over, and rest 51of them say management
throws a temper tantrum, points fingers and assigns blame is one of the various reasons of
employee turn over.
According to the 100 employees of ICICI Bank 41 of them say management demands
that one person do the jobs of two or more people is one of the various reasons of employee turn
over, 37 of them say management doesn’t allow the rank and file to make decisions about their
work is one of the various reasons of employee turn over, 31 of them say management constantly
reorganizes is one of the various reasons of employee turn over, shuffle people around and change
direction constantly is one of the various reasons of employee turn over, 55 of them say
management doesn’t take the time to clarify their decisions is one of the various reasons of
employee turn over, 25 of them say management promotes departments to compete against each
other is one of the various reasons of employee turn over, and rest 50 of them say management
throws a temper tantrum, points fingers and assigns blame is one of the various reasons of
employee turn over.

40
3. In an organization, a little rate of employee turnover may result into?
HDFC ICICI
Bringing in new ideas and skills from new hires 37 35
Better employee-job matches 29 27
More staffing flexibility 46 45
Facilitate change and innovation 53 51

120

100

80 51
45
60 35
27
40
46 53
20 37 29
0
Bringing in new Better More staffing Facilitate
ideas and skills employee-job flexibility change and
from new hires matches innovation

HDFC ICICI

Interpretation: According to the 100 employees of HDFC Bank from which 37 of them say a
little rate of employee turnover may result into bringing in new ideas and skills from new hires,
29 of them say a little rate of employee turnover may result into a little rate of employee turnover
may result into better employee job matches, 46 of them say a little rate of employee turnover
may result into more staffing flexibility and rest 53 of them say a little rate of employee turnover
may result into facilities change and innovation.
According to the 100 employees of ICICI Bank from which 35 of them say a little rate of
employee turnover may result into bringing in new ideas and skills from new hires, 27 of them
say a little rate of employee turnover may result into a little rate of employee turnover may result
into better employee job matches, 45 of them say a little rate of employee turnover may result
into more staffing flexibility and rest 51 of them say a little rate of employee turnover may result
into facilities change and innovation.

41
4. High rate of turnover may lead to decrease in?

HDFC ICICI

Productivity 43 41

Service Delivery 51 50

Spread of Organizational Knowledge 57 55

120
100
55
80 50
41
60
40 57
43 51
20
0
Productivity Service Delivery Spread of
Organizational
Knowledge

HDFC ICICI

Interpretation: According to the 100 employees of HDFC Bank from which 43 of them say
turnover may lead to decrease in productivity, 51 of them say turnover may lead to decrease in
service delivery and rest 57 of them say turnover may lead to decrease in spread of
organizational knowledge.
According to the 100 employees of ICICI Bank from which 41 of them say turnover may
lead to decrease in productivity, 50 of them say turnover may lead to decrease in service delivery
and rest 55 of them say turnover may lead to decrease in spread of organizational knowledge.

42
5. What according to you are the causes of employee turnover?
HDFC ICICI
Compensation package differences 37 35
Job and employee skill mismatch 41 40
Inferior facilities, tools. etc 39 37
Less recognition 27 25
Less or no appreciation for work done 43 41
Less growth opportunities 51 50
Poor training 22 20
Poor Supervision 37 35

120

100

80 50
40 41
60 35 37 35

40 25
20
43 51
20 37 41 39 37
27 22
0
Compensation Inferior Less or no Poor training
package facilities, tools. appreciation
differences etc for work done

HDFC ICICI

Interpretation: According to the 100 employees of HDFC Bank from which 37 of them say
from Compensation package differences is one the causes of employee turnover, 41 of them say
Job and employee skill mismatch is one the causes of employee turnover, 39 of them say from
Inferior facilities, tools. etc is one the causes of employee turnover, 27 of them say from Less
recognition is one the causes of employee turnover, 43 of them say from Less or no appreciation
for work done is one the causes of employee turnover, 51 of them say from Less growth
opportunities is one the causes of employee turnover, 22 of them say from Poor training is one
the causes of employee turnover, and rest 37of them say from Poor Supervision is one the causes
of employee turnover.
According to the 100 employees of ICICI Bank from which 35 of them say from
Compensation package differences is one the causes of employee turnover, 40 of them say Job
and employee skill mismatch is one the causes of employee turnover, 37 of them say from
Inferior facilities, tools. etc is one the causes of employee turnover, 25 of them say from Less
recognition is one the causes of employee turnover, 41 of them say from Less or no appreciation
for work done is one the causes of employee turnover, 5 of them say from Less growth
opportunities is one the causes of employee turnover, 20 of them say from Poor training is one
the causes of employee turnover, and rest 35 of them say from Poor Supervision is one the
causes of employee turnover.

