1. Acknowledgement

2. Company Profile

3. Introduction to project

4. Research methodology

5. Data presentation & Analysis

6. Conclusion

7. References

Acknowledgement

It is my privilege to acknowledge profound

Gratitude & indebtedness towards my respected & learned teachers for their inspiration,

constructive criticism & valuable suggestions. Their precious guidance & unrelenting support

kept me on track through my training. I want to thank all the employees of INTERNATIONAL

TRACTORS LIMITED (ITL), HOSHIARPUR for their warm support & co-operation in

successful running of the training work.

I am highly obliged to Ms. Manica Kalia, Mr. Rajesh Kumar & Ms. Parul malhotra my project

leaders, whose timely advice & constructive criticism helped me in completing the project.

Mr. L.D. Mittal, Chairman of International Tractors Limited, assesses the scene in India as

compared to the international standards. According to him, India is primarily an agriculture-

based country. Unfortunately, the agriculture sector has taken a back seat so far. We lack mainly

in farming implements. The tractor is the basis of mechanizations, but in India, there are only 9

tractors per 1000 hectares of land whereas in the global arena, this figure is 93 tractors per 1000

hectares of land. In my opinion, unless farm mechanizations is given due importance, we cannot

think of a complete revolution. Advance technology and superior farm implements are the only

way through which we can increase our agricultural production. By this we can ensure a bright

future for our country.

Mr. L.D. Mittal

Technology should always be suitable to the industry and our 35 years of experience in the field

of farming implements has made us understand the needs of Indian farmers more clearly,

Implements that can be used and maintained by the Indian farmers are more suitable for the

Indian markets. More sophisticated implements that are difficult to use and maintain are not

suitable for our country. We have realized the need of Indian farmers and have based our

production on this.

What established brand names consider their plus point; we put it as our negative feature. All

these are big corporate houses. They have many managers, general managers, directors, deputy

directors, and other paraphernalia. A decision has to be routed through so many channels that

liability for suitability takes a back seat. Ours is a close-knit group. If we take a decision in the

evening, it is implemented by the next morning.

One of our dreams is to foray into the area of manufacturing a rural-oriented automobile-it may

be a jeep. We have already made a mark in the rural areas and also have the technologies and

machines, which are more or less same as that for producing tractors. We hope our dream will

come true soon.

Established in 1969, Sonalika group since the inception has tired to understand customer need to

be facilitating them with its value for money products. The Company has a state of art

manufacturing facilities, spread in acres, located in the free shrubs of Punjab and Himachal

Pradesh.

Sonalika is one of the top five tractor manufacturing companies in India. The Sonalika Group

product listing does include the manufacturing of tractors, multi utility vehicles, Engines and

various farm equipments.

Today the group stands with an appropriate turnover of 1200 Crore INR. An average growth of

30% makes it one of the fastest growing corporate in India. Its also one of the free debt free

company group strengthens an approx mate staff count of 3000 employees.

The company works in maximum production with low cost value and safe environment. History

foretells that innovation is key to continued progress and when applied to technology, that

touches human life, it ca unfold a whole new economic phenomenon that has power to change

the world.

With unique initiative like the Thought Leadership Forum, we have been able to create a unique

platform for learning thought success stories of industry leaders.

No, Doubt that the sonalika products has created a niche for themselves not in India but also in

foreign market.

As at our production any defect even at micro level is been taken care of and justified. The

technology for painting and machinery we use is high quality paint shop with a grade services

and methods.

The industry has gradually transformed itself into a world class player involved in building state

of art products, solutions and technologies. Sonalika Foundations intends to become a catalyst

encouraging our members to do more, capturing best practices and assisting their reproduction

and harnessing a greater range of resources, from the industry and beyond, to make a major

impact on development of society.

It has been our visions to cater the agriculture and auto industry with qualify abrasive products

through untiring dedication and leadership. As we step in to our fifth decade of existence, we

continue to lead the development of industry driven standards and initiative for the tractor

industry in India.

• International Tractors Limited (ITL)

• Sonalika Agriculture Industries

• Sonalika Capital Limited

• Punjab Agriculture Industries

• Casting Corporation Of India

• International Cars & Motors Limited

(ICML)

• International Auto-trac Finance Limited (IAFL)

At present the company has a strong nation wide network of 528 dealers. The distribution in

various states is:

Andhra Pradesh -------------- 26

Assam---------------------------4

Bangladesh---------------------1

Bihar----------------------------37

Gujarat------------------------31

Haryana-----------------------37

Himachal Pradesh----------4

Jammu & Kashmir---------1

Karnataka-------------------18

Kerala--------------------------1

Madhya Pradesh-------------68

Maharasthra------------------35

Mizoram-----------------------1

Nepal---------------------------9

Orissa--------------------------10

Punjab------------------------48

Rajasthan---------------------53

Tamil Naidu-----------------19

Uttar Pradesh---------------131

West Bengal----------------14

The distribution of dealer’s network has helped company to provide sales & services to its

customers. The company is catering to the market not only throughout India but also various

other countries like Nepal & Sri Lanka.

