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CHAPTER - 1

INTRODUCTION

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CHAPTER - 1

INTRODUCTION

INTRODUCTION

Human resources are the most important asset of any organization. The success or
failure of an organization is completely dependent on the potential of the employees
working in. An organization cannot progress without the positive and creative
contribution from the employee side. Now-a-days organizations are being
competitive in the global market. They are undergoing the difficulties and the
challenges in the area of managing human resources. Many organizations still faces
the problem of keeping their employees active and engaging them for a long period.
To exist in the competitive world organizations require focusing on the strength of
their employees to achieve the competitive advantage. A knowledgeable and skilled
employee is the backbone for the organization that improves creativity and
organizational innovation. Therefore, HR professionals work hard to develop
innovative HR practices for engaging, motivating and retaining their employees. As
a result, these practices improve the organizational performance as well as the
productivity.

A company invests huge amount of time and money for the purpose of employee
recruitment, selection and training. It leads to great loss to the company when an
employee leaves the organization in a short duration and joins competitor. Increased
employee turnover indicates that the company is losing more number of employees;
it also indicates failure in the selection process as well as not creating proper
environment for the employee. A high level of employee turnover is an undesirable
goal for an organization. It affects the organization in many ways such as poor
performance, low employee morale, low productivity, negative impact on
innovation, customer satisfaction, knowledge gain during the past years, and
profitability of the organization and moreover replacing cost of another employee.
Various estimates suggest that, losing a middle level manager in most organizations
costs up to five times his salary.

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An employee spends considerable amount of time in the organization to understand

its functioning. Long-term employee gets familiar about the company policies and
learns to adjust accordingly. Short term employee finds it difficult to settle down
in a new environment, as a result the employee fails to perform according to his
potential. On account of this an employee often changes his job as well as the
company. The short term employee treats the organization as the mere source of
earning money. They are never serious about their work and fail to complete the
tasks in the desired time frame. They never bother regarding the performance of the
organization. While joining the rival company there is a chance to take the
confidential data and pass the information to create an impression in the new
organization.

Retaining talent has never been so important in the Indian scenario; however, things
have changed in recent years. There is no dearth of opportunities for a talented
person. There are many organizations which are looking for such employees. If a
person is not satisfied by a particular job, he/she can shift over to another job which
is suitable for him. In the present extreme competitive environment, HR managers
are facing a lot of challenge; they can either hold on to their employees or lose them
to competitive world. In the old strategy of employment, an employee is committed
to an organization for many years for the better position. Now, opportunities are
many, there are numbers of factors which promote the employees to stay or leave
the organization. It may be external factors or internal factors and the combined
effect of both. It is becoming important to adopt strategies for employee retention. It
is the time for the HR managers to identify the needs of the employee and then
devise the retention strategies.

Retention of a key employee is critical to the long-term health and success of any
organization. An organization must work hard towards retaining employees, as they
are really important for the organization. The top organizations stand on the top
position because they value their employees to retain them in the organization.
Intelligent employers always realize the importance of retaining the best talent. It is
a known fact that retaining the best employees ensures customer satisfaction,
increased product sales, satisfied colleagues and reporting staff, effective succession
planning, and deeply embedded organizational knowledge and learning.

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STATEMENT OF THE PROBLEM

Banks play a pivotal role in the well-being of the society. By controlling the cash, it
leads to either prosperity or disaster. Hence, in the attempt of safeguarding the
environment, banks have the major role to play. In this regard, it is important to
know what the bank employees think about the role of bank in the sustainable
development. Their perception on banking practices has a great significance in the
successful implementation of banking strategies. However, the present study has
been undertaken to highlight the bank employee Retention Strategies banking.

SCOPE OF THE STUDY

Though there are a number of bank employees in every Taluk and village in
Karnataka state, this study confines only on banking in "Chikkamagaluru District"
and study is only on the employee Retention Strategies banking by keeping all other
things constant. Number of respondents limited to 50 only.

NEED FOR THE STUDY

In today‟s corporate world employee retention is becoming a major issue to the

organizations, most of the business units facing employee turnover problems. The
review of literature on employee turnover and employee retention shows that
different authors theoretically explained the concept focusing on different factors of
employee retention like job satisfaction, motivation, compensation, training and
development, employee relations, job stress and work environment.

OBJECTIVES OF THE STUDY

The main objectives of the present study are:

1. To study the theoretical framework of employee retention.

2. To review the profiles of selected private sector banks i.e. Canara banks.
3. To examine the employee retention strategies followed by the selected
private sector banks.
4. To analyze the perceptions of the respondents of selected private sector

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banks on employee turnover and employee retention strategies.

5. To offer suitable suggestions to reduce employee turnover and to design
effective employee retention strategies in private sector banks.

SCOPE OF THE STUDY

There is a great scope to conduct the present study on employee retention in India.
To take up this study on employee retention, it needs an organization which
maintains good amount of human capital. In India there are twenty nine private
sector banks, out of these banks Canara banks are leading in top positions in terms
of market capitalization, customer service and employee strength. Hence, these
banks have been selected to conduct the present study. The study examines various
dimensions of employee retention i.e. job satisfaction, compensation, training and
development, motivation, management support, welfare and social security
measures, employee relations, work life balance, stress at work place and working
conditions in selected banks. The study also focuses on identifying the reasons of
employee turnover in the selected banks and its impact on bank‟s performance. The
study covers three regions of karnataka.

RESEARCH METHODOLOGY

The process of gathering reliable and meaningful information is cardinal aspect of

the enquiry that forms a critical link in the operational plan for the entire research
design and is vital to draw valid conclusions. Hence, the present study entailed a
good deal of preparation and planning in order to secure the necessary data and
information. Keeping the objectives of the study in mind, the following
methodology has been adopted for conducting the present study. The research
methodology which is adopted for this study has been discussed under the following
heads:

1. Method of data collection

2. Questionnaire design
3. Population and sample
4. Techniques of analysis and interpretation

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Method of Data Collection Secondary Data:

The secondary data has been collected from different text books, journals, and
periodicals from various libraries in Hyderabad, Visakhapatnam Guntur and
Tirupati, different websites available from the internet, administrative records,
annual reports, management reports, banks personnel manual, and special project
reports of the selected banks. This data has been largely used in providing different
theoretical chapters in this thesis.

Primary Data:

The study focuses on perceptions and attitudes of employees with regard to

employee retention strategies and factors of employee retention like job satisfaction,
compensation, motivation, training and development, working conditions, employee
relations, manager support, work life balance, welfare and social security measures
and stress at work place. The views and opinions on the above issues have been
collected through structured questionnaire from selected employees of the banks.
The sample respondents are the main source of information for this study.

Questionnaire Design

The questionnaire has been an important tool of data collection in the present study.
The purpose of this research is to know the opinion of managers and employees
towards the various aspects relating to employee retention. Hence, the tool of
questionnaire was used for collecting the primary data. The total process of
preparation of the questionnaire was developed in three phases.

Development of Questionnaire

The questionnaire used in this study is composed of four sections. The first section
of questionnaire contains socio-economic profile includes personal details such as
name, designation, age, educational qualifications, experience and monthly salary
etc... The second section of the questionnaire dealt with basic employee turnover
issues and the third section dealt with employee retention strategies followed by the
banks. The fourth section of the questionnaire dealt with factors of employee

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retention which embraces of ten broad dimensions namely:

1. Job Satisfaction
2. Compensation
3. Training and Development
4. Motivation
5. Manager Support
6. Working Conditions
7. Welfare and Social Security Measures
8. Work Life Balance
9. Employee Relations
10. Stress at Work Place

LIMITATIONS OF THE STUDY

The limitations of the study may briefly be stated as follows:

1. During the collection of data, it was found that some of the respondents were
rather hesitant and ambivalent in providing the required information and
sometimes they were reluctant to discuss.
2. Another limitation of this study is that the personal bias of respondents may
be involved in their opinions.
3. Employees were hard pressed for time in view of the job demands and
rigorous work schedule. The researcher had to persuade them for sparing
time for responding to the questionnaire and interviews. Establishing rapport
with the respondents posed a problem initially.
4. While the questionnaire survey administered over such a large respondent
sample has been a major strength, it is evident that, on occasion, social
desirability effect has contaminated the responses and employees have
tended to give rather generalized views on the various items.

However, the above-mentioned limitations do not detract the quality output of the
present study.

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1.9 CHAPTER SCHEME

Chapter: 1 Introduction
Introduction, Review of literature, Research problem, Objective of the
study,Research problem, Scope of the study, Limitations of the study, Chapter
scheme.
Chapter: 2 Conceptual Framework
Concept of employee turnover, causes of employee turnover, problems of
employee turnover, employee retention, employee retention tools, qualities in
an organization for better employee retention, role of hrm in employee
retention, kei‟s employee retention wheel, challenges in employee retention,
Chapter: 3 Canara Bank Profile
Canara bank profile, History, Board of Directors, founding principles of
Canara bank, Logo and Slogan of Canara bank, Several IT initiatives were
undertaken for customer convenience, the bank has recently launched a series
of customer friendly mobile application, Environment protection through
Canara Bank, Significant initiatives/projects for environment protection
funded by the bank, Significant milestones, Recent awards and accolades, The
green initiatives taken by Canara bank.

Chapter: 4 Employee Retention Strategies A Study with reference to

Canara Bank

It includes tables and graphs which are prepared with the help of
questionnaire.
Chapter: 5 Findings, Suggestions and Conclusion

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CHAPTER-2

CONCEPTUAL FRAMEWORK OF EMPLOYEE

RETENTION

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CHAPTER-2

CONCEPTUAL FRAMEWORK OF EMPLOYEE

RETENTION

An attempt was made in this chapter to provide different theoretical aspects of

employee retention. This chapter presents the concept of employee turnover, causes
of employee turnover, and problems of employee turnover and concept of employee
retention. The chapter also explodes the retention methods, qualities in an
organization for better employee retention, employee retention strategies and
challenges in employee retention.

CONCEPT OF EMPLOYEE TURNOVER

Employee turnover refers to the number or percentage of workers who leave an

organization and are replaced by new employees. Measuring employee turnover can
be helpful to employers that want to examine reasons for turnover or estimate the
cost-to-hire for budget purposes. Employee turnover and employee attrition both
occur when an employee leaves the company. Turnover, however, may result from a
number of employment actions, such as discharge, termination, resignation or job
abandonment. Attrition occurs when an employee retires or when the company
eliminates his job. The major difference between the two is that when turnover
occurs, the company seeks someone to replace the employee. In cases of attrition,
the employer leaves the vacancy unfilled or eliminates that job role.

Although different types of turnover exist, the general definition is that turnover
occurs when the employment relationship ends. Turnover and attrition terms that are
sometimes used interchangeably or together when describing the departure of an
employee are different. Attrition generally refers to the end of the employment
relationship due to retirement, job elimination or employee death, and is
distinguishable from turnover because when attrition occurs, the position is not filled
with a new employee.

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Employee termination for poor job performance, absenteeism or violation of

workplace policies is called involuntary turnover also referred to as termination,
firing or discharge. It's involuntary because it wasn't the employee's decision to
leave the company. Layoffs could also be considered involuntary terminations,
though layoff procedures usually are handled differently from termination. Some
layoffs have certain federal and state provisions that aren't afforded to employees
who are fired because of performance or policy violations. When an employee
leaves the company of her own volition, it's called voluntary termination. Employees
give a number of reasons for leaving their jobs. They may be accepting employment
with another company, relocating to a new area or dealing with a personal matter
that makes it impossible to work. When an employee voluntarily terminates the
employment relationship, she generally gives the employer verbal or written notice
of intent to resign from her job.

Turnover often has a negative connotation, yet turnover isn't always a negative
event. For example, desirable turnover occurs an employee whose performance falls
below the company's expectations is replaced by someone whose performance meets
or exceeds expectations. It's desirable because poor job performance, absenteeism
and tardiness are costly; replacing a poor performer with an employee who does his
job can improve the company's profitability. Desirable turnover also occurs when
replacing employees infuses new talent and skills, which can give an organization a
competitive advantage. Conversely, undesirable turnover means the company is
losing employees whose performance, skills and qualifications are valuable
resources. Basic turnover calculations are relatively simple. If company employs
100 employees and 15 employees are fired or quit, turnover is 15 per cent. Most
organizations use more detailed calculations to determine what underlies turnover.
Assume five employees leave in January, one employee leaves in May and four
employees leave in November. The annual turnover rate is 10 per cent, and
average monthly turnover is

8.3 per cent. Employee turnover calculations may also factor in different types of
turnover, such as involuntary and voluntary, or even more specific reasons why
employees leave, such as poor performance, absenteeism or employees accepting
new jobs elsewhere. Turnover calculations are helpful to determine hiring costs,

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training requirements or estimating staff time devoted to recruitment activities.

CAUSES OF EMPLOYEE TURNOVER

The causes of turnover are related to the same factors that contribute to absenteeism,
if workers are not interested in their jobs, they will either stay away or leave. But
being unhappy in a job is not the only reason why people leave one employer for
another. If the skills that they possess are in demand, they may be lured away by
higher pay, better benefits, or better job growth potential. While manager can‟t
control what‟s happening with other companies, how much they pay, or which
benefits they offer, manager can take steps to improve morale at business and make
those employees who are with organization happy productive. That‟s why it is
important to know and recognize the difference between employees who leave
because they are unhappy and those who leave for other reasons.

High turnover often means the employees are dissatisfied with their jobs, especially
when it is relatively easy to find a new one. It can also indicate unsafe or unhealthy
conditions, or that too few employees give satisfactory performance due to
unrealistic expectations, inappropriate processes or tools, or poor candidate
screening. The lack of career opportunities and challenges, dissatisfaction with the
job-scope or conflict with the management has been cited as predictors of high
turnover.

Each company has its own unique turnover drivers so companies must continually
work to identify these issues that cause turnover in their company. Further the
causes of attrition vary within a company such that causes for turnover in one
department might be very different from the causes of turnover in another
department.

Companies can use exit interviews to find out why employees are leaving and the
problems they encountered in the workplace.

Low turnover indicates that none of these above is true. Employees are satisfied,
healthy and safe, and their performance is satisfactory to the employer. However,
the predictors of low turnover may sometimes differ than those of high turnover.

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Aside from the fore-mentioned career opportunities, salary, corporate culture,

management‟s recognition, and a comfortable workplace seem to impact
employees‟ decision to stay with their employer. Many psychological and
management theories exist regarding the types of job content which is intrinsically
satisfying to employees and which, in turn, should minimize external voluntary
turnover. Examples include Herzberg‟s two factor theory, McClelland‟s theory of
needs, and Hack man and Oldham‟s job characteristics model. One mistake HR
professionals and managers make is to assume people leave solely on the basis of
their unhappiness with their compensation packages. Many factors can cause de-
motivated employees. One we find out what can cause voluntary turnover, we can
develop retention strategies to reduce turnover. The following are some of the
common reasons for high turnover in business

A bad match between the employee’s skills and the job: Employees who are
placed in jobs that are too difficult for them or whose skills are underutilized may
become discouraged and quit. Inadequate information about skills requirements that
are needed to fill a job may result in the hiring of either skilled or over qualified
workers. The requirements of a specific job should be carefully studied for the
required skills, and workers should be tested for the requisite qualifications. Use job
analysis and job descriptions to minimize the chances of this happening. The issue is
directly related to the recruitment process. When poor match occurs, it can cause
frustration for the employee and for the manager. Ensuring the recruitment phase is
viable and sound is a first step to making sure the right match between job and skills
occur.

Lack of Standard equipment, tools, or facilities: If working conditions are

substandard or the workplace lacks important facilities such as proper lighting,
furniture, restrooms and other health and safety provisions, employee will not be
willing to put up with the inconvenience for long.

Lack of opportunity for advancement or growth: If the job is basically a dead-

end proposition, this should be explained before hiring so as not to mislead the
employee. The job should be described precisely, without raising false hopes for
growth and advancement in the position. This is the prime reason why employees

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quit their job.

Lack of appreciation: Since employees generally want to do a good job, it follows

that they also want to be appreciated and recognized for their work. Even the most
seasoned employee needs to be told what he or she is doing right once in a while.

Inadequate supervision and training: Employees need guidance and direction.

New employees may need extra help in learning an unfamiliar job. Similarly, the
absence of a training program may cause workers to fall behind in their level of
performance and feel that their abilities are lacking.