43
6. What according to you are the few ideas that a smart company use to keep their
employee turnover rate low.
HDFC ICICI
Pay them well 44 41
Treat each employee with respect regardless of their job 31 30
Offer good health care plans 39 35
Offer flexible hours and generous vacation plans 27 25
Offer a bonus plan to safe and efficient workers 59 55
Begin a profit sharing plan 51 50

120
100
55
80 50
41
60 35
30
40 25
59 51
44 39
20 31 27
0
Pay themwell Treat each Offer good Offer flexible Offer a bonus Begin a profit
employee with health care plans hours and plan to safe and sharing plan
respect generous efficient
regardless of vacation plans workers
their job

HDFC ICICI

Interpretation: According to the 100 employees of HDFC Bank from which 44 of them say pay
them well is one the ideas that a smart company use to keep their employee turnover rate low, 31
of them say Treat them well is one the ideas that a smart company use to keep their employee
turnover rate low, 39 of them say offer good health care plans is one the ideas that a smart
company use to keep their employee turnover rate low, 27of them say offer flexible hours and
generous vacation plans is one the ideas that a smart company use to keep their employee
turnover rate low, 59 of them say they offer a bonus plan to safe and efficient workers is one the
ideas that a smart company use to keep their employee turnover rate low and rest 51 of them say
begin a profit sharing plan is one the ideas that a smart company use to keep their employee
turnover rate low .
According to the 100 employees of ICICI Bank from which 41 of them say pay
them well is one the ideas that a smart company use to keep their employee turnover rate low, 30
of them say Treat them well is one the ideas that a smart company use to keep their employee
turnover rate low, 35 of them say offer good health care plans is one the ideas that a smart
company use to keep their employee turnover rate low, 25 of them say offer flexible hours and
generous vacation plans is one the ideas that a smart company use to keep their employee
turnover rate low, 55 of them say they offer a bonus plan to safe and efficient workers is one the
ideas that a smart company use to keep their employee turnover rate low and rest 50 of them say
begin a profit sharing plan is one the ideas that a smart company use to keep their employee
turnover rate low .

44
7. How you calculate the turnover costs of the organization?

HDFC ICICI
Very High 21 19
High 19 21
Low 37 35
Very Low 23 25

80
70
60 35
50
40 25
19 21
30
20 37
21 19 23
10
0
Very High High Low Very Low

HDFC ICICI

Interpretation: According to the 100 employees of HDFC Bank from which 21 of them say that
turnover costs of the organization is very high, 19 of them say that the turnover costs of the
organization is high, 37 of them say that the turnover costs of the organization is low and rest 23
of them say that the turnover costs of the organization is very low.
According to the 100 employees of ICICI Bank from which 19 of them say that turnover
costs of the organization is very high, 21 of them say that the turnover costs of the organization
is high, 35 of them say that the turnover costs of the organization is low and rest 25 of them say
that the turnover costs of the organization is very low.

45
8. In the case of high employee turnover what are the major direct cost include for an
organization?
HDFC ICICI
Recruitment 41 30
Selection 37 39

Training of new people 22 21

90
80
70
40
60 39
50
40 21
30
41 37
20 22
10
0
Recruitment Selection Training of new
people

HDFC ICICI

Interpretation: According to the 100 employees of HDFC Bank from which 41 of them say that
recruitment is the major direct cost for an organization, 37 of them say that selection is the major
direct cost for an organization, and rest 22 of them say that training of new people are the major
direct cost for an organization.
According to the 100 employees of ICICI Bank from which 40 of them say that
recruitment is the major direct cost for an organization, 39 of them say that selection is the major
direct cost for an organization, and rest 21 of them say that training of new people are the major
direct cost for an organization.

46
9. In the case of high employee turnover what are the major indirect cost include for an
organization?
HDFC ICICI
Increased Workloads 43 41
Increased overtime expenses for coworkers 31 30
Reduced productivity associated with low employee morale 26 29

90
80
70 41
60
50 30
29
40
30 43
20 31 26
10
0
Increased Workloads Increased overtime Reduced productivity
expenses for associated w ith low
cow orkers employee morale

HDFC ICICI

Interpretation: According to the 100 employees of HDFC Bank from which 40 of them
suggested that in the case of high employee turnover the major indirect cost include for an
organization is increased workloads, 31 of them suggested increased overtime expenses for
coworkers and rest 26 of them suggested reduced productivity associated with low employee
morale.
According to the 100 employees of ICICI Bank from which 41 of them suggested that in
the case of high employee turnover the major indirect cost include for an organization is
increased workloads, 31 of them suggested increased overtime expenses for coworkers and rest
26 of them suggested reduced productivity associated with low employee morale.

