It’s about the employee life cycle

Synopsis on

A study on Employee Life Cycle at Vistaar Financial Service Private Limited

BY
Umme Salma Nazneen
1AY17MBA57

Submitted to

VISVESVARAYA TECHNOLOGICAL UNIVERSITY,

BELAGAVI

In partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION
Under the guidance of

INTERNAL GUIDE EXTERNAL GUIDE

Dr. Gururaj B Urs Shamiulla. U
Professor, Department of MBA Deputy manager HR

Department of MBA
Acharya Institute of Technology
Soldevanahalli, Hessaraghatta Main Road, Bengaluru-107
December 2018
1
It’s about the employee life cycle

CONTENTS
Sl. Description Page No.

1. Internship Project details 3

2. Objective of the study 4

3. Research Design 4

4. Data Sources and Sample Design 4

5. Hypothesis 4

6. Statistical Tests 4

7. Review of Literature 5

8. Limitations of Study 9

9. References 9

10 Time Activity Chart 10

2
It’s about the employee life cycle

1. Internship Project Details

Title: A Study on Employee Life Cycle at Vistaar Financial Service Private Limited

Student Name: Umme Salma Nazneen

USN No: 1AY17MBA57
Specialization: HR and Marketing
Section: D
Contact No: 9980855821
Email ID: ummea.17.amba@gmail.com
Address: Kittur manzil kalle plot, Sadankeri
Dharwad- 580001

Internal Guide: Dr. Gururaj B Urs

Contact No: 9448521181
Email ID: gururajb@acharya.ac.in
Designation: Professor
College: Acharya Institute of Technology

External Guide: Mr. Shamiulla. U

Contact No: 7892165390
Email ID: shamiulla.udikeri@vistaarfinance.com
Designation: Deputy Manager HR
Company: Vistaar Financial Service Private Limited

Address: # No.21, 29th main road, MCHS

Colony, Stage 2, BTM 2nd Stage
Bengaluru, Karnataka- 560076
Internship Period: 3rd January 2019 to 16th February 2019

3
It’s about the employee life cycle

2. Objective of the study:

a) Measure work fulfilment of the employee of Vistaar finance ltd.
b) To evaluate the general disposition of the employee.
c) To evaluate the dimension of responsibility crosswise over procedure and offices.
d) To examine the qualities and shortcoming.
e) To help the administration of the organization to think about the moves to be made to
build the dimension of fulfilment of the representatives

3. Research Design
The research design will be used in this study is ‘Descriptive Research Design’

4. Data Sources and Sample Design

The data will be collected using primary and secondary sources.

Primary Data: Methods used to collect primary data are

Observation
Questionnaire

Secondary Data: Methods used to collect secondary data are

Text Books
Journals
Websites
Publications of the company

5. Hypothesis
 Statistic bunches don't have an impact on Work life Balance of workers.
 Effect of family support on Work Life Balance of representatives isn't impacted by
statistic gatherings.
 Effect of family deterrents on Work Life Balance of representatives isn't impacted by
statistic gatherings.

4
It’s about the employee life cycle

 Occupation fulfillment of representatives has no critical effect on their Work Life

Balance.
 The impact of Job execution on Work Life Balance isn't affected with statistic gatherings.
 Occupation Autonomy has no critical effect on Work life Balance of representatives with
shifting statistic gatherings.

6. Sample Design
a) Universe The Universe with the end goal of this report was limited.
b) The Sampling Unit was an individual utilized by Vistaar finance Pvt. Ltd.,
Bangalore and the Sample Size was constrained to an aggregate of 30 faculty of the
Company.
c) Method of Sampling received was Simple Random Sampling Method since all
representatives have moderately extraordinary dimensions of fulfilment, therefore
an example size of 30 was viewed as satisfactory

Tools Used

a) Percentage Analysis.
b) Bar Diagram.
c) Pie Chart

7. Review of Literature

A. Indian Research Studies

Mukherjee and Chattopadhayay have discussed an optimal recruitment policy. The authors
have considered an organization in which number of persons are recruited at time t. Every
recruited person can be in service for t years at the most. It is also assumed that the efficiency of
each recruited person is adversely affected by the longer duration of service. The authors have
derived a recruitment policy at interval of time t. The optimal values of t which minimizes the
total cost of unified vacancies and forced recruitment have been worked out.