Sonalika Group believes in treating its employees with care and concern. For an organization

that is primarily made up of human resources, treating them well and with respect is our utmost

concern.

When the systems, structure, policies, procedures and practices of an organization are designed

and lived out so that employees genuinely feel that they come first, trust is the result.

ITL Group is synonymous with

fair business practices and ethics,

quality service and a commitment to society.

To be the leader in the chosen fields with reputation for Performance, Customer Care and

Transparency.

To be a dynamic growth oriented enterprise in which individuals are highly motivated team

players taking up challenges and aiming towards excellence and leadership always.

To identify and further diversify into

new and exciting businesses which we enable translate into profitable environments for our

Partners, our People,

and our Society within our markets.

Thirty-three years ago we saw a dream that we have worked to fulfill relentlessly. This dream

was 'to make possible the total mechanization of Indian agriculture,' so that Indian farmers can

also stand on the forefront of the world in terms of productivity and technology. Our dream has

been to give them a new future, full of new hopes and challenges. Challenges, that Sonalika will

help every farmer meet' It is this inspiration that has encouraged us to achieve a new every

moment.

International Tractors Limited was incorporated on October 17, 1995 for the manufacture of

Tractors and has since then built a distinct position for itself in the Tractor industry. ITL is

manufacturing various Tractors of Sonalika brand between 30 H.P. to 75 H.P. &CERES brand

between 60HP to 90HP. The Tractors manufactured by the company have secured a reputation of

performance, quality and reliability in the market because of their maximum pulling power,

minimum fuel consumption and Emission. All this makes ITL the fifth largest tractor selling

company in India and the number one company in Nepal.

These tractors are also exported to various other countries also including France, South Africa,

Australia, Zimbabwe, Sri Lanka, Canada, Nepal, and Bangladesh etc.

The company's marketing efforts are promoted by the network of 600 Dealers, 400 Sub dealers

and 50 Stockiest supervised by various regional sales offices. Such a networking has enabled the

company to grow like a well-knit family whose roots lie in its customers, who have been

providing constant feedback and support to allow the company to turn their dreams into

products.

It is a matter of pride and honor for us that our Manufacturing Process, Quality Control Systems

and Research & Development facilities are ISO- 9001:2000 Certified by the Joint Accreditation

System of Australia and New Zealand.

We are the first Tractor manufacturing company in the country to be accredited with ISO-14001.

It bears testimony to the fact that company is having world-class R&D facilities, maintaining

controls and systems of International Standards and Environmental norms.

We are also the first Tractor manufacturers in the country producing 50 & 60 HP Tractors fitted

with diesel engines manufactured In-House, meeting Bharat II norms of Smoke & Mass

Emission.

These engines have been tested and certified by ARAI, Pune. United States Environmental

Norms Agency, Washington DC has also certified our Engines. These certifications enabled

SONALIKA Tractors to enter into World Market.

All the models of Tractors and Combines Harvesters manufactured by us are tested & approved

by Central Farm Machinery and Tractors Training & Testing Institute, Budni (MP) India, (the

Government of India institute authorized for issuing test reports). Recently SONALIKA Tractors

have been awarded "The Best Quality Award (2002-03)" by the Govt of India.

Sonalika International Tractors have also been approved for subsidy under various schemes by

Ministry of Agriculture, Govt. of INDIA. A number of banks have approved Sonalika Tractor for

financing and entering into a tie Up for easy financing.

ITL went into collaboration with Renault agriculture of France in July 2000.

Renault Agriculture is a subsidiary of the Renault Group with 51% stake owned by CLAAS,

Germany. Renault Agriculture is the largest tractor manufacturing company in Europe. It

produces tractors in the range of 50-250 HP, having worldwide distribution ands sales network.

Renault Agriculture - ITL agreement results in the production of Ceres and Solis tractor under

Sonalika brand name.

With a turnover of more than € 637 billion (2002), Renault is one of the 30 largest companies in

the world. Each year Renault produces over two million vehicles and employs over 140,000

people. Renault has alliance with NISSAN to complement the financial and technical strengths

bringing in synergic growth.

CLAAS is a leading manufacturer of farming equipment with a global presence. It is the world

market leader in forage harvester. Apart from the farming products CLAAS also produces

hydraulic components and transmissions. CLAAS purchased 51% stake in Renault Agriculture in

March 2003. It recorded the turnover of over 1,000 million € in the last financial year.