47
10. What are the certain causes associated with turnover in any specific job or
organization?
HDFC ICICI
Non- competitive compensation 33 31
High stress 47 45
Working conditions 25 21
Monotony 29 27
Poor Supervision 21 20
Poor fit between the employee and the job 37 35
Inadequate training 24 21
Poor communications 35 33
Organization Practice 22 21

100
90
80
70 45

60
35 33
50 31
27
40 21 21 21
20
30
47
20 33 37 35
25 29 24
21 22
10
0
Non- High stress Working Monotony P oor P oor fit between Inadequate P oor Organization
competitive conditions Supervision the employee training communications P ractice
compensation and the job

HDFC ICICI

Interpretation: According to the 100 employees of HDFC Bank from which 33 of them say
non-competitive compensation is one the causes to associated with the turn over in any
job/organization, 47of them say High stress is one the causes to associated with the turn over in
any job/organization, 25 of them say Working conditions is one the causes to associated with the
turn over in any job/organization, 29of them say Monotony is one the causes to associated with
the turn over in any job/organization, 21 of them say Poor Supervision is one the causes to
associated with the turn over in any job/organization, 37 of them say Poor fit between the
employee and the job is one the causes to associated with the turn over in any job/organization,
24 of them say Organization Practice is one the causes to associated with the turn over in any
job/organization, 35 of them say Poor communications is one the causes to associated with the
turn over in any job/organization, and rest 22 of them say Inadequate training is one the causes to
associated with the turn over in any job/organization.
48
 According to the 100 employees of ICICI Bank from which 31 of them say non-
competitive compensation is one the causes to associated with the turn over in any
job/organization, 45of them say High stress is one the causes to associated with the turn over in
any job/organization, 21 of them say Working conditions is one the causes to associated with the
turn over in any job/organization, 25 of them say Monotony is one the causes to associated with
the turn over in any job/organization, 20 of them say Poor Supervision is one the causes to
associated with the turn over in any job/organization, 35 of them say Poor fit between the
employee and the job is one the causes to associated with the turn over in any job/organization,
21 of them say Organization Practice is one the causes to associated with the turn over in any
job/organization, 33 of them say Poor communications is one the causes to associated with the
turn over in any job/organization, and rest 21 of them say Inadequate training is one the causes to
associated with the turn over in any job/organization.

49
11. What steps should have to be taken by the company to check employee turnover time to
time?
HDFC ICICI
Measure the cost of turnover 47 45
Develop retention strategies 59 57
Plan for some expected turnover 39 37
Plan for a changing workforce culture 31 30
Recognize quality of work life 2 2

120
100
57
80
45
60 37
30
40 59
47 39
20 31
2
0
Measure the Develop Plan for Plan for a Recognize
cost of retention some changing quality of
turnover strategies expected workforce work life
turnover culture

HDFC ICICI

Interpretation: According to the 100 employees of HDFC Bank from which 47 of them say
measure the cost of turnover is one the steps taken by the company to check employee turnover
time to time, 59 of them say develop retention strategies is one the steps taken by the company to
check employee turnover time to time, 39 of them say plan for some expected turnover is one the
steps taken by the company to check employee turnover time to time, 31 of them say plan for a
changing workforce culture is one the steps taken by the company to check employee turnover
time to time and rest 2 of them say recognize quality of work life is one the steps taken by the
company to check employee turnover time to time.
According to the 100 employees of ICICI Bank from which 45 of them say measure the
cost of turnover is one the steps taken by the company to check employee turnover time to time,
57 of them say develop retention strategies is one the steps taken by the company to check
employee turnover time to time, 37 of them say plan for some expected turnover is one the steps
taken by the company to check employee turnover time to time, 30 of them say plan for a
changing workforce culture is one the steps taken by the company to check employee turnover
time to time and rest 2 of them say recognize quality of work life is one the steps taken by the
company to check employee turnover time to time.

50
12. What initial steps can be taken to reduce turnover?

HDFC ICICI

Hire the right people and continue to develop their careers 57 55

Most companies with low turnover rates are very employee oriented 39 37

Development an overall strategies compensation package 43 41

120

100
55
80
41
37
60

40 57
39 43
20

0
Hire the right people and Most companies w ith Development an overall
continue to develop their low turnover rates are strategies compensation
careers very employee oriented package

HDFC ICICI

Interpretation: According to the 100 employees of HDFC Bank from which 57 of them say hire
the right people and continue to develop their careers is one of the initial steps taken to reduce
turnover, 39 of them say most companies with low turnover rates are very employee oriented is
one of the initial steps taken to reduce turnover and rest 43 of them say development an overall
strategies compensation package is one of the initial steps taken to reduce turnover.
According to the 100 employees of ICICI Bank from which 55 of them say hire the right
people and continue to develop their careers is one of the initial steps taken to reduce turnover,
37 of them say most companies with low turnover rates are very employee oriented is one of the
initial steps taken to reduce turnover and rest 41 of them say development an overall strategies
compensation package is one of the initial steps taken to reduce turnover.

