National College of Business

Administration & Economics

Lahore

IMPACT OF HR PRACTICES ON EMPLOYEES

RETENTION

BY
ASAD JALIL
2133267
MASTER OF
BUSINESS ADMINISTRATION

April, 2015

NATIONAL COLLEGE OF BUSINESS

ADMINISTRATION & ECONOMICS

IMPACT OF HR PRACTICES ON EMPLOYEES

RETENTION
BY
ASAD JALIL
2133267

MASTER OF
BUSINESS ADMINISTRATION

April, 2015

In the name of Almighty ALLAH, the Compassionate, the Generous

ii

NATIONAL COLLEGE OF BUSINESS

ADMINISTRATION & ECONOMICS,
IMPACT OF HR PRACTICES ON EMPLOYEES
RETENTION
BY
ASAD JALIL
MASTER OF
BUSINESS ADMINISTRATION

Dissertation Committee:

_____________________
Chairman

_____________________
Member

_____________________
Member

___________________
Rector
National College of Business
Administration & Economics

iii

DECLARATION
This is to certify that this research work has not been submitted for
obtaining similar degree from any other university / college.

ASAD JALIL
2133267
April, 2015

iv

DEDICATED TO
My Dear Teacher Mr.Ghulam Abid
I wish Allah give him many success in every
field of life.

&
To my Beloved parents without whom prayers
Im nothing

ACKNOWLEDGEMENT
All commends are for Allah SWT that has bequeathed upon mankind
the crown of creation and has gifted him with awareness and intelligence.
After Allah, is the last prophet Mohammed (SAWW) who brought for us
revelation and unlimited knowledge and civilized the uncultured human
being.
I humbly would like to say that I could not be able to complete this report,
but the effort, encouragement of a large number of people that has made me
to accomplish this huge report. Thats it I would like to thank to their
contributions in this work.
I am thankfully to my honorable director, Mr.Ghulam Abid who
guides me on every moment and also my friends Muhammad Basit & Adeel
Akbar who helped me to prepare this report.

vi

RESEARCH COMPLETION CERTIFICATE

Certified that the research work contained in this thesis entitled
Impact of Hr Practices on Employees Retention, has been carried out
and completed by Mr. Asad Jalil under my supervision during his Master
of Business Administration Programme.

(Ghulam Abid)
Supervisor

vii

SUMMARY
In this study an attempt has been made to discuss Hr Practices and
employees Retention in 2 Private Sector Companies, jubilee life insurance
Company and Paramount Distributions. The results are based on a
questionnaire based survey. Organizations achievement depends on it having
the right people in the right jobs at the right time, the organizations tactical
business aims and culture should verify the people selected. In addition to
this, the choice of selection factor must be consistent with the organizations
strategic path and culture.
This study is focal point on the retention of the employees. Workers
can be retained by providing the various tools such as training and
development, employee involvement and supervisory support.
That
particular research will focus on the human resource practices and its
relationship with the employee retention. The human resource is one of the
main components of the progress of the organization. It is very critical to deal
with the problem of turnover and the retention of the employees for the
longer time period. This is the challenge for the company to meet the demand
of employees to retain them in the organization.
Where the job is uncertain in nature the turnover rate is high retention
rate may be very low. HR theory deals that when practices will go beyond the
expectation it results the more positive results, and an employee shows more
commitment toward an employer. Employees are more satisfied in the job of
permanent nature and want to retain with the organization.

viii

TABLE OF CONTENTS
Page
DECLARATION
DEDICATION
ACKNOWLEDGMENT
RESEARCH COMPLETION CERTIFICATE
SUMMARY

iv
v
vi
vii
viii

CHAPTER-1: INTRODUCTION
1.1 Recruitment
1.2 Selection
1.3 Objectives of the Study
1.4 Theoretical Framework
1.5 Research Hypothesis
CHAPTER-2: LITERATURE REVIEW
2.1
Employee Satisfaction
2.2
Job Satisfaction
2.3
Training and Development
2.4
Employee Retention
CHAPTER-3: METHODOLOGY
3.1
Population
3.2
Data Collection
3.3
The Questionnaire
3.3.1 Section One ( Item 01 to 06)
3.3.2 Section Two ( Item 07 to 10)
3.3.3 References of Questionnaire
3.4
Measures & Methods
CHAPTER-4: DATA ANALYSIS
4.1 Descriptive Statistics
4.1.1 Respondents
4.1.2 Age-wise distribution of population

