I

INTRODUCTION

The project titled “A Study on Attrition Trends” is carried out at Dr. Reddy’s
Laboratories. It deals with the attrition rates in the year 2008-2009. Human resource is
one of the most important resources for any organization. This being the case the
procurement and retaining of the best human force is one of the major considerations.
This study focuses on attrition, a persistent problem in any organization. It deals with the
causes and also gives the measure as to what can be done to minimize attrition rate using
different kinds of charts and percentage method. The influence of factors on attrition has
been studied.

1
 INDEX

CHAPTER

2
1) INTRODUCTION 01
 Introduction to the topic
 Research Methodology

2) LITERATURE REVIEW 06

3) COMPANY PROFILE 16

4) DATA ANALYSIS AND INTERPRETATION 20

 Tabular view of analysis
 charts

5) SUMMARY AND CONCLUSIONS 26

 Findings
 Conclusions
 Suggestions

ANNEXURE

BIBLIOGRAPHY

3
 Chapter 1

INTRODUCTION

4
 NEED FOR THE STUDY

Attrition means a reduction or decrease in workforce in the organization. These

reasons defer from person to person. Indian companies are facing a "fast-growth-high-
opportunity" challenge. Human talent is at the epitome of their business growth, which
makes it imperative for them to deal with their employee attrition now.

We're, of course, talking about attrition, a crippling HR headache that has plagued
organizations across India Inc. Although attrition has been spiraling out of control for
some time, especially in fast-growing industries such as IT, BPO, retail and
infrastructure, few companies have been willing to discuss this hot button issue, instead
preferring to sweep it under the carpet. What was a problem restricted to just a couple of
sunrise sectors has today become a widespread problem. While dozens of surveys were
conducted on the rise and rise of attrition in Indian industry, few have been able to get to
the heart of this menace and suggest meaningful and long-term solutions.

Reasons for people leaving the organizations are:

• People don’t get integrated

• Performance goals are unclear
• Development is always tomorrows job
• The personal touch is missing
• Reward systems are not transparent
• Perceived equity of reward system is low
• Goal setting process is not scientific
• External equity is missing too
• No communication around total value
• No career planning

5
 Attrition is a universal phenomenon and no industry is devoid of it, but the degree
fluctuates from industry to industry. Major pharmaceutical companies in India are age-
old and established, having their own culture and work practices and therefore, employee
turnover will be a common phenomenon in such companies. But the cro's are in a nascent
stage. Attrition is a serious issue in the pharmaceutical industry because the industry is
knowledge-based and hence employees are its “assets”.

Whenever a well-trained and well-adapted employee leaves any organization, it

creates a vacuum. The organization loses key skills, knowledge and business
relationships. And it is not an easy task to find a sustainable substitute. Situation is worse
when it happens at a critical (decision making) position, as there is a scarcity of such
technical resources in the market, attrition directly affects the company. Recruiting and
training programs for employees is an expensive affair. The company has to invest a lot
while recruiting an employee.

6
 RESEARCH METHODOLOGY

Under research methodology various steps that are generally adopted by a researcher in
studying his research problem along with logic behind them is discussed. The researcher
methodology has many dimensions and research method to constitute a part of the
research methodology. It is necessary for the research to design the methodology for his
problem as it may differ from problem to problem in the process of conducting the study,
the researcher has following methodology.

Research objectives:
• The objective of the study is to identify the “Attrition trends” in the organization.

• Then to study the factors which lead to employee’s attrition.

• To study the impact of the attrition rate on the company and also to suggest
measures do decrease attrition rate so that smart talented workers are not leaving
the organization for the better growth of the company

Need for the study:

This study on attrition trends is done to achieve many objectives laid down in the
study. This study is carried on to let us know and understand what is the attrition rates
and the factors influencing attrition and what a human resource manager can do to retain
the best work force in the organization.

This study aims o bring out such factors to the fore and suggest appropriate measures and
strategies to effectively reduce the attrition rate in the organization. It also seeks to
enlighten about the importance of HR managers role in the organization to retain their
employees

7
Scope of the study:
This particular study of attrition trends is restricted to unit 3 of Dr.Reddy’s Labs.
The study is conducted on the employees of the organization. It studies the attrition
trends in the organization and also the factors influencing this attrition. It also provides
various steps adopted by the organization to decrease the attrition rate which can be used
in future for decision making and police making with regard to the workforce. This study
reveals the morale of how is attrition rate calculated and how we can decrease the
attrition rate.

