A Project Report On
A Project Report On
A Project Report On
uk
Provided by ethesis@nitr
A Project Report on
By
MAYA THAKUR
313SM1019
to
SCHOOL OF MANAGEMENT
April, 2015
1
DECLARATION
anywhere before.
2
ACKNOWLEDGEMENT
I would like to heartily thanks and express my sincere gratitude to all the people
necessary information regarding the project & also for his support in completing
the project.
I sincerely thank Dr. Chandan Kumar Sahoo, my project guide for his guidance
in making this project. I would also like to state my gratefulness to the Head of
this project. I would also like to thank the other faculty members of our
department who have helped the project see the day light.
the survey. Working on this project has given me an insight about how the
engagement. I once again thank all my faculty members and research scholars
Maya Thakur
313sm1019
3
Executive Summary
As Steel industry is vital to the country’s economic growth, it is important to
ensure the smoothness in its operations so that long term growth and
development can be achieved with fewer obstacles. Hence, a constant
availability of a large pool of talented and experienced people is crucial to carry
out these functions. Hiring a qualified and talented workforce and implementing
a program to retain these employees is a key component to successful workforce
retention. However, one of the challenges of managers in today`s manufacturing
sector is how to retain and engage employees. To curb this issue, academic
attentions have diverted the focus upon the implementation of talent
management practices on both employee engagement and employee retention.
This study seeks to determine the relationships between talent management
practices (managerial support, employee career development and rewards and
recognitions), employee engagement and employee retention within Bokaro
Steel Plant(a unit of SAIL) A quantitative study is deployed. The research
instrument involved comprised of a questionnaire. A random sampling
technique was used for this research. A total of 100 respondents responded valid
questionnaires. Data gathered were initially analysed using SPSS version 20.0.
Quantitative survey has been done which comprised of twenty four questions
and were measured on five point Likert type scale ranging from strongly
disagreed to strongly agreed. Data has been analyzed using Factor Analysis and
Regression. The findings of based on linear regression analysis indicate talent
management practices (managerial support, employee career development and
rewards and recognitions) have positive impact with employee engagement and
employee retention.
4
CONTENTS
Chapter-1
1. Introduction
1.1 Rationale Of The Study 01
1.2 Industry Profile
1.2.1 Indian Steel Industry 02
1.2.2 Structure Of The Indian Steel Industry. 04
1.2.3 Major Players And Market Shares. 04
Chapter-2
Chapter-3
3. Literature Review
3.1 Introduction 18
Chapter-4
4. Research Objective 25
5
4.2statement Of The Problem 25
4.3hypothesis 25
Chapter-5
5. Research Methodology
5.1 Type Of Research 27
5.2 Population & Sampling 27
5.3 Data Collection Techniques 28
5.4 Analysis Techniques 28
Chapter-6
6.Data Analysis
Chapter-8
8. Conclusion 37
Chapter- 9
10. Bibliography 40
11. Annexure 44
6
List of Tables
7
List of Figures
8
1. Introduction
Talent Management is referred as the new “silver bullet” (Oakes 2006) and talent
management practices can create “the most enduring competitive advantage” (Heinen &
O’Neill, 2004: 67). Talent Management has numerous definitions. Creelman (2004) suggests
Talent Management is best regarded as a mindset, where talent is at the forefront of
organizational success. In my own experience as an Organizational Development/Human
Resources (OD/HR) practitioner, I resonate with the notion that it involves the integration of
HR practices designed to attract and retain the right people at the right time. It involves
ownership from leaders to proactively anticipate the future capabilities required by an
organization and in close partnership with OD/HR practitioners to translate this foresight into
practical talent attraction and retention strategies.
More recently, a research published by Pearson in 2011, conducted by John Matton and
Bonnie Hagemann confirmed that identifying and developing high potential employees and
emerging leaders are and will continue to be one of the top business issues facing CEOs
(Mattone & Xavier, 2013). With the focus on top leadership succession as a main concern,
the scope of talent management is best dealt with at a global level (Tarique & Schuler, 2010).
Global Talent Management is defined by Collins & Scullion (2007: 102) as “the strategic
integration of resourcing and development at the international level and involved the
proactive identification, development and strategic deployment of high performing and high
potential strategic employees on a global scale.” Collins and Mellahi (2009) urged
organizations to: Systematically identify the key positions within the firm, which contribute
significantly to sustainable competitive advantage. Develop a talent pool of high-potential
employees and high performing people to fill these positions. Develop a differentiated
Human Resource architecture to facilitate the filling of these positions with competent
incumbents.