51
13. What are the various ways to reduce employee turnover?

HDFC ICICI

Challenge the Employee 45 43

Recognize Employee Success 51 50

Create a Career Path 39 37

Offer Competitive pay and Benefits 55 53

120

100

53
80 50
43
60 37

40
51 55
45 39
20

0
Challenge the Recognize Employee Create a Career Offer Competitive
Employee Success Path pay and Benefits

HDFC ICICI

Interpretation: According to the 100 employees of HDFC Bank from which 45 of them
suggested to challenge the employee, 51 of them suggested to recognize employee success, 39 of
them suggested to create a career path, and rest 55 of them suggested to offer competitive pay
and benefits.
According to the 100 employees of ICICI Bank from which 43 of them suggested to
challenge the employee, 50 of them suggested to recognize employee success, 37 of them
suggested to create a career path, and rest 53 of them suggested to offer competitive pay and
benefits.

52
 14. What suggestions should be given to the organization in order to avoid employee
turnover?
HDFC ICICI
Be fair and consistent in establishing compensation 57 55
Promote from within if possible 43 41
Attempt to avoid bringing new people on board at a higher rate than current employees 39 37
Policies to prevent discussion of wages simply do not work 33 31

120

100
55
80
41
60 37
31
40
57
43 39
20 33

0
B e fair and consistent in Promote from within if Attempt to avoid bringing Policies to prevent
establishing compensation possible new people on board at adiscussion of wages simply
higher rate than current do not work
employees

HDFC ICICI

Interpretation: According to the 100 employees of HDFC Bank from which 57 of them
suggested to be fair and consistent in establishing compensation, 43 of them suggested to
promote from within possible, 39 of them suggested to avoid bringing new people on board at a
higher rate than current employees, and rest 33 of them suggested policies to prevent discussion
of wages simply do not work are the various suggestions given to the organization in order to
avoid employee turnover.
According to the 100 employees of ICICI Bank from which 55 of them suggested to be
fair and consistent in establishing compensation, 41 of them suggested to promote from within
possible, 37 of them suggested to avoid bringing new people on board at a higher rate than
current employees, and rest 31 of them suggested policies to prevent discussion of wages simply
do not work are the various suggestions given to the organization in order to avoid employee
turnover.

53
CHAPTER 7:
LIMITATIONS

54
CHAPTER 7: LIMITATIONS
This study too is subject to certain limitations, just like any other study would be.
The limitations are mentioned below, so that the findings of the present study can be
perceived in their correct perspective:-

6. Due to time constraint and lack of resources, the research was concentrated to
Chandigarh branches of HDFC and ICICI Banks.
7. The selection of respondents was based on the convenience; it might not be
true representative of entire universe.
8. Although almost care has been taken to get accurate results, yet because of the
risk of ambiguities and misinterpretation on the part of the responds, some
element of inaccuracy might have crept in.
9. Since a small size was taken, the possibility of sampling errors couldn’t be
ruled out in research study.
10. Not all the respondents were always forthcoming with their view on certain
questions.
11. The respondents might not have responded truly, as they may not want to
disclose the exact information.

55
CHAPTER 8: SUMMARY
& FINDINGS

56
CHAPTER 8: SUMMARY & FINDINGS
• According to the 100 employees of HDFC Bank 49 of them say that functional turnover
is one of the types of employee turn over, 31 of them suggested dysfunctional turnover,
69 of them suggested avoidable turnover and rest 52 of them suggested unavoidable
turnover is one of the type of employee turn over.
• According to the 100 employees of ICICI Bank 47 of them say that functional
turnover is one of the types of employee turn over, 30 of them suggested dysfunctional
turnover, 67 of them suggested avoidable turnover and rest 50 of them suggested
unavoidable turnover is one of the type of employee turn over.
• According to the 100 employees of HDFC Bank 44 of them say management demands
that one person do the jobs of two or more people is one of the various reasons of employee
turn over, 39 of them say management doesn’t allow the rank and file to make decisions about
their work is one of the various reasons of employee turn over, 33 of them say management
constantly reorganizes is one of the various reasons of employee turn over, shuffle people
around and change direction constantly is one of the various reasons of employee turn over, 57
of them say management doesn’t take the time to clarify their decisions is one of the various
reasons of employee turn over, 29 of them say management promotes departments to compete
against each other is one of the various reasons of employee turn over, and rest 51of them say
management throws a temper tantrum, points fingers and assigns blame is one of the various
reasons of employee turn over.
• According to the 100 employees of ICICI Bank 41 of them say management
demands that one person do the jobs of two or more people is one of the various reasons of
employee turn over, 37 of them say management doesn’t allow the rank and file to make
decisions about their work is one of the various reasons of employee turn over, 31 of them say
management constantly reorganizes is one of the various reasons of employee turn over,
shuffle people around and change direction constantly is one of the various reasons of
employee turn over, 55 of them say management doesn’t take the time to clarify their decisions
is one of the various reasons of employee turn over, 25 of them say management promotes
departments to compete against each other is one of the various reasons of employee turn over,
and rest 50 of them say management throws a temper tantrum, points fingers and assigns blame
is one of the various reasons of employee turn over.