Sample Description:
The study had been conducted in Dr.Reddy Laboratories Ltd., consisting a population
of 275 members. A sample size of 60 members was drawn randomly from the population.

Collection of data:
1. Primary data:
Primary data was collected with in the workmen of the organization through
surveys and personnel interview.
2. Secondary data:
Secondary data was collected from various published books, companies, websites
and companies old records.
3. Research design:
The research design under taken for the study is an descriptive one. The
methodologies involved in this design are mostly qualitative in nature.

Type of study
• It is exploratory because it is concern with identifying the causes of attrition in the
company.

8
Sample design:
A sample of 50 worker men is taken out of total population of 275 workmen
(18%), based on judgment sampling. The sample is selected in such a way that it includes
the workmen of all ages, different designations from different educational streams with
distinct experience from various departments.
Hence the sample is a representative of the population and an unbiased mix of all factors.

Research instruments:
The research instruments used for the survey are a structured undisguised
questionnaire. The questionnaire has been framed in the structures and undisguised form,
with a total number of 10 questions. It has both open end and close end questions. The in
formation collected through personal interview is also being used. Pre testing was
conducted to find if there were any discrepancies in the questionnaire designed.
Necessary changes were made after designing the questionnaire for which data was
collected.

Diagrams used:
• Bar charts
• Pie charts
• Line chart

Limitations:
• Due to constraints of time and many other resources the study is confined to the
employees of Dr.Reddy Laboratories Ltd. Bachupally Hyderabad only.
• The opinions, behavior and attitudes of the respondents reflected in the study are
restricted to duration and subjected to change with passage of time.
• There may be scope for bias in the responses of the employees this may be due to
various institutional factors, which are out of our study.

9
• So this can be considered as a suggestive report rather than an authenticated one.

Chapter 2

LITERATURE REVIEW

10
 LITERATURE REVIEW

In today's scenario, Indian companies are facing a "fast-growth-high-opportunity"

challenge. Human talent is at the epitome of their business growth, which makes it
imperative for them to deal with their employee attrition now.

Attrition means a reduction or decrease in workforce in the organization for their

own personal reasons. These reasons defer from person to person. Or attrition is also
defined as a gradual reduction in work force without firing of personnel, as when workers
resign or retire and are not replaced

There is an increase in competitions among the organizations to get the highest

market share. This competition leads to doing the work in efficient and effective ways.
Doing work in such a way requires excellent and talented work force. These days man
power is considered the most important resources in the organization. Organizations
attract the talented people with good salaries and addition benefits. This became a big
head ache for the organizations to retain their employees. This all is finally leading to
high attrition in the organization.

Attrition can be calculated for ever year and this is termed as attrition rate of that
particular year. Attrition rate can also describe the number of employees that move within
a certain period. For example, the annual churn rate would be the total number of moves
completed in a 12-month period divided by the average number of occupants during the
same 12-month period. Monthly and quarterly churn rates can also be calculated

The first signs appeared in the mid-90s with the advent of the software services
industry. By the turn of the century, this problem had reached epidemic proportions as the

11
IT industry matured and ITES-BPO sector kicked into high gear.

We're, of course, talking about attrition, a crippling HR headache that has plagued
organizations across India Inc. Although attrition has been spiraling out of control for
some time, especially in fast-growing industries such as IT, BPO, retail and
infrastructure, few companies have been willing to discuss this hot button issue, instead
preferring to sweep it under the carpet. What was a problem restricted to just a couple of
sunrise sectors has today become a widespread problem. While dozens of surveys were
conducted on the rise and rise of attrition in Indian industry, few have been able to get to
the heart of this menace and suggest meaningful and long-term solutions.

While attrition in India Inc. is high as 20 per cent (up to 40 per cent in the booming
services sector), it is now accepted that the decision to quit rarely happens overnight.
Initiatives such as exit interviews have become de rigueur across industries, but results
are not yet fully understood. Even today, there isn't a single comprehensive survey that
provides an in-depth look into the reasons behind growing attrition and provides
meaningful and sustainable solutions to this problem.

To try to address these issues, Business Today has teamed up with people strong, an
HR outsourcing provider and, for the first time, plans to survey at least 100 companies
across 12 sectors for the "India Attrition Study 2008." Already, 50 per cent of this
capacity has been filled and companies across industry are queuing up to participate.