Unequal or substandard wage structures: Inequity in pay structures and low pay
are great causes of dissatisfaction and can drive some employees to quit. Again, a
new worker may wonder why the person next to him is receiving a higher wage for
what is perceived to be the same work. Organization should have a wage and job
evaluation system in place not only to comply with legal requirements, but also to
avoid this problem. This is the common reasons why employee turnover rate is high.
Employees are for sure in search of jobs that pay them well. When employees are
underpaid, they tend to look out for jobs that offer considerable pay.

Lack of vision: Initially, no employee cares about the company‟s profit but about
their personal interest and gains. These shortsighted employees come with high
expectations without realizing that the process would take some time. Therefore,
they tend to change.

Poor Work environment: Work environment is also the main cause for employee
turnover. Every employee would want work in the environment that he/she is
comfortable in. This is one such reasons why employees jump from one company to
another in a just a couple of months. Some employees feel their workloads are too
heavy, resulting in employees being spread thin and lacking satisfaction from their
jobs, and possible, lack of work-life balance as a result.

Lack of motivation: Employees who leave due to lack of motivation are not among
who look forward for a pat on their back, but those who would want to know if their
work adds value to the company‟s growth.

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No employee engagement: Employee engagement is one of the important

motivator. Employees would be happy to be a part of the company‟s ups and downs,
and therefore they should be kept posted with all the happenings in the organization.

Poor Management: Many employees cite management as per their reason for
leaving. This can be attributed to over managing people, managers not being fair or
playing favorites, lack of or poor communication by managers, and unrealistic
expectations of managers.

PROBLEMS OF EMPLOYEE TURNOVER

Employees are major assets of any organization. An organization can‟t survive if the
individuals are not focused and serious about their work. The success and failure of
any organization depend on the hard work put by the employees to achieve the
targets of the organization. It is a common observation that employees who spend a
good amount of time in the organization tend to know more about it and thus
contribute effectively. They develop a sense of loyalty towards their workplace and
strive hard to live up to the expectations of the management. There are several
reasons as to why an employee decides to move on. Monetary dissatisfaction, a
negative environment at work place, dirty politics, complicated hierarchies, lack of
challenging work, poor supervision being the major ones. In the current scenario
almost all the leading organizations are facing the problem of employee retention.
Management somehow fails to stop the high potential employees and thus face the
negative consequences. It becomes really difficult for the organization to retain the
employees who decide to quit for a better opportunity. Employee turnover is natural
part of business in any industry. Excessive turnover decreases the overall efficiency
of the company and comes with a high price tag. Understanding the effects of losing
a high number of employees serves as a motivator to work toward reducing the
turnover rate for higher profits and a more appealing work environment. Employers
should focus on turnover for different reasons are as follows

Cost: Each employee who resigns costs company money. All of the money invested
into that employee through training, education and licensing walks out the door with
employee. When HR hires a replacement, the company spends money on those same

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areas to prepare the new hire for the position. The company also pays to advertise
the vacancy and may incur coats for drug testing, physicals and moving expenses.
The company could pay 1/3 of the yearly salary of the new employee in costs.
Replacing workers can be expensive. While the cost varies, some studies have
shown the cost to replace and hire new staff as high as 60 percent of the old
employee‟s salary. In addition, total costs of replacement, including training and lost
production, can range from 90 percent to 200 percent of an employee‟s annual
salary.

Time: High turnover rates cost the company time in addition to money. Managers or
human resources staff spends time conducting exit interviews, advertising the job,
recruiting candidates and interviewing. Supervisors and colleagues are often left to
cover until a new employee is hired and begins working. The new employee may
take several months to fully learn the job and achieve competency in the position.

Team Dynamics: When the staff changes frequently, the employees who stay have
a difficult time building a positive team dynamic. A group of employees learns to
work well together, only to have one or more members leave. This leaves the staff in
limbo until a new employee starts. The personality and work ethic of the new
employee may vary significantly from the previous employee. High turnover can
hurt overall morale of employees.

Productivity: The overall productivity of the workplace tends to decrease with high
turnover. Since a new employee has a period of adjustment, he won‟t complete tasks
as quickly as the person he replaces. Group projects that rely on the new team
member may slow down, which affects experienced employees‟ productivity levels.
The loss of momentum when an employee resigns may also affect morale.

Continuity: A high turnover rate affects the continuity of service to clients and
other employees. This is particularly difficult in an industry that relies heavily on
relationships with clients. For example, a client who purchases products from the
company on a regular basis may grow tired of getting a new salesperson or customer
service contact every few months. Consistent relationships with clients help build
a stronger loyalty to the company. The company is also better able to provide

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consistent, high-quality service with well-trained staff that doesn‟t change often.

Overall business performance: In addition, oftentimes the employees who remain

with a company are less productive and less efficient than they would have been in a
lower turnover environment. This is because they must absorb the responsibilities of
the vacant position, train new employees upon their arrival, and deal with a
depressed work culture and environment. As a result, companies with lower
retention rates and high turnover are often less competitive and produce less than
companies with a stable work force.

Turnover can be difficult to control: National studies consistently show that

employees quit jobs more often because of workforce culture or inter-employee
relations than because of the difficulty of the work. A culture of high turnover feeds
off of itself, leading to lower and lower retention rates. It can be hard to manage a
workforce that is constantly in flux; oftentimes leaving companies in a tough
position to complete.

Let us go through some other effects of high employee turnover:

1. Employees who spend a considerable amount of time in any organization

know it in and out and thus can perform better. They are well familiar with
the company policies and adjustment is never a problem. Employees who
come and go find it very difficult to settle down in a new environment and
are thus always in a state of dilemma. They are not able to perform up to
their potential and eventually the work and the organization suffers.
2. Individuals who have the habit of changing jobs frequently never get
attached to any particular organization. They just treat the organization as a
mere source of earning money. They are never serious about their work and
fail to accomplish the tasks within the desired time frame. It hardly matters
to them whether the organization is performing well or not. In cases of poor
retention policies, employees are just now bothered about the reputation of
their office and avoid taking initiative to do something new. The employees
who are there for a long time in the organization are trustworthy and the
management can rely on them anytime

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3. When individuals leave any organization, they are more likely to join the
competitors. Sometimes they tend to take confidential data along with then to
create an impression in their new organization. This way the plans of the
organization get leaked even before implementation and they fail to do
anything great. Employees must not share any information with an external
party in any manner what so ever.
4. An organization can‟t perform well if the employees speak negative about it.
It is essential to have a group of loyalists who play an important role in
furthering the brand image of the company. Employees working with an
organization for a long time never badmouth it and are somewhat
emotionally attached to it. People leaving in a short span always speak ill
about their previous organizations. The loyalty factor is almost zero and no
one is ready to take ownership of work.

EMPLOYEE RETENTION

Employee Retention involves taking measures to encourage employees to remain in

the organization for the maximum period of time. It is a process in which the
employees are encouraged to remain with the organization for the maximum period
of time or until the completion of the project. Employee retention is beneficial for
the organization as well as the employee. Effective employee retention is a
systematic effort by employers to create and foster an environment that encourages
current employees to remain employed, by having policies and practices in place
that address their diverse needs. However, many consider employee retention as
relating to the efforts by which employers attempt to retain employees in their
workforce. In this sense, retention becomes the strategies rather than the outcome.

EMPLOYEE RETENTION TOOLS

Here are some effective employee retention tools which employers utilize in order to
keep employees happy and part of their organization instead of looking for
employment opportunities elsewhere.

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1. COMPENSATION

Compensation is the total cash and non-cash payments that an employer gives to an
employee in exchange for the work they do. It is typically one of the biggest
expenses for business with employees. Compensation is more than an employee‟s
regular paid wages. It also includes many other types of wages and benefits.
Employees who feel significantly under compensated are likely to leave. Employees
want to be paid well for the job they do, both for their self-esteem and as a practical
means to living. The importance of compensation in employee retention depends
somewhat on the type of job and industry. A financial planner or stock broker, for
example, often is more concerned about compensation than most people who go into
nonprofit and health care fields primarily to help people. Compensation includes not
only salary, but also benefits and other perks.

Compensation might not be the most important factor in determining whether an

employee will stay with the company, but it can tip the balance. In addition to salary
and wages, benefits make up company‟s compensation package, and it‟s possible to
improve what company can offer to its employees without spending more money.
The better the compensation package, the more likely the company will retain key
employees.

Components of Compensation

Wages should be determined in such a way that they are perceived to be fair and
equitable by all the employees. Compensation system should be so designed that it
is able to attract, retain and motivate people. Total payable compensation can be
paid in different forms. Besides classifying components of compensation in many
other ways, one method of classification that has been discussed is financial
compensation and non-financial compensation. Concentrating on financial
compensation presently, different financial components can be broadly categorized
as foloows11:

 Basic wage/salary
 Dearness allowance

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 Bonus
 Incentive compensation
 Fringe benefits and retirement benefits

Different Components mentioned above and their sub-components (mentioned later)

are valued by different people differently. Therefore, not only the total reward
should be perceived to be fair and equitable, but it should be in such form which is
valued by the recipient. In what components, compensation should be paid can be
largely decided by the employer and the employee, through there are some other
factor influencing such decisions, namely, past practices of the organization, legal
requirements and Governments decisions.

Basic Wage / Salary

Basic wage provides the foundation of pay packet. It is a price for services rendered.
Base wage is the cash compensation that an employer pays for the work performed.
It remains fairly stable over a long period of time. Determination of such wage is
done keeping in mind certain factors like education and skills of employees, ability
of the organization to pay, wages paid by other firms in the industry and some such
other factors. The base wage remains fairly stable over some period of time. It
happens when the base wage is determined in the manner of spot rate for the skills
and abilities possessed by the individual. In other cases, where wage rates are
determined according to the grades, it progresses evenly within job grades. Such
wages are revised periodically to

 Keep pace with the increasing cost of living

 Maintain gap between the senior employees and newer employees
 To give the psychological feeling to employees that they have progressed
over a year.

There are two ways in which basic wages can be determined. Namely

i. Time Wage System

ii. Piece Wage System
iii. Time Wage System

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Under this system, the wages are paid on the basis of time spent on the job
irrespective of the amount of work done.. This is the oldest and the most common
system and the wages are based on a certain period of time during the course of
work. The unit of time may be an hour, a day, a week, a fortnight or a month and
the wage rate will depend upon the period of time. Such wages are paid after the
time fixed for work is completed irrespective of the output or the completion of the
work.

1. Piece Wage System

This system is based on the productivity or output of workers. A predetermined rate

is paid for each completed unit of output irrespective of the time taken. It is also
known as straight piece rate systems as the rate per unit remains the same
irrespective of the number of units produced. The piece wage system guarantees
reward efficiency on the one hand, time wage system guarantees minimum wages,
not rewards efficiency on the other. So a system is often should be so devised that
guarantees minimum wage and rewards efficiency.

Dearness Allowance

Dearness allowance also known as cost of living adjustments was used for the first
time after World War I to enable the workers to meet the steep rise in prices of
essential commodities such as food stuffs. Also called as Cost of Living Allowance
(in section 3 of minimum wages Act), the special allowance thus paid aimed at
neutralizing the increasing cost of living due to inflation and thus protect the real
wages of the wage earners.

Bonus

Bonus is defined as “an allowance in addition to what is usual , current or

stipulated; sum given or paid beyond what is legally required to be paid to the
recipient; something given in addition to what is ordinarily received by or strictly
due to the recipient”. Thus, bonus may be a boon, a gift or a gratuitous allowance
described as an ex-gratia payment. The word „bonus is also sometimes used to
denote an incentive payment to the workers aimed at enhancing their efficiency and

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loyalty to their organization. In India, the bonus component of the industrial wage
structure, though a quite old one has now assumed a statutory status with the
enactment of the Payment of Bonus Act, 1965. The Act is applicable to factories and
other establishments employing 20 or more employees. Under the Act, a minimum
statutory bonus at the rate of 8.33 per cent of the wages earned by an employee is
guaranteed, irrespective of the profit or loss by the firms during an accounting year.

Fringe Benefits or Perquisites

The idea of Welfare State has given birth to the concept of fringe benefits associated
with a job. In a wider sense, fringe benefits include all expenditure by the employer
on labour other than basic wage and in a narrow sense; it includes those benefits
which the employee can convert into cash. These have been variously expressed as
„wage supplements sub wages, or „social charges. The compensation that the
workers receive for their contribution in the industrial activity cannot be measured
by the mere estimation of wages paid to them. Certain supplementary benefits and
services known as “fringe benefits” are also provided to them. Some examples of
fringe benefits are:

 Medical and maternity benefits.

 Educational and recreational facilities.
 Payments for time not worked such as vacations, holidays, sick leave,
maternity leave, travel allowance, etc.
 Pension, provident fund, life insurance, gratuity.
 Housing benefits
 Compensatory city allowance.

Several new fringe benefits or fringes have been initiated by industrial giants
particularly for the executives. Such benefits are referred to as Perquisites or perks.
Perks include chauffeur driven car, corporate aircraft, and company apartment,
home security, club membership, paternity leave, self defense training, company
credit card, etc.

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2. TRAINING AND DEVELOPMENT

Training is a program that helps employees learn specific knowledge or skills to

improve performance in their current roles. Development is more expansive and
focuses on employee growth and future performance, rather than an immediate job
role. Training and development is a subsystem of an organization and core function
of human resource management. It ensures continuous skill development of
employees working in organization and habituates process of learning for
developing knowledge to work. Training and development is the foundation for
obtaining quality output from

employees. Training and development is a structured program with different

methods designed by professionals in particular job. It has become most common
and continuous task in any organization for updating skills and knowledge of
employees in accordance with changing environment. Optimization of cost with
available resources has become pressing need for every organization which will be
possible only by way of improving efficiency and productivity of employees,
possible only by way of providing proper employee training and development
conditioned to that it should be provided by professionals.

One way many organizations have chosen to hang on to their top talent is by re-
investing in their human capital, the specialized knowledge, skills, and abilities of a
company‟s workforce. After making the initial investment of hiring these
employees, companies are new looking to provide their workforce with the tools
needed to grow and develop as contributors to the growth of the company.
Companies have found that investment in their human capital in the form of training
and development yields high returns. A knowledgeable workforce may ensure a
company‟s survival. Many employers are choosing to empower their employees and
are creating learning organizations. Employers are communicating the expectation
for continuous learning within their employee-base. They offer work time support
for learning, and make online learning and reading a part of every employee‟s
regular day-to-day job duties. Employers are utilizing outside training resources and
are sending employees off-side for training. Many provide college tuition
reimbursement and pay for professional association memberships to further

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employee engagement in the company‟s commitment to learning.

Employee Training and Development Methods

Some methods of employee development occur on the job, with the manager or an
experienced co-worker leading the development activity in the context of the actual
work environment, other development occurs at training facilities or other locations.
And increasingly organizations use online methods to develop employees. The
major training and development programs are as follows

Coaching

Coaching involves a more experienced or skilled individual providing an employee

with advice and guidance intended to help him or her gain new skills improve
performance and enhance the quality of his or her career. The hallmarks of coaching
are that it is personalized and customized, that it has a specific business objective,
and that it is usually accomplished one-on-one over a period of time. Coaching
should be approached like any other strategic goal. Successful execution requires
commitment from the organization and the person being coached, a plan to obtain
results, qualified coaches, and a follow-up evaluation.

Mentoring

Mentoring matches less experienced employees with more experienced colleagues

through formal or informal programs. Formal mentoring programs can reduce
turnover, enhance recruitment, and improve performance and the work environment,
especially for women and people of colour. Effective mentoring programs do the
following:

 Match mentors and mentees based on skills and development needs.

 Outline and track goals.
 Designate minimum time commitments.
 Monitor the mentoring relationship.
 Hold both parties accountable.
 Link mentoring to talent management strategy and goals.

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 Link mentoring to business strategy and goals.

Individual development plans

To accelerate the pace of employee learning, organizations may use an individual

development plan (IDP). This document details an employee's intentions and
learning outcomes as well as support necessary to meet his or her tangible growth
goals. Beneficial IDPs reflect adult learning strategies, experiential learning and
symbolic interaction.