1
2
3
3
3
4
5
5
6
8
9
11
11
11
11
12
12
12
13
14
14
14
14

CHAPTER-5: DISCUSSION AND CONCLUSION

5.1 Discussions about Results
Organization wise Distribution of Population
Marital Status wise Distribution of Population
Gender wise Distribution of Population
Qualification wise Distribution of Population
5.2 Conclusions
5.3 Contributions and Implications

15
15
16
17
18
19
39
40

ix

5.4 Limitations and Directions

REFERENCES
ANNEXURE A
ANNEXURE B
ANNEXURE C

41
55
44
45
47

LIST OF TABLES
Table
No.
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24

Title

Page

Organization-wise Distribution of Population

Age-wise Distribution of Population
Marital Status-wise Distribution of Population
Gender-wise Distribution of Population
Qualification-Wise Distribution of Population
Organization do proper job analysis before selection
Selection methods used by the organization are reliable
Organization using satisfactory methods of interview
Selection Policy of the organization Is Effective
Job Responsibilities and Job Description
Job Satisfaction
Quitting job or Job Dissatisfaction
Satisfaction with the kind of Work
People on this job are very satisfied with the job
People are not satisfied or want to Quitting
Finding New Opportunities
Seriously think about Quitting or Strongly Dissatisfied
Actively Looking for new Jobs
Company is Meeting Expectations
Training has increased work efficiency and effectiveness
Appropriate orientation procedures
Employees Receive Training for their job
The skill(s) acquired through training/development program
has increased capability
Training added value by providing opportunity

15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38

xi

CHAPTER 1

Introduction

The major selection work performed by an organization include

various steps enlisted as interviewing, Selecting and hiring of new
employees. However there is a great interested demand for a human resource
management department of a company to select a right person for a particular
job in an organization it all depends upon excellences skillfulness and
principle work of this department. Settling on the wrong decision can
likewise be very posh. The worker determination transform generally
involves caution or promoting, examining, screening, interviewing, testing
then selecting the most excellent easily reached applicant.

In today's reality, businesses are confronted with numerous difficulties

and troublesome choices that extraordinarily influence their levels of
achievement. How these circumstances are handled significantly impact the
organization's main concern. Maybe a standout among the most essential
choices confronted by an organization is whom they ought to utilize to work
for and speak to their organization. In many cases, an organization's
employees are the first connection that potential clients have with an
organization. Employees speak to the business, make notoriety, and focus an
organization's productivity. In this way, at the center of each effective
business are dedicated, tried and true and morally echo workforce and
directors. To practice such a large process above mentioned whether it is a
company or huge organization it must have a loyal pre settled, reliable hiring
process, hiring staff and a well established human resource management
department.

The hiring process is based on accurate information required

qualification and education, and ethical values that are required as businesss
principles that is the choice of an organization for hiring process. The
business of that organization will only be beneficial successful and
prosperities if the above mentioned rules of hiring policies are regulated.

Thats it, for a company it is basic necessity to must have a well

established organized and strong and sturdy human resource management
department it is important for an industrial business to enhance and expand
under the well established hiring process, hiring policies for hiring candidates
for distinct jobs in an organizations by various and useful kinds of
Questioning processes. To hinder familiar hiring and interviewing errors and
to use important informational tools for hiring process is the need of hour for
company. An organization will be liable to huge loss of time money practice
and capital if it is not a signing right and well deserving people on the right
post of organization. For a company, its staff must work hard so that the
workers turnover must be kept to its lowest level if it is working for workers
retention in that company.
On the off chance that the essential levels are adopted and the hiring
methodology is culminated, an organization can make a superior notoriety,
expand its main concern, and turn into a more effective business all in all.
The basic work of Human resource department of a company or organization
is to find out the labor supply in the organization, what is the number and
what type of workers are required in the organization, the job analysis of the
workers to sum up of what a particular underlined job will refer to,
recruitment and most commonly the interview and hiring process for hiring
new workers in the organization (Bateman & Snell, 2011).
Where the job is tentative in nature the turnover rate is high retention
rate may be very low (Griffeth et al., 2000). HR theory deals that when
practices will go beyond the expectation it results the more positive results,
and an employee shows more commitment toward an employer (Tsui et al.,
1997). Workers are more satisfied in the job of permanent nature and want to
retain with the organization ABU (2009).