This study will use three methods-exit surveys, employee voice and people
processes to cover-to collect data. Then using People Strong's ADIEU (Affiliation,
Development Initiative, Employability and Work Environment) model, this data will be
analyzed to crystallize findings on attrition. The results of this study, including Predictive
Practices and Employee Experience Scores, will be published in one of Busyness Today's
forthcoming issues, and will lead to the emergence of best practices to curb attrition.

Reasons for people leaving the organizations are:

12
 • People don’t get integrated
• Performance goals are unclear
• Development is always tomorrows job
• The personal touch is missing
• Reward systems are not transparent
• Perceived equity of reward system is low
• Goal setting process is not scientific
• External equity is missing too
• No communication around total value
• No career planning

Factors to Consider in the Cost of Attrition:

• New employee recruitment, especially for recruiting the kind of diverse staff a
great organization wants?
• Management time for trips to job fairs & colleges, screening applications time,
interviewing, meetings to make decisions?
• Newspaper, journal, Internet and other ads
• Technology specialist time for placing recruitment and job info on the
organization web site
• Brochure and flyer printing, folding, addressing, and mailing
• Personnel staff time processing applications, answering phones, dealing with
certifications, and other inquiries, etc.
• Cost of background checks
• New employee initial orientation
• New employee training during the first year or two? (both that just for new
employees and all other organization training)
• Reduced results during the year or two that a new employee is learning their new
job?

13
 • Reduced results when an employee leaves with what they have learned from trial
and error, and a different new employee is hired without that hard won experience
and starts over at the beginning again.
• Loss of work flow continuity when employees leave or are not rehired because
they are not as successful as required?
• Management time spent orienting, evaluating, coaching, developing, and
supporting new employees who are not retained?

The Challenge of Employee Attrition- How Bad Is It?

National projections suggest that, during the decade of 2000-2010 about 1/2 of all
employees in many major industries and settings nationally will need to be replaced. This
is due to the maturity level of the "baby boomer" generation. While these national level
data are alarming, most decision makers would rather know their own organization's
attrition rate and the actual cost of that attrition to the organization and its stake holders.
Clearly, locally specific staff and cost data are better for motivating local action.

All of this means that, for every organization, the strategic starting point to increased
new employee support is to be able to clearly show two factors:
1. The extent of your organization's need to recruit and employ new staff during the next
five to ten years.
2. The actual total and per employee costs of employee attrition in your own
organization.

Organizations need to use two ways to establish the first set of data on employment
needs:
• End-of career attrition, largely a result of retirement
• Early career attrition

Reducing end off career attrition:

14
 Until recently, organizational efforts have most often been to offer early retirement
packages as incentives to cause attrition of the most senior staff members. The primary
motivation has been to reduce the cost of these high salary employees by replacing them
with less expensive younger employees. Now that the problems are the quality of
performance and having enough good staff for our business needs, the challenge has
reversed to how can we keep people who might want to retire?

The starting point for addressing these concerns is the development of a profile of
the age of current employees and extrapolating the numbers and dates for their eligibility
for retirement. This is an important set of information to know, since you want to target
them with retention efforts, or at least, you must be able to replace them.
Improving the retention numbers at the end of the career requires a different set of
strategies than does increasing retention early in the career. Efforts should primarily
focus on increased employee earnings that will increase a pension later, affirmation of the
value of elder staff contributions, and on providing new, invigorating leadership
responsibilities. Among other possibilities, appointment as a mentor, serving in
mentoring roles, and receiving a mentoring stipend fit these needs very well.

Reducing early career of Attrition:

While you need to know and address the number of staff who will retire, you also
need to know how many employees are leaving before retirement age. This is a more
critical factor to quantify as it is one over which your organization can assert considerable
influence. Specifically, the organization needs to determine the total rate of employee
attrition less the number retiring. The goals are to define and target a specific group of
people and to do so with a different set of strategies than the end-of-career people need.
Since attrition is the if lip side of retention, the retention strategies we have discussed are
still relevant to address attrition. What is different here is the need to know the cost of
attrition. These data can be quite powerful, for they are annually repeating costs which

15
are assumed to be necessary. These costs are so accepted as to have become almost
invisible expenses.