1
value from the resource they have available from them. Tansley et. at. (2006) pointed out that
talent can be considered as a complex amalgam of employees' skills, knowledge, cognitive
ability and potential. Employees values and work preferences are also of major importance.
Whilst, Ingham (2006) considered people who are in the key position, the leader team, the
individual who has the scarce capability or make particular contribution to the organisation is
talent. At the same time, talent means the total of all the skills, knowledge, experience and
behaviours that a person has and brings to work. Talent therefore, is used as an all
encompassing term to describe the human resources that organisations want to acquire and
develop in order to meet their business goals (Cheese et. at. 2008). The present study is an
attempt has been made to study the practices of talent management and their impact on
employee retention and employee engagement in Bokaro Steel Plant. Most of the research
done on talent management and its use is based on big international companies. Most of the
recent publications and research studies emphasize the fact that talent management is very
important in current economy, but they do not analyse its use and benefits for smaller
companies. This is unfortunate, since the biggest part of any market consists of small and
medium size enterprises (SMEs). It is evident that they cannot compete with large companies
by offering a lot of formal training or high salaries, but they could utilize talent management
to attract and retain their top performers.
The Indian steel industry has entered into a new era of development since 2007-08, riding high on
the resurgent economy and robust demand for steel. Rapid rise in production has resulted in India
becoming the 4th largest producer of crude steel and the largest producer of sponge iron in the
world. Indian steel industry has just delivered a decade of exponential revenue and profit growth
The Indian steel industry has achieved significant milestones in terms of growth in capacity,
production and exports to become a major player in the global steel industry. Between FY2008
and FY2013, India’s steel production has grown at a compound annual growth rate (CAGR) of
about 7 percent as shown in Fig1.
2
Fig 1.Total finished steel production for India(in million ton)*
Fig 2. Revenues & operating profits for tip four Indian Steel Companies.(Rs. Crores)
3
1.2.2 Structure of the Indian steel industry.
The Indian steel industry is divided into primary and secondary sectors. The primary sector
comprises a few large integrated steel providers producing billets, slabs and hot rolled coils,
among others. The secondary sector comprises small units focused on the production of value
added products such as cold rolled coils, galvanized coils, angles, columns, beams and other
re-rollers, and sponge iron units. Both sectors cater to different market segments. On the basis
of ownership, the Indian steel industry is broadly divided into private and public sector
enterprises. The private sector dominates production— accounting for almost 78 percent
of the finished steel output—while the public sector has higher capacity utilizations. Indian
steel industry is more consolidated than the global steel industry The capacity share of the top
five Indian steel players stood at 51 percent of the total capacity (87.3 MTPA) in fiscal year
(FY) 2011 compared to less than 15 percent capacity share for the top five global steel
players (Fig 3). This has resulted in the large integrated producers having significant pricing
power, forcing the secondary producers to look at backward integration to remain
competitive.
1.2.3 Major Players and Market Shares.
Broadly there are two types of producers in India viz. integrated producers and
secondary producers. Integrated steel producers have traditionally integrated steel
units have captive plants for iron ore and coke, which are main inputs to these units.
Currently there are three main integrated producers of steel namely Steel Authority of
India Limited (SAIL), Tata Iron and Steel Co Ltd (TISCO) and Rashtriya Ispat Nigam
Ltd (RINL). SAIL dominates amongst the three owing to its large steel production
capacity plant size. Secondary producers use steel scrap or sponge iron/direct reduced
iron (DRI) or hot briquetted iron (HBI). It comprises mainly of Electric Arc Furnace
(EAF) and Induction Furnace (IF) units, apart from other manufacturing units like the
independent hot and cold rolling units, rerolling units, galvanizing and tin plating
units, sponge iron producers, pig iron producers, etc. Secondary producers include
Essar Steel Ltd., Ispat Industries Ltd., and JSW Steel Ltd. There are 120 sponge iron
producers; 650 mini blast furnaces, electric arc furnaces, induction furnaces and
energy optimizing furnaces; and 1,200 re-rollers in India.