As far as the structure of management of candidate with in an

association is concerned it is well explained that human resource
management serves well for this porpose (Bateman & Snell, 2011). As we
all know HR Department of an association or an industrial company is most
important and significant as well as high featured for a business. It must be
mentioned here that HR department is very important primary and basic need
for carrying out a major output from an organization.

As higher selection staff is appropriate and well under stood of the

needs of hiring in the company, the HR department must consider skills,
knowledge and the abilities of applying candidate, thus making the selection
process pure and flawless, thus HR department must be consider one of the
strongest sections in an industrial organization. Thus it is clearly concluded
that human strength work power and work force are much extent valuable
resources that a company can ever have (Bateman & Snell, 2011).

1.1 Recruitment
Attracting potential job candidates in adequate numbers and quality
and at the right cost is called Recruitment.

1.2 Selection
The process of collecting information for the reason of evaluating and
deciding who should be hired, under legal guiding principle, for the short and
long term benefits of the organization.

1.3 Objectives of the Study

The major purpose of the study is to find out the relationship between
HR practices and employee retention. The particular aim of this study is to
check the impact of different human resource practice such as training and
development, employees selection and job satisfaction on the retention of the
workforce. The objective of this study is to determine the value of human
capital in the organization. How can the human capital mange and retain in
the organization. How can the employees are retained in the organization,
how the human resource practices are used to keep the workforce and to
show the relationship of HR practices and the retention of the employees.

1.4 Theoretical Framework

This study is containing on three independent variables and one depended

variable. A depended variable is the retention of the employees and the depended
variables are HR practices such as training and improvement, employee selection
and job satisfaction.

Employees Selection

Training
& Development

Employees
Retention

Job Satisfaction

1.5 Research Hypotheses

Observances in view the capacity of study, following research

hypotheses are formulated:

H1a: Training and development has no relation with the retention of the
employee.
H1b: Training and development has positive relation with the retention of the
employee.
H2a: Employee Satisfaction has no relation with the employee retention.
H2b: Employee Satisfaction has positive relation with the employee
retention.
H3a: Employees Selection has no relation with the retention of the employee.
H3b: Employees Selection has positive relation with the retention of the
employee.

CHAPTER 2

LITERATURE REVIEW

2.1Employees Selection
Its well said that where ever an organizations success is all by all
depending upon its verifying ability how it keeps right persons at the right
posts at the right time, the departmental well planned ambitions and traditions
must conclude the persons selected. In fact it must be mentioned that the
organizations strategic directions and cultured should be according to choice
of selection of candidate. The organizations business and prosperity policies
must be congruous with the candidate selection rule and regulation policies,
as these make a positive contribution to departmental performance and ability
(Stone, 2002).

Companies carry out employ interviews for a group of causes. The

most significant of such demands is to provide a candidate with best future
performance by parsing the oral responses of the candidate to the specific
question made by interviewer (Oliphant, Hansen, & Oliphant, 2008.

In a high process of a specific corporation interviews are on majority

well accepted tool of selection at the time. The reality is most of the industrial
businesses have a unique kind of intervening and questing process. On
research most of the managers and hire staff showed a positive response to
hypothesis that interviews provide much accurate results on many watchable
personnel behavioral dimensions (Oliphant et al, 2008).Interviews provide
the workers with the sort of information and knowledge that will influence
their selection whenever and wherever they are hired.
Kennedy and white during their research process estimated that for
developing and enhancing the level of service by an industrial association
depends upon the worker training activities and programs inside the
organizations as skill of the employees increased with the training and
eventually enhanced with the training of workers.

Schneider et al. implied extra stress on the importance of training in

term of administrative support of an organization. The management of a
corporation is going to build a trustworthy assurance of training for its own
employees as for as it is required to anticipate their own employees they
offered a higher level of customer service for business practice.

In order to draw from the employees are creative or still there was a
special need of training for the employees, as suggested by them and but they
are also desirable to copy the performance of a candidate that they expected
from their own candidates by a special presentation evaluation system of
workers.

Susan (2003) got that workers development is an important scale of

service category in client summary what they called high-contact
surroundings. Well established and highly serving service deliveries were the
huge result of intellectual work of candidates and their benefits including
environmental work their training and their professional development.In
some conditions such as with the business recital, but only for some
associations the economic gains were important, such things will affect the
objectives of workers because such actions were extremely to the customer
fulfillment.