Your strategy should have three parts:

• Find out how bad early career staff attrition really is
• Determine the total organization and per employee cost of attrition
• Present in a compelling way, a comparison of the cost of attrition and the cost of
mentoring support for development of employees.
If done carefully, you should be able to show that the organization is spending more on
attrition than the cost of mentoring.
In other words, it costs more to do it wrong than it does to do it right!
This argument is all the more compelling because your organization does not need new
money to do an effective job of supporting and keeping new staff. Effective mentoring
will reduce the amount of money the organization is already spending and losing each
year to attrition! Effective mentoring more than pays for itself every year. Further, while
that cost savings alone is enough a reason to do a quality mentoring program, there are
many other reasons as well, like the improving employee performance and learning,
saving supervisory time, and increasing continuous improvement momentum, significant
non financial benefits in their own right.

Attrition in pharma industry:

The Indian pharmaceutical industry grows exponentially; companies are taking the
big leap from survival strategy to competitive strategy. Hence, there is a constant thirst
for the best and the brightest of employees. And the result—heavy attrition.
In addition, there are several other reasons as to why employees quit. The reasons are too
varied to be clubbed together, but the bottom line remains the same—it is all about
money!

Therefore, it is no wonder that the compensation levels in the industry are heading
north. Companies are literally bidding for talent and luring away employees with

16
attractive salaries and designations. While HR experts define it the function of demand
and supply, it is a serious concern for employee retention.

A critical issue:
After IT and BPO, it is now the Parma sector that is facing the issue of high
attrition rates. For most HR managers, employee retention is the biggest challenge.
“Attrition is pretty high in the industry these days. This year, we have witnessed almost
20 percent plus attrition and definitely I consider it very critical to the company,” said
Vice President-HR, Dr. Reddy Labs.
Whenever a well-trained and well-adapted employee leaves any organization, it
creates a vacuum. The organization loses key skills, knowledge and business
relationships. And it is not an easy task to find a sustainable substitute. Situation is worse
when it happens at a critical (decision making) position, as there is a scarcity of such
technical resources in the market, attrition directly affects the company. Recruiting and
training programs for employees is an expensive affair. The company has to invest a lot
while recruiting an employee.
Attrition is a universal phenomenon and no industry is devoid of it, but the degree
fluctuates from industry to industry. Major pharmaceutical companies in India are age-
old and established, having their own culture and work practices and therefore, employee
turnover will be a common phenomenon in such companies. But the CRO's are in a
nascent stage and it's too early to comment. According to Vice-President-HRM of Dr.
Reddy Labs, attrition is a serious issue in the pharmaceutical industry because the
industry is knowledge-based and hence employees are its “assets”.

But why?
Many HR experts believe that money, though a key factor, is not the only one which
makes employees quit. Attrition also happens when people hate their working conditions,
do not like their team-mates or perhaps do not like what they are doing. There are also
cases when people leave their job for family reasons or when they wish to migrate. For
example, girls often leave their jobs when they get married and shift to another city.

17
 Experts also believe that organizational culture has a great impact on who stays and
who goes. And the culture of an organization is determined by the quality of the
relationship between bosses and their subordinates. According to a popular saying—
employees never leave the company, they leave their bosses. An inefficient boss creates
poor work culture, which is one of the frequent reasons for quitting.
Employers often fail to understand the importance of providing opportunities for
development of their employees or their career growth. A conducive working
atmosphere, good culture, training and career growth with adequate salary are some
provisions that control attrition
Every employee comes to his organization with some aspiration. An organization is
viewed as a place where employees meet their aspirations of growth and development,
values of trust, teamwork and transparency. If a company respects them and their skills,
realize their potential and provide them with a healthy environment to learn and grow
with flexible compensation, employees take that as a strong reason to stay on.
Recognizing the contribution of outstanding achievers also inspires others to try
hard and put in their best. A good organisational behavior also focuses on areas like
training, career development and believe in equipping workforce better on the
professional front.
Experts say that good organisational behavior is instrumental in extending the
tenure of employees in the organization as it increases their self-esteem, confidence,
morale and motivation. A substantial growth of employee's self-esteem is as important as
the concept of learning in the industry. Otherwise, experts fear that pharmaceutical
organizations will meet a sorry fate as far as retention policies are concerned
.
Supply vs demand:
However attrition as the function of demand and supply .The demand comes from
the growth of the industry and the policy of the company. These two things decide
whether there is a demand of fresher or experienced employees. On the other hand, the
supply comes from the educational institutions and the market. The supply from the
educational institutions is enough to meet the demands of the pharmaceutical industry,
there is a lack of experienced people in the industry, which in turn has created an

18
imbalance. The imbalance is crucial to the growth of the industry. While the industry is
growing, not all companies are capable of taking fresh people and groom them. Hence,
the current status demands experienced people and shortage of skills or retaining existing
employees pose an issue for the industry.