57
• According to the 100 employees of HDFC Bank from which 37 of them say a little rate
of employee turnover may result into bringing in new ideas and skills from new hires, 29
of them say a little rate of employee turnover may result into a little rate of employee
turnover may result into better employee job matches, 46 of them say a little rate of
employee turnover may result into more staffing flexibility and rest 53 of them say a little
rate of employee turnover may result into facilities change and innovation.
• According to the 100 employees of ICICI Bank from which 35 of them say a little
rate of employee turnover may result into bringing in new ideas and skills from new
hires, 27 of them say a little rate of employee turnover may result into a little rate of
employee turnover may result into better employee job matches, 45 of them say a little
rate of employee turnover may result into more staffing flexibility and rest 51 of them say
a little rate of employee turnover may result into facilities change and innovation.
• According to the 100 employees of HDFC Bank from which 43 of them say turnover
may lead to decrease in productivity, 51 of them say turnover may lead to decrease in
service delivery and rest 57 of them say turnover may lead to decrease in spread of
organizational knowledge.
• According to the 100 employees of ICICI Bank from which 41 of them say
turnover may lead to decrease in productivity, 50 of them say turnover may lead to
decrease in service delivery and rest 55 of them say turnover may lead to decrease in
spread of organizational knowledge.
• According to the 100 employees of HDFC Bank from which 37 of them say from
Compensation package differences is one the causes of employee turnover, 41 of them
say Job and employee skill mismatch is one the causes of employee turnover, 39 of them
say from Inferior facilities, tools. etc is one the causes of employee turnover, 27 of them
say from Less recognition is one the causes of employee turnover, 43 of them say from
Less or no appreciation for work done is one the causes of employee turnover, 51 of them
say from Less growth opportunities is one the causes of employee turnover, 22 of them
say from Poor training is one the causes of employee turnover, and rest 37of them say
from Poor Supervision is one the causes of employee turnover.
• According to the 100 employees of ICICI Bank from which 35 of them say from
Compensation package differences is one the causes of employee turnover, 40 of them
say Job and employee skill mismatch is one the causes of employee turnover, 37 of them
say from Inferior facilities, tools. etc is one the causes of employee turnover, 25 of them
58
 say from Less recognition is one the causes of employee turnover, 41 of them say from
Less or no appreciation for work done is one the causes of employee turnover, 5 of them
say from Less growth opportunities is one the causes of employee turnover, 20 of them
say from Poor training is one the causes of employee turnover, and rest 35 of them say
from Poor Supervision is one the causes of employee turnover.
• According to the 100 employees of HDFC Bank from which 44 of them say pay them
well is one the ideas that a smart company use to keep their employee turnover rate low,
31 of them say Treat them well is one the ideas that a smart company use to keep their
employee turnover rate low, 39 of them say offer good health care plans is one the ideas
that a smart company use to keep their employee turnover rate low, 27of them say offer
flexible hours and generous vacation plans is one the ideas that a smart company use to
keep their employee turnover rate low, 59 of them say they offer a bonus plan to safe and
efficient workers is one the ideas that a smart company use to keep their employee
turnover rate low and rest 51 of them say begin a profit sharing plan is one the ideas that
a smart company use to keep their employee turnover rate low .
• According to the 100 employees of ICICI Bank from which 41 of them say pay
them well is one the ideas that a smart company use to keep their employee turnover rate
low, 30 of them say Treat them well is one the ideas that a smart company use to keep
their employee turnover rate low, 35 of them say offer good health care plans is one the
ideas that a smart company use to keep their employee turnover rate low, 25 of them say
offer flexible hours and generous vacation plans is one the ideas that a smart company
use to keep their employee turnover rate low, 55 of them say they offer a bonus plan to
safe and efficient workers is one the ideas that a smart company use to keep their
employee turnover rate low and rest 50 of them say begin a profit sharing plan is one the
ideas that a smart company use to keep their employee turnover rate low .