The ITL seeks to create a culture where each employee, vendors and dealers feels himself

responsible & integral part of the enterprises. The work culture at ITL is open, participative &

egalitarian. Learning is encouraged in the company. Every member respects 5 s formulas:-

Objective of 5-s formula:-

1. S (SEIRI)= CLEAN OR DISPOSE OFF:

• Clear the useless

• Sort the useful

• Transfer possibly the useful somewhere else

2. S (SEITION)=TIDY UP OR JUST UNDER

THE HAND:

• Use best the new free place

• Reduce the useless searches

• Easily picked for use

• Improve the floes

3. S (SEISO)=CLEANING OR THE QUALITY

BY THE CLEANLINESS:

• Cleanliness of items

• Cleanliness of environment

• Regular cleaning

• Maintenance of equipments

4. S (SEIKETSU)=DEFINE THE RULES:

• Maintaining the standards of housekeeping & workplace organization

• Avoids mistake

• Makes the work more pleasant

• Formalizes some procedures

5. S (SHITSUKE)=STRICTNESS AND RESPECT

OF RULES:

• Maintaining a regular surveillance of rules

• Remind of written rules

• Correct the deviations

The above mentioned objectives govern its approach to business relationship with the

organization. It has designed its management structure in response to the needs of quick

decision-making & operational flexibility even through hierarchies and designations do exit. It is

a highly formal organization where communication moves in all direction, decision-making is

quick & to a large extent delegated.

Key - Points:

To sum up we can say that the significant features of five s concept are as follows:

• Inbuilt good manufacturing & maintenance practices.

• Total employee involvement in the development of system.

• Easy to understand & practice.

• Develop teamwork & effectiveness in work due to participation of each person in improvement

processes.

• Minimum records are required to be maintained.

• Attitudinal change towards positive direction.

• It is the gateway for “ Total Quality Management System”

Sonalika Group of Companies (Rhino)

Client Profile

Sonalika Group is contributing to green revolution in India Since 1969 by Farm Equipments and

Machineries. Sonalika Group is one of the top five tractor manufacturers in India. An average

growth rate of 30% makes it one of the fastest growing corporate in India. It employs about 2500

people including some of the renowned names in the industry.

Situation

Campaign: Punjab, Haryana, Chandigarh.

Solution

As the company had a limited marketing budget they were finding it difficult to attract

prospective target audience to visit company dealer’s showroom for having the gleam of vehicles

& to take a test drive. So we suggested them Holiday incentives.

Results

They decided to incentives the test drive and they found Holiday incentive is the best. As the cost

of the vehicle is in the range of 5 lakhs plus a Holiday is the right incentive for the target

audience of this car segment.

Even a special scheme is been worked out for their buyers. RHINO /TRAVELPORT - Travel

discount cards.

Rhino set to hot up SUV market

(By From Indo-Asian News Service)

To be priced between Rs.800, 000 and Rs.1 million, Rhino is a joint venture between Britain's

MG Rover and International Tractors, manufacturers of Sonalika tractors. International Tractors

is part of the Rs.10 billion Sonalika group.

The new company is called International Cars and Motors Limited. It will manufacture 24,000

SUVs annually at its company's new plant at Kala Amb in Himachal Pradesh, 30 km from here.

The plant, being set up on a 100-acre plot, will have an automated assembly line.

"The plant is being set up with a Rs.200 crore (Rs. 2 billion) investment and the first vehicle will

roll out in December," Sonalika vice president Amrit S. Mittal said in a statement.

"We are delighted with this technical collaboration with the Sonalika group," MG Rover chief

executive Kevin Howe said.

The mid-segment Rhino will be attractively priced and its 6+1 gearbox would make it unique

among SUVs on Indian roads, all of which have 5+1 gears, Mittal pointed out.

Sonalika has also tied up with Britain's largest independent power unit manufacturer, Powertrain,

to manufacture the engine for Rhino here. A few engine components will initially be imported.

Sonalika has, in the last eight years, become one of India's top five tractor manufacturers, selling

90,000 tractors powered by its in-house developed engine. Annual production, which was 20,000

units last year, is being doubled to 40,000 units, Mittal said.

The company has exported tractors to Algeria, Bangladesh, Ivory Coast, Nepal, South Africa and

Sri Lanka, as also to European countries.

Personal Mechanical

Department Department

Quality Research &

Control Development

Logistics Marketing

Assembly Division Accounts

Paint Shop Project &

Material

DI 90 Four Wheel Drive

DI 75 Two wheel Drive

DI 75 Four wheel Drive

DI 60 Four wheel Drive

DI 730 II DI 750 III

DI 740 III DI 340 S Export Model

Pride of Country awarded to Sh. L.D. Mittal, Chairman

Gold Medal Awarded to Sh. A.S. Mittal Vice Chairman

Udyog Bhushan Awarded to Sh. Deepak Mittal MD.

Shri Deepak Mittal, Managing Director, International Tractors Limited received this coveted

award at the hands of Shri Shanta Kumar, Honorable Minister for Rural Development and Govt

of India on the occasion of the Second National Seminar on Quality Consciousness on 24th

December, 2002 at New Delhi..

International Tractors Limited, the rapidly growing Tractor Company, has been awarded the

ITID Quality Excellence Award. This award has been instituted by the institute Of Trade and

Industrial Development.