Increasing the pie:

In the current scenario, the demand of experienced and good employees is
actually outstripping the supply. In such a situation, higher salary structures pose a major
challenge in controlling attrition levels in the industry. Moreover, the salary growth plan
is not well defined as well. All this encourages poaching by companies offering higher
salaries. Though the salary is decided keeping in line with the market trends, the
qualification, experience and the attitude of the individual matters. Salary or even
increments are dependent very much on what kind of value adding the person is or will
do in the organization and internal imbalances should be avoided.

When it comes to attracting talent, throwing fat carrots at potential employees

can boomerang on the company. Fighting with salaries, prerequisites or designations as
retention tools can prove to be self defeating since rivals can also follow the same path.
Besides, HR experts from the industry believe that out paying is not a winning tactic for
companies. The organization’s reward strategy reflects its power to drive quality
employees. Apart from salary, recognition of work is a healthy retention strategy. If the
organization values its employees, recognizes and appreciates their skills and work, it
pays. “It is important to keep an eye on fast track people who are intelligent and excellent
performers. Performance is a primary requirement; therefore, excellent performers should
be valued. They should be identified, nurtured and provided growth opportunity.

HR's role and strategies:

As the struggle for reducing employee attrition rates is intensifying, recruiters are
putting renewed efforts in identifying talent, which is committed and productive.

19
However, while everyone is competing for talent, in experts' opinion, a hiring spree can
be a blunder sometimes. Stringent recruitment process could help reduce attrition to a
certain extent.
An internal referral mechanism is also very useful in reducing attrition rates in
companies. A thorough analysis of a candidate's background or behaviors pattern,
adaptability or liking would help the organization with good resource pool and less
attrition rates. When recruiting an outstation candidate, we need to keep in mind that
there could be an inclination for that candidate to move to a place closer to his or her
native place. Such facts should be kept in mind while making a decision.
Hiring stayers rather than stars is yet another strategy. According to experts, some
of the most talented people often have the tendency to move on. The reason being their
eagerness to climb by shifting from one company to another. But opines that frequent job
hoppers are not the ultimate gainers. They gain or earn only in terms of money but those
who opt to work in one organization for long are able to learn and gain experience which
pays in the long term.
An efficient HR focuses on creating a good work culture and work out different
strategies in line with organisational philosophy. According to experts, HR managers
must use the combination of growth, learning opportunity and pay attention to employees'
personal needs and participation. The needs of the employees should be regularly gauged
through open communication, polls and feedback mechanisms to maintain consistency in
performance and high motivation levels.

20
 Chapter 3

COMPANY PROFILE

21
 COMPANY PROFILE

Dr. Reddy’s Laboratories was founded by Dr. Anji Reddy’s, an entrepreneur-scientist, in

1984. The DNA of the company is drawn from its founder and his vision to establish
India’s first discovery led global pharmaceutical company. In fact, it is this spirit of
entrepreneurship that has shaped the company to become what it is today.

Since the inspection Dr. Reddy’s has chosen the path of discover and innovation in health
sciences and the quest has been to sustain and improve the quality of life. It’s the first
Indian company to out-license molecule for clinical trail to novo Nordisk – the world
leader in diabetes.

Dr. Reddy’s sense of social responsibility is reflected in the innovation waste

management schemes followed in manufacturing units. Major steps have been taken to
minimize waste generation and develop sustainable use of resources so as to maintain the
ecological balance and preserve the environment, critically aware of its responsibility to
society; the company has set up the Dr. Reddy’s foundation for human and social
development to act as a catalyst in management of change. Through this organization the
company has been encouraging cultural and educational projects in Andra Pradesh.

The fundamental aim of Dr. Reddy’s is to help people lead a healthier life and relentless
focus is on innovation, entrepreneurship and globalization guided by its core values.

22
Dr. Anji Reddy, having moved out standard organics limited, a company he had
successfully co-founded, started Dr. Reddy’s Laboratories with $ 40,000 in cash and $
120,000 in bank loan! Today, the company with revenues of Rs. 2,427 crore (us $546
million)as of fiscal year 2007, is the India’s second largest pharmaceuticals company and
the youngest among its peer group.