Delaney & Huselid classified the HRM practices into the scales which
enhanced workers skills increased the number and encouraged the workers,
and arrangement intend of the workplace.The worker feedback their specific
training and professional development workplace orientation and design and
the employee adequate payroll system were the at least four human resource
management dimensions that could be recognized in the employee work as
accomplished by Delaney & Huselid.
2.2 Job Satisfaction
Job satisfaction is the desirable optimistic position that results the
retention of the employees in the organization. They argue that Job
satisfaction and the rate of turnover are related to each other ,as the job
satisfaction enhance the rate of turnover reduce and retention become higher,
as the degree of satisfaction goes down the rate of turnover become higher
and the rations goes down. Al-Hussami argue that if the employee are highly
fulfilled with their occupation it will increase their art of creation and
7

production, this will emphasize the employees to stay in the same

organization and serve more efficiently, in more simplest way he wants to say
that the employee who is highly satisfied would like to stay for the more and
more time period in the organization as compare to those employees those are
not satisfied with the job and organization they like to quit earlier.

On the other hand, some human being resource department simply

works out plans that compact with present troubles (Oakland & Oakland,
2001). Some of the researchers point of view is that the retention is the
outcome of implementing the human resource polices, from Harvard business
fundamentals, it is the totally opposite scenario of the turnover cited in
Starosta, 2006, p. 60). However, Waldman and Arora (2004), assume that
talking about the retention of the employees within the background of
turnover of employee is inadequate; in its place, attention ought to be on the
way in which retention of the employees promotes the protection of a
employees that is competent to meet up the with the requirements of the
organization. Turnover is better for the organization when it deals with the
employees those is not capable. The preservation of brilliant workers is a
benefit to an organization for the reason that Employees awareness and skills
are vital to a ability of the company to be efficiently Competitive (Kyndt, et
al., 2009). Retaining of employees has gradually more significant to
Organizations because time to time shortages of employees can decrease the
accessibility of higher productive Employees (Jones & Skarlicki, 2003, p.
1227); therefore, employees are finding for superior employment chances,
and organization are looking for to recover the output of their employees
(Leeves, 2000). The easiest technique to keep employees is to raise the levels
of satisfaction; but such things will only be effectual if work appropriately
(Denisi & Griffin, 2008).

Problems have to face to deal with retention issues , retention programs

are there to deal with the problems of such worker those are about to leave
the organization ( Mello, 2010). Willingly an employee turnover is the reason
of certain undesirably results for the organization. For example many
researchers comment the instability of workforce stop the long term
relationship between the employee and organization (Inkpen & Tsang, 2005).
Turnover can also be positive for the organization as untalented workforce
can be out organization (Williams, 1999).Turnover can also be effect out the
efficiency and effectiveness of the organization (Glebbeck & Bax, 2004).

In that respect, researches point out that the organizational factors that
are controllable take more part in the turnover as compare the factors those
are uncontrolled suggest that turnover is the only happen because of weak
human resource practices (Khatri, Fern, & Budhwar, 2001). In global context
retention of employee faces more challenges (Reiche, 2007).

The capacity of retention of human resources may differ from culture

to culture that differentiations may become the reason of negative effect on
the retention of employees (Noorderhaven & Harzing, 2003).

2.3 Training and Development

A psychological theory suggest that highly career oriented employees
are more retained and committed if they are provided the facility of training
and development, if company provides all of these things such as freedom,
training and development facilities it results certain events such as less
absenteeism, high retention rate and satisfaction of employees (Tekleab et al.,
2005, Turnley and Feldman, 2000). Such organization where the proper
training is provided to the employees faces lesser rate of turnover.

Many studies recommended that training is positively correlated with

the high retention and greater productivity (Delery and Doty). In Labors
department of US (1993) investigate the higher performance practices it was
suggested that the exercise of formal programs of training was connected
with significantly advanced production growth. Becker and Huselid (1999)
argue that the financial output of wide training in the organization results the
more motivation to keep stay in the organization for the longer time period
and such employees become the reason of companys success. . From Shaw
et al. (1998) point of view organization with extensive training Facilities
should enjoy less rates of turnover.
On the other hand, an important judgment by those researchers added a
positive association between training and the rate of Discharge. They
hypothesize that organization facilitate with more training are worried about
skills of employees and productivity, and therefore face a higher rate of
Terminations of the employees. On the other hand, organization that faces a
higher rate of discharge Start programs of training for the reason that of lesser
labor force skill levels (Shaw et al., 1998).