Shri L.D. Mittal, Chairman, Sonalika Group Architect of a New World

8th Ernst & Young Entrepreneur of the year Award.

Shri L.D. Mittal, Chairman, Sonalika Group receiving award at the hands of Shri Sunil Bharti

Mittal and Shri Kamal Nath, Minister of Commerce, Govt. of India.

CMERI Govt. of India Transfers Design and Technology to Sonalika.

Sonalika group under the stewardship to Shri L.D. Mittal, (Chairman) has made rapid strides

within a short span of 9 years. It has not only made its presence felt in the tractor Industry but

has made in-roads into the market share of popular brands. Its valued and satisfied customers are

multiplying and have crossed 10, 0000 mark in year 2004.

According to Shri Mittal, this phenomenal growth is the result of hard work coupled with

dedication at all levels. On the top of it, company has never compromised on quality. This is

precisely the secret of success of the company.

Shri Mittal further states "We have been after a class technology so that Indian farmers get the

best value for their hard earned money."

CMERI (Central Mechanical Engineering Research Institute) Govt. of India, which has many

first to its credit in many fields, has been helping Sonalika a lot in enriching the company with

technological advancements based on their strenuous efforts and research.

A function was held at the Vigayan Bhavan in New Delhi and Shri Mittal was applauded for his

great contribution in farm mechanization. Shri R.A. Masheikar F.R.S. Director General, CSIR &

Secretary-Govt. of India, Department of Scientific & Industrial Research stated that if there were

a few more “Mr. L.D. Mittal " the country's face would be different. Shri Mittal in his short

speech thanked the CMERI for the good words attribute to him and suggested that CMERI

should come forward for facilitating air spraying of insecticides, improved combine Harvester

and mini Tractor.

These suggestions are receiving the attention of scientists across Durgapur and Ludhiana under

the supervision of CMERI. On this occasion, CMERI transferred technology for Sonalika

Tractors for all models ranging from 32 HP to 60 HP.

Honorable Former Prime Minster Refers to Sonalika Tractor in Diamond Jubilee Celebrations of

CSIR, Govt. of India.

Honorable Former Prime Minister, Sh. Atal Bihari Vajpayee said to the science & Technology

Institutions to go to masses and make them aware of their activities while inaugurating the

Diamond Jubilee celebrations of the council of Scientific and Industrial Research (CSIR). He

said to CSIR to bridge the awareness gap between the people and CSIR.

Former Prime Minister, said while discussing the CSIR's inventions & developments related to

common man, "Today when a farmer uses the Sonalika Tractor or over two lakhs women use

contraceptive pill `Sahelli' for family planning or any doctor advices his malaria patient to take

Emel or when a rural person uses Mark-II hand pump, how many of them know that these are

inventions of CSIR".

Sonalika Tractor is marching ahead on the path of success in which CSIR's contribution is very

crucial. Sonalika is the only Tractor in which technology of CSIR, Govt. of India has been used

and which is produced at the ultra-modern plant of global Tractor Company Sonalika.

Resultantly, Sonalika has become the first choice of Indian farmers. On close observation of the

features of Sonalika, one will find that at one hand it is fuel efficient, on other hand it has got

special position in pulling power. The number of satisfied and proud customers is increasing day

by day and has crossed the figure of 100000. After all, there is something exclusive and unique

so much of prestige in just 9 Years.

Kumari Savitri Kunadi H.H. Ambassador of India at that time in France visited the Sonalika-

Renault stall and expressed her happiness with the progress made by the Indian company

Sonalika both in domestic and foreign markets and wished its joint venture with Renault

Agriculture, France a grand success.

International Tractors Ltd. with Sonalika brand of tractors have been certified as ISO 9001

issued by International Standards Organization. This certification can be earned by those

organizations only who can establish and demonstrate strict compliance of quality systems

prescribed under ISO 9001 as highest level of certification under which the organizations possess

capabilities in the area of design and, development and in manufacturing and marketing

functions. It is indeed a great honor for the International Tractors Ltd. to have achieved this

distinction that too within short span of its inception. It is the 2nd such company in India, which

has received this certification.

Sonalika has also been certified as ISO 14001 which is another golden feather in Company's Cap

and another stamp of quality.

We are the first Tractor manufacturing company in the country to be accredited with ISO-14001.

It bears testimony to the fact that company is having world-class R&D facilities, maintaining

controls and systems of International Standards and Environmental norms.

As part of diversification plans, the Rs 2,500-crore tractor and farm equipment major Sonalika

Group has ventured into the auto finance sector.

The new company, named International Autotrac Finance Ltd (IAFL), is a 100 per cent

subsidiary of the group and would finance the vehicles produced by International Tractors Ltd

(Sonalika brand tractor) & International Cars & Motors Ltd.

The newly launched financial arm of the company is hopeful of doing business worth Rs 300

crore by the end of the fiscal year 2007-2008. In an interaction with Business Standard, IAFL

Head (Retail Loans) Ravi P Sharma said, “The new company would facilitate the potential

customers of Sonalika by disbursing hassle-free loans within one day.”