4
Company Products
Finished Steel (non- alloy
Tata Steel Ltd steel)
Finished Steel (non- alloy
SAIL steel)
Hot-rolled coils,strips &
JSW Steel Ltd sheets
Jindal Steel & Power Ltd Iron & Steel
Hot-rolled coils,strips &
Ispat Industries Ltd sheets
Welspun-Gujarat Stahi Rohren
Ltd Tubes & Pipes
Cold-rolled coils,strips
Bhushan Steel Ltd &sheets.
5
2. Company Profile
2.1 Introduction to SAIL
Steel Authority of India Limited (SAIL) is the leading steel making company in India. It is a
fully integrated iron and steel maker, producing both basic and special steels for domestic
construction, engineering, power, railways, automotive and defense industries and for sale in
export market. An industry is said to be based on four fundamental pillars, i.e. money,
materials, machines and man. The success of an enterprise depends upon the effective
combination and utilization of the above four factor. Of these however, managing human
resource is undoubtedly an important and challenging job. The advancement of industries not
only depends on modern sophisticated machines but also requires skilled and efficient human
hands which play a vital role in industrial growth. After all it is the human resources, which
provide services for the benefits of the human being itself. Thus, the importance of human
resource in the field of industrial development cannot be ignored and that’s why every
enterprise has its own personnel departments which adopt policies and program to meet its
manpower needs. Organization whether large or small, private or public, have had
endeavored for higher volume of production. Since every organization is made up of people,
acquiring their service, developing their skills motivating them to higher levels of
performance, and ensuring that they continue to maintain their commitment to the
organization are essential to achieving organizational objectives. Those organizations that are
able to acquire, to develop, to stimulate and keep outstanding workers will be both effective
and efficient. Those organization that are in-effective and in-efficient risk the hazard of
stagnating or going out of business. Human resource thus, creates organization and makes
them survive and prosper.
6
2.2 OBJECTIVE OF SAIL
A) To Endeavour to supply steel at internationally competitive cost and quality to
domestics as well as foreign consumes.
B) To have fully committed and motivated work forces.
C) To acknowledge SAIL responsibility towards maintaining ecological balances and to
effective schemes that would help presences the natural environment.
D) To build market and brand loyalty by expenditure action on customer complaints to
maintain and increase quality.
1. Bhilai Steel Plant (BSP) in Chhattisgarh set up with Soviet collaboration (1959)
2. Durgapur Steel Plant (DSP) at Durgapur, West Bengal set up with British
collaboration (1965)
3. Bokaro Steel Plant (BSL) in Jharkhand (1965) set up with Soviet collaboration (The
Plant is hailed as the country’s first Swadeshi steel plant, built with maximum
indigenous content in terms of equipment, material and know-how)
4. IISCO Steel Plant (ISP) at Burnpur (near Asansol), West Bengal
5. Special Steel Plants
1. Alloy Steels Plants (ASP), Durgapur, West Bengal
2. Salem Steel Plant (SSP), Tamil Nadu
3. Visvesvaraya Iron and Steel Limited (VISL), at Bhadravathi, Karnataka
6. Ferro Alloy Plant
1. Chandrapur Ferro Alloy Plant (CFP) in Maharashtra
7
2.4 Organisation Structure Of SAIL
DIRECTOR
7. (TECH) CHAIRMAN
MANAGING DIRECTOR,
8. BSL
DIRECTOR
9.
PERSONAL MANAGING DIRECTOR,
BSL
DIRECTOR
10. FINANCE
11.
CHIEF VIGILANCE
OFFICER MANAGING DIRECTOR,
12. RSP
EXE. DIRECTOR
13.
(OPERATIONS)
MANAGING DIRECTOR,
DSP
EXE.14.
DIR. (IA)
ED (TECH & LEGAL
SERVICES)
15. EXE.DIRECTOR ,VISL
EXE. DIRECTOR SSP
16.
EXE.17.
DIR.
(PROJECTS)
18. EXE. DIRECTOR ASP
EXE. DIR (CMMG)
19.
EXE.20.
DIR. (CIG)
EXE. EXE. DIRECTOR
EXE. DIR (CP)
DIRECTOR (CP)
Fig 4. Organizational Structure Of SAIL.
8
2.5 Major Competitor's Of Sail
1) HPCL
2) ONGC
3) IPCL
4) JINDAL STEEL & POWER
5) TATA IRON AND STEEL CORPORATION (TISCO).
6) ESSAR STEELS
9
workforce towards company goals. This is true to every organization. If the organization is to
survive, it must design programmes to develop its human resources to their fullest capabilities
and to maintain on going worker commitment.