• According to the 100 employees of HDFC Bank from which 21 of them say that turnover
costs of the organization is very high, 19 of them say that the turnover costs of the
organization is high, 37 of them say that the turnover costs of the organization is low and
rest 23 of them say that the turnover costs of the organization is very low.
• According to the 100 employees of ICICI Bank from which 19 of them say that
turnover costs of the organization is very high, 21 of them say that the turnover costs of
the organization is high, 35 of them say that the turnover costs of the organization is low
and rest 25 of them say that the turnover costs of the organization is very low.
59
• According to the 100 employees of HDFC Bank from which 41 of them say that
recruitment is the major direct cost for an organization, 37 of them say that selection is
the major direct cost for an organization, and rest 22 of them say that training of new
people are the major direct cost for an organization.
• According to the 100 employees of ICICI Bank from which 40 of them say that
recruitment is the major direct cost for an organization, 39 of them say that selection is
the major direct cost for an organization, and rest 21 of them say that training of new
people are the major direct cost for an organization.
• According to the 100 employees of HDFC Bank from which 40 of them suggested that in
the case of high employee turnover the major indirect cost include for an organization is
increased workloads, 31 of them suggested increased overtime expenses for coworkers
and rest 26 of them suggested reduced productivity associated with low employee
morale.
• According to the 100 employees of ICICI Bank from which 41 of them suggested
that in the case of high employee turnover the major indirect cost include for an
organization is increased workloads, 31 of them suggested increased overtime expenses
for coworkers and rest 26 of them suggested reduced productivity associated with low
employee morale.
• According to the 100 employees of HDFC Bank from which 33 of them say non-
competitive compensation is one the causes to associated with the turn over in any
job/organization, 47of them say High stress is one the causes to associated with the turn
over in any job/organization, 25 of them say Working conditions is one the causes to
associated with the turn over in any job/organization, 29of them say Monotony is one the
causes to associated with the turn over in any job/organization, 21 of them say Poor
Supervision is one the causes to associated with the turn over in any job/organization, 37
of them say Poor fit between the employee and the job is one the causes to associated
with the turn over in any job/organization, 24 of them say Organization Practice is one
the causes to associated with the turn over in any job/organization, 35 of them say Poor
communications is one the causes to associated with the turn over in any
job/organization, and rest 22 of them say Inadequate training is one the causes to
associated with the turn over in any job/organization.
• According to the 100 employees of ICICI Bank from which 31 of them say non-
competitive compensation is one the causes to associated with the turn over in any
60
 job/organization, 45of them say High stress is one the causes to associated with the turn
over in any job/organization, 21 of them say Working conditions is one the causes to
associated with the turn over in any job/organization, 25 of them say Monotony is one the
causes to associated with the turn over in any job/organization, 20 of them say Poor
Supervision is one the causes to associated with the turn over in any job/organization, 35
of them say Poor fit between the employee and the job is one the causes to associated
with the turn over in any job/organization, 21 of them say Organization Practice is one
the causes to associated with the turn over in any job/organization, 33 of them say Poor
communications is one the causes to associated with the turn over in any
job/organization, and rest 21 of them say Inadequate training is one the causes to
associated with the turn over in any job/organization.
• According to the 100 employees of HDFC Bank from which 47 of them say measure the
cost of turnover is one the steps taken by the company to check employee turnover time
to time, 59 of them say develop retention strategies is one the steps taken by the company
to check employee turnover time to time, 39 of them say plan for some expected turnover
is one the steps taken by the company to check employee turnover time to time, 31 of
them say plan for a changing workforce culture is one the steps taken by the company to
check employee turnover time to time and rest 2 of them say recognize quality of work
life is one the steps taken by the company to check employee turnover time to time.