“The IAFL would be a very customer-friendly company, which would give them auto loan on

less rate of interest and with least formalities,” he added.

He told that four different departments have been created by the company to help the customers

avail the loan easily. The company will also provide the information and handle the inquiries

online.

“The new company would achieve its goal in three stages. At the first stage, the finance facility

by IAFL will be available only in Punjab and in second stage we would extend it to northern

India and finally we will cover the complete Indian market,” he added.

So, in order to strengthen their presence, the finance company would open 24 new branches

spread across Northern region by the end of this fiscal year.

The proposed locations for the branches are Ambala, Karnal, Jaipur, Jodhpur, Chandigarh, etc.

At present, it has a branch each in Amritsar, Ludhiana and Hoshiarpur in Punjab.

Moreover, to have a nationwide presence, the company plans to open 24 new branches in

southern part of India. Commenting upon the business target, he added, “By the end of 2009, we

are hoping to do business worth Rs 1,000 crore through the finance company.”

Recently, the group also announced investments of Rs 1,150 crore in its two subsidiaries —

International Cars and Motors (ICML) and International Tractors Ltd (ITL).

Of the total, it would invest about Rs 700 crore on capacity expansion, enhancing its design

facility and development of a new sports utility vehicle(currently it produce a multi-utility

vehicle having brand name Rhino).

Also, it is contemplating to set up a new tractor manufacturing unit in southern India and

increasing the capacity of existing tractor unit at Hoshiarpur with an investment of Rs 450 crore.

The current facility in Hoshiarpur, Punjab, has production capacity 40,000 units (tractor) a year.

Besides, the company is also in the process of increasing the capacity of the utility vehicle

manufacturing unit in Una, Himachal Pradesh, from the current 24,000 units to 60,000 units a

year.

(Retention Strategies)

Sonalika (INTERNATIONAL TRACTORS LIMITED) are the leading manufacturers for

tractors. Sonalika attains the 5th position in India.

Sonalika is a growing company & it has lot of manpower requirements at various levels & it all

the times. In view of this requirement & of the dynamic/ volatile job market.

Sonalika has a major challenge to hire good talent & more challenging is to retain its current

talent.

In order to suggest best strategies for retention let understand what is Retention? &

What’s other company are doing in this area.

Retention: ----

€ Developing Confidence Factor- so that they believe in potential success/leadership strategies.

€ Developing Emotional Factor- through (Huge) contribution, recognition, appreciation.

€ Developing Trust Factor- with the help of 2 ways- promises/commitments kept (strong link to

loyalty).

€ Considering Fit Factor- Values/ethics are a good fit.

€ Considering Listening Factor- Are they heard and Valued?

Retention Strategies are now recognized as mandatory in many industries:

Leadership is critical! "Best Practices" Does Senior Management: support (with skill), hire,

manage, recognize, communicate, include, reward, and make people feel significant.

A strong retention strategy becomes a powerful recruitment tool!

Have companies ever lost key personnel to other companies? Was it expensive to find and train

replacements? Could companies have prevented the loss and at the same time created a policy

that actually helps to attract the best and the brightest candidates? Retention has become an

essential business strategy for companies that wish to remain productive into the future.

Retention Factors:

Compensation & Benefits (Money can not be ignored!), Clear business goals (where do I fit in),

well defined jobs, rewards & recognition, strong in communication, "Well trained"

management/leaders.

Does "Culture" Support: innovation-risk taking (freedom from fears to try new innovative

approaches - without Put Downs,) encourage creativity, supportive accountability (Culture is

made up of: Organizational Values, how we define ourselves, how we interact, what is

acceptable (and what is not.))

Getting Employees to fall in love with your company:

1. Capture the Hearts of your workforce with: Compelling vision/Balance/Celebration-Fun

2. Open Communication: Internal listening is a priority, multiple lines of communication

(various channels.) This is essential for managing change in a positive way with less sabotage,

anger, resistance, and fear.

3. Create partnerships: Squash status barriers/Open the books/pay for performance (not titles),

share the "bad" times the "good" times.

4. Drive Learning: "Guarantee Employability," Encourage Life Long Learning (Train outside of

job description). Loyalty comes from trusting your employees to develop their skills for the good

of the company and for their needs for personal growth and satisfaction.

5. Emancipate Action: Freedom to Fail, reduce bureaucracy. Breathe life into your organization.

Do not let your employees stagnate.

Study made regarding project:--

Economic factors across the nation have impacted the private and public sectors regarding work

force stability. Layoffs, hiring freezes and business reorganizations are pressing issues that

challenge business operations when confronted with budget cuts.

Losing good employees is expensive & has a direct impact on yours firm’s products & services.

Business managers & human resource professionals know the cost of turnover. Many firms have

been able to establish some relationship between employee’s satisfaction & customer

satisfaction.