5
It’s about the employee life cycle

Poornachandra Rao has made attempts to identify various costs associated with manpower
planning system. Based on this a manpower planning model with the objective of minimizing the
manpower system costs was formulated. The major limitation of the model is the consideration
of manpower costs in isolation of various constraints and operating policies under which a
manpower system operates. The model proposed an integrated model which will minimize the
manpower costs in the presence of the system constraints and other operating policies.

Raghavendra has discussed a bivariate for manpower planning system. The author indicates that
in many developing countries there is limited mobility of people from one organization to
another. This results in policies of promotion and recruitment, which will have long term effects
on the organization. It is also observed that in many organizations especially in the public sector
undertaking two types of policies on promotions are followed (1 ) promotion by seniority (
length of service ), (ii) promotion by performance rating. The author has taken the two aspects in
a bivariate frame work. So a Markov chain model is developed to derive the estimates of the
transition probabilities. It is also shown that in presence of organizational objectives the
promotional policies can be translated in to respective levels in terms of either seniority or
performance rating or a combination of both. The author has obtained the joint probability
distributions of the two random variables namely x is the seniority and y is the performance
rating; the marginal distributions are also obtained. The minimum level of seniority required for
promotion and the minimum level of performance rating required for promotion have been
estimated. Numerical examples are also furnished to explain the usefulness of the model.

Subramaniam has studied the optimal time for the withdrawal of the voluntary retirement
scheme in manpower planning. A period of length T years is considered during which the
employees are permitted to go on voluntary retirement on k selected epochs. As and when the
staff strength reaches a level, which is called threshold level the voluntary retirement scheme is
withdrawn because the staff strength reaches the required level. The optimal strength of T years
which is numerically illustrated with graphs is obtained based on certain assumptions.

Gupta and Kundu have studied some properties of a new family of distributions, namely
Exponentiated Exponential distribution. The Exponentiated Exponential family has two
parameters (sales and shape) similar to a Weibull or a Gamma family. It is observed that many
properties of this family are quite similar to those of a Weibull or a Gamma family; therefore this
6
It’s about the employee life cycle

distribution can be used as a possible alternative to a Weibull or a Gamma distribution. Some

numerical experiments are performed to see how the maximum likelihood estimators and their
asymptotic results work for finite sample sizes.

Sathyamoorthy et al have discussed a manpower model for estimating the propensity to leave
the primary job. In this paper they have discussed the method of deriving the propensity of
individuals to leave the primary job in an organization which leads to attrition. Cox’s regression
approach has been used to derive the level of propensity of an individual in a primary job in an
organization. The authors have taken up the exponential distribution as a special case to estimate
the propensity to leave the organization. The specialists holding the primary job have some
covariates of personnel character. These covariates also contribute to the intensity or degree of
propensity to leave the job. In addition to the degree of propensity generated by the Completed
Length of Service (CLS) in the organization, the covariates also contribute and hence the
combined influence of both namely CLS and the covariates decide the degree of propensity to
leave the job.

Sathiyamoorthy and Parthsarathy have considered a two grade organization in which the
mobility of personnel from one grade to the other is permitted as to compensate the loss of
manpower which is larger among the two grades. They have considered the case in which the
Max (Y1 Y2) is taken to be the threshold level of the organization where Y1 andY2 are the
individual thresholds of the grades respectively. They have obtained an expression for the
expected time for recruitment in a two grade organization.

Sureshkumar has developed a stochastic model in which the prediction of the likely time to
recruitment due to the depletion of manpower in a two grade organization. The manpower
planning studies about depletion of manpower due to leaving of personnel, known as attrition.
This is also called as ‘wastage’ the attrition takes place on successive occasions of policy
decisions regarding pay revision, perquisites and when targets are fixed. The recruitment is not
taken up on every occasion of attrition, but the deficiency in manpower is managed by transfer of
persons from one grade to the other where the attrition is more pronounced. The authors have
also introduced the concept of threshold level for cumulative attrition. If the attrition or wastage
crosses the threshold level then the recruitment has to be done. This is with a view to reduce the
cost of frequent recruitments.
7
It’s about the employee life cycle

Srinivasan and Sudha have considered four grades organizations with policy of recruitment.
The mean and variance of time to recruitment are derived by assuming random threshold
following non identical exponential distribution for each grade and the threshold for the
organization as the minimum of four thresholds.