• According to the 100 employees of ICICI Bank from which 45 of them say
measure the cost of turnover is one the steps taken by the company to check employee
turnover time to time, 57 of them say develop retention strategies is one the steps taken
by the company to check employee turnover time to time, 37 of them say plan for some
expected turnover is one the steps taken by the company to check employee turnover time
to time, 30 of them say plan for a changing workforce culture is one the steps taken by
the company to check employee turnover time to time and rest 2 of them say recognize
quality of work life is one the steps taken by the company to check employee turnover
time to time.
• According to the 100 employees of HDFC Bank from which 57 of them say hire the right
people and continue to develop their careers is one of the initial steps taken to reduce
turnover, 39 of them say most companies with low turnover rates are very employee
oriented is one of the initial steps taken to reduce turnover and rest 43 of them say

61
 development an overall strategies compensation package is one of the initial steps taken
to reduce turnover.
• According to the 100 employees of ICICI Bank from which 55 of them say hire
the right people and continue to develop their careers is one of the initial steps taken to
reduce turnover, 37 of them say most companies with low turnover rates are very
employee oriented is one of the initial steps taken to reduce turnover and rest 41 of them
say development an overall strategies compensation package is one of the initial steps
taken to reduce turnover.
• According to the 100 employees of HDFC Bank from which 45 of them suggested to
challenge the employee, 51 of them suggested to recognize employee success, 39 of them
suggested to create a career path, and rest 55 of them suggested to offer competitive pay
and benefits.
• According to the 100 employees of ICICI Bank from which 43 of them suggested
to challenge the employee, 50 of them suggested to recognize employee success, 37 of
them suggested to create a career path, and rest 53 of them suggested to offer competitive
pay and benefits.
• According to the 100 employees of HDFC Bank from which 57 of them suggested to be
fair and consistent in establishing compensation, 43 of them suggested to promote from
within possible, 39 of them suggested to avoid bringing new people on board at a higher
rate than current employees, and rest 33 of them suggested policies to prevent discussion
of wages simply do not work are the various suggestions given to the organization in
order to avoid employee turnover.
• According to the 100 employees of ICICI Bank from which 55 of them suggested
to be fair and consistent in establishing compensation, 41 of them suggested to promote
from within possible, 37 of them suggested to avoid bringing new people on board at a
higher rate than current employees, and rest 31 of them suggested policies to prevent
discussion of wages simply do not work are the various suggestions given to the
organization in order to avoid employee turnover.

62
CHAPTER 9:
CONCLUSION

63
CHAPTER 9: CONCLUSION
• Employees of HDFC and ICICI Bank suggested avoidable turnover and unavoidable
turnover is the type of employee turn over.
• Employee responded that management doesn’t take the time to clarify their decisions;
management throws a temper tantrum, point’s fingers and assigns blame management
demands that one person do the jobs of two or more people are the various reasons of
employee turn over.
• Employees of HDFC and ICICI Bank say a little rate of employee turnover may result
into facilitate change and innovation and more staffing flexibility.
• Mostly employees suggested that from less growth opportunities, less or no
appreciation for work done and job and employee skill mismatch are the causes of
employee turnover.
• Maximum employees think of offering bonus plan to safe and efficient workers and
begin a profit sharing plan are the few ideas that a smart company use to keep their
employee turnover rate low.
• Maximum percentage of turnover costs of the organization is low and very low.
Mostly recruitment and selection is the major direct cost for an organization.
• According to the high employee turnover they suggested that increased workload and
increased overtime expenses for coworkers are the major indirect cost includes for an
organization.
• Mostly high stress, poor fit between the employees and the job and poor
communication are the certain causes associated with the turn over in any specific job
/ organization.
• Mostly recognize quality of work life and develop retention strategies have to be
taken by the company to check employee turnover tome to time.
• Commonly initial step is to hire the right people and continue to develop their career
and most companies with low turnover rates are very employee oriented to reduce
turnover.
• Various ways to reduce employee turnover is to offer competitive pay and benefits
and to recognize employee success.
• Lastly employee suggested being fair and consistent in establishing compensation and
promoting from with in if possible.

64
CHAPTER 10:
SUGGESTIONS

65
CHAPTER 10: SUGGESTIONS

1. To ensure the job satisfaction of the employees, there should be freedom from Prejudice
of Discrimination. HDFC and ICICI Bank has to adopt this policy. There should be
congenial environment provide to employees for less employee turnover.

2. For the purpose of job satisfaction there should be adequate autonomy to the employees.
In HDFC and ICICI Bank is lacking in this area, they have to provide freedom to their
employee for set their goal to avoid more employee turnover.

3. There should be role clarity at work. The conflict between different roles increases the
job dissatisfaction among employees. Both banks have to clear the duties and
responsibility to every employee. So they can do their job efficiently and to take care of
high employee turnover.

4. There should be more opportunity for advancement. It motivates the employees to give
their best effort to their job. HDFC and ICICI Bank has to provide opportunity to their
employees for advancement for less employee turnover.

5. There should be providing reasonable job security. Job security decreases the turnover.
HDFC and ICICI Bank is lacking in this area. HDFC and ICICI Bank have to provide job
security so that employee turnover is less.

6. The working environment should be comfortable with the employees. HDFC and ICICI
Banks have to provide good facilities, easy way of communication and other facilities o
their employees to take care of employee turnover.

7. The good work environment is essential for the job satisfaction. Both banks. But HDFC
and ICICI Bank has to provide much good work environment to their current employees
to avoid high employee turnover.

66
8. HDFC and ICICI Bank has to make adequate work schedule, so it can fit employee’s rest
of life.

9. Both banks have to increase the trust of the employees towards their job. So they can
fully committed to their job and there should be less employee turnover.