The 9-Box Grid

The 9-box grid is an individual employee assessment tool that evaluates the
employee's current and potential levels of contribution to the organization. The grid
is most commonly used in succession planning as a method of evaluating an
organization's talent pool and identifying potential leaders. For performance
appraisal purposes, the 9-box grid provides a visual reference that can include
appraisal and assessment data to allow managers to view employees' actual and
potential performance. With information from the grid, managers and HR can design
IDPs.

Cross-training

Cross-training refers to training employees to perform job duties other than those
normally assigned. Cross-training can be a short-term or ad hoc fix, or it can be an
on-going, planned process. Cross-training usually does not result in immediate
advancement, but it does indicate that an employee is interested in learning new
skills. This skill diversity may help him or her meet qualifications for future career
advancement. Employers find value in cross-training because it is usually more
efficient than bringing in new hires. Many managers take those efficiencies to the
next level by leveraging technology to improve cross-training efforts. Many
employees appreciate cross-training because it allows them to broaden their skills.
All cross- training should begin with two basic steps: 1) identifying the knowledge
and skills needed for each position and 2) cross-referencing that list of knowledge
and skills with an inventory of current employees' proficiencies. These steps reveal

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gaps between employees' current skills and those the organization needs.
Technology makes it easy to gather and analyse such information.

"Stretch" assignments

On-the-job training projects and "stretch assignments" give employees a chance to

learn while doing real work. Developmental assignments allow employees to
develop new skills, knowledge and competencies necessary for higher-level
positions. Getting to the next level in business often means having the right
experiences. Yet many workers do not know what experiences best prepare them for
upward mobility. Experts say that people who have experiences characterized as
"accelerators" of potential will be more likely to succeed. Research has shown,
for example, that first-level leaders are more likely to succeed if they have had cross-
functional experiences, midlevel leaders are more likely to succeed if they have had
experiences handling tough challenges (e.g., a difficult employee situation), and new
executive leaders are more likely to succeed if they have had high-risk and high-
visibility experiences.

Job enlargement and job enrichment

Job enlargement involves expanding the employee's job by adding more tasks and
duties, typically at the same level of complexity. Job enrichment builds more depth
to an employee's job through more control, responsibility and discretion.
Organizations often redesign jobs to increase employee motivation; however, when
jobs are enlarged but not enriched, motivational benefits are unlikely. Although the
distinction between job enlargement and enrichment is fairly straightforward,
employees may not correctly perceive the changes as enrichment or as enlargement.

Job shadowing

Job shadowing requires more than just having an employee follow a colleague
around all day. Shadowers view the organization from a different perspective and
learn first-hand about the challenges facing workers in other departments. This
perspective helps employees realize the impact their decisions have on other groups.

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Job rotation

Job rotation is the systematic movement of employees from job to job within an
organization. Rotation programs may vary in size and formality. Though larger
employers are more likely to invest in a formalized job rotation program,
organizations of all sizes might consider implementing a job rotation program.
Typically, formal rotation programs offer customized assignments to promising
employees to give them a view of the entire business. Assignments usually run for a
year or more. Many reasons exist for implementing a job rotation system, including
the potential for increased product quality, giving employees the opportunity to
explore alternative career paths, and perhaps most importantly, preventing
stagnation and boredom. Possible downsides include increased workload and
decreased productivity for the employee, temporary disruption of work flow,
line managers' possible reluctance to allow high-performing employees to
participate in job rotation programs, and the costs associated with the learning curve
on new jobs.

Succession planning

Succession planning identifies long range needs and cultivates internal talent to
meet those needs. Succession plans typically focus on a one to three year process of
preparing employees not preselecting them for new roles in the organization. Many
business leaders and HR practitioners believe that succession planning is a complex
process, restricted to the largest organizations with the most
sophisticated organizational development departments. However, succession
planning can also benefit smaller organizations with fewer resource.

3. MOTIVATION

Employee motivation is the level of energy, commitment, and creativity that a

company's workers bring to their jobs. Whether the economy is growing or
shrinking, finding ways to motivate employees is always a management concern.
Motivation is necessary for work performance because, if people do not feel inclined
to engage themselves in work behavior, they will not put in necessary efforts to

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perform well. However, performance of individual in the organization depends on

variety of factors besides motivation. It is therefore desirable to identify various
factors. For instance, employees‟ knowledge and skills are important performance
drivers. Another factor is the company‟s ability to retain its employees with
attractive benefit packages. Motivation is a prominent tool to retain employees with
greater compensation packages.

Motivation plays an important role in employee satisfaction and eventually

employee retention. Nothing works better than motivation. Motivation acts as a
catalyst to an individual‟s success. The team leaders and the managers must
constantly motivate the employees to extract the best out of them. If an employee
has performed exceptionally well, do appreciate him. Simple works like “Well
done”, “Bravo”, “Good”, “Keep it up” actually go a long way in motivating
employees. The top performers must be in the limelight. The employees must feel
indispensable for the organization. It is essential for the employees to be loyal
towards their organization to deliver their level best.

Motivation Techniques

Increasing motivation in workplace can help to improve performance, raise morale

and boost productivity. While different motivators work for different types of
employees, there are several common techniques for getting employees excited and
energized for their jobs.

Financial/Incentives Techniques of Motivation:

Financial techniques refer to monetary rewards. Incentives are nothing but the
inducements provided to employees in order to motivate them. There should be
direct relationship between efforts and rewards, financial reward should be
substantial in value and must be in parity with others. Under -paying staff sends the
message that firm doesn‟t value their work. Money is not a prime motivator but this
should not be regarded as a signal to reward employees poorly or unfairly. The
financial incentives include

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Pay and Allowances: It includes basic pay, grade pay, and dearness allowance;
travelling allowance, pay increments, etc. Good pay and allowances help the
organization to retain and attract capable persons. However, good pay and
allowances need not motivate all the people, especially who are enjoying security of
job in government organizations and those for whom corruption is a way of life.
Some of the other issues are associated with bad attitudes, grievances, absenteeism,
turnover, poor organizational citizenship, and adverse effect on employees‟ mental
and physical health.

Incentive Pay: Incentive pay plans are meant to increase output, which can be
measured quantitatively. For incentive plan targets, the employees must have
confidence that they can achieve the targets.

Gain Sharing: It is a reward system in which team members earn bonus for
increasing productivity or reduce wastages. To illustrate, if the wastage is reduced
from 5% to less the benefits may be shared equally with the team.

Profit Sharing: It means sharing of profits with the employees by way of

distribution of bonus. Profit sharing plan has its shortcomings – one, that it has
become a regular feature in government departments irrespective of performance
and two, it may have no relation with individual efforts.

Stock Options: Many companies use employee stock options plans to compensate,
retain, and attract employees. These plans are contracts between a company and its
employees that give employees the right to buy a specific number of the company‟s
shares at a fixed price within a certain period of time. Employees who are granted
stock options hope to profit by exercising their options at a higher price than when
they were granted. In India, stock options have primarily been used as a retention
tool for a more selective group of employees.

Retirement Benefits: It includes the accumulated provident fund, gratuity, leave

encashment and pension. The provision of terminal benefits provides assurance to
employees during the service for their future.

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Non-financial Incentives/Techniques:

Non-financial incentives do not involve money payments. These are also important
in motivating employees as they bring in psychological and emotional satisfaction to
them. These include so many techniques. People do work for money- but they work
even more for meaning in their lives. In fact, they work to have fun. Some of the
important non-financial incentives include:

Job security: Nothing can motivate a worker, appointed temporarily, better than
provision of job security. Even if a temporary worker puts in greater efforts, lack of
job security will always pose a threat. If such a worker is given job security, he will
be more committed to the organization.

Challenging work: Workers, who are dynamic in nature, do not show preference
for routine jobs. They are always ready to accept challenging assignments, challenge
can be brought through mentoring, job redesigning – job enlargement and job
enrichment. Understand the capabilities of every individual in the organization and
accordingly assign him work.

Recognition: It is important that the employer recognizes hard work. Even a word
of appreciation from him would motivate the employees to maintain the same
level of performance or do even better. Employees ranked a personal „thank you‟ as
the most sought after form of recognition, followed by a handwritten note of
appreciation from the boss.

Opportunities for Advancement: There should never be a stagnation point for any
employee during the prime time of his career. The employer must always provide
opportunities for his employees to perform well and move up in the hierarchy.

Competition: The management can encourage healthy competition among the

employees. This would, certainly, motivate them to prove their capabilities. The
management can also rank the employees according to performance. Such of those
employees who have performed very well may be given merit certificates.

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Job Rotation: By job rotation we mean that the employees will be exposed to
different kinds of job. This certainly would break the monotony of employees. For
example, in a bank an employee may work in the Savings Bank Section for some
time after which he may be posted to the cash section. Such a change not only
motivates the employees to perform well but also prepares him to be versatile.

Encourage the use of humor and creativity: Incorporating humor into the
workplace can alleviate stress and create a more positive environment for everyone.
Strategies to enhance humour include having a daily cartoon or joke sent to all staff
via e-mail, encouraging laughter, finding fun in events that did not turn out as
planned or expected etc.

4. WELFARE AND SOCIAL SECURITY MEASURES

Welfare and social security measures include anything that is done for the comfort
and improvement of employees and is provided over and above the wages. Welfare
helps in keeping the morale and motivation of the employees high so as to retain the
employees for longer duration. The welfare measures need not be in monetary terms
only but in any kind/forms. Employee welfare includes monitoring of working
conditions, creation of industrial harmony through infrastructure for health,
industrial relations and insurance against disease, accident and unemployment for
the workers and their families. The Social Security program's benefits include
retirement income, disability income, Medicare and Medicaid, and death and
survivorship benefits.

Welfare Measures

Organizations provide welfare facilities to their employees to keep their motivation

levels high. The employee welfare schemes can be classified into two categories viz.
statutory and non-statutory welfare schemes. The statutory schemes are those
schemes that are compulsory to provide by an organization as compliance to the
laws governing employee health and safety. These include provisions provided in
industrial acts like Factories Act 1948, Dock Workers Act (safety, health and
welfare) 1986, Mines Act 1962. The non-statutory schemes differ from organization

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to organization and from industry to industry.

Statuary Welfare Benefits

The statutory welfare benefits schemes include the following provisions:

1. Drinking Water: At all the working places safe hygienic drinking water
should be provided.
2. Facilities for sitting: In every organization, especially factories, suitable
seating arrangements are to be provided.
3. First aid appliances: First aid appliances are to be provided and should be
readily assessable so that in case of any minor accident initial medication can
be provided to the needed employee.
4. Latrines and Urinals: A sufficient number of latrines and urinals are to be
provided in the office and factory premises and are also to be maintained in a
neat and clean condition.
5. Canteen facilities: Cafeteria or canteens are to be provided by the employer
so as to provide hygienic and nutritious food to the employees.
6. Spittoons: In every work place, such as ware houses, store places, in the
dock area and office premises spittoons are to be provided in convenient
places and same are to be maintained in a hygienic condition.
7. Lighting: Proper and sufficient lights are to be provided for employees so
that they can work safely during the night shifts.
8. Washing places: Adequate washing places such as bathrooms, wash basins
with tap and tap on the stand pipe are provided in the port area in the vicinity
of the work places.
9. Changing rooms: Adequate changing rooms are to be provided for workers
to change their cloth in the factory area and office premises. Adequate
lockers are also provided to the workers to keep their clothes and
belongings.
10. Rest rooms: Adequate numbers of restrooms are provided to the workers
with provisions of water supply, wash basins, toilets, bathrooms, etc.
11. Maternity & Adoption Leave – Employees can avail maternity or adoption
leaves. Paternity leave policies have also been introduced by various

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companies.
12. Medi-claim Insurance Scheme: This insurance scheme provides adequate
insurance coverage of employees for expenses related to hospitalization due
to illness, disease or injury or pregnancy.

Non Statutory Benefits

Many non-statutory welfare benefits may include the following schemes:

1. Personal Health Care (Regular medical check-ups): Some of the

companies provide the facility for extensive health check-up
2. Flexi-time: The main objective of the flex time policy is to provide
opportunity to employees to work with flexible working schedules. Flexible
work schedules are initiated by employees and approved by management to
meet business commitments while supporting employee personal life needs
3. Employee Assistance Programs: Various assistant programs are arranged
like external counselling service so that employees or members of their
immediate family can get counselling on various matters.
4. Employee Referral Scheme: In several companies employee referral
scheme is implemented to encourage employees to refer friends and relatives
for employment in the organization.

Social Security Measures

Social security is any government system that provides monetary assistance to

people with an inadequate or no income. Social security may also refer to the
action programs of organization intended to promote the welfare of the population
through assistance measures guaranteeing access to sufficient resources for food and
shelter and to promote health and well-being for the population at large and
potentially vulnerable segments such as children, the elderly, the sick and the
unemployed. Social Security means the security provided by the society to the
needy citizens on the principles of human dignity and social justice. Social Security
Programs are now increasingly being accepted as useful and necessary instrumented
for the protection and stability of the labor force.

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According to ILO “Social security is the protection which society provides for its
members through a series of public measures against the economic and social
distress resulting from sickness, maternity, employment injury, unemployment,
invalidity, old age and death. These measures are also of a great importance to a
country which is on the way of large scale industrialization as they improve
employee‟s morale by providing sense of security to them again various industrial
hazards.”

Scope of Social Security

International Labor organization in its convention divided scope of social security

into nine components.

Medical care: Social security under medical care covers pregnancy confinement
and its consequences and disease which lead to a morbid condition. “The need for
pre- natal and post-natal care was emphasized. It may include practitioner care,
specialist care, provision of essential pharmaceutical and hospitalization.”

Sickness Benefit: Sickness includes incapability to work resulting a loss of earning.

Under this benefit worker need not be paid for three days of suspension of earnings
and the payment of benefits may be limited to 26 weeks in a year.

Unemployment Benefit: Under the social security benefit cover the loss of earning
during a worker‟s unemployed period when he is capable and available for work but
remains unemployed because of lack of suitable employment. As per Act this
benefit may be limited to 13 weeks payment in year.

Employment Injury Benefit: Under Employment Injury benefit proper medical

care and periodical payment are made to injured employee as per the legal
provisions of Worker‟s compensation Act. In these days industrial work is subject to
different kind of contingencies mishaps and occupational diseases which are covered
under employment injury benefit of social security. It may include (i) Morbid
condition (ii) Inability to work (iii) Due to Morbid condition may lead to suspension
of earning (iv) Total or partial loss of earning capacity. (v) Death of the bread earner
in family. Under this proper medical car and periodical payment are made to injured

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employee as per the legal provisions of Worker‟s compensation Act.

Old Age Benefit: Old age benefits are applicable in India only in few states. Under
this benefit the quantum of payment depends upon on individuals working capacity
during the period before retirement. It further includes a certain amount beyond a
prescribed age and continues till one‟s death.

Maternity Benefit: There is complex maternity benefit Act 1961 which covers
benefit due to pregnancy. There is legal provision for medical including pre-natal
confident, post-natal care and also hospitalization if required. Fixed periodical
payment of three month before birth of the child and three month after birth of the
child will be provided.

Family Benefit: In case of death of the bread earner this cover responsibility for
maintenance of children during the entire period of children is provided.

Survivor’s benefit: It refers to the benefits to the affected family in form of

periodical payments to a family following the death of its bread earner and should
continue during the entire period of contingency.

Invalidism benefit: In fact this benefit continue till invalidism changes into old age
then old age benefit would become payable under this benefit as per ILO convention
“a periodical payment should cover the needs of workers who suffer from any
disability arising out of sickness or accident and who are unable to engage into any
gainful activity.”

5. WORK LIFE BALANCE

Work-life balance refers to the level of prioritization between personal and

professional activities in an individual‟s life and the level to which activities related
to their job are present in the home. Work life balance is a method which helps
employees of an organization to balance their personal and professional lives. Work
life balance encourages employees to divide their time on the basis on priorities and
maintain a balance by devoting time to family, health, vacations etc. along with
making a career, business travel etc. It is an important concept in the world of

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business as it helps to motivate the employees and increases their loyalty towards
the company.

Working on a job for a company and making a career can be an extremely time
consuming duty for any employee. Employees are busy at their offices throughout
the day and sometimes even on weekends. This gives them very little time to interact
with their family. Because of high pressure of work, often family members get
neglected. Also, stressful jobs cause the health of employees to deteriorate. This is
where work life balance comes into the picture. Work life balance concept allows an
employee to maintain a fine balance in the time he or she gives to work as well as to
personal matters. By having a good balance, people can have a quality of work life.
This helps to increase productivity at workplace as the employee is relaxed about his
personal commitments. It also allows the employee to give quality time with family
to spend vacations, leisure time, work on his/her health etc. Hence work life balance
is extremely important for employees and increases their motivation to work for the
company.