Mallikarjunan has given an overview of the causes and remedies for employee attrition.
According to the author employee attrition is caused not only by natural inevitabilities like
disability, death, retirement and resignation, but also by the burgeoning mobility of human
resources or the human capital. One of the toughest problems that confront HR managers is
employee attrition. Due to the vertical growth of the business. Process, services and products,
skilled and even semi-skilled workers find a matrix of possible avenues for self-development.

B. Foreign Research Studies

Lane and Andrew has developed a lognormal model in which the distribution of wastage was
related to length of services and proposed two methods of analysis. Cohort analysis, in which the
wastage characteristics of an initial homogeneous groups are observed over longer periods of
time; census analysis in which two sample points in time are used to determine the wastage rates.

Walker compresses forecasting, inventory, determining qualitative and quantitative, recruitment,

selection, training, development, motivation and compensation into two constituents. The
determination of organizational needs and available manpower supply within the organization at
various times through forecasting ; and programming, the planning of activities which will result
in the recruitment of new employees for the organization, further development activities for
employees, designation of replacement for key managers, and new expectations for effective top
managements planning, The author goes on to integrate the two basic elements in a time frame;
short - range (0-2) intermediate range (2-5 years), long range (5-10 years).

Girnold has examined the problem of producing a commodity with uncertain future demand
with time lags in the production process and with the commodity itself being a vital input in the
production process. Kurusu research which is of relevance to job shops situation described the
influence of demand uncertainties on waiting time, idle time and rate of losing customers. The

8
It’s about the employee life cycle

study, modeled demand as a queuing process and gone as far as prescribing timing and
conditions for temporary increasing or decreasing process capacity to absorb fluctuations in
demand but, however failed to consider the manpower costs. Aderoba has established a
procedure for determining appropriate levels of full time labor and over time engagement.

Barthlomew has discussed the form of subdividing the population into categories, the ‘stayers’
who hardly change their jobs and ‘movers’ who tend to change jobs frequently, while
Barthlomew and Forbes have developed a more specific application of the principles, to the
manpower planning problem. A basic model defines a number of discrete manpower grades,
with employees advancing or leaving with fixed transition probabilities. The state of the system
is defined as the number of employees in each grade and the system is analyzed as a Markov
chain.

Gardner has presented a research study on exponential smoothing where its historical
development was traced to the time of Second World War, The research critically commented on
the merits of various models and deferred with others based on his research as well as research of
other researchers. In the conclusion exponential smoothing technique was also rated as one of the
best forecasting methods.

Thio has discussed the need for retention strategies especially in turbulent times. According to
the author it is commonly assumed that the retention of staff in an organization is an indicator of
the health of the organization, as well as its unhealthy state. But it is difficult to establish the
links between attrition and unhealthy state. The author has made an explanatory attempt of
synthesizing some ideas about attrition and retention. To some extent the staff turnover is
inevitable and cannot be beneficial. The process of attrition makes way for the recruitment of
new blood and also facilitates the career progression of those who remain in the organization.
However high and unexpected turnover can be a reflection of negative job attitudes and low staff
morale. It may warrant counter measures. Remedial measures are necessary to manage attrition
in a way that causes least dislocation to the work of the organization.

Koley has brought out the importance of human resource investments in order to place any
organization in a comfortable position and on the appreciating track. This paper suggests that to
build up the human resource, investments on employee recruitments, training and development

9
It’s about the employee life cycle

besides cost arising due to wastages and salaries may be used for decision making purpose. It
suggests the use of available tools and techniques like, works study, learning curve, activity
based costing, decision tree and risk analysis, life cycle cost approach to assess the cost of
making managers as investments. A company where there is no dearth of qualified manpower
can be one among the richest in the world to build up the manpower.

Charles et al., have examined the interaction effects of maintenance policies on batch plant
scheduling in a semiconductor wafer fabrication facility. The purpose of the work is the
improvement of the quality of maintenance department activities by the implementation of
optimized preventive maintenance strategies and comes within the scope of total productivity
maintenance strategy.