The purpose of the organization is to create betterment in the process

to provide the training to the employees so that they can enhance the
performance of the organization, ultimately the employee remain more
committed and loyal toward the organization. Training is to only way to keep
the employee up to date and keep them engaged with the organization
(Armstrong, 2009).Choo and Bowley (2007) establish that training impacts
positively in Production , which consequences in high level of employee
satisfaction and ultimately in the retention of the employees. job satisfaction
is the feeling about the job that can be positive or negative , satisfaction is
very necessary for the employee to keep them committed and retain with the
organization , the requirement of satisfaction may change from employee to
employee, some cane be more satisfy at a certain level other can be lesser.

2.4 Employee Retention

This is the challenge for the company to meet the demand of
employees to retain them in the organization (De Jong et al., 2009). Where
the job is uncertain in nature the turnover rate is high retention rate may be
very low (Griffeth et al., 2000). HR theory deals that when practices will go
beyond the expectation it results the more positive attitude. An employee
shows more commitment toward an employer (Tsui et al., 1997). Employees
are more satisfied in the job of permanent nature and want to retain with the
organization ABU (2009) (Dutch sector institution of temporary work
agencies).

The knowledge of the importance of staying employees in a

organization is having evidences (Brayfield and Crockett, 1955; Cho et al.,
2006. Scholars (Cho et al., 2006) address that generosity executive who
recognize the value of capital of human and adopt the policies set by
organization and practices of management in helping of retention of the
employees will go one better than the competition. The employees those not
left the organization become the reason of reducing various costs such as
hiring cost, selection costs, cost of training of new talent, those employees
prove to be more productive with the passage of time , having high
competitive adjusting power and value added skills for the organization (Cho
et al., 2006; Retention plans to se are carefully prepared and then apply in the
organization results the improvements in turnover rate and decrease the
certain costs of the organization and enhance the rate of (Heskett et al. 1994;
Simons and Hinkin, 2001).

10

Job fulfillment is a kind of approach toward a existing job .Riggio

explains job fulfillment is the combination of certain feelings and attitudes
about the individual's job, that feeling is based on all kind of aspects of a
given job such as bad ,good , negative ,positive about a job that is much more
important in the intention of turnover .same kind of views have been given by
the Kim, Leong, and Lee and Scherman).they all agree that satisfaction of job
means what a individual feel about the job and that should be positive .

11

CHAPTER 3
METHODOLOGY
3.1 Population
Our respondents from Jubilee life Insurance Company and Paramount
Distributions, 25 respondents from Jubilee life Insurance Company and 25
from Paramount Distributions.50% from Jubilee life Insurance Company and
50% from Paramount Distributions.

Table 3.1
Organization

Jubilee life
Paramount
Distributions
Total

Frequency
25

Percent
50.0

Valid Percent
50.0

Cumulative
Percent
50.0

25

50.0

50.0

100.0

50

100.0

100.0

3.2 Data Collection

A survey questionnaire (Annexure B) designed for this purpose has been
used for data collection.
3.3 The Questionnaire
A lot of care is always required to design a questionnaire. A great
amount of time and energy is invested to reach the final draft. The questions
have been chosen from a variety of articles most of which are mentioned
below.
3.3.1 Section one (item number 1 to 06)
This section pertains to basic organizational characteristics. Beside
name of institute and designation of the respondent other contingent variables
in order of occurrence in the questionnaire covered in item number 2 to 10
are listed below:

12

1.
2.
3.
4.
5.
6.

Location
Organization
Age (number of years)
Marital Status
Gender
Qualification

3.3.2 Section two (item 07 to 10)

This section deals with the main study variables i.e. Employees
Selection. Item number 07 deals with Employees Selection. It has four sub
items which covers the following variables:
1.
2.
3.
4.