Tools for Organizations to Improve Work-Life Balance

The Mayo Clinic reports that the consequences of poor work-life balance include
fatigue, lost time with family and friends and heavier workloads. It is a challenge to
be successful at work and manage a happy, healthy home life. Employers can help
by providing effective tools to improve work-life balance and reduce work stress for
their employees.

Flexible Work Schedules

A flexible work schedule is one of the most-appreciated work-life balance tools.

Flex-time that allows employees to work evenings or weekends to complete a 40-
hour work week, paid time for volunteering, summer hours with half-day Fridays,
four-day work weeks and work-sharing plans for two employees to complete one job
provide flexibility for employees to manage their personal lives and be successful at
work. Employees feel less stress about taking time for dentist appointments or when
their kids are home from school when their work schedules are flexible.

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Work-Life Balance Policies

Work-life balance policies provide communication and documentation of a

company‟s work-life commitment and programs. Written and published policies that
define work-life expectations and programs create a culture that encourages
employees to manage stress, time and work and enables them to be more productive
and happy at work and home. Written policies also prompt managers and
supervisors to support work-life balance programs with their employees, improving
working relationships and environments.

Telecommuting

Allowing employees to work from home either full-time or part of the work week is
a work-life balance tool that cuts overhead and reduces or eliminates employee
commutes. It also allows employers to benefit from top employees who are located
far from the workplace.

Life Services

Life services are work-life tools that provide convenience and comfort to busy
employees. Benefits such as on-site day-care, concierge services for auto service,
dry cleaning and take-out dinner for late stays at the office, gym memberships and
on-site workout facilities allow employees to better manage their personal lives
either at work or on the way to and from work.

6. JOB SATISFACTION

Job satisfaction or employee satisfaction has been defined in many different ways.
Some believe it is simply how content an individual is with his or her job, in other
words, whether or not they like the job or individual aspects or facets of jobs, such
as nature of work or supervision. Improving employee satisfaction and retention can
be as simple as opening lines of communication. Employee satisfaction is a reliable
predictor of employee retention. When employers engage in practices that support
good working relationships, employee satisfaction improves because workers tend to
believe the company is using their skills and appreciating their service and

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commitment. In turn, higher job satisfaction generally results in higher levels of

employee retention. Job dissatisfaction or dissatisfaction with leadership is
commonly reported as the reason why many employees leave for other jobs.
Employee satisfaction means that workers are fully engaged in their tasks and feel
that the company appreciates their effort and diligence. While many employees leave
for other jobs in search of a bigger paycheck, the underlying reason for turnover in
many cases is dissatisfaction. Improving satisfaction can reduce turnover and helps
to maintain a stable and motivated workforce.

Factors Affecting Job Satisfaction

An employee's overall satisfaction with his job is the result of a combination of

factors and financial compensation is only one of them. Management's role in
enhancing employees' job satisfaction is to make sure the work environment is
positive, morale is high and employees have the resources they need to accomplish
the tasks they have been assigned.

Working Conditions

Because employees spend so much time in their work environment each week, it's
important for companies to try to optimize working conditions. Such things as
providing spacious work areas rather than cramped ones, adequate lighting and
comfortable work stations contribute to favourable work conditions. Providing
productivity tools such as upgraded information technology to help employees
accomplish tasks more efficiently contributes to job satisfaction as well.

Opportunity for Advancement

Employees are more satisfied with their current job if they see a path available to
move up the ranks in the company and be given more responsibility and along with
it higher compensation. Many companies encourage employees to acquire more
advanced skills that will lead to the chance of promotion. Companies often pay the
cost of tuition for employees taking university courses, for example. During an
employee's annual performance review, a supervisor should map out a path showing
her what she needs to accomplish and what new skills she needs to develop in order

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to be on a track to advancement within the organization.

Workload and Stress Level

Dealing with a workload that is far too heavy and deadlines that are impossible to
reach can cause job satisfaction to erode for even the most dedicated employee.
Falling short of deadlines results in conflict between employees and supervisors and
raises the stress level of the workplace. Many times, this environment is caused by
ineffective management and poor planning. The office operates in a crisis mode
because supervisors don't allow enough time for employees to perform their
assigned tasks effectively or because staff levels are inadequate.

Respect from Co-Workers

Employees seek to be treated with respect by those they work with. Managers need
to step in and mediate conflicts before they escalate into more serious problems
requiring disciplinary action. Employees may need to be reminded what behaviours
are considered inappropriate when interacting with co-workers.

Relationship with Supervisors

Effective managers know their employees need recognition and praise for their
efforts and accomplishments. Employees also need to know their supervisor's door is
always open for them to discuss any concerns they have that are affecting their
ability to do their jobs effectively and impeding their satisfaction at the office.

Financial Rewards

Job satisfaction is impacted by an employee's views about the fairness of the

company wage scale as well as the current compensation she may be receiving.
Companies need to have a mechanism in place to evaluate employee performance
and provide salary increases to top performers. Opportunities to earn special
incentives, such as bonuses, extra paid time off or vacations, also bring excitement
and higher job satisfaction to the workplace.

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7. MANAGER SUPPORT

An employee quits his job whenever he faces problems at the workplace and is not
satisfied with his work. The job must be challenging enough and the employees
should learn something new every day for them to stick to it for a long time. It is the
responsibility of the team leader to ensure that the team members are contented with
their work and share a good rapport amongst them. The team members must be
assigned responsibilities as per their specialization, qualification, interests as well as
experience. The team members must find their jib interesting for them to enjoy and
work hard to achieve the organizational goals. The KRAs must be formulated in the
presence of the employees. Let them decide what best they can perform. Problems
crop up whenever there is mismatch or the employees have to do something out of
compulsion. Don‟t compel anyone to do something. Let them accept the
responsibilities willingly. A wrong profile is one of the several reasons as to why an
employee looks for a change. An overburdened worker never finds his job
interesting and would always be eager for a change. It is the duty of the team leader
to distribute the work equally among all the employees. The manager should not be
partial to anyone and treat all his members as one. He should not let negatively creep
in the team. The supervisors must have a control on their subordinates and make
sure they do not find fight with each other. Nothing productive comes of disputes;
rather it de- motivates the individual and prompts them to look for some other
opportunity.

Rules and regulations should be same for everyone. Avoid granting special favors to
anyone. One should never fear his boss. Hitler approach does not work in the
current scenario. A team leader should be a role model for his team. The team
managers should not be arrogant and avoid misuse of their position. He should let
all the team members participate in the decision making process. Every employee
should have the freedom of expression and no one should be left out or neglected.
The team leader should trust and respect his team members to expect the same from
them. The team leader should be accessible to his team members. Employees feel
de-motivated when their queries remain unsolved and there is no body to listen to
them. When the team leader doesn‟t have time for his team, the employees crib
among themselves and wish to move on. The team leader must make sure to be with

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his team whenever required. He should support his team members always. A little
care is essential to make them feel safe and secure. Minor problems left unattended
can lead to severe stress later, forcing employees to look for a change.

The supervisors must maintain transparency in communication. Every team member

should get the same information from their boss for them to remain satisfied and
loyal towards the organization. The team leader must appreciate those who perform
well. Give them a pat on their back. The hard work of the team members should
never go unnoticed. The top performers must be given a special treatment to
motivate them further and expect the same from them every time. The employees
who have not performed well should also be asked to buck up the next time. It is the
responsibility of the team leader to bind his team together. Take the team out for
lunch one in a while from them to come closer to each other. Every individual
expects peace at the workplace and looks for a change only when there is
unnecessary stress at work. The team leader must promote healthy competition at
the workplace. A team leader should mentor his team well. Employees are reluctant
to go for a change when they have a good boss. The following tips will help to
improve leadership skills and relationships with subordinates and get stronger
supports from them.

Be Fair to Everyone: Treat each subordinate / staff fairly and respectfully. Some
people are by nature more likable than others, but as a supervisor, have to avoid
even the slightest hint of favouritism; be fair to everyone and have to be flexible in
leadership style for each subordinate.

Develop Everyone: Everyone is unique. Each subordinate has his / her own
strengths and weaknesses. So, work on developing the abilities or the potentials of
every employee. Don't overlook the need to provide any necessary resources and
training needed by the employees to do the jobs. By doing so, they will perceive
that manager care for their well-being. In return, they will be more respectful to the
manager and hence, work better.

Know and Like Subordinates: Learn the individual strengths and weaknesses of
the people. This will aid in assigning tasks on the basis of skills rather than at

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random. It will make them feel good to work.

Show Continuing Interest in Subordinates: Show continuing concern in

subordinates by providing feedback on their performance regularly - not just at
performance evaluation time. Be honest whether they are doing well or bad. This
means, giving praise when it deserved - not when it isn't.

Criticize with Care: Be diplomatic whenever criticize any aspect of an employee's

performance. Never jump to any judgment or conclusion without thinking first the
consequences of critics. So, be tactful to subordinates at all the time. They will
surely appreciate for being a considerate and diplomatic leader / manager /
supervisor.

Be Flexible: Be flexible in dealing with employee's concerns. Going strictly by set

procedures won't always give the flexibility needed to resolve individual
performance. So, always use good common sense.

Give Simple Directions: Give simple, but specific job directions at any time, assign
a new task to a worker. Make things not so difficult in the eyes of subordinates even
if it is in actuality a challenging task. This will make them feel good and confident
doing the jobs assigned to them.

Defend Subordinates: Defend subordinates against unfair criticisms; be with them.

Make them think and feel that they have a reasonable or supportive leader / manager
/ supervisor.

Be a Coach - Not a General: Be loyal to subordinates as well as to the company /

organization / employer. Include subordinates in the decision-making process
whenever feasible. Also show leadership qualities by working to obtain promotions,
pay raises, and awards for deserving employees.

8. WORKING CONDITIONS

Working conditions covers areas such as welfare facilities, ventilation, cleanliness,

space, lighting and temperature. The employer must ensure that workplace comply

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with the Workplace Health, Safety and Welfare Regulations. Working conditions are
affected by factors including health and safety, security and working hours. Poor
working conditions can damage employee health and put their safety at risk. If the
employees are satisfied and happy with their job and working conditions then they
will give their best for the improvement of an organization. Happy and satisfied
employees always put more efforts for the organizational achievements and stay
loyal to the company. Less satisfying working conditions can in turn lead to turnover
or turnover intentions. Positive work environments are essential for workers' mental
and physical well-being, but they aren't created by accident. Good working
conditions arise from values that the company views as important to its mission,
such as ensuring a manageable workload, and promoting two-way communication
through open office spaces and regular team meetings. In order to increase
efficiency, effectiveness, productivity and job commitment of employees, the
business must satisfy the needs of its employees by providing good working
conditions. Employers and controllers of non-domestic premises have a general duty
to make sure that the workplace meets certain conditions as such as

Maintenance: make sure the workplace, equipment, devices and systems are
maintained, in working order and in good repair.

Ventilation: make sure enclosed workplaces are ventilated and have enough
fresh and purified air.

Temperature: maintain a reasonable temperature inside building during working

hours. Enough thermometers must be provided.

Lighting: must be suitable and efficient and natural so far is reasonably

practical. Emergency lighting must be provided where lighting failure would cause
danger.

Cleanliness: keep workplaces and furnishings clean. Waste materials must

not accumulate, except in suitable containers.

Space: make sure workrooms have enough floor area, height and unoccupied space.
Workstations: must be suitable for the worker and work. A suitable seat must

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be provided where necessary.

Floors: must be suitable and not uneven or slippery, presenting a safety risk. They
must be kept free from obstructions likely to cause a slip, trip or fall. Handrails must
be provided on staircases, except where they would obstruct traffic.

Falls: take suitable and sufficient measures to prevent people falling or being struck
by falling objects. Tanks must be securely covered and fenced where there is a risk
of a person falling into a dangerous substance.

Windows: make sure that windows, and transparent and translucent surfaces,
consist of safe material, are clearly marked, and safe when open.

Traffic: organise workplaces to allow safe traffic circulation by pedestrians and

vehicles.

Doors: make sure doors and gates are suitably constructed and comply with certain
specifications.

Escalators: make sure escalators function safely, are equipped with necessary safety
devices and are fitted with easily identifiable and readily accessible emergency stop
controls.

Toilets: provide suitable and sufficient sanitary conveniences at readily accessible

places.

Washing: provide suitable and sufficient washing facilities at readily accessible

places

Water: provide an adequate supply of wholesome drinking water and cups, readily
accessible and conspicuously marked.

Clothing: provide suitable and sufficient accommodation for clothing, as well as

changing facilities where special clothing is worn.

Restrooms: provide suitable and sufficient rest facilities at readily accessible places.

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Rest rooms and areas must include suitable arrangements to protect non-smokers
from discomfort. Suitable facilities must be provided for pregnant or nursing
workers to rest and for workers to eat meals.

9. EMPLOYEE RELATIONS

The term employee relations refer to a company's efforts to manage relationships

between employers and employees. An organization with a good employee relations
program provides fair and consistent treatment to all employees so they will be
committed to their jobs and loyal to the company. Company culture, relationship
with reporting manager and internal communication plays very important role in
employee retention. Employee relations within business can positively or negatively
affect recruitment and retention efforts of the organization in multiple ways.
Maintaining a strong employer and employee relationship can be the key to the
ultimate success of an organization, the results are advantageous. It is known that if
a strong relationship is in place employees will be more productive, more efficient,
create less conflict and will be more loyal. Strong employment relations create a
pleasant atmosphere within the work environment; it increases the employee
motivation and can also be increased through improved employee morale. Creating
the productive and pleasant work environment has a drastic effect on an employee‟s
loyalty to the business, it encourages a loyal workforce. Having such a workforce
improves employee retention, in doing so the cost of recruitment, hiring and training
is cut drastically. For most businesses the high cost of employee turnover outweighs
the cost of the employee relations program that they have in place. Another benefit
is that when the employee turnover is low it ensures that the employer has a trained
and skilled set of employees.

Ways to Improve Employee Relations

Establishing and maintaining good work relationships is the key to a positive

workplace. Effective businesses encourage the development of positive relationships
between managers and employees as well as amongst coworkers. All businesses can
foster positive workplace relationships by creating a strong mission statement and an
upbeat team-based environment. Strengthen workplace relationships by setting clear

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expectations, practicing constant communication and offering timely responses to

both positive workplace behavior and employee issues or concerns.

 Create a clear and concise company mission statement and distribute a copy
of the statement to each employee. The mission statement should outline the
purpose of the business. Discuss how the mission statement fits with
employees' personal values and roles in the company. Hold regular staff
meetings to highlight recent company activities as well as discuss how
employees are working toward or upholding the business's mission.
 Encourage teamwork through formal and informal team-building activities.
Arrange a company-oriented outing, such as bowling or mini-golf, or involve
the office in a team-based charitable activity. Good relationships in the
workplace thrive when individuals feel part of a team and comfortable with
their teammates. Respect and trust amongst co-workers and between
supervisors and staff leads to greater collaboration, innovation and efficiency
in the workplace.
 Communicate group expectations immediately and regularly. Set high
performance expectations and emphasize the importance of each employee's
role to the success of the business. Coach Managers on maintaining good
relationships with their staff. Emphasize the need for two-way
communication, clear and precise instructions, and the need for individuals
to feel respected as both individuals and crucial contributors to the final
service or product of the company.
 Set clear and measurable goals for individual staff members. Employees
must know what to do, how to do it, how well the task must be done and
where to turn for help. To that end, provide detailed job descriptions and
offer training with feedback from supervisors. Additionally, employees must
clearly understand what constitutes satisfactory work and exactly how their
performance will be measured.
 Reward great work as quickly as possible, and address problems or concerns
immediately. Acknowledge staff members publicly with written or verbal
commendations when they exceed performance expectations and provide
assistance to those who are failing. Model the behaviour of creating good

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workplace relationships by actively seeking opportunities to offer assistance

that will help co-workers or support staff do their jobs better.