10
g. Steel melting shop
h. Slabbing mill
i. Hot strip mill
j. Hot roll coil finishing
k. Instrumentation and automation
l. Traffic department
m. Safety engineering department
n. Oxygen plant
o. Machine shop
p. Fore shop
q. Operation gang age
r. Telecommunication
s. Civil engineering department
t. Electrical repair shop
u. Water supply
v. Distribution network
w. Heavy maintenance
x. Ingot mould foundry
11
Fig 5. Coke Oven And Production Plant
BLAST FURANCES
The aim of Blast furnace is to produce pig iron from ore and sinter, i.e. iron bearing
materials. The iron oxide of ore and sinter is reduced to iron with the help of CO and this CO
is produced inside the blast furnace by the action of air with coke. Coke serves another
purpose of supplying heat for the reactions and melting iron inside the furnace. Part of the
heat load of the furnace is also provided by the heat of the blast which is heated up to a
temperature of 1, 000°C or so before it is introduced into the furnace. The gangue material
(i.e. unwanted materials like SiO2, Al2O3 etc.) of the ore, sinter and coke are removed as
slag with the help of flux provided by limestone and sinter (Since the sinter is super fluxed).
Other additives like quartzite and Mine-ore are charged in the furnace in small quantities as
corrective materials for the proper furnace working and control of analysis. The products of
the furnace are the pig iron (hot metal) slag and blast furnace gas. In Bokaro there are five
blast furnace of 2640T/day capacity each having a working volume of 2000M3. 5 Furnaces
of 2000 cubic meter useful volume. All furnaces have Bell-less top charging System for
continuous charging & better distribution of chargeCoal Dust Injection in Furnace No. 4 and
5. The Capacity of B F 4.585 MT of Hot Metal per annum.
12
STEEL MELTING SHOP
Hot metal produced in blast furnaces is sent to steel melting shop and pig casting machines.
Steel is produced in this unit entirely by oxygen blowing process. The purpose of this unit is
to remove undesirable element from hot metal and produce steel of required chemical
composition. There are two shops. In SMS-I there are five converters of 100 tones capacity
each and in SMS-II there are two converters of 300 tones capacity each. Here the average
production cycle is 5-6
13
water spray. The slab then moves to straightening rolls where it is straightened by pairs of
horizontal rolls. It is then cut into required slab length.
SLABBING MILL
Slabbing mill transforms ingots into slab by rolling. The ingots of various sizes and weights
are received from SMS – I and after being rolled into slabs, they are sent to our internal
customer HSM. The capacity of the mill is 4 MT and is of universal type, capable of rolling
ingots up to 38 tons. The rolling rate varies from 600 to 800 T/Hrs depending upon the size of
the ingots and the thickness of the slab to be rolled. On line hot and cold scarfing M/C for
surface scale / defect removal. One 1250 m roll dial 2 high reversible universal mill to
produce slabs of thickness 150 – 300 mm, width 950 – 1850 mm and length 2.5 – 10.5 meter
and a 2800 ton Hydraulic shear.
Fig9.Slabbing Mill
14
HOT STRIP MILL
In hot strip mill the slabs are heated in reheating furnaces before rolling. HOT slabs
discharged from reheating furnaces are taken to mill proper on roller tabled and rolled to
desired thickness. Thus its purpose is to roll steel slabs to strips of required thickness which
are than in wound in coil from. Here the average production cycle is 2 hrs 30 min.
15
COLD ROLLING MILL
The Cold Rolling Mill at Bokaro produces high quality sheet gauge material, Tin Mill Black
Plate and Galvanized Products. Cold rolling gives thinner gauge strip of very smooth and
dense finish with better mechanical properties that are used for deep drawing purposes,
manufacturing automobile bodies, steel furniture, drum and barrels, railway coaches, other
bending and shaping jobs and for coated steels. The CRM complex comprises two Pickling
Lines, two Tandem Mills, an Electrolytic Cleaning Line, a Continuous Cleaning and
Annealing Line, Bell Annealing Furnaces, two Skin Pass Mills, a Double Cold Reduction
Mill (DCR), Shearing Lines, Slitting Lines and a packaging and dispatch section.