Employees Selection
Job Satisfaction
Training & Development
Employees Retention

3.3.3 References of questionnaire

The impact of employees Training & Learning on Three Employees
Retention, by Sydney Anne Barcus.
Can HR practices retain flex workers with their agency? Brigitte Kroon
and Charissa Freese Department of Human Resource Studies, Tilburg
University, Tilburg, The Netherlands
An integrated model of training effectiveness & satisfaction with
employees development interventions by Khawja Fawad Latif

3.4 Measures & Methods

The existing measures of integration and devolvement in the field
regularly used by Carnet and others (Brewster and Larsen, 1992; Budhwar
2000; Andolsek and Stebe, 2005; Farndale, 2005; zelik and Aydinl, 2006)
are used in this study.

13

14

CHAPTER 4
DATA ANALYSIS
4.1Descriptive Statistics
4.1.1 Respondents
Our respondents from Jubilee life Insurance Company and Paramount
Distributions, 25 respondents from Jubilee life Insurance Company and 25
from Paramount Distributions.50% from Jubilee life Insurance Company and
50% from Paramount Distributions.
Table 4.1
Organization
Frequency Percent
jubilee life
Paramount Distributions
Total

25
25
50

50.0
50.0
100.0

Valid
Percent
50.0
50.0
100.0

Cumulative
Percent
50.0
100.0

4.1.2 Age-wise Distribution of Population

Age-wise distribution of the population is presented in Table 4.2. It
shows in our Respondents there are Four Age Groups, 6 Respondents are age
of 17-21, 37 Respondents are age of 21-30, and 6 Respondents are age of 3140 and only one Respondent are age of above 40.
Table 4.2
Age
17-21
21-30
31-40
40+
Total

Frequency
6
37
6
1
50

Percent
12.0
74.0
12.0
2.0
100.0

Valid Percent
12.0
74.0
12.0
2.0
100.0

Cumulative
Percent
12.0
86.0
98.0
100.0

15

CHAPTER 5
DISCUSSION AND CONCLUSION
5.1 Discussion about Results
Table 01
Organization
Jubilee life
Paramount
Distributions
Total

Frequency
25

Percent
50.0

Valid Percent
50.0

Cumulative
Percent
50.0

25

50.0

50.0

100.0

50

100.0

100.0

Our respondents from Jubilee life Insurance Company and Paramount

Distributions, 25 respondents from Jubilee life Insurance Company and 25
from Paramount Distributions.50% from Jubilee life Insurance Company and
50% from Paramount Distributions.

16

Table 02
Age
17-21
21-30
31-40
40+
Total

Frequency
6
37
6
1
50

Percent
12.0
74.0
12.0
2.0
100.0

Valid Percent
12.0
74.0
12.0
2.0
100.0

Cumulative
Percent
12.0
86.0
98.0
100.0

In our Respondents there are Four Age Groups, 6 Respondents are age
of 17-21, 37 Respondents are age of 21-30, and 6 Respondents are age of 3140 and only one Respondent are age of above 40.

17

Table 03
Frequency
Married
Unmarried
Total

15
35
50

Marital Status
Percent
Valid Percent
30
70
100

30.0
70.0
100.0

Cumulative
Percent
30.0
100.0

In this Analysis the total sample size are 50.Our respondents are
married and unmarried from JLI Company and Paramount Distributions in
which 15 Married 30% and 35 Unmarried 70% of our sample.

18

Table 04

Male
Female
Total

Frequency

Gender
Percent

Valid Percent

34
16
50

68.0
32.0
100.0

68.0
32.0
100.0

Cumulative
Percent
68.0
100.0

In this study the total sample volume are 50. There was 60
Questionnaire and I got back 50.Our respondents are male and female from
JLI Company and Paramount Distributions in which 34 Male 68% and 16
Female 32% of our sample.

19

Table 05
Qualification
Intermediate
Graduate
Masters
Total

Frequency
5
21
24
50

Percent
10.0
42.0
48.0
100.0

Cumulative
Valid Percent
Percent
10.0
10.0
42.0
52.0
48.0
100.0
100.0

In our Respondents there are three categories. 5 Respondents are

having Qualification of Intermediate, 21 are graduated and 24 respondents
are having Master Degree.

20

Table 06
Does the Organization do proper job analysis before selection?
Valid
Cumulativ
Frequency
Percent
Percent
e Percent
Strongly
21
42.0
42.0
42.0
Agree
Agree
20
40.0
40.0
82.0
Disagree
5
10.0
10.0
92.0
Strongly
4
8.0
8.0
100.0
Disagree
Total
50
100.0
100.0

In our Respondents 42% Respondents are Strongly Agree and 40%

Respondents are Agree with organization do proper job analysis before
selection. 5% Respondents are Disagree and only 4% Respondents are
Strongly Disagree with Organization do proper analysis before Selection.