10. STRESS FREE WORK ENVIRONMENT

Work place stress comes in many forms and is but inevitable. No one has ever
succeeded fully evading it in his life time. It‟s actually normal to feel work pressure
every once I a while, but when one is chronologically stressed, it has to be addressed
shortly. Stress is simply a fact of life in the modern workplace. Virtually
every business owner and employee, regardless of the size of the enterprise, must
deal with the impact of stress in the workplace. The negative impacts of workplace
stress are many and varied: increased employee absenteeism and turnover, higher
insurance and workers‟ compensation costs, lower employee productivity, and
lower sales and profits, to name just a few. Here are few tips to reduce the level of
stress on employees and in workplace in general

1. Create an environment of open and honest communication: Poor

communication with management is one of the primary causes of stress
among employees. Don‟t let them just wonder about the direction of the
company or the security of their jobs; share with them openly and honestly
both the good news and the bad.
2. Empower employees: A lack of empowerment is another main cause of
workplace stress. As much as is feasible, allow employees to make critical
decisions and direct the outcome of their jobs.
3. Adopt flex time and other flexible work schedule arrangements: Most
employees today lead hectic lives outside of the workplace. Allowing them
to alter their work schedules in ways that are more conducive to their
personal and family lives can be a huge stress reducer and also engenders a
tremendous amount of loyalty and goodwill among employees.
4. Reward and praise outstanding performance: Don‟t hesitate to recognize
employees for a job well done. Verbal praise often carries even more weight
than financial rewards, though even modest monetary rewards such as movie
tickets or a free lunch can go a long way toward reducing stress.
5. Set the proper tone at the top: Employees often feed off of the attitudes

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they sense from ownership and management. Try not to let own personal
stress show through and filter down to the rank and file.
6. Establish a zero-tolerance policy on harassment and discrimination:
Make it crystal clear to all employees that these will not be tolerated in
workplace under any circumstances.
7. Encourage healthy social interaction: “The workplace that plays together
stays together.” While manager can‟t force employees to socialize together,
try to create environments that make it easy if they want to, whether its
picnics, holiday parties, or other planned social events outside the workplace.
8. Provide opportunities for career development: Not seeing opportunities
for career advancement and development can be demoralizing and
demotivating, ultimately leading to increased employee stress.
9. Offer stress management training and education: Many companies offer
classes and instruction on a variety of different stress management
techniques, including meditation, proper exercise, muscle relaxation, conflict
resolution, assertiveness, and even massage therapy.
10. Try to control the pace and volume of work: A fast-paced, high-volume
work environment will likely lead to increased employee stress. While
controlling the pace of work isn‟t always possible, try to limit the duration of
high-stress periods, and let employees know that a reprieve is on the way. If
manager knows that the upcoming month will be especially busy, for
example, let employees know in advance and tell them when things should
slow down so they can see the light at the end of the tunnel.

QUALITIES IN AN ORGANIZATION FOR BETTER

EMPLOYEE RETENTION

Every individual expects peace and healthy working conditions to deliver his level
best. A shady background and poor financial condition of the organization are the
major factors leading to unrest amongst the employees. No individual likes to work
with an organization running into losses. A sick unit is unable to pay salaries on time
making it difficult for the employees to work with it for a long time. An organization
must be financially stable for the employees to feel safe and secure. Rules and

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regulations are formulated for the benefit of the employees and thus should not be
too rigid. An organization must have employee friendly policies for the individuals
to stay motivated. The management must take into consideration the genuine
problems of the employees to make the organization a better place to work. Leave
policies and compensation structure should be designed in a manner to satisfy the
needs of the employees. The following are the qualities in an organization for
better employee retention

1. Monetary Satisfaction: Monetary satisfaction is one of the major reasons as

to why an employee sticks to an organization for a longer duration. Incentive
plans, perks and other benefits should meet the expectations of the
employees and should be directly proportional to the hard work put by the
individuals. The high potential employees should be rewarded suitably to
make them feel indispensable for the organization and to expect the same
from them every time.
2. Simple Hierarchy and the Functional Areas: An organization must have a
simple hierarchy and the functional areas of each team should be well
defined. Complicated hierarchies lead to confusions and unnecessary
disputes amongst team members. It is essential to maintain transparency at
all levels. The team size should be restricted to 5 or 6 members for smooth
flow of information and better output. Every team ideally should have a
single leader willingly chosen by the team members to act as a strong support
system for them. The superiors must be accessible to the team members in
case of queries and must monitor the team‟s performance from time to time.
The team leader should act as a role model for his team.
3. Freedom of Expression: Freedom of expression is of utmost importance at
the workplace to retain employees. Individuals should have the liberty to
express their ideas and discuss issues on an open forum. These way
employees do not crib among themselves and come closer to each other.
4. Celebrate Major Festivals at the Office Premises: The organization must
encourage employees to celebrate major festivals at the office premises
itself. Ask them to bring their families as well. Such activities go a long way
in strengthening the bond among the individuals and retaining them.

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5. Stringent Policies: It is important for the organization to have stringent

policies for non performing employees. Strict action must be taken against
those who come to organization just for fun and are just not bothered about
their own work. The performers must get an extra edge and should be
entitled to exclusive benefits.
6. Positive Ambience: An organization must offer a positive ambience to its
employees to expect a consistent performance from them. The workplace
should be free from all sorts of disputes, nasty politics, and controversies and
blame games which go a long way in de-motivating an employee and
prompting him to look for a change. Healthy competition is essential at the
workplace to encourage the employees to perform up to the mark every time.

ROLE OF HRM IN EMPLOYEE RETENTION

An organization can‟t survive if the top performers quit. It needs employees who are
loyal and work hard with full dedication to achieve the organization‟s objective. It is
essential for the management to retain its valuable employees who think in favor of
the organization and contribute their level best. An employee who spends a longer
duration at any particular organization is familiar with the rules, guidelines and
policies of the organization and thus can adjust better. The human resource team
plays an important role in employee retention. Let us find out their role in the same

 Whenever an employee resigns from his current assignments, it is the

responsibility of the HR to intervene immediately to find out the reasons
which prompted the employee to resign. No one leaves an organization
without a reason. There has to be one and the human resource team must
probe into it. There can be innumerable reasons for an employee to leave his
current job. The major ones being conflict with the superiors, lesser salary,
lack of growth, negative ambience and so on.
 It is the duty of the HR to sit with employee and discuss the various issues
face to face. Understand his problems and listen to his side of the story as
well. Remember the HR should not focus on conducting exit interviews,
rather more emphasis should be laid on retaining the employees.
 Try to provide a solution to employee problem. Hiring is a tedious process

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and it is really very difficult to recruit the right candidate and retain him once
again. Do check the track record of the employee who wishes to move on. It
is really essential for the management to retain those employees who have
the potential and are really indispensible for the organization. If they leave
and join the competitors; the organization would be at loss. If one feels that
the employee is not very happy with his team leader, try to shift him to a
new team. If the employee feels his salary is not justified, try to give him a
hike but make sure he is worth it and don‟t end up upsetting others.
 The HR person must ensure that he is recruiting the right employee who
actually fits into the role. A right person doing the wrong job would never
find his job interesting and certainly look for a change. Make sure every
individual has been assigned responsibilities according to his specialization
and interest. The employees must be clear with their KRAs from the very
beginning. Every individual works for money and the HR must quote a
justified salary acceptable to the other person. Don‟t compel anyone to join
at a lesser salary. He might join at that moment but would most likely quit
after sometime. The hike should be on the present salary and must match the
market trends and the expectations of the individual.
 The human resource department must conduct motivational activities at the
workplace. Organize various internal as well external trainings which help
the employees to learn something extra apart from their routine work. Make
them participate in extracurricular activities important for their overall
development. Encourage them to interact with each other so that the comfort
level increases.
 The HR must launch various incentive schemes for the top performers to
motivate them. This way the employees feel important for the organization
and strive hard to perform even better the next time. The employees who
show promise should be awarded with cash prizes, lucrative perks and
certificates to make the individual stand apart from the crowd. Send a mail
wishing the employees on their birthdays or congratulating them when they
perform exceptionally well or come out with something innovative. Arrange
a small bouquet for them as a gift from the organization‟s side. This way the
employees feel attached to the organization and are reluctant to look for a

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change. A friendly atmosphere is essential for the employees to feel safe and
secure. Make them to participate in various management decision makings.
 Performance reviews are a must. The HR along with the respective team
leaders must monitor their team member‟s performance to ensure whether
they are enjoying the work or not. The employees look for a change only
when their job becomes monotonous and does not offer any growth or
learning. Job rotation can be one of the effective ways to retain
employees. The HR professional must try his level best to motivate the
employees, make them feel special in the organization so that they do not
look for a change.

KEi’s EMPLOYEE RETENTION WHEEL

The first step to improve employee retention is to understand why employees stay
with their current employer. Many “experts” dwell on the reasons employees leave,
which is not as important or revealing as the reasons they stay. Companies have tried
many different programs and perks to hold onto good employees. However, studies
show that these efforts are not enough to retain good employees when the support
that is needed to achieve job success is adequate. Among the countless inducements
offered, only those identified in the center of KEi‟s employee retention wheel are
truly what give employees a consistent reason for saying “no thank you” when
tempted with a “sweeter offer”. After years of study and experience, Kei has
determined, and presented in the retention wheel, what factors do have the greatest
impact on keeping employees. KEi has used this information to give employers the
tools to meet the core needs that keep employees successful at their jobs, thus
reducing the high costs associated with unwanted employee turnover.

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Figure 4.1 KEi’s Employee Retention Wheel

Using the Wheel to Improve Employee Retention

KEi‟s employee retention strategy is based upon two primary beliefs:

1. It is difficult for employers to retain good employees if they don‟t have

a process to hire the right people in the first place.
2. Retention processes must directly support the reasons that successful,
satisfied employees stay.

KEi‟s concentration on the center of the employee retention wheel provides

employers with internet based tools that give employees systematic, on-going
support to be successful in their work and satisfied with their employment.

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The Center of KEI’s Employee Retention Wheel: Eight Factors

Attitude for employing: A process to clearly define the way supervisors are
expected to interact with employees; a process to give employees a way to express
what is most important to achieve job success; and a process to give employers a
way to demonstrate “Employing Values” through employment policies. This
“Employer Mission Statement” is about how and whom to hire, how to treat them
and the organization‟s values as an employer. It is about making sure that the values
for employing are communicated to employees and consistently implemented
throughout organization. It is about the total employment package that goes beyond
salary and traditional benefits.

Finding candidates: It is a process that gives employers a comprehensive way to

communicate to job seekers what it takes to achieve short-term and long-term job
success, and to attract the candidates who fit these criteria.

Sorting applicants: It is a process that gives employers a way to confirm whether

the attitudes and behaviors of job seekers are a match for their work environment.

Choosing employees: It is a process that gives employers a way to define the

specific interview questions that prove job seeker abilities to successfully perform
the target skills; and a process that gives employers a way to verify the accuracy of
resume/application data and interview responses.

Starting employees: It is a process that provides a way for new employees before
performing the job to understand “why the employers business exists”, “what makes
the business organization successful”, “why the employee‟s job exists”, and “what it
will take for the employee to achieve job success”.

Informing employees: It is a process that gives employers a way to provide

essential information that is needed by employees to make daily work decisions.

Improving employees: A process that gives supervisors and employees a way to

work together to build personalized plans for improving each employee‟s priority
job skills; and a process that gives the employer a way to deliver skills improving

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training curriculum and to measure the learning effectiveness from the training
experiences.

Rewarding employees: It is a process that gives employers a way to define and

communicate exactly how individual employee salaries are determined; and a
process that gives employers a way to provide employees with extra incentive
income that is earned through the achievement of cash generating business goals.

MYTHS ABOUT EMPLOYEE MORALE PREVENT COMPANIES FROM

ACHIEVING RETENTION SUCCESS

Despite years of research point to far different solutions, many companies use the
wrong tactics when trying to improve employee morale, satisfaction and retention.
These myths prevail, in part, because business have used these methods, however
wrong, for a long time and have become used to trying the same ideas.

Myth 1: People most often leave a company for more pay

Exit interviews, conducted to learn why people leave an organization; contain some
of America‟s greatest fiction. People frequently say they‟re leaving for more money
because it‟s the easiest reason to give. More often the causes leading to departure
are related to issues that were unsatisfying in the job or the company. Typical issues
that cause dissatisfaction are company policies and procedures, quality of
supervision, working conditions, relationship with the immediate supervisor and
salary. Yes, pay does matter. While research shows most people don‟t actually leave
a job for more money, there are two important facts: very low income workers will
leave for more money because it‟s a survival issue. For the rest of workers, the issue
of money actually is about fairness. People become dissatisfied with pay when they
feel it is unfair within the company, within the industry or when pay doesn‟t seem to
match the amount or type of work required. To increase employee satisfaction and
retention, companies make more gains by working to improve whether people a
sense of achievement, recognition, competence and growth, whether there are
choices about how work gets done and whether employees feel respected by
management.

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Myth 2: Incentive programs produce long-term profits and improve

productivity and morale

So, who doesn‟t like free stuff? However, incentives such as gifts and cash bonuses
for meeting speed and volume goals don‟t affect employee commitment.

They‟re really a throwback to outdated management beliefs that workers must be

coerced in order to work hard. All the extras don‟t add up to the real glue that
creates employee commitment; the chance to learn and grow, meaningful work,
good supervisors and respect and appreciation for a job well done. Incentives have
been over used particularly in the past decade, as management books touted the
importance of improving recognition of excellent work. Yet, studies show that carrot
and stick motivation actually does not pay off in long-term company profitability or
employee satisfaction or retention. To the contrary, incentives can harm quality
when employees aim for speed or other goals rather than quality.

Myth 3: People don’t want more responsibility

They don‟t more work if they‟re already overloaded due to lean staffing; but people
indeed want opportunity to grow and develop their skills, advance their careers and
have the opportunity for greater variety. Keep in mind what the research confirms;
people do want to try new things, to feel skillful and experience the personal
satisfaction of higher levels of achievement. People don‟t need a job promotion in
order to gain more responsibility. The same job can be broadened to include more
variety, more contact with different parts of the organization and greater control
over decisions on accomplishing work tasks.

Myth 4: Loyalty is dead

Not at all, though it is ailing in many organizations. People are seeking greater work
life balance than in the past, and employers have made great strides in providing
more flexible hours and dress codes. Still, people seek to make a contribution, and
organizations that provide healthy doses of the main satisfiers enjoy significantly
lower turnover and higher morale. Profits are higher, too, according to recent

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research studies. Things have changed, indeed. Today‟s workers will, in fact,
change careers and jobs much more often. When the economy is good, people have
become much more at ease in changing companies, are more likely to acquire new
skills and move to companies that offer greater chance to use more of their
knowledge and more willing to take the risks of starting anew at another
organization. What has emerged in current management studies are that the same
qualities that hold employees are the ones that best serve the customers;
employees who can make quick decisions on behalf of the customer and the
company; employees who have a broader scope of responsibility that allows them
some freedom and leverage to solve customer problems; learning opportunities that
give employees the skillfulness to address customer issues; and supportive
management and supervisors who use any mistakes that occur as teaching
opportunities.

Myth 5: improving employee satisfaction is expensive

Research tells us the true satisfiers can‟t even bought; career growth, meaningful
work, respect and appreciation and being able to influence how work gets done. In
these leaner times employers have the same opportunity to gain true loyalty despite
lowered budgets. The trinkets and prizes given in recognition and rewards programs
aren‟t necessary ingredients for developing an engaged workforce. The “glue” that
holds people is made of much different stuff; management that listens and responds
to employees‟ ideas about improving service, supervisors who support people‟s
growth and initiative, training in how to do the job successfully, good relationships
with co-workers and genuine appreciation for a job done well. There are no costs
incurred to build or enhance these motivators.

Myth 6: Employee satisfaction is “Fluff”

Does having engaged workers make a difference in the bottom line? Studies show
that lower turnover and greater levels of employee satisfaction have a definite
positive impact on customer satisfaction and profitability, which are the key factors
in company growth and sustainability. Consider these facts:

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 A strong link was found in a study by price water house coopers between
employee retention and the quality of service as rated by companies‟
customers.
 According to the American Society of Training and Development,
organizations that invested the most in training had higher gross margins and
income per employee.
 The cost of replacing an employee who leaves has been estimated by various
studies to be between 70 to 200 percent of the worker‟s annual salary.
 The council on competitiveness found that a 10 percent increase in education
has a more positive impact on productivity than a 10 percent increase in
work hours.