The 5-stand Tandem Mill has sophisticated Hydraulic Automatic Gauge Control and
computerized mill regulation. The DCR mill can produce Tin Mill Black Plate, which is
tinned for use by the canning industry. The Hot Dip Galvanizing Line produces Zinc-coated
CR strips resistant to atmospheric, liquid and soil corrosion. Its Continuous Coil Corrugation
Line produces corrugated sheets, while the Galvanized Sheet Shearing Line produces
galvanized plain sheets. Bokaro Steel's journey of certification under the various ISO series
of standards started with this finishing mill over a decade back.
16
2.7.2 Product Profile
PRODUCTS TONNES PER ANNUM
17
3. Literature Review
3.1 Introduction
Lack of talent management leads to lower performance and unhappy staff who do not
perform to their full potential and thus would reflect low talent engagement Allen (2008).
According to Erickson and Gratton, 2007, employee talent management is a key to the
retention of employees. Growing global competition continues to drive the urgency of the
attraction, engagement and retention of critical-skill talent: Globalization has not only
increased competition among organizations but has created new window of opportunity for
the workforce such that a skilled worker like a doctor or a nurse can be engaged anywhere in
the world due to increased ease of mobility. The present scenario with abundant opportunities
has triggered intentions to look for better opportunities whenever, wherever and however
they can. In the views of Muhammad and Shao, (2013), the present economic situation of the
world has increased the importance of talent management and retention. Furthermore, this
chapter introduces theoretical as well as practical aspects of employee retention, employee
engagement, talent management with their relationship with each other and an overview on
employee benefits.
Researcher has done a previous study on Talent Management Practices and relation between
Employee Engagement and Employee Retention. This study is being conducted to examine
the how talent management practices impact on employee retention and employee
engagement in Bokaro Steel Plant-A unit of SAIL. Furthermore, this chapter introduces
theoretical as well as practical aspects of talent management, employee retention & employee
engagement. By means of the findings of previous research, recent articles and theories, a
snapshot of organization’s failure to make the ends meet shall be identified.
18
objective of leadership positions and significant ongoing personal development is of strategic
importance in our day (Roswell, 1994). Talent Management is considered as a Human
Resource Management Process, organizations must overcome and systematically eliminate
the gap between the skills and talents needed to achieve the targets (cypran and Sen, 2009).
Organizational Talent Management is hiring the right people at the right time appropriate.
(Jacksonville and Scholar, 1990) Talent management is workforce planning and analysis of
the hiring process, training and development practices and keeping the talent and success of
the program covers. (Mac Wake Kelly and Field, 2006) In other words, talent management
means workforce supply and demand of underway processes.
19
defined plans that prioritize the skills they wish to retain, and the employment proposition
best suited to the purpose (Farley). The resources of the firm, ranging from the executive
team, HR, employee communications, PR and line management are teamed together to tackle
the issue cooperatively (Patel, 2002).
3.3.1 Retention Approach
The findings of Doherty and Maxwell suggest that there is a close link between work life
conflict and employee turnover (cited in Deery 2008). Their study suggests that in hospitality
industry, creating work-life balance will have an immediate impact on employee retention.
Findings of the theorists who have studied hospitality sector to bring down turnover or to
have an effective retention strategy are briefly mentioned below.
Researcher Focus
Collins,2007 Recruitment
Pratten & O'Leary,2007 Training
Marchant et al.,2007 Education & Training
Martin et al.,2006 Recruitment
Chiang et al., Training, training quality & job satisfaction
Maxwell,2005 Management strategies to combat the work
life balance issues.
O'Leary & Deegan,2005 Career progression & development.
Wildes & Parks,2005 Internal customer satisfaction
Dermody et al.,2004 The role of pay in job satisfaction &
employee retention.
Doherty,2004 Work life balance initiatives
Reynolds et al.,2004 Management strategies
Hjalager & Andersen,2004 Training & education
20
who are very concerned about losing staff in 2013, in search of better work benefits,
employees tends to switch companies and its common for companies to wait until they start
to receive resignation before acting upon their retention strategies (Whitehead, 2013). 12
The organization under research introduced three initiatives as work benefit for employees
which in turn would help organization reduce their taxation. Firstly, employees’ share (25%)
in the company’s profit shares. In case outlets could do profitable business, it would benefit
them with income above their salary directly. Popular restaurant chain, McDonalds in USA
offers its employees’ profit sharing and benefits plans in similar lines. The programme is
restricted to eligible managers and employees wherein company matches to employees’
contribution in 3 to 1 match (McDonald’s Profit Sharing and Savings Plan, 2013).