Other firms are beginning to put actions behind the word’s “our people are our most important

asset” by thinking of their employees as their customers.

The key is to drive retention by motivating employees. One way to lay a foundation for an

employee-as-customer retention strategy is to base it on Frederick Herzberg's "hygiene and

motivation" factors.

Retention strategies of various automobile companies had taken into consideration & they form

the base for determining the retention strategies of sonalika (ITL).

Retention Strategies Followed By Automobile Companies: -------

Tata

Escorts Toyota

Hyundai

Escorts:

Once He’s Joined, Keep Him Involved

Proposing a new member is a terrific achievement. But, turning over a completed Membership

Document (#100) to the grand knight is not the end of the job. A proposer needs to maintain a

personal relationship with the new Knight to see that he is integrated and stays involved in

council activities. There are several steps proposers can take to ensure this:

• After signing up a prospect, explain to him that the council’s Admission Committee will

examine his qualifications for membership. Accompany the prospective member to the

Admission Committee meeting. Introduce him to the members present.

• Once the prospect has been accepted by the council, escort him to his First Degree and remain

with him throughout the event. Introduce him to his fellow council members after the

exemplification.

• Take the newly initiated member and his family under your wing. See that he learns council

procedures (such as meeting times, committee assignments, etc.) and meets other council

members.

• Accompany your recruit to his Second and Third degree exemplifications and stay with him

throughout the day.

• Introduce him and his family at council events. Encourage him to involve his family in council-

sponsored activities.

• Always contact the new member before each council meeting and bring him to a meeting if

necessary. If the new member becomes inactive in council activities. Call and ask to visit with

him.

• Explain your concern about his absence and offer support or assistance, find out the reasons for

his lapsed interest and to work to conserve his membership.

• With a little personal effort you can help guarantee that your recruit becomes not only an active

member of the Knights of Columbus, but a member for life.

TOYOTA:

1. Career Development

US companies have aggressively begun to provide incentives for women and minorities to join

and remain in their workforce. One of the incentives is career development programs. A report

from a survey of women engineers indicated that "Active career development programs, whether

targeted specifically for women or for employees in general, are beneficial to women." Including

supervisors in a recognition and reward process increases the effectiveness of career

development programs. Programs should encourage and facilitate the entrance of minorities and

women into the management career ladder.

2. Mentoring Programs

Women and minorities who establish successful engineering careers, almost without exception,

have had important mentors who have encouraged them, provided them with advice, and steered

them through early phases of their careers. Corporate mentoring programs range from the formal

to the informal. One-on-one mentoring is most often used, although group mentoring does occur.

Several companies have set up mentoring programs, matched individuals by career track and

discipline, but very few actually train their participants how to establish and maintain an

effective relationship. And, even fewer companies evaluate the success of their mentoring

programs on retention or job satisfaction.

3. Networks

Formal and informal networks offer the opportunity for women and minorities to share

experiences, mentor each other, and learn about the unwritten rules to success. While once

frowned upon as subversive or detracting from career opportunity, corporations now see the

benefits of special interest groups in their organization. Many companies have assisted in the

establishment of these groups and have even come to rely upon them for information and

guidance in management.

4. Compensation

Recognizing that salary disparities do exist, some companies have initiated salary studies to

identify such disparities. In addition, compensation has a strong influence on the retention of

women and minorities, especially at the early stages of their careers.

While most students are not taught about negotiating compensation packages, women and

minorities are often even more naive about the potential impact of what an initial salary has upon

subsequent career opportunities. A 1990 study traced "31 to 34 percent of gender differences in

current salaries to difference in starting salary."

5. Family Policies

In an effort to make companies "family-friendly" for both male and female employees, a number

of creative strategies have been implemented. Flexible work schedules and maternity leave are

examples of the most commonly tried. Others include: staggered work schedules; excused

absence for emergencies or unpredictable situations; unpaid personal leave for family-related

matters; part-time employment; job sharing; vacation carryover; on-site child care; career-family

balancing training; child-care referral; and, paid and unpaid sabbaticals.

6. Diversity Training

several companies provides and requires diversity training on an on-going basis to all employees

and have found that it is most successful.

Implementing the training as a company-wide initiative has assisted in changing the workplace

culture. As an extra boost to effect workplace climate, a few companies have made strident

efforts to change the format of meetings so that minority and women manager's ideas and

thoughts are not over-shadowed by traditional males.

In conclusion, companies have employed a number of different types of strategies to recruit and

retain women and minorities. Although there are a number of strategies such as creating family

friendly policies that are generalizable across all types of companies. Conducting an initial needs

assessment or analysis of a particular work environment is a critical first step.

Finally, without commitment from the CEO and top executive officers in a company, there is

hope that the strategies mentioned will be successful. Top management must commit to the value

of a diverse workforce, demonstrate that commitment in financial and human resources, and

must be visible to the employees as partners in change.

TATA:

Attracting and retaining employees:

Compensation has been, and will continue to be, the big driver in retaining people. But I feel the

importance of money varies at different stages of life and in different roles that people play.