Myth 7: Supervisors are the problem

Many senior leaders express dismay about the quality and actions of their middle
managers and front line supervisors. The “blame game” is old, yet the solutions are
strikingly to those required to build an engaged workforce. In most organizations
today, supervisors have more people reporting to them than in the past, more
demanding customers than ever and greater amounts of change, all occurring at the
same time. Yet, the amount of training provided to managers and supervisors in
many organizations is minimal. More importantly, the amount of time that senior
managers spend with middle and line managers is also minimal. Middle managers
and supervisors can appear resistant to improvement efforts. However, the failure
exists in our understanding of their world, the challenges they face and the support
they need in order to be successful. Successful organizations seek to build
teamwork between senior leaders and middle managers and line supervisors.

Myth 8: My company/industry/people are different

Yes, every company is unique, and every industry has its own set of unusual
challenges. However, a very costly mistake is made when we believe information
from other sectors doesn‟t apply to us or our organization. Retention research
studies cross all industries, all type of work settings and in varied economic
conditions. Still, the same results come up time and again. We build employee

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loyalty and indirectly customer loyalty through providing people with growth and
learning opportunities, minimizing red tape, allowing people to think and make good
choices, supporting middle managers and frontline supervisors and appreciating the
efforts that people give to help our customers. It‟s downright dangerous to ignore
these findings, risky to the bottom line and the organization‟s future.

CHALLENGES IN EMPLOYEE RETENTION

In the current scenario, a major challenge for an organization is to retain its valuable
and talented employees. The management can control the problem of

employees quitting the organization within no time to a great extent but can‟t put a
complete full stop. There are several challenges to it. Let us understand the
challenges to employee retention

Monetary dissatisfaction is one of the major reasons for an employee to look for a
change. Every organization has a salary budget for every employee who can be
raised to some extent but not beyond a certain limit. Retention becomes a problem
when an employee quotes an exceptionally high figure beyond the budget of the
organization and is just not willing to compromise. The organization needs to take
care of the interests of the other employees as well and can‟t afford to make them
angry. The salaries of the individuals working at the same level should be more or
less similar to avoid major disputes amongst employees. A high potential employee
is always the center of attention at every workplace but one should not take any
undue advantage. One should understand the limitation of the management quote
something which matches the budget of the organization. An individual should not
be adamant on a particular figure, otherwise it becomes difficult for the organization
to retain him. Remember there is a room for negotiation everywhere.

In the current scenario, where there is no dearth of opportunities, stopping people to

look for a change is a big challenge. Every organization tries its level best to hire
employees from the competitors and thus provide lucrative opportunities to attract
them. Employees become greedy for money and position and thus look forward to
changing the present job and join the competitors. No amount of counseling helps in

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such cases and retaining employees becomes a nightmare. Individuals speak all
kinds of lies during interviews to get a job. They might not be proficient in branding
but would simply say a yes to impress the recruiter and grab the job. It is only later
do people realize that there has been a mismatch and thus look for change. Problems
arise whenever a right person is into a wrong profile. An individual loses interest in
work whenever he does something out of compulsion. The human resource
department should be very careful while recruiting new employees. It is really
important to get the reference check done for better reliability and avoid confusions
later.

Some individuals have a tendency to get bored in a short span of time. They might
find a job really interesting in the beginning but soon find it monotonous and

look for a change. The management finds it difficult to convince the employees in
such cases. Individuals must also understand that every organization has some or the
other problem and adjustment is required everywhere, so why not in the present
organization? It becomes really difficult for the HR department to find out what
exactly is going on in the minds of the individual. An individual should voice his
opinions clearly to make things easier for the management.

Unrealistic expectations from the job also lead to employees looking for a change.
There is actually no solution to unrealistic expectations. An individual must be
mature enough to understand that one can‟t get all the comforts at the workplace just
like his home. Individuals from different backgrounds come together in an
organization and minor misunderstandings might arise but one should not make an
issue out of it. An individual must not look for a change due to small issues. One
needs time to make his presence feel at the organization and must try his level best
to stick to it for a good amount of time and ignore petty issues.

Employers understand that active steps are required to limit employee turnover.
Finding exceptional employees is one thing. Keeping them is another. Today,
employees are mobile, in a part due to the existence of appealing job opportunities
elsewhere. The availability of personal development opportunities also contributes
to job mobility. However, identifying, hiring and training employees are an

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expensive process. As a result, it‟s important that small businesses provide

employees reasons to decline opportunities to shift from one job to another.
Sometimes, implementing small changes can ensure employees remain in place
rather than seek more competitive compensation packages, less work dissatisfaction
or greater opportunities for recognition and self-development.

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CHAPTER-3

CANARA BANK

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CHAPTER-3

CANARA BANK

CANARA BANK PROFILE

Canara bank is a public-sector bank owned by the Government of India and is one of
the largest banks in kitty of the Government. The headquarters the bank is located in
the city of Bangalore in Karnataka. The bank started in the year 1906 in Mangalore.
It is one of the oldest banks in the country. It has more than 6000 bank branches in
India. It is present in different other countries as well.

HISTORY

Canara bank is an Indian state-owned bank headquartered in Bangalore, Karnataka.

It was established at Mangalore in 1906, making it one of the oldest banks in the
country. Shri Ammembal Subba Rao Pai, a great visionary and Philanthropist,
established the Canara Hindu Permanent Fund in Mangalore, India, on 1st July 1906.
The bank changed its name to Canara bank limited in 1910 when it incorporated.

Canara bank‟s first acquisition took place in 1961 when it acquired bank of Kerala,
Bank of Kerala had been founded in September 20 May 1961 had 3 branches. The
second bank that Canara bank acquired was Seasia Midland Bank (Alleppey), which
had been established on 26th July 1930 and had seven branches at the time of its
takeover.

In 1958 the Reserve Bank of India (RBI) had ordered Canara bank to acquire G
Raghumathmul bank, in Hyderabad. This bank has been established in 1870. And
had converted to a limited company in 1925. At the time of the acquisition G
Raghumathmul bank had five branches. The merger took effect in 1961. Later in
1961 Canara bank acquired Trivandrum Permanent Bank. Trivandrum Permanent
Bank had been founded on 7 February 1899 and had 14 branches at the time of the
merger.

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Next Canara bank Four banks in 1963 the Sree Poornapharyeesa Vilasam Bank,
Thrippunithura, Arnad Bank, Tiruchirapalli, Cochin Commercial Bank, Cochin and
Pandyan bank, Madhurai, Sree Poornapharveesa Vilasam Bank had been
establishment on 21 February 1923 and at the time of its acquisition it had 14
branches, Arnad bank had been established on 23 December 1942 and at the time of
its acquisition had only one branch, Cochin commercial bank has been established
on 3 July 1936 and at the time of its acquisition had 13 branches.

The Government of India nationalized Canara bank, along with 13 major

commercial banks of India, on 19 July 1969. In 1976 Canara bank inaugurated its
1000th branch. In 1985 Canara bank acquired Lakshmi Commercial bank in a
reserve. This brought Canara bank some 230 branches in Northern India. The bank
has gone through the various phases its growth trajectory over hundred years of its
existence. Growth of Canara bank was phenomenal, especially after nationalization
in the year 1969, attaining the status of a national player in terms of geographical
reach and clientele segments. Eighties was characterised by business diversification
for the bank. In June 2006, the bank completed a century of operation in the Indian
banking industry. The eventful journey of the bank has been characterised by several
memorable milestones. Today, Canara bank occupies a premier position in the
comity of Indian banks.

Canara bank has several firsts to its credit. These include:

 Launching of inter-city ATM network

 Obtaining ISO certification for a branch
 Articulation of „Good Banking‟ – bank‟s citizen charter
 Commissioning of Exclusive Mahila Banking Branch
 Launching of exclusive Subsidiary for IT consultancy
 Issuing credit card farmers
 Providing Agricultural Consultancy services.

Over the years, the bank has been scaling up its market position to emerge as a
major „Financial Conglomerate‟ with as many as ten subsidiaries/sponsored
institutions/joint ventures in India and abroad. As at December 2018, the bank has

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further expended its domestic presence, with 6307 branches spread across all
geographical segments. Keeping customer convenience at the forefront, the bank
provides a wide array of alternative delivery channels that include 9004 ATM‟s
covering 4505 centres.

BOARD OF DIRECTORS

Name Designation
Shri. T.N Monoharan Chairman
Shri. Matam Venkata Rao Executive Director
Shri. Debashish Mukherjee Executive Director
Ms. A. Manimekhalai Executive Director
Shri. Krishnamurthy H Shareholder Director
Shri.Venkatachalam Ramakrishna Lyer shareholder Director

FOUNDING PRINCIPLES OF CANARA BANK

 To remove Superstition and ignorance

 To spread education among all to sub-serve the first principle
 To indicate the habit of thrift and savings
 To transform the financial institution not only as the financial heart of
the community but the social heart as well
 To assist the needy
 To work with sense of service and dedication
 To develop a concern for fellow human being and sensitivity to the
surroundings with aview to make changes/remove hardships and
sufferings.
 Sound founding principles, enlightened leadership, unique work culture
and remarkable adaptability to changing banking environment have
enabled Canara Bank to be a frontline banking institution of global
standards

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LOGO AND SLOGAN OF CANARA BANK

Canara Bank logo is a set of two interlinked triangles. It represents the bond
between the Bank and its many stakeholders – from customers and employees to
investors, institutions and society at large. The colour palette and typography have
been carefully chosen. The rich blue represents stability, scale and depth. This
contrasts with accents of bright yellow that evokes optimism, warmth and energy.

Slogan: Together we can build a better life around us.

SEVERAL IT INITIATIVES WERE UNDERTAKEN FOR

CUSTOMER CONVENIENCE.

 Digital Branch – CANDI, opened at Bangalore, Chennai, Delhi and Mumbai

with fully automated facilities and robotic assistance for customers to open
accounts and do transactions themselves.
 184 hi-tech e- lounges are operational in select centres with facilities like
ATM, Cash deposit Kiosk with voice guided system, Cheque Deposit Kiosk,
self-printing passbook Kiosk, Internet banking Terminal, Online trading
Terminal and Corporate Website Access.
 Customers can directly can Bharath QR 4.0 of merchants with their
EMPOWER application and pay directly with their Master/ Visa/Rupay
cards.
 First bank to introduce unique option “Aadhaar status” in our ATM using
which our card holders can ascertain the status of Aadhar linking to their
account
 Nomination through net banking facility to add/modify and delete enabled.
 Canara Serve App enables to set daily transaction limit on ATM/POS.

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 Report suspicious transaction through CPGRS web portal, SMS “SUSPECT”

to 56161, call centres and branches for blocking accounts in case
unauthorized electronic Banking transactions.
 Canara DigSign (Digital signature using eSign Aadhaar OTP facility)
released.
 Online self-registration of Internet Banking for Proprietorship Accounts
enabled.
 Aadhar Number made as one of the key authentication factors for unlock
/Activate/Reset Password in Retail Net banking customers.
 Enabled Toggling (On/Off) option in internet banking for Financial
transactions.
 IMPS limit enhanced from Rs50,000 to Rs2,00,000 per customer per day.
 UPI application is now available in Android and iOS platforms.
 Bharath QR code for VISA, Master and Rupay card enabled in Mobile
Banking App
 For Corporate customers, Maker-checker functionality enabled for tax
payment through internet banking.
 A number of Debit/Credit/prepaid cards launched like Canara Bank Rupay
Debit Card, Canara club card-Debit, Canara Secured Credit Card, Canara
Elite Debit Card, Platinum Rupay card and EMV Chip cards.
 Mobile Banking Registration through ATM‟s (Interoperability through NFS)
has been introduced.
 Missed Call/ SMS Based ePass sheet generation enabled.

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THE BANK HAS RECENTLY LAUNCHED A SERIES OF

CUSTOMER FRIENDLY MOBILE APPLICATION.

 Canara Saathi- Canara Bank Credit Cards Self Service Mobile App.
 BHIM Aadhar Pay-App for accepting payments for the sale of goods and
services.
 BHIM canara Empower – Unified Payments Interface (UPI) for single
platform in accessing multiple bank accounts.
 Canara mServe – enables customer to Hotlist and Block/Unblock Cards.
 Green PIN in ATMs, an online module to generate Debit Card PIN at the
time of fresh issuance of Card and also when the customer forgets the PIN.
 Canara Cart – an application basket containing all mobile based solutions.
Customers can manage all mobile apps of Canara Bank under this single
application.

The growth story of Canara Bank in its first century was due, among others, to the
continued patronage of its valued customers, stakeholders, committed staff and
uncanny leadership ability demonstrated by its leaders at the helm of affairs. We
strongly believe that the next century is going to be equally rewarding and eventful
not only in service of the nation but also in helping the Bank emerge as a “Preferred
Bank” by pursing global benchmarks in profitability, operational efficiency, asset
quality, risk management and expanding the global reach.

ENVIRONMENT PROTECTION THROUGH CANARA BANK

Due to the pressure of population, technology, development projects and

industrialization, the bio-physical environment is being degraded, sometimes
permanently. Ecological will severally affect the life of people on this planet. The
seriousness of such a development has been recognized and the Governments have
begun to placing restraint on activities that cause environmental degradation. It is
responsibility of every concerned citizen to conserve and protect environment in
every possible manner to pass on a habitable earth to the next generations. A
massive awareness campaign coupled with adoption of eco-friendly technology in
all activities is the need of the hour.

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Canara Bank being a visionary and responsible public-sector organization, has taken
some noteworthy initiatives for environmental protection.

The bank has adopted two-pronged approach, i.e, internal and external for
contributing to environment protection. In a major initiative to promote
usage/adoption of Solar energy equipment in schools, hospitals, institutions, other
community places and households, the Bank has launched a scheme to finance such
projects on easy terms, in the year 2000.

Environment protection is recognized as one of our important component of CSR

activity and encouraging use of clean and alternate sources of energy by funding the
projects for installation of solar energy equipment and rain water harvesting at
educational institutions, health centres, Bank sponsored Training centres and other
infrastructure projects assisted by the Bank.

A massive “CanaraVanamahotsava” programme, was observed all over the country

through Branches of Canara Bank by distributing saplings for creating awareness
and encouraging planting trees.

Reduction of paper and plastic usage, all Branch CBS, internet and Mobile banking,
Tele/video conferences, installing energy saving equipment and greening the
premises of our RSETIs are few of the internal initiatives contributing to the cause
of Environment.

The Bank is consciously promoting organic farming to reduce the use of fertilizers
and maintain the fertility of soil.

The Bank‟s credit policy in tune with the guidelines of Pollution Control Board and
Ministry of Environment.

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SIGNIFICANT INITIATIVES/PROJECTS FOR ENVIRONMENT

PROTECTION FUNDED BY THE BANK

 Installation of Solar energy heating and lighting equipment‟s at

JawaharNavodaya school, Chintamani and SAINIK School, Kodagu.
 Providing solar water heating systems to health centres in Chikkaballapur
District, Karnataka.
 Maintenance of Trees/plants in public places
 Observing world environment day on June 5th
 Associating with agencies for scientific disposal of wastes/recycling,
desilting of lakes.
 Adopting one village to make it carbon neutral habitat
 Distribution of Solar lights in remote villages of Tamil Nadu and
Karnataka.

In Canara bank, officials see green banking only as a form of paperless banking.
“Foreign banks are implementing this form of banking only because they have the
cream of employees, whereas in India, nobody is serious about it”. Said an official.
They thought that it will be enforced when the RBI insists on it. Canara bank has
been initiator of paperless banking and is the highest financer for solar energy
related projects. The bank is also known to be conducting carbon financing in Delhi
and Mumbai.

SIGNIFICANT MILESTONES

Year Milestones

1st July Canara Hindu Permanent Fund Ltd. formally registered with a capital of
1906 2000 shares of 50/- each, with 4 employees.