Dr. Anji Reddy is well known for his passion for research and drug discovery. Dr.Reddy
started its drug discovery programme in 1993 and with in three years it achieved its first
breakthrough by out licensing an anti-diabetics molecule to Novo Nordisk in March
1997. With this very small but significant step, the Indian industry went through a
paradigm shift in its image from being known as just ‘copycats’ to ‘innovators’! Through
its success, Dr. Reddy’s pioneered drug discovery in India. There are several such
inflection points in the company’s evolution from a bulk drug (API) manufacturer into a
vertically integrated global pharmaceutical company today.

DISCOVERY RESEARCH:

This pioneering spirit drives the research efforts for drug discovery and development at
discovery research, a strategic business unit (SBU) of Dr. Reddy’s Laboratories limited.
All research and development (R & D) at discovery research is focused on the goal of
developing breakthrough treatment that will make a real difference in patient’s lives.

With the goal of developing a robust clinical pipeline containing multiple novel drug
molecules in different stages of clinical development, a large number of discovery-stage
and clinical development stage program have been strategically planned. Powerful
discovery infrastructure that combines world-class biology in important disease pathways
with functionally integrated chemistry capabilities drives our program.

OUR CORE PURPOSE:

To help people lead healthier life.

23
VISION:
To become a discovery led Global Pharmaceuticals Company.

VALUES:
Quality: we are dedicated to achieving the highest levels of quality in everything we do
to delight customers, internal and external, every time.

Respect for the Individuals: we uphold the self esteem and dignity of each other by
creating an open culture conductive for expression of views and ideas irrespective of
hierarchy.

Innovation & Continuous Learning: we create an environment of innovation and

learning that foster, in each one of us, a desire to excel and willingness to experiment.

Collaboration & Team Work: we seek opportunities to build relationships and leverage
knowledge, expertise and resources to create greater value across functions, business and
locations.

Harmony & Social Responsibility: we take care to protect our natural environment and
serve the communities in which we live and work.

MOTTO:

Our means of achieving our end purpose of helping people lead healthier lives’. Products
are the only aspect of our pharmaceuticals value chain, which directly touch people’s
lives.

PRODUCTS:

Our discovery centric philosophy, along with our internationally ratified facilities,
enables us manufacture a range of products that are known for their quality and efficacy.
Dr. Reddy’s products portfolio spans an impressive mix of active pharmaceutical
ingredients, generics and branded formulations as well as biologics.

24
 1. Active Pharmaceuticals Ingredients
2. Generics- North America
3. Generics- Europe union
4. Branded Formulations ( Rest of the world)
5. Biologics

BUSINESS DEVELOPMENT:

At Dr. Reddy’s we aim to help patient’s lead healthier lives through two parallel
objectives: delivering affordable and accessible medication to all parts of the world: and
discovering, developing, and commercializing innovation medicines that satisfy unmet
medical needs. We recognize and embrace the fact that our partners are core component
of this strategy. In fact, in 2006- 2007 alone, we executed over 80 business development
transactions—product in/out-licensing, co-development agreement, technology licenses,
joint ventures, and acquisitions – that are collectively enabling Dr. Reddy’s and its
partners to help patients lead healthier lives.

BUSINESS DIVISION:

Our core business of Active Pharmaceuticals Ingredients (API) and Branded Formation
are well established with an impressive track record of growth and profitability. Our
Generics business started operations in 2001 and focuses primarily on the north America
and EU markets. We have built a robust pipeline of generic products, which will help us
drive growth in the medium and long term. In addition, the company is investing in
creating business of the future – the innovation led business – of specialty and Drug
Discovery.

OUR CORE AREAS:

Dr. Reddy’s is a vertically integrated, global pharmaceuticals company with proven

research capabilities and presence across the pharmaceuticals value chain. We
manufacture Active Pharmaceuticals Ingredients and Finished Dosage form and market

25
them globally, with a focus on United States, Europe, India and Russia. In addition, the
drug discovery arm of the company conducts basic research in the areas of diabetes,
cardiovascular, inflammation and bacterial infections.

Chapter 4

DATA ANALYSIS

&

INTERPRETATION

26
 Table no: 1

Tabular view of the analysis

27
 STRONGLY
Q.NO STRONGLY AGREE AGREE DISAGREE DISAGREE NEUTRAL

1 8 33 3 3 3

2 7 19 9 9 6

3 10 24 3 6 7

4 13 32 1 2 2

5 6 23 9 7 5

6 9 32 1 4 4

7 19 27 1 2 1

8 6 31 4 5 4

9 4 23 2 16 5

10 16 32 0 1 1

Figure no 1

28
 Given adequate opportunity for career growth

35 33

30

25

20

15

10 8

5 3 3 3

0
STRONGLY AGREE STRONGLY DISAGREE NEUTRAL
AGREE DISAGREE
66% of employees agree that they are given adequate opportunities to fulfill their career
aspiration.