Once people reach a minimum level of compensation, what matters to them are their aspirations

— and this is where role planning and the work environment are critical.

Goals and targets need to be clear so that people can know what they are going to do and what

they have achieved. These two rules have been in focus for the last 25 years of my life and they

will continue to be important. It's also universally true that people join companies but work with

bosses. And, equally true, people leave bosses; not a company.

What people will also look for is a comfort level that they have a good job to do in the company

and that what they do matters to the company. A company needs to create a good employer

brand, internally as well as externally, by ensuring that people have good jobs which make them

feel proud of working for the organization.

After that, depending on the demography and age of the person, companies need to add certain

benefits that create a social status for the person, give him or her recognition outside the

company. People want their place under the sky. Employees can be given opportunities to make

presentations at international forums, or made members of academic institutes or industry

associations. This will increase retention.

It is increasingly evident that people are reaching higher, faster. So where do you go when you

approach the top? A company can take you only so far in your personal ambition and growth.

After that the company should allow you to move to an internal or external company.

In this respect, the Tata Group has a phenomenal advantage. We have more than 90 companies,

and there is good opportunity for mobility within the Group. Helping them to grow outside the

Group is also good because if that process is well managed, you have a wider populace as a

friend — because if the leader (in another company) is your friend, the others will align with the

leader.

For the Group, the Tata brand will continue to be a magnet for people looking for a job. In the

Indian ethos there is a certain value attached to the Tata brand. It was there when I joined TCS

many years ago and it continues to be there today also. I am always proud to say I am a part of

Tata.

A feel for people

With some 2, 46,000 members in its diverse and widespread family, the Tata Group is more than

just another employer. The Group's many pioneering initiatives to benefit and empower

employees have few parallels anywhere in the world, and it has blended its traditional

benevolence with evolving human resource methodologies to deliver a whole lot beyond mere

jobs.

HYUNDAI:

More companies are deciding to focus on strategies that could help them create a more

psychologically healthy workplace.

Each year, the American Psychological Association recognizes companies that work proactively

to provide employees with an opportunity to feel more in control of their lives both at work and

in their homes. These programs not only benefit the employee, but they pay large dividends to

the employer.

Why institute a program that will lead to a psychology healthy workplace? Here are a few

reasons for you to consider:

1. Two-thirds of both men and women say, “Work has a significant impact on their stress level.”

2. One-fourth of employees view their jobs as the No. 1 stressor in their lives.

3. Productivity losses related to personal and family health problems cost U.S. employers $1,685

per employee year or $225.8 billion annually.

4. Employers could save $3.50 for every dollar spent on improving their work environment in

terms of reduced absenteeism and health care costs.

The results were as follows:

• Employee satisfaction rate of 90 percent.

• Employee turnover rate of only 3 percent.

• High levels of productivity and financial performance.

• Health care savings and a low rate of workplace accidents and injuries.

Honda in Spokane, Wash., uses the following strategies to create a more psychology health

workplace:

• Regular meetings are scheduled and run by professional group facilitators, which focus on

ways of improving the quality of service to customers, increasing the morale and dynamics of

teams.

• Workers are encouraged to contribute their ideas for improvement.

• Executives do not view these suggestions as criticisms of past management practices.

Annual Awards are based on the following

Criteria:

• Employee involvement

• Work-Life balance

• Employee growth & development

• Health & safety

• Employee recognition

This focus on the employee at Health wise creates a positive work environment and builds

relationships between employees that lead to higher levels of synergy.

High levels of employee satisfaction were experienced when employees were involved in the

decision-making process, participated in self-directed teams and had clear performance

measures, and where there were open channels of communication to management.

Employee retention levels and satisfaction are higher, because employees are being trained for

the next job as part of an ongoing process of employee development.

Government statistics have shown that as many as 1 million workers or almost 1 percent of the

workforce is absent each day due to physical or mental health reasons.

The following are strategies suggested to Sonalika Group for employee retention.

How do you get your employees to “fall in Love" with your organization? This is a great

question.

The answer to the question would be that companies must follow Top 10 Retention Tips:

1. Treat your employees like you treat your most valuable clients.

It is cheaper to keep your good employees than it is to hire and train new ones. Your top 20-25%

should be courted as you would court and then service your top customers.

2. Get your employees to “fall in Love “with your organization.

Communicate your vision in a compelling way. Show everyone the role they have to contribute

to this vision. Create opportunities for people to connect with each other for support and to

improve communication in work teams.

3. Strong retention strategies become strong recruiting advantages.

4. Retention is much more effective when you put the right person into the right job. Know the

job! Know the employee and their motivations.

Half of the Fortune 500 companies are now using assessments to more fully understand each job

and the soft skills that are required for top production within their specific company culture.

These benchmarked skills are then compared against qualified applicants to help determine who

will be successful in the position and fit well within their company's culture. These assessments

are also used as a powerful professional development tool to enhance the training of continuous

life-long learning (which is another powerful retention strategy.)