1910 Canara Hindu Permanent Fund renamed as Canara Bank Limited

1969 14 major banks in the country, including Canara Bank, nationalized on
July 19
1976 1000th branch inaugurated
1983 Overseas branch at London inaugurated, Cancard (the Bank‟s credit

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card) launched
1985 Takeover of Lakshmi Commercial Bank Limited and Commissioning of
Indo Hong Kong International Finance Limited (now a full-fledged
branch)
1987 Canbank Mutual Fund & Canfin Homes launched
1989 Canbank Venture Capital Fund started
1989- Canbank Factors Limited, the factoring subsidiary launched
1990
1990- Became the first Bank to articulate and adopt the directive principles of
1993 “Good Banking”.
1995- Became the first Bank to be conferred with ISO 9002 certification for
1996 one of its branches in Bangalore
2001- Opened a 'Mahila Banking Branch', first of its kind at Bangalore, for
2002 catering exclusively to the financial requirements of women clientele.
2002- Maiden IPO of the Bank
2003
2003- Launched Internet Banking Services
2004
2004- 100% Branch computerization
2005
2005- Entered 100th Year in Banking Service. Launched Core Banking
2006 Solution in select branches. Number One Position in Aggregate Business
among Nationalized Banks.
2006- Retained Number One Position in Aggregate Business among
2007 Nationalized Banks. Signed MoUs for Commissioning Two JVs in
Insurance and Asset Management with international majors viz., HSBC
(Asia Pacific) Holding and Robeco Groep N.V respectively
2007- Launching of New Brand Identity. Incorporation of Insurance and Asset
2008 Management JVs. Launching of 'Online Trading' portal. Launching of a
„Call Centre‟. Switchover to Basel II New Capital Adequacy Framework.
2008- The Bank crossed the coveted 3 lakh crore in aggregate business. The
2009 Bank‟s 3rd foreign branch at Shanghai commissioned.

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2009- The Bank‟s aggregate business crossed 4 lakh crore mark.

2010
Net profit of the Bank crossed 3000 crores. The Bank‟s branch network
crossed the 3000 marks.
2010- The Bank‟s aggregate business crossed 5 lakh crore mark. Net profit of
2011 the Bank crossed 4000 crores. 100% coverage under Core Banking
Solution. The Bank‟s 4th foreign branch at Leicester and a
Representative office at Sharjah, UAE, opened. The Bank raised 1993
crore under QIP. Govt. holding reduced to 67.72% post QIP.

2011- Total number of branches reached 3600. The Bank‟s 5th foreign branch
2012 at Manama, Bahrain opened.

2012- Highest Dividend of 130% paid for the year

2013
2013- 1027 branches and 2786 ATMs opened during the year. Global business
2014 crossed the 7-lakh crore milestone. Switchover to Basel III New Capital
Adequacy Framework. Branch Network and ATMs increased to 4755
branches and 6312 ATMs.
2014- Global Business of the Bank crossed 8 lakh crores.
2015
2015-16 The Bank‟s 8th foreign branch at DIFC (Dubai) opened.
2016- Branch network crossed 6000 milestones.
2017
Total number branches rose to 6083.

Canara Bank (Tanzania) Ltd., a foreign subsidiary, opened.

2017- Global Business of the Bank
2018

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RECENT AWARDS AND ACCOLADES

Serving the community is a commitment of Canara Bank borne out of vision,

concern and spirit of volunteerism. Out of this commitment and participation, all
Social and community development initiatives of the Bank have been evolved.
Development agencies and organizations recognize the innovative and outstanding
community development work to motivate others for multiplier effect. The bank
accepts with all humility, the following recognitions conferred in recognition of
Bank‟s outstanding services in serving the society

 Awards/Accolades Received during 2018-19

 Central Vigilance Commission has awarded Canara Bank with „Vigilance
Excellence Award-Outstanding‟ under Category „Timely Completion of
Disciplinary Proceedings‟ for the year 2018
 Secured Chamber of Indian Micro Small and medium Enterprises(CIMSME)
awards for best bank for promotional schemes
 Secured PFRDA‟s best performing PSB award in APY performance and the
splendid seven awards for the APY campaign.
 Awards/Accolades Received during 2017-18

 Received Master Card Innovation Award for Canara International Prepaid card
under prepaid segment.
 “Rupay Special” award for being the highest Rupay card issuing bank by NPCI.
 VISA Award on crossing a key milestone on issuance of 1.35 crore VISA debit
card.
 Bagged FINNOVITI award for Innovation for CANDI Branch.
 ASSOCHAM Social Banking Excellence Awards 2017 for Government
Sponsored Schemes and Runner-up for Agriculture Banking in the Large Bank
Class.
 Golden Peacock Award 2017 for Corporate Social Responsibility from Institute
of Directors, New Delhi.
 Skoch Technologies Growth 2017 for “CANDI”, digital branch.
 Excellent Customer Service Award‟ at the 5th SME Excellence 2017 by
ASSOCHAM.

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 Best CIO of the Year by Computer Society of India for “CANDI” an ambitious
digital banking project of the Bank in the “IT Innovation & Excellence
Awards2017”
 Skoch Smart Security awards 2017 for “SIEM” tool.
 Dun and Bradstreet Award for 2016-17 adjudging as Best Public Sector Bank –
Priority Sector Lending Bank. Consecutively third time (2014-15, 2015-16 and
2016-17) Bank has been receiving this Award.
 Certificate of Excellence for exemplary leadership in promoting RSETIs and
Certificate of Excellence for RUDSETI for FY15 & FY16.

 Awards/Accolades Received during 2016-17

 Golden Peacock Award 2016 under CSR activities.

 MSME Excellence Award 2017 by Federation of Industrial Trade and Services
(FITS)
 ASSOCHAM Social Banking Excellence Awards 2016.
 CSR Leadership Awards 2016 for Best CSR Practices by World CSR Congress
 Corporate Vigilance Excellence Award 2016-17 in Banking Sector,
consecutively for the 4th year, instituted by M/s Institute of Public Enterprise.
 Indy Wood CSR Excellence Award, 2016, for outstanding achievement in
Corporate Social Responsibility (CSR) by Indy Wood Film Carnival.
 SME Excellence Award for Best SME lending during 2015-16 by ASSOCHAM.
 FICCI CSR AWARD- Social Responsible Bank under Women empowerment
for 2016.
 “Star Performer Award 2016” in the 31st Depository Participant Conference.
 Award for excellence, 1st position in MSE lending for FY14 and FY15 by
Government of India.
 “SKOCH ORDER OF MERIT” and “SKOCH SILVER” Awards for
Bancassurance & Empower UPI Mobile App during the 46th Skoch Summit.
 Indy Wood CSR Excellence Award, 2016, for outstanding achievement in
Corporate Social Responsibility (CSR) by Indy Wood Film Carnival.
 4th SME excellence award by ASSOCHAM.
 National Award for excellence in lending to Micro Enterprises, 1st position for
FY14 and 2nd Position for FY15 by Government of India.

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 Best bank Award under PMEGP, South Zone in the field of Khadi and Village
Industries for FY14 and FY15 by Government of India.
 Received “MasterCard Innovation Award” for Canara International Travel
Prepaid Card under Prepaid segment.
 RuPay Special Award for being the highest RuPay Card Issuing Bank by NPCI.
 “Visa Award” on crossing a key milestone on issuance of 1.35 Crore Visa Debit
card.
 Dun & Bradstreet Award, 2016, for being the best Public-Sector Bank under
Priority Sector Lending and Retail Growth Performance.
 „Best Strategy in HR‟ & „Training Excellence‟ – Gold Awards, in 6th Annual
Greentech HR Award 2016.
 „SKOCH Order of Merit‟ Award for initiatives under Financial Inclusion.
 „Special Award for the Best Financial Institution-Gold‟ for 7th year in
succession by Federation of Karnataka Chamber of Commerce & Industry
(FKCCI).

THE GREEN INITIATIVES TAKEN BY CANARA BANK

a. The bank has implemented various green banking initiatives such as internet
banking, tele-banking and mobile banking, solar power biometric ATM‟s has
been implemented in a few rural areas.
b. Now the bank, is not extending the finance to the new units which are involved
in producing and consuming Ozone depleting substances. The bank has
alsostopped extending the finance small/medium scale unit engaged in the
manufacturing of Aerosols by using CFC
c. The bank insisted to manufacturing units which emit toxic polluting substance to
implement water treatment plant and obtain NOC (No objection certificate from
central/state government pollution control board while lending the loan.

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Canara Bank

According to Canara bank 2013, the bank had taken many green initiatives such as

 As a part of green banking initiative, the bank had adopted environmental

friendly measures.
 Canara bank had set up e-lounges for high tech banking facilities like internet
banking, pass book printing Kiosk, ATM online trading, telebanking and
cash/ cheque acceptor.
 The bank had implemented e-governance for HRM function and several other
administrations to reduce the paper work.
 In terms of lending policy, they are giving due preference and weightage to
projects which can earn carbon credits like solar energy projects, wind mills
etc.
 The bank is not extending any finance to the units which are producing ozone
depletion substances such as cholorofluro carbon, carbon tetrachloride,
aerosol products, solvents etc.
 While appraising any project, the organization insists the manufacturing units
which are emitting toxic pollutions to install water treatment projects to
process such pollutants and they also ensure that the borrower to obtain No
Objection Certificate (NOC) from central or state pollution control board.

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CHPTER-4

EMPLOYEE RETENTION STRATEGIES A STUDY

WITH REFERENCE TO CANARA BANK

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CHPTER-4

EMPLOYEE RETENTION STRATEGIES A STUDY WITH

REFERENCE TO CANARA BANK

For the purpose of inducting the survey, questionnaires are prepared and distributed
to the selected employees to receive their opinion regarding employee Retention
Strategies banking. For the purpose of survey 50 respondents are taken from Canara
bank who are well expertise in following employee Retention Strategies banking
practices over Canara bank.

The data collected during the survey is analysed by using statistical tools like
average, percentage graph etc.

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Table No.4.1: Age wise classification of respondents

Age No. Of Respondents Percentage (%)

Below 25 05 10
25 – 35 36 72
35 – 45 03 06
45 and above 06 12
Total 50 100

(Source: Field survey)

Above table represents age wise classification of respondents. 72% respondents

belong to the age group of 25-35 years, 12% belong to the age group of 45 and
above, 10% belong to age group of below 25 years, and 06% are in between 35-45
years of age.

Graph No. 4.1: Age wise classification of respondents

12 10

72

Below 25 25 – 35 35 – 45 45 and above

From the above analysis it can be interpreted that majority of the bank employees
are under the age group of 25-35 years.This shows that the opinions expressed by
the respondents are more matured and knowledgeable.

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Table No.4.2 Work experience

Work Experience No. Of Respondents Percentage (%)

0-5 years 34 68
5-10 years 10 20
10-20 years 01 2
20 and above 05 10
Total 50 100

(Source: Field Survey)

From the above table it can be analysed that 68% of the respondents are in their
present profession for 0-5 years, 20% of the respondents work experience is 5-10
years, 10% of the respondents have an experience of 10-20 years, 2% of the
respondents work experience is 20 and above years.

Graph No.4.2 Work experience

80
68
70

60

50

40

30
20
20
10
10
2
0
0-5 years 5-10 years 10-20 years 20 and above

Percentage (%)

From the above analysis it can be interpreted that 68% of the respondents are having
work experience ranges from 0-5 years.

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Table No.4.3: Sensitivity level of respondents for the issue of environmental

protection

Environmental No. Of Respondents Percentage (%)

Protection
Sensitive 23 46
Neutral 19 38
Not bothered 08 16
Total 50 100

(Source: Field Survey)

Above table represents sensitivity issue of respondents. It was found that 46%
respondents are sensitive regarding environmental protection, 38% are neutral and
16% are not bothered about the issue of environmental protection.

Graph No.4.3: Sensitivity level of respondents for the issue of environmental

protection

50 46
45
38
40
35
30
25
20 16
15
10
5
0
Sensitive Neutral Not bothered

Percentage (%)

From the above analysis it can be interpreted that majority of the respondents are
sensitive about the issue of environmental protection.

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Table No.4.4: Awareness about concept of banking

Concept No. Of Respondents Percentage (%)

Yes 50 100
NO 00 00
Total 50 100

(Source: Field Survey)

Above table represents the awareness of bank employee Retention Strategies

banking, 100 of the respondents are aware about the concept of banking, and none of
the respondents are not aware about banking.

Graph No.4.4: Awareness about concept of banking

NO 0

Yes 100

0 20 40 60 80 100 120

Percentage (%)

From the above analysis it can be interpreted that all the bank employee Retention
Strategies about the concept of banking.

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Table No.4.5: Awareness about banking practices through

Banking Practices No. Of Respondents Percentage (%)

Newspaper 10 20
Website/social media 21 42
Bank training 14 28
Friends 05 10
Total 50 100

(Source: Field Survey)

From the above table it can be analysed that 42% of the respondents were aware
about banking through websites/ social medias, 28% respondents through bank
training, 20% respondents through newspapers and 10% were aware through friends.

Graph No.4.5: Awareness about banking practices through

45 42
40

35

30 28

25
20
20

15
10
10

0
Newspaper Website/social media Bank training Friends

Percentage (%)

From the above analysis it can be interpreted that majority of the respondents were
aware about banking through websites/ social medias.

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Table no.4.6: Application level of banking practices by bank employees

Employees No. Of Respondents Percentage (%)

Yes 44 88
No 06 12
Total 50 100

(Source: Field Survey)

From the above table it can be analysed that 88% of the respondents are following
banking practices and 12% respondents are not following banking practices.

Graph No.4.6: Application level of banking practices by bank employees

12

88

Yes No

From the above analysis it can be interpreted that majority of the respondents are
following banking practices in their day today survival.

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Table No.4.7: Creating awareness about banking among employee Retention

Strategies.

Awareness No. Of Respondents Percentage (%)

Yes 46 92
No 04 08
Total 50 100

(Source: Field Survey)

Above table represents that 92% of the employees create awareness about banking
and 08% of the employees are not interested to create awareness about banking
among customers.

Graph No.4.7: Creating awareness about banking among employee Retention

Strategies.

100
92
90
80
70
60
50
40
30
20
8
10
0
Yes No

Percentage (%)

From the above analysis it can be interpreted that majority of the bank employees
are creating awareness about banking among employee Retention Strategies.

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Table No.4.8: Suggestion provided to employee Retention Strategies about

banking practices

Suggestion No. Of Respondents Percentage (%)

Prefer ATM machines 04 08

Deposit cash through machines 06 12

Prefer online transactions 06 12

Use online transaction apps 04 08

All of the above 30 60

Total 50 100

(Source: Field Survey)

Above table represents that 08% of the employee Retention Strategies their
customers to prefer ATM machines and use online transaction apps, 12% suggest to
deposit cash through machines and prefer online transactions, and 60% suggested to
prefer all of the above.

Graph No.4.8: Suggestion provided to employee Retention Strategies about

banking practices

14 12 12
12
10 8 8
8
6
4
2
0
Prefer ATM Deposit cash through Prefer online Use online
machines machines transactions transaction apps

From the above analysis it can be interpreted that majority of the employee
Retention Strategies to prefer ATM machines, deposit cash through machines, prefer
online transactions, and also use online transaction apps.

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Table No.4.9: Saving energy in day to day activities in banks through banking

Save Energy No. Of Respondents Percentage (%)

Yes 38 76
No 12 24
Total 50 100

(Source: Field Survey)

Above table represents that 76% of the employees save energy in day to day banking
activities, remaining 24% of the employees said that they did not save any energy in
their day to day banking activities.

Graph No.4.9: Saving energy in day to day activities in banks through banking

76
80

60

40 24
20
Percentage (%)
0
Yes No

Percentage (%)

From the above analysis it can be interpreted that majority of the employees save
their energy in day to day banking activities.

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Table No.4.10: Bank should opt for paperless banking

Paperless banking No. Of Respondents Percentage (%)

Yes 44 88
No 06 12
Total 50 100

(Source: Field Survey)

Above table represents that 88% of the employees expect that bank should opt for
paperless banking and 12% employees expect that are should not opt for paperless
banking.

Graph No.4.10: Bank should opt for paperless banking

No
12

Yes
88

0 10 20 30 40 50 60 70 80 90

Percentage (%)

From the above analysis it can be interpreted that majority of bank employees
expect that bank should opt for paperless banking

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Table No.4.11: Prefer recycled paper for banking operations

Recycled Paper No. Of Respondents Percentage (%)

Yes 43 86
No 07 14
Total 50 100

(Source: Field Survey)

Above table represents that 86% of the employees like to use recycled paper for the
banking operations and 14% of the employees are not interested to use recycled
paper.