Figure no 2

Rating system based on the performance

6 7

STRONGLY AGREE
9 AGREE
STRONGLY DISAGREE
DISAGREE

19 NEUTRAL

38% of employees agree that the rating system is fair and unbiased

Figure no 3

29
 Supervisors spends quality time and gives ongoing
feedback

30

25 24
20

15

10 10
6 7
5
3
0
STRONGLY AGREE STRONGLY DISAGREE NEUTRAL
AGREE DISAGREE
48% of employees agree that superior spends quality time to see clarifications and give
feedback.

Figure no 4

Positive work environment

2 2
1
13
STRONGLY AGREE
AGREE
STRONGLY DISAGREE
DISAGREE
NEUTRAL

32

64% of employees agree that the organization creates a sense of security and
belongingness.

Figure no 5
30
 compensation is fair

5 6
7 STRONGLY AGREE
AGREE
STRONGLY DISAGREE
DISAGREE
9 23 NEUTRAL

46% of employees agree that compensation commensurate as per role responsibility and
performance.

Figure no 6

Superior makes timely comunication

35 32
30
25

20

15
9
10
4 4
5
1
0
STRONGLY AGREE STRONGLY DISAGREE NEUTRAL
AGREE DISAGREE
64% of employees agree that timely communication of important decisions and major
changes are made.

Figure no 7
31
 Organisation ensures employees safety

27
STRONGLY AGREE
1 AGREE
2
STRONGLY DISAGREE
1 DISAGREE
NEUTRAL
19

54% of employees agree that organization respond immediately if any issues or problems
occur.

Figure no 8

Training program

35
31
30
25

20

15

10
6 5
4 4
5

0
STRONGLY AGREE STRONGLY DISAGREE NEUTRAL
AGREE DISAGREE
64% of employees agree that training program was a good investment of time, money
and effort.

Figure no 9
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 Fringe benifits

25 23

20
16
15

10
5
4
5
2

0
STRONGLY AGREE STRONGLY DISAGREE NEUTRAL
AGREE DISAGREE
46% of employees agree that fringe benefits motivate and help in performing well.

Figure no 10

Interpersonal relationships

1
1
0

16
STRONGLY AGREE
AGREE
STRONGLY DISAGREE
DISAGREE
NEUTRAL
32

64% of employees agree that good interpersonal relationship is shared between peers,
superiors and colleagues.

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 Chapter 5

SUMMARY
&
CONCLUSIONS

34
 FINDINGS

• Majority of the employees (66%) feel that the rating system is fair and unbiased
and also they are given adequate opportunities to fulfill their career aspiration.

• Most of the employees say that superiors spend quality time to see clarifications
and the compensation commensurate as per the role and responsibility.

• Most of the employees feel that organization responds if any issues and problems
occur with creates a sense of security and belongingness towards the company

• 64% of the employees feel that timely communication of important decisions and
major changes are made and also good interpersonal relation ships shared
between peer, superiors and colleagues.

• 46% of employees agree that fringe benefits motivate and help in performing well
and 64% agree that training program is a good investment of time and money.

35
 CONCLUSION

The employees of Dr. Reddy’s Laboratories are selected in a step by step procedure. Only
the best are selected and the rest are screened out. The usual working hours are 8 to 9
hours a day, depending on the work load. This increase in work hours is mainly due to 5
days a week. The work assigned on equitable target monitory incentives and perks are
given. Medical camps are held and medical reimbursement is given. The employees are
satisfied with their jobs

This is mainly because of:

• High ethical standards or organization
• Highly safe working environment
• One of the prestigious company in Indian Pharma sector
• I.S.O & U.S.F.D.A certifications
• Good working environment
• Good relations with their superiors
• High individual recognition
• Good salary
• High priority for career development of employees

The management also maintains both formal and informal relations with employees. But,
there was a low participation of employees in management decisions; the main reason for
this can be attributed to the working environment of pharma sector itself rather than
considering it’s a management stance. But company gives due consideration to the
suggestions of the employees.