5. Money is important but it is not the only reason people stay with an organization. If your

compensation plan is in the top 20-30% of your industry, then money will often not be the reason

why people leave.

6. Employee committees to help develop retention strategies are a very effective strategy. Get

their input! Ask, what do people like about working here? What would you like changed to make

your company a better place to work?

Some companies, such as Advance Fibre Communication (AFC), have recognized that the

special engineers and technical experts that are the cornerstones of their business require special

attention. Victoria Perrault, VP of Administrative Services for AFC, says that her company has

identified the top 25% of their staff and caters to these special people by meeting their financial

requirements and looking for the best package of benefits that these people will find most

positive as incentives to stay. They even have employee committees that work as "focus groups"

to determine why people stay at AFC and what they might want to see changed to make AFC an

even better place to work.

7. Leadership must be deeply invested in retention. Management must be skillful communicating

company policies in a way that creates "buy-in" from their staff and be open to employee input.

Help create "ownership" in your employees.

The companies with the best retention percentages are the same companies that are actively

committed to retention.

They know that is costs less to keep good people than to continuously have to replace unsatisfied

employees and managers.

8. Recognition, in various forms, is a powerful retention strategy. It does not have to cost a lot.

US Dept. of Labor - 46% of people leave their jobs because they feel unappreciated.

9. Remember, the "Fun Factor" is very important to many employees.

Greg Peters, Past President and CEO of Mahi Networks in Petaluma, is one of many executives

who reported that retention is often related to interpersonal connections and amount of FUN in

work teams. The FUN Factor is part of the generation of workers that use activities as stress

management in highly charged production environments where long hours are required. Greg has

encouraged Ping-Pong tournaments and basketball leagues for interpersonal interaction, fun, and

stress management.

10. Know the trends in benefit packages. Do your best to offer the ones your employees need.

Consider offering the best of the rest.

Current retention programs:

(Sonalika group must consider)

Money (including compensation, benefits and stock options) was the most frequently mentioned

aspect of the retention programs.

Second was the executive/management team

The third was the opportunity for growth, both through the challenge of work assignments and

individual development.

Two elements comprised the fourth aspect: the work environment in general, and the trust

existing between people in the organization.

“Research comprising defining & re-defining problems, formulating hypothesis or suggested

solutions; collecting, organizing & evaluating data; making deductions & reaching conclusions;

& at last carefully testing the conclusions to determine whether they fit the formulating

hypothesis or not.”

? Clifford & Woody

Sources of data collection

Primary sources :-

We can obtain primary data either through direct communication with respondents or through

personal interviews.

Various ways of collecting primary data ?

• Observation Method

• Interviews

• Through Questionnaires

• Through Schedules etc…..

Secondary sources :-

Secondary data means data that are already available i.e. data which have already been collected

& analyzed by someone else. It may either be published or unpublished.

Like books, magazines, newspapers, journals,

Historical documents etc…..

According to our project report, Primary

Research has been conducted.

(Source ---- Questionnaire.)

A. Sampling Design: ----

• Universe—Refers to the total of the items or units in the field of inquiry i.e. Sonalika

Hoshiarpur.

• Sample---- Selection of some part of an aggregate on the basis of which a judgment or

inference about aggregate is made.

• Sample Unit---- Define unit of sample i.e. unit by which sample is measured i.e. No. of

employees.

• Sample size----- Not too small or not too large. An appropriate size. i.e. 25 employees of

Sonlika.

B. Questionnaire Design:---

“A Questionnaire whether it is called a schedule, interview form or measuring instrument is a

formalized set of questions for obtaining information from the respondent”

How to design an effective Questionnaire?

In the end after completing the project in nutshell I would conclude that Retention Strategies are

very important for each & every organization. Retention plays vital role for the development of

human resources as well as the organization as whole.

Retention Strategies are being used by the HOD’s in order to boost the employee morale &

motivation. That resulted in job security & reduction in labour turnover rate.

Organization may not able to attain the required results which are expected if retention strategies

are not followed properly. Proper control should be implemented in the organization in order to

check whether strategies are followed or not.

While working on the project, I came to know that for retaining the employees in the

organization retention strategies play significant role & should not be neglected at any cost.

At end I would say that Sonalika Group must follow the retention strategies that would help in

reducing labour turnover rate & cost incurred on recruitment.

I had 8weeks summer training in Sonalika (INTERNATIONAL TRACTORS LTD.). It was a

great working experience to work in such a reputed organization. Proper rules & regulations are

being followed. Working atmosphere is co-operative & friendly. Co-ordination between different

departments & top, middle, lower levels of management exist.

Daily Dairy helped me a lot in preparing my project report. The majority of material has been

taken from it.

Sources of Information: ----

A. Websites……

Answers.com

Google.com

Altavista.com

Sonalika.com

B. Books……..

HRM (symbiosis centre) pune

HRM (Garry Dessler