67
BIBLOGRAPHY

68
BIBLOGRAPHY

Books

• Ruby, A. M. (2002). "Internal Teacher Turnover in Urban Middle School

Reform.". Journal of Education for Students Placed at Risk 7 (4): 379-406.
• Hackman, J. R., & Oldham, G.. "Motivation through the design of work: Test of a
theory." 16: 45-99.
• Tett, R.P. & Meyer, J.P. (1993). "Job Satisfaction, Organizational Commitment,
Turnover Intention and Turnover: Path Analyses based on Meta Analytic
Findings". Personnel Psychology 46: 259-293. Retrieved on 2007-02-26.

• Gupta, C.B., “Human Resource Management”, New Delhi, Sultan Chand & Sons,
2006.
• Rao, V.S.P., “Human Resource Management”, Tata McGraw Hill Publishing Co.,
Delhi, 2004.
• Sinha D, 1958. "Job satisfaction in the office and manual workers". Indian Journal
of Social Work, 19, 39-46.

• Locke E, 1976. "The nature and causes of job satisfaction" in Handbook of

Industrial and Organisational Psychology, M Dunnette, ed, Chicago: Rand
McNally, 1297-1350.
• Saleh S, 1981. "A structural view of job involvement and its differentiation
from satisfaction and motivation". International Review of Applied Psychology,
30(1) pp 17-29.

69
Internet Resources

• www.hdfcbank.com
• www.icicibank.com
• www.google.com
• http://www.innovation.cc/The%20Innovation%20Journal/peer-reviewed/job-
satisfaction2.htm
• http://www.uky.edu/SelfStudy/pdfdox/facsurvey.pdf
• http://www.allbusiness.com/human-resources/employee-benefits/178139-1.html
• http://business.mapsofindia.com/india-industry/banking.html

70
ANNEXURE

71
QUESTIONNAIRE
Name………………….. Age……………….
Tenure……………… Sex………………..
Post……………… Contact No…………..

Instruction:

Mark ( √ ) which you prefer.

1. What according to you are the types of employee turnover?

a) Functional turnover
b) Dysfunctional turnover
c) Avoidable turnover
d) Unavoidable turnover

2. What are the various reasons for employee turnover?

a) Management demands that one person do the jobs of two or more people
b) Management doesn't allow the rank and file to make decisions about their work
c) Management constantly reorganizes, shuffles people around and changes direction constantly
d) Management doesn't take the time to clarify their decisions
e) Management promotes departments to compete against each other
f) Management throws a temper tantrum, points fingers and assigns blame

3. In an organization, a little rate of employee turnover may result into?

a) Bringing in new ideas and skills from new hires.
b) Better employee-job matches.
c) More staffing flexibility.
d) Facilitate change and innovation.

72
4. High rate of turnover may lead to decrease in?
a) Productivity
b) Service delivery
c) Spread of organizational knowledge

5. What according to you are the causes of employee turnover?

a) Compensation package differences
b) Job and employee skill mismatch
c) Inferior facilities, tools, etc
d) Less recognition
e) Less or no appreciation for work done
f) Less growth opportunities
g) Poor training
h) Poor supervision

6. What according to you are the few ideas that a smart company use to keep their
employee turnover rate low.
a) Pay them well,
b) Treat each employee with respect regardless of their job,
c) Offer good health care plans,
d) Offer flexible hours and generous vacation plans.
e) Offer a bonus plan to safe and efficient workers
f) Begin a profit sharing plan

7. How you calculate the turnover costs of the organization?

a) Very High
b) High
c) Low
d) Very Low

8. In the case of high employee turnover what are the major direct cost include for an
organization?
a) Recruitment

73
b) Selection
c) Training of new people

9. In the case of high employee turnover what are the major indirect cost include for an
organization?
a) Increased workloads
b) Increased overtime expenses for coworkers
c) Reduced productivity associated with low employee morale

10. What are the certain causes associated with turnover in any specific job or
organization?
a) Non-competitive compensation
b) High stress
c) Working conditions
d) Monotony
e) Poor Supervision
f) Poor fit between the employee and the job
g) Inadequate training
h) Poor communications
i) Organization practices

11. What steps should have to be taken by the company to check employee turnover time to
time?
a) Measure the cost of turnover
b) Develop retention strategies
c) Plan for some expected turnover
d) Plan for a changing workforce culture
e) Recognize quality of work life
12. What initial steps can be taken to reduce turnover?

a) Hire the right people and continue to develop their careers

b) Most companies with low turnover rates are very employee oriented
c) Develop an overall strategic compensation package

74
13. What are the various ways to reduce employee turnover?
a) Challenge the Employee
b) Recognize Employee Success
c) Create a Career Path
d) Offer Competitive Pay and Benefits

14. What suggestions should be given to the organization in order to avoid employee
turnover?
a) Be fair and consistent in establishing compensation
b) Promote from within if possible
c) Attempt to avoid bringing new people on board at a higher rate than current employees
d) Policies to prevent discussion of wages simply do not work

75