The management understands the need of good work force in the organization. All the
factors like rating systems, employee’s relations, compensation, fridge benefits, training
programs, safety and security systems etc play a very important role for the employee to
retain in the organization.

36
So the human resources dept is conducting various programs and activities to create
congenial working atmosphere in the organization such as behavioral training sessions on
soft skills, conducting recreational programs like get together, parties on special
achievements etc, which makes the employee feel sense of belongingness toward the
organization so that the retain rate is reduced.

It is evident from the satisfaction levels of the employees that the organization follows its
policies not on paper but also true in spirit. Our study mainly deals with reasons for
attrition. Some of the reasons were compensation system; performance rating systems
etc. if the above factors are improved then we can reduce the attrition rate in the
organization. As on now the attrition rate is below 8% with is very normal. Attrition to
certain extend is good because new talents come in as there is a saying that “new waters
come in when only old water goes out”. If all these factors are kept in consideration the
organization retains the best work force which helps the organization in achieving high
productivity and success.

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 SUGGESTIONS

1. Company is able to maintain a positive environment across as evident from the

findings. However in certain area there is a scope of improvement

• Performance appraisal system

• Compensation and fringe benefits
• Company policies and communication

2. It is recommended that lack of recognition, supervision, lack of proper

performance appraisals and lack of training are the important factors which lead
to attrition. So the company must concentrate on objective performance appraisal
system etc.

3. It is recommended that there is a further scope to improve inter-personal relations

among the employees. This is evident from our survey where many employees
expressed their relations with supervisors is ok rather than good this highly
evident in new employees, who farm the young blood and new talent for the
organization who’s productivity and innovation is crucial for company’s future.

4. It is recommended that there is a further scope for improving professionalism in

the organization. This is evident from the survey that more sub-ordinates agree or
disagree with existence of informal groups in the organization but superior do not
have much knowledge about it.

5. It is further recommended to spend supervision to behavioral training on group

dynamics and group cohesiveness which is useful for them in improving the sub-
ordinate relations which can further help in improving sub-ordinates performance
which in turn relates to company goal high productivity at work from employees
of the organization.

38
ANNEXTURE

39
 QUESTIONAIRE ON ATTRITION TRENDS

DEPARTMENT:
W0RK LEVEL:

THIS IS A PROJECT WORK DONE ON ATTRITION TRENDS.THE

DETAILS GIVEN BELOW WILL BE KEPT CONFIDENTIAL.

1. I am given adequate opportunities for career growth and development and fulfill my
career aspiration
• Strongly agree
• Agree
• Strongly disagree
• Disagree
• Neutral

2. The perfect ratings systems are fair and unbiased and the rating is given as per the
performance of the individual employee
• Strongly agree
• Agree
• Strongly disagree
• Disagree
• Neutral

3. My supervisor spends quality time and gives constructive& ongoing feedback on my

performance and development and I am able to seek clarifications from my superior if
any
• Strongly agree
• Agree
• Strongly disagree
• Disagree
• Neutral

4. My organization creates a positive work environment, a sense of security and

belongingness to the company
• Strongly agree
• Agree
• Strongly disagree
• Disagree
• Neutral

5. Compensation is fair and commensurate as per my role, responsibility and performance

• Strongly agree

40
 • Agree
• Strongly disagree
• Disagree
• Neutral

6. My superior makes a timely, communication of important decisions and major changes

made in my job
• Strongly agree
• Agree
• Strongly disagree
• Disagree
• Neutral

7. My organization ensures employees safety and well being and responds immediately if
any issues or problems occur
• Strongly agree
• Agree
• Strongly disagree
• Disagree
• Neutral

8. The training program has helped me to gain technical knowledge and skills and its was
a good investment of time, money and effort
• Strongly agree
• Agree
• Strongly disagree
• Disagree
• Neutral

9. Fringe benefits motivate me and help me in performing well for my company

• Strongly agree
• Agree
• Strongly disagree
• Disagree
• Neutral

10. I share good interpersonal relationships with my peers, superiors and colleagues
• Strongly agree
• Agree
• Strongly disagree
• Disagree
• Neutral

41
THANK YOU FOR YOUR COOPERATION.

BIBLIOGRAPHY

42
 BIBLIOGRAPHY

Books referred:-

1. Human Resource & Management, Aswatappa, Himalaya Publishing House, 2006

2. Organizational Behaviors, Stephen P. Robins, Prenices Hall Publishing House,
2002

Websites: -

• www.hr.com
• www.google.com
• www.drreddys.com

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