The production of semiconductor devices is carried out in a water lab. In this production
environment equipment breakdown or procedure drifting usually induces unscheduled
production interruptions.

Arivazhagan et al have developed a mathematical model which can be used to estimate the
likely time at which the enrolment for recruitment should be stopped. According to the authors
these are many organizations which are providing service in the HRM sector. The supply of
skilled laborers and specialists is one of the main areas of activities in such organizations. They
keep a reserve or inventory of skilled personnel and whenever there is demand or request from
organizations or industries the supply is the main activity. The enrolment has to be stopped at a
particular level called optimal enrolment. Assuming that the allowable level of enrolment as the
threshold level the expected time to stop enrolment has been found out. Numerical illustrations
are also given.

Morton presents a concise historical summary of forecasting techniques starting from

demographers’ modified exponentials through to renewal theory, stochastic processes, moving
average ad exponential smoothing. In recent years there has been a swing away from
demographically based forecasts towards econometric and input / output models as well as
Monte Carlo simulation. Moreover, recognition that long lead time in manpower development
makes planning particularly vulnerable to changes in a policy variables. It has simulated research
into “teleological” or target – related forecasting in which the study of explicitly stated

10
It’s about the employee life cycle

achievable future goals are undertaken through futurist speculation or expert consensus in order
to restrict the range of the exogenous variables.

8. Limitation of study

(a) The understudy had no earlier introduction to the corporate condition, its work culture,
hardworking attitudes and so on. To that degree, understanding its elements in a constrained
period, was troublesome. This pondered acquiring information/data from the Organization
with the end goal of this examination.

(b) Employees all around are hesitant in communicating their sentiments/musings in the
Questionnaire and will in general be one-sided.

(c) The Organization is hesitant to transparently share information/data and will in general
keep touchy information/data classified which is reasonable.

(d) Some staff in the Organization, regardless of their rank, can't give satisfactory
consideration to the solicitations of such examinations given the limitations of time and the
work weights common in the Industry today.

9. References
Bandura, A. (1988). Organizational applications of social cognitive theory. Australian
journal of management,13 (2), 275-302.

Bogler, R. (2002). Two profiles of schoolteachers: A discriminate analysis of job

satisfaction.
Teaching and Teacher Education, 18(6), 665-673.

Cavry, J., Wakefield, D., Price, I., Mueller, C., & Mcloskey, J. (1995). Determinants
of turnover among nursing department employees. Res Nurs Health, 8, 397-411.

11
It’s about the employee life cycle

Certo, S. C. (2004). Modern Management: quality, Ethics and the Global Environment.
Boston: Allyn and Bacon.

Chan, C. H., & Einstein, W. O. (1990). Quality of Work Life (QWL): What canunions
do?
SAM Advanced Management J., 55, 17-22.

Che Rose, R., & Beh, L. S., Uli, J., & Idris, K. (2006 A). An Analysis of Quality of
Work Life (QWL) and Career- Related Variables. American Journal of Applied
Sciences, 3(12), 2151- 2159.

Che Rose, R., & Beh, L. S., Uli, J., & Idris, K. (2006 B). Quality of work life:
Implications of career dimensions. Journal of Social Sciences, 2(2), 61-67.
Chelte, A. F. (1983). Organizational commitment, job satisfaction and quality of worklife.
U.M.I. Dissertation information service
Cunningham, J. B., & Eberle, T. (1990). A guide to job enrichment and redesign.
Personnel, 67(2), 56-
Drobnic, S., Behan, B., & Prag, P. (2010). Good job, good life? Working conditions and
quality of life in Europe. Social Indicators Research, 99(2), 205-225.
Ellis, N., & Pompli, A. (2002). Quality of working life for nurses. Commonwealth Dept
of Health and Ageing. Canberra.
European Foundation for the Improvement of Living Conditions. (2002). New Work
organization, working conditions and quality of work: towards the flexible firm?
[Online] European Foundation for the Improvement of Living and Working Condition.
Luxembourg: Office for official publications of the European Communities: Ireland
.Available: www.eurofound.eu.int.

Feuer, D. (1989). Quality of work life: a cure for all ills? Training: The Magazine of
Human Resources Development, 26, 65-66.

12