Secondly, employees were made shareholders in outlets profit share (25%) creating an
internal competition among outlets to meet and exceed their budgets. Similar is the concept
of Employee Stock Ownership Plan (ESOP), a work practice in UK and United States, an
employee-owner scheme that provides a company's workforce with an ownership interest in
the company. In an ESOP, organizations provide their employees with stock ownership at no
cost which is held at an ESOP trust until the employee is associated with the organization. On
employees’ resignation or retirement, the shares are sold. This system also helps in boosting
the motivation and employee productivity apart from organization to retain work force
(Schmidgall and Bechtel, 1990). Creating outlet profit share was working beneficially for
both employer and employee. The organization intended employees to perform in a particular
fashion to obtain desired result. This would help the organization in many ways. They wanted
to put a system in place which would enable them to monitor 32 units spread across India.
The last initiative was linking the outlet tipping system to their daily performance evaluation
system, all this extra income earned by employees were made tax free for them, organization
bearing the expense for the same. (Doonar, 2012) in his article in employment review
mentions that communicating pay and benefits is an important aspect when introducing a 13
new strategy. It helps engage employees, key to retain employees. The organization’s
approach was towards the performance management. In spite of introducing monetary
benefits, the strategy adapted by the organization was not working to retain staff. In North
America, around $ 6 billion is spent by consumers as tip in restaurant alone. Linking the tips
to performance appraisal would help the organization to have a better control on employees
which otherwise would be challenging. Other than this, organization would save on taxation
with the voluntary tipping system and shared profit. It would give them non-monetarily
benefits of creating motivated and better engaged employee who would be more productive
21
creating positive work environment. This would also help the organization create new
workforce; existing employees would be keen in getting their acquaintance, family and
friends to sit for interviews for the new job openings for the upcoming units.
22
et al., 2011). Hence, managerial support is a very important predictor of talent management
strategy in engaging employee talent.
23
June 2012 Nurul Ezaili Examining the Mediating The need to identify and
Alias1, Effect of Employee investigate employee
Norzanah Engagement on the engagement influence to
Mohd Noor2 Relationship between employee retention is still
and Roshidi Talent Management sparse and the need to study
Hassan2 Practices and Employee on the three (3) main
Retention in the constructs: talent
Information and management practices (as
Technology (IT) independent variables),
Organizations employee engagement (as
in Malaysia mediating variable) and
employee retention (as
dependent variable) was
also remained unexplored,
thus these posing a gap in
knowledge in this
field.
2013 Aiza Hussain IMPACT OF TALENT Current study examines
Rana, MANAGEMENT AND influence of talent
Abdus Sattar EMPLOYEE management(TM) and
Abbasi TURNOVER INTENTION employee turnover(ETO)
ON ORGANIZATIONAL intention on organizational
EFFICIENCY- A efficiency(OE) in
CASE OF telecommunication sector of
TELECOMMUNICATION Pakistan . This finding
SECTOR OF PAKISTAN exposes that TM sometime
elevates ETO and reduces
the OE.
24
4. Research Objectives
To determine the impact of talent management practices on employee
engagement.
To determine the impact of talent management practices on employee
retention.
4.3. Hypothesis
Based on the review of available literature in relation to the proposed topic “Impact of Talent
Management Practices on Employee Engagement and Employee Retention.”, two hypotheses
have been generated. The hypotheses are:
H1:-Talent management practices have positive impact on employee retention.
H2:-Talent management practices have positive impact on employee engagement.
25
Fig 4.1 Proposed Relationship
H1 Employee Engagement
Talent management practices
(Managerial support,
Employee Retention &
Employee Engagement)
H2
Employee Retention
26
5. Research Methodology
This research is a descriptive research in which we are analyzing the impact of talent
management practices on employee retention and employee engagement at Bokaro
Steel Plant (a unit of SAIL). It is based on primary data as well as secondary data in
order to verify the proposed hypothesis.
Population
The sampling universe of the study was all the executives of Jharkhand
working in Steel Industry. Out of those, the population of interest was all
the executives of Bokaro Steel Plant. Care was taken to include all the
executives from all facilities and all levels covering the entire
organization. Though the executives strength of Bokaro Steel Plant is
27
2500, still, due to unavoidable reason, the structured schedule were
distributed to around 150 employees out of which 115 responded. Hence,
it shows a response rate of 76.66%.