Graph No.4.11: Prefer recycled paper for banking operations

Percentage (%)

100
90 86

80
70
60
50
40
30
20 14
10
0
Yes No

Majority of the employees use recycled papers for banking operations for the
purpose of optimum utilization of old papers and saving the trees.

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Table No.4.12: Problems while adopting banking

Problems No. Of Respondents Percentage (%)

Fear about security 13 26
Lack of Knowledge 10 20
Sometimes problematic Transaction 18 36
Limited scope for personal advice 09 18
Total 50 100

(Source; Field Survey)

From the above table it can be analysed that 36% employees faced problematic
Transactions, 26% faced issue regarding fear about security, 20% faced challenge
due to lack of knowledge about banking transactions and 18% faced challenge based
on limited scope for personal advice

Graph No.4.12: Problems while adopting banking

18 Fear about security

26

Lack of Knowledge

Sometimes problematic
Transaction
36 20 Limited scope for personal
advice

From the above analysis it can be interpreted that majority of the bank employees
faced challenges based on problematic transactions.

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Table No.4.13: Support from higher authority

Higher Authority No. Of Respondents Percentage (%)

Yes 39 78
No 11 22
Total 50 100

(Source: Field Survey)

From the above table it can be analysed that 78% of the respondents conveyed that
they are getting support from higher authority regardin banking activities and 22%
respondents conveyed that they dint get any support from higher authority regarding
banking activities in their bank.

Graph No.4.13: Support from higher authority

78
80
70
60
50
40
30 22
20
10
0
Yes No

Percentage (%)

From the above analysis it can be interpreted that majority of the employees are
getting support from their higher authority regarding banking activities.

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Table No.4.14: Interest level of higher authority regarding banking

Interest level No. Of Respondents Percentage (%)

High 23 46
Medium 22 44
Low 05 10
Total 50 100

(Source: Field Survey)

Above table represents that 44% of the employees feel that higher authority is
interested in banking activities, 44% respondents feel that the interest level of higher
authority is medium and 10% respondents feel that higher authority interest is very
low.

Graph No.4.14: Interest level of higher authority regarding banking

Low
10

Medium
44

High
46

0 5 10 15 20 25 30 35 40 45 50

Percentage (%)

From the above analysis it can be interpreted that majority of the bank employees
conveyed that the interest level of higher authority is medium.

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Table No.4.15: Opinion towards banking practices

S.L Strongly Agree Neutral Disagree Strongly Tot

No Statement agree disagree al

Empl Perc Em Perc Em Per Em Per Em Per

oyees enta plo enta plo cent plo cent plo cent
ge yee ge yee age yee age yee age
(%) s (%) s (%) s (%) s (%)

1. The banks should not provide 17 34 19 38 10 20 04 08 00 00 50

financeto companies/projects which
harm the environment
2. The banking operations must be 17 34 15 30 13 26 04 08 01 02 50
100% automated for saving
trees(paper)
3. E banking should replace huge part of 16 32 17 34 08 16 08 16 01 02 50
traditional banking chain
4. The banks should opt for solar 16 32 19 38 08 16 06 12 01 02 50
energy, rain water harvesting
techniques in its premises
5. Green banking practices may 02 04 02 04 08 16 28 56 10 20 50
adversely affect the profits of the
bank
6. Banks should opt for E recruitment 21 42 14 28 11 22 02 04 02 04 50
and online payment of salaries

7. The banks following green practices 10 20 20 40 11 22 07 14 02 04 50

receive positive response from the
customers
8. The bank should opt for green 09 18 17 34 15 30 06 12 03 06 50
building while expanding its branches

9. green banking contributes to the 25 50 18 36 03 6 02 4 02 04 50

protection of environment

(Source: Field survey)

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It was found that majority of 38% of the respondents have agreed that the banks
should not provide finance to companies/projects which harm the environment,
majority of 34% of the respondents strongly agreed that the banking operations must
be 100% automated for saving trees(paper), majority of 34% of the respondents
agreed that E banking should replace huge part of traditional banking chain, 38% of
respondents have agreed that the banks should opt for solar energy, rain water
harvesting techniques in its premises, majority of 56% of the respondents have
disagreed with the opinion regarding green banking practices may adversely affects
the profits of the bank, 42% of respondents have strongly agreed that bank should
opt for e recruitment and online payment of salaries, 40% of majority have agreed
that the banks following green practices receive positive response from the
customers, most of 34% of the respondents have suggested positive opinion that
bank should opt for green building while expanding its branches and most of 50% of
the respondents strongly agreed that green banking contributes to the protection of
environment.

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Graph No.4.15 Opinion towards banking practices

4
green banking contributes to the protection 4
6
of environment 36
50
6
The bank should opt for green building while 12
30
expanding its branches 34
18
4
The banks following green practices receive 14
22
positive response from the customers 40
20

4
Banks should opt for E recruitment and online 4
22
payment of salaries 28
42
20
green banking practices may adversely affect 56
16
the profits of the bank 4
4
2
The banks should opt for solar energy, rain 12
16
water harvesting techniques in its premises 38
32
2
E banking should replace huge part of 16
16
traditional banking chain 34
32

2
The banking operations must be 100% 8
26
automated for saving trees(paper) 30
34
The banks should not provide finance to 0
8
COMPANIES/projects which harm the 20
environment 38
34

0 10 20 30 40 50 60

Strongly disagree Disagree Neutral Agree Strongly agree

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Table No.4.16: Present status of banking practices in Canara bank

Present status No. of Respondents Percentage (%)

Good 29 58
Better 11 22
Best 07 14
Poor 03 06
Total 50 100

(Source: Field survey)

Above table represents that 58% of employees said that the present status of banking
in Canara bank is good, 22% of the employees said better, 14% of the employees opt
to best and remaining 6% employees said that the present status of banking practices
in Canara bank is poor.

Graph No.4.16: Present status of banking practices in Canara bank

6
14

22 58

Good Better Best Poor

From the above analysis it can be interpreted that majority of the bank employees
conveyed that the present status of banking practices in Canara bank is good.

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Table No.4.17: employee Retention Strategies banking is beneficial

Beneficial No. Of Respondents Percentage (%)

Yes 45 90
No 05 10
Total 50 100

(Source: Field Survey)

Above table represents that 90% of the employee‟s sense that banking is beneficial
and 10% of the employee Retention Strategies banking is not beneficial.

Graph No.4.17: Green banking is beneficial

100
90
90
80
70
60
50
40
30
20
10
10
0
Yes No

Percentage (%)

From the above analysis it can be interpreted that majority of the bank employees
conveyed that green banking is beneficial.

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Table No.4.18: Employee Retention Strategies in Corporate Social

Responsibility activities organized by Canara bank

CSR Activities Respondents Percentage (%)

Yes 40 80
No 10 20
Total 50 100

(Source: Field Survey)

From the Above table it can be analysed that 52% of the employee Retention
Strategies in the Corporate Social Responsibility activities organized by Canara
bank48% of the respondents have not participated in the Corporate Social
Responsibility activities organized by Canara bank.

Graph No.4.18: Employee Retention Strategies in Corporate Social

Responsibility activities organized by Canara bank

80
80

70

60

50

40

30
20
20

10

0
Yes No

Percentage (%)

From the above analysis it can be interpreted that majority of the bank employees
have participated in the CSR activities organized by the bank

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CHAPTER - 5

FINDINGS, SUGGESTIONS AND CONCLUSION

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CHAPTER - 5

FINDINGS, SUGGESTIONS AND CONCLUSION

FINDINGS

 Majority of the respondents belong to the age of 25-35 years.

 46% of the respondents said that they are sensitive to the issue of
environmental protection.
 100% of the respondents were aware about the concept of banking
 Majority of the respondent‟s i.e., 42% came to know about the concept of
banking through website/social media.
 Majority of the respondents i.e, 88% of the respondents used to follow
banking practices as a bank employee.
 Majority of the respondents i.e, 92% of them said that they create awareness
about banking practices among their customers
 60% of the employees suggest the customers to prefer ATM machines,
deposit cash through machines, prefer online transactions and also prefer to
use online transaction apps for the sake of paperless transactions.
 76% of the respondents said that they save energy in their day to day
activities in the bank.
 88% of the employees expect that the bank should opt for paperless banking
so that cutting of trees can be avoided.
 86% of the respondents like to use recycled paper for the banking operations.
 Majority of the respondents i.e., 36% said that problematic transaction is the
problem faced by the employees while adopting banking in banking
operations
 78% of the respondents are getting support from higher authority related to
banking practices.
 36% of the respondents are with an opinion that the interest level of higher
authority about banking or eco-friendly banking is high.
 58% of the respondents said that the present status of banking in Canara
bank is good.

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 Majority of the respondent‟s i.e, 90% have expressed positive opinion that
banking is beneficial for the growth of environmental/sustainable
development.
 80% of the respondents have participated in Corporate Social Responsibility
activities organised by the banks.
 Most of the respondents expressed their views on banking as follows.
 The banks should not provide finance to companies which harm the
environment.
 The banking operations must be designed in such a way that there
must be least usage of paper, banks should opt for E- recruitment and
online payment of salaries for the employees.
 The bank should opt for solar energy, rain water harvesting
techniques in its premises. Banking contributes to the protection of
environment. However, there are difference of opinions regarding
profitability, customer response and green building.
 58% of the respondents disagreed that banking practices may
adversely affect the profits of the banks.
 40% Agreed that the banks following practices receive positive
response from the customers.
 30% of the employees are neutral that the bank should opt building
while expanding its branches.
 50% are strongly agreed that the banking contributes to the
protection of environment.

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SUGGESTIONS

 Awareness should be created among public who are still not aware about
banking practices through websites.
 Awareness programs such as seminars, workshops should be conducted on
regular intervals to enlighten the employees and customers regarding the
importance of environmental protection and banking mechanisms.
 Solar panels should be set up on the roof tops of branches where it is
possible. Excessive usage of energy should be restrained. Hence, while
expanding the branches building structure should be chosen.
 Well planned proper waste management techniques should be adopted by the
banks throughout their branches.
 Some arrangements should be made to dispose the segregated waste. Ti-ups
with NGOs and local governmental bodies for the effective disposal of e
waste would be a wonderful step in the sustainable banking initiatives.
 Banks can introduce green funds for customers who would like to invest in
environment friendly project
 Counters should be created in all the branches where there would be the
minimal usage of paper. Banks should opt for recycled papers in their day to
day operations.
 The bank should start investment in low carbon producing technology and
should develop new sustainable development programmes to reduce the
carbon footprint from the environment.
 Customer should follow green banking practices used by everyone and
should use Canara bank apps instead of paper banking.

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CONCLUSION:

Majority of the bank employees have the knowledge about green banking. However,
fully fledged banking strategies are not being adopted by most of the banks. Of
course, online banking, mobile banking, ATM facilities are used by the banks still,
the focus is not on eco-friendly practices but the convenience of customers. Lack of
knowledge is a major hurdle in the effective application of banking strategies.
Hence, RBI must make some arrangements to provide training to the bank
employees and encourage the banks for banking initiatives by awarding them. There
should be continuous awareness about the eco-friendly strategies which must be
adopted in the day to day operations of the banks. There is an opinion that profit
making is the prime objective of any bank. Therefore, these institutions don‟t give
much importance for rationalizing the credit demands. However, banking practices
yield huge dividends in the long run. It adds the value to the brand, creates goodwill
in the minds of consumers, saves the operational costs in a considerable manner,
minimizes the bank‟s financing risks and contributes to the environmental
sustainability.

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BIBLIOGRAPHY

REFERENCES OF BOOKS

 Ms. Vaishali Chhabra, “Current trends in employee retention strategies”,

International journal of new practices in management and engineering, Vol.
4, Issue 1, 2012.
 Muppuri Nagabhaskar, “Motivational factors of employee retention and
engagement in organizations”, International journal of development research,
Vol. 4, Issue 2, pp. 221-224, February 2014. Available online at
http://www.journalijdr.com
 Ms. Deepti Sinha and Dr. Somesh Kumar, “a study of employee retention in
the pharmaceuticals sector in Dehradun city”, International journal of
education and psychological research, Volume 2, Issue 1, pp.3.-39, January
2013.
 Rana Zehra Masood, Stress management: A key to employee retention;
School of management studies, Varanasi, Vol. VII, No. 1, June 2011.
 Shivangee Singh and Pankaj Kant dixit, Employee retention: The art of
keeping the people who keep you in business; VSRD international journal of
business and management research; vol.1(7), 2011. Also available online:
www.visualsoftindia.com/jouranl.html.
 Dr. R. Akila, A study on employee retention among executives at BGR
energy systems Ltd, Chennai; International journal of marketing, financial
services and management research; vol.1, issue 9, September 2012.

WEBSITES

 https://cwejournal.org/vol10no3/green-banking-for-environmental-
management-a-paradigm-shift/
 https://www.google.com/amp/s/www.deccanherald.com/amp/content/
585930/canara-bank-sees-surge-cashless.html
 https://canarabank.com/english/about-us/awards-and-achivements/
 https://www.speakingtree.in/blog/how-does -banking-encourage-
corporate-social-responsibility

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QUESTIONNAIRE

Respected Sir/Madam,

As a part of my academic study I have undertaken a project report on “Employee

Retention Strategies A Study with reference to Canara Bank” Therefore, I
request you to spend your valuable time to fill this questionnaire. I assure you that
the information collected will be utilized only for academic purpose.

Thank you,

Your Faithfully

1. Name:________________________________________________________
2. Age(years):

a. Below 25 [ ] b. 25-35 [ ]

c.35-45 [ ] d. 45 and above [ ]

3. Bankname:_______________________________________________________
_
4. Work experience in banking field: ___________________________years
5. Personally, how sensitive are you for the issue of environmental protection?
a. Sensitive [ ] b. Neutral [ ]

c. Not bothered [ ]

6. Do you know the concept of green banking?

a. Yes [ ] b. No [ ]
If no, go to the last question.
If yes, continue answering the questions
7. How do you know about banking practices?
a. Newspaper [ ] b. website/social media [ ]
c. bank training [ ] d. friends [ ]

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8. As a bank employee do you follow any banking practices?

a. Yes [ ] b. No [ ]
9. Do you create awareness about banking among customers?
a. Yes [ ] b. No [ ]

10. As a bank employee how you will suggest your customers to follow banking
practices?

a. Prefer ATM machines [ ]

b. Deposit cash through machines [ ]

c. Prefer online transactions [ ]

d. Use online transaction apps [ ]

e. All of the above [ ]

11. Do you save energy in day to day activities in your bank?

a. Yes [ ] b. No [ ]

12. Do you think that the bank should opt for paperless banking?

a. Yes [ ] b. No [ ]

13. Would you like to use recycled paper for your banking operations?

a. Yes [ ] b. No [ ]

14. Have you come across any problems while adopting Banking?

a. Fear about security [ ]

b. Lack of knowledge [ ]

c. Sometimes problematic for transaction [ ]

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d. Limited scope for personal advice [ ]

15. Is there any support getting from your higher authority?

a. Yes [ ] b. No [ ]

16. Interest level of higher authority in banking?

a. High [ ] b. Medium [ ]

c. Low [ ]

17. Rate the following sentences:

S. No Statement Strongly Agre Neutra Disagre Strongl

agree e l e y
disagre
e
1 The banks should not
provide finance to
COMPANIES/projects
which harm the
environment
2 The banking operations
must be 100% automated
for saving trees(paper)
3 E banking should replace
huge part of traditional
banking chain
4 The banks should opt for
solar energy, rain water
harvesting techniques in its
premises
5 Green banking practices
may adversely affect the
profits of the bank
6 Banks should opt for E
recruitment and online
payment of salaries
7 The banks following green
practices receive positive
response from the
customers

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8 The bank should opt for

green building while
expanding its branches
9 Green banking contributes
to the protection of
environment

18. Present status of banking practices in Canara bank?

a. Good [ ] b. Better [ ]

c. Best [ ] d. Poor [ ]

19. Do you think banking is beneficial?

a. Yes [ ] b. No [ ]

20. Have you ever participated in any CSR activities focusing on environment
organized by your Bank?

a. Yes [ ] b. No [ ]

21. How do you dispose the waste (paper, electronic waste etc.) in the bank?

____________________________________________________________________

22.Give your suggestions to enhance environmental protection through banking.

____________________________________________________________________

Date:

Place:

Signature

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