28
6. Data Analysis
Data were analysed using SPSS version 20 to find impact of Talent Management Practices on
employee retention and employee engagement. The questionnaire consists of 18 questions
and measures how talent management helps in employee retention and employee
engagement.
6.1. Reliability Test
Reliability Statistics
Cronbach's Alpha N of Items
.873 18
We can see that Cronbach’s Alpha is 0.873, which indicates a high level of internal
consistency for the scale used with the specific sample.
From above table, we come to know that Kaiser-Meyer-Olkin value is 0.795 (KMO>0.6),
hence the data is suitable for Factor Analysis.Also, as in the Bartlett’s test, which tests
conditions of correlations, the sis. Value is 0.000(<0.05), hence null hypothesis is rejected;
i.e., there is correlation between variables. Also, a correlation value greater than 0.3 in Factor
Analysis is considered to be better. In this case, majority of the correlation values are higher
than 0.3, and thus considered better. Hence, in nutshell, Factor Analysis is good both at KMO
and Bartlett’s test.
29
Total Variance Explained
Componen Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings
t Total % of Cumulative Total % of Cumulative
Variance % Variance %
1 6.069 33.715 33.715 3.574 19.855 19.855
2 2.785 15.471 49.186 3.494 19.412 39.266
3 1.539 8.548 57.734 3.324 18.468 57.734
Table 8. Principal Component Analysis.
Extraction Method: Principal Component Analysis.
SPSS has converted 20 original variables into 3 new factors. The cumulative percentage is
57.734%. As it is explaining more than half of the data, hence seems to be good
30
a. Rotation converged in 5 iterations.
Here all talent management practices are coming under factor 1 and Employee retention and
employee engagement factors are coming under factor 2 and factor 3 respectively.
Component Transformation matrix explains the correlation between factors before and after
rotation.
6.3 Regression
Based on 2 hypotheses, 2 regressions are done one for verifying how talent management
practices impact employee retention and other one is to find talent management impact
employee engagement.
So the first regression explains how talent management practices impacts employee retention.
The R Square value is .563.It means the model is 56.3% fit. In other words, the movement is
56.3%. It shows that 56.3% contribution is due to factors selected and rest is due to some
31
other factors. Hence, it is apparent that through Talent management practices contributes to
employee retention, but still there are other factors which equally contribute to employee
retention, but still there are other factors which are equally important.
32
Table12. Test of ANNOVA
ANOVAa
Model Sum of Squares df Mean Square F Sig.
Regression 10.341 1 5.171 15.949 .000b
1 Residual 18.155 56 .324
Total 28.496 57
a. Dependent Variable: Factor2
b. Predictors: (Constant), Factor1
As the sig value is less than 0.05. Hence it shows that there is statistically
difference between the mean of the variables.
6.3.2Regression(Employee Engagement)
Table 14. Model Summary
Mode R R Square Adjusted R Std. Error of Durbin-
l Square the Estimate Watson
a
1 .768 .653 .577 .85293 2.108
The R Square value is .653.It means the model is 65.3% fit. In other words, the
movement is 65.3%. It shows that 65.3% contribution is due to factors selected
and rest is due to some other factors. Hence, it is apparent that through Talent
management practices contributes to employee retention, but still there are other
factors which equally contribute to employee engagement.
33
Table 15. Test of ANOVA
ANOVAb
Model Sum of df Mean F Sig.
Squares Square
Regression 12.348 1 6.171 16.949 .000b
1 Residual 12.159 54 .374
Total 29.492 55
a. Dependent Variable: Factor3
c. Predictors: (Constant), Factor1
As the sig value is less than 0.05. Hence it shows that there is statistically
difference between the mean of the variables.
34
7. Findings & Suggestions
Findings
This project focuses on the impact of talent management practices on employee retention and
employee engagement. This project revealed that talent management is positively associated
with Employee retention and employee engagement (Accepting H1 and H2).Various talent
management practices like managerial support, rewards and recognition and career
development helps in employee retention and employee engagement.
Employee Retention
R square .563
Employee Engagement
R square .653
Suggestion
It is very much true that success of the organization depends largely on the skills, abilities
and commitment of the employees, who constitute the most important asset of the
organization. Here are few suggestion which is purely based on subjective & objective data
analysis of the employee responses.
35
Talent management environment must be created for which organization require to
define a clear vision for talent management. Talent management processes must create a
comprehensive profile of their people - employees, contractors, or candidates.
Employee engagement is a key business driver for organizational success. High levels of
engagement in domestic and global firms promote retention of talent, foster customer
loyalty and improve organizational performance and stakeholder value. Therefore
Employees should be engaged by providing them support from superiors, rewards and
recognition and by providing opportunities for advancement of their career in the
organisation.
36
8. Conclusion
The objective of this dissertation was to determine the impact of talent management practices
on employee engagement and employee retention.
This study analyzed the impact of talent management practices(Managerial support, rewards
and recognition & career development) on employee retention and employee engagement in
Bokaro Steel Plant. The literature review suggested talent management practices that
demonstrate commitment to manage the human resources result in more engaged employees.
At the same time it also suggests that employee talent management is a key to the retention of
employees and employee engagement. Reviewed literature provided a strong evidence of the
relationship between the variables tested and employee retention & employee engagement.
Empirical review showed that in order for organizations to do a better work in retaining
employees they should understand the factors that motivate employees to stay and to
facilitate measures in keeping valuable employees because of the huge cost associated with
employee turnover. The study used a sample population of one hundred and fifty employees.
The implications of the study is that Managerial support, rewards and recognition & career
development significantly influence employee retention & employee engagement in Bokaro
Steel Plant. Moreover, this project is completed by doing survey in Bokaro Steel Plant i.e
only one unit of SAIL. Hence the finding of the study may not be generalized as Bokaro Steel
Plant, being a public sector undertaking, has to function within the framework of the
government policies.
37
9. Limitation & Future Scope
Limitation
In every research undertaken there are certain unavoidable limitations. This
research too has the same. This include difficulty in obtaining information as
required and unwillingness of the employees to fill the questionnaire because of
work pressure, also due to improper time management. It is not easy to obtain
appropriate and correct information. It is expensive both in terms of time and
money. Shortage of time is the biggest issue in this project.
Another major limitation of this research that survey conducted by this research
is in only one unit of SAIL i.e. Bokaro Steel Plant (BSP) which is only one unit
of SAIL. Hence the finding of this study may not be generalized.
Lastly the study is done by taking only one unit of Indian Public Sector
Enterprise which may not be applicable in global context. It may vary for other
public and private players.
Future Scope
A single study can never explain the depth of a vast topic as taken up in this
project. No matter how detailed the effort is, there is still an Everst of issues to
be addressed. Furthermore, the study can be more extensive, covering both
public and private organizations for more statistical generalized conclusion. To
expand and comprehend the theories, exhaustive parameters analyzed with the
help of advanced tools. This is done in order to have an understanding of the
complexities associated with real time work. Moreover, the study can be further
extended in other HR practices and samples facets can be considered for more
and more detailed view and analysis.
38
variable) and employee retention (as dependent variable) was also remained
unexplored, thus these posing a gap in knowledge in this field.
39
References
Alias E.N., Noor M.N. and Hassan R. (2014), “Examining the Mediating
Limited: pp.389-408.
40
Hughes, C.J. and Rog, E.(2014),” A strategy for improving employee
4,No. 1,pp.64-67.
41
Kraimer, M.L., Seibert, S.E., Wayne, S.J. & Liden, R.C. (2003).
Management, Seattle.
No.5,pp. 1-10.
42
Effectiveness”, The International Journal of Management, Vol. 2, No. 4,
pp. 1-10.
43
Questionnaire
School of Management
National Institute Of Technology ,Rourkela
DEAR RESPONDENT,
As part of the requirements for the award of the degree of MBA of NIT Rourkela, the Researcher is
administering this questionnaire to collect data on "Impact of Talent Management on Employee
Retention & Employee Engagement.
The Results of this study will be treated confidentially and only used for research purposes. Your
participation is voluntary, and indeed your name will not be required. Please tick the appropriate box
or space that best represent your feelings.
There is no wrong or correct answer but try to be very truthful and honest in all your responses
that you will give.
Please give a tick (√) on the numbers given at the right hand side.
44
PART 1: Talent Management
Employee Engagement.
45
Employee Retention
15 I would be happy to work at my 1 2 3 4 5 Salman,A.,&Ahmad,N(2014)
organization until I retire. Factors Affecting on
Employees Retention in
16 Working at my organization has a great 1 2 3 4 5 Banking Sector: An
deal of personal meaning to me. Investigation from Karachi.
European Journal of Business
17 I really feel that problems faced by my 1 2 3 4 5 and Management.
organization are also my problems.
46