21

Table 07
Does the selection method used by the organization are Reliable?
Cumulative
Frequency
Percent
Valid Percent
Percent
Strongly
13
26.0
26.0
26.0
Agree
Agree
26
52.0
52.0
78.0
Uncertain
7
14.0
14.0
92.0
Disagree
3
6.0
6.0
98.0
Strongly
1
2.0
2.0
100.0
Agree
Total
50
100.0
100.0

In our Respondents 52% are Agree to does the selection methods used
by the Organization are reliable and only one Respondent 2% of our
Respondents are strongly disagree with this Question.

22

Table 08
Do you think organization is using satisfactory methods of interview?
Cumulative
Frequency
Percent
Valid Percent
Percent
Strongly
11
22.0
22.0
22.0
Agree
Agree
26
52.0
52.0
74.0
Uncertain
5
10.0
10.0
84.0
Disagree
5
10.0
10.0
94.0
Strongly
3
6.0
6.0
100.0
Agree
Total
50
100.0
100.0

Organizations using satisfactory methods of interview, in this question

26 people are Agree these are 52% of our Respondents. Only 6% respondents
are strongly disagreeing.

23

Table 09
How do you rate the Selection Policy of the organization?
Valid
Cumulative
Frequency
Percent
Percent
Percent
Strongly Agree
15
30.0
30.0
30.0
Agree
20
40.0
40.0
70.0
Uncertain
8
16.0
16.0
86.0
Disagree
4
8.0
8.0
94.0
Strongly Disagree
3
6.0
6.0
100.0
Total
50
100.0
100.0

In our Respondents 40% Respondents are Agree and 30% Respondents

are Strongly Agree with Selection policy of the organization is effective. 6%
Respondents are Strongly Disagree and only 8% Respondents are Disagree

24

Table 10
Does the Job Responsibilities and Job Description are clearly defined to
the candidates appearing for selection process?
Valid
Cumulative
Frequency
Percent
Percent
Percent
Strongly disagree
13
26.0
26.0
26.0
Agree
22
44.0
44.0
70.0
Uncertain
7
14.0
14.0
84.0
Disagree
5
10.0
10.0
94.0
Strongly disagree
3
6.0
6.0
100.0
Total
50
100.0
100.0

In our Respondents majority of the respondents are agree with the job
Responsibilities and job description are clearly defined in the candidate
appearing for selection process, 44% Respondents are agree and 26%
Respondents are strongly agree and only 6% Respondents are Strongly
disagree with this Question.

25

Table 11
Generally speaking, I am very satisfied with this job.
Valid
Strongly agree
Frequency
Percent
Percent
Agree
18
36.0
36.0
Uncertain
16
32.0
32.0
Disagree
9
18.0
18.0
Strongly disagree
6
12.0
12.0
Total
1
2.0
2.0
Strongly agree
50
100.0
100.0

Cumulative
Percent
36.0
68.0
86.0
98.0
100.0

36% Respondents are Strongly agree and 32% are agree in satisfied
with their job and Only 2% Respondents are Strongly disagree or Dissatisfied
with their job.

26

Table 12
I frequently think of quitting this job.
Strongly agree
Agree
Uncertain
Disagree
Strongly disagree
Total

Frequency
6
14
6
16
8
50

Percent
12.0
28.0
12.0
32.0
16.0
100.0

Valid Percent
12.0
28.0
12.0
32.0
16.0
100.0

Cumulative
Percent
12.0
40.0
52.0
84.0
100.0

In our respondents only 6% Respondents are think of quitting their job,

Majority of Respondents 32% are Disagree mean they are not think of
quitting job.

27

Table 13
I am generally satisfied with the kind of work I do on this job.
Cumulative
Frequency
Percent
Valid Percent
Percent
Strongly disagree
10
20.0
20.0
20.0
Agree
21
42.0
42.0
62.0
Uncertain
13
26.0
26.0
88.0
Disagree
4
8.0
8.0
96.0
Strongly disagree
2
4.0
4.0
100.0
Total
50
100.0
100.0

42% Respondents are Agree or satisfied with the kind of work they are
doing, only 4% of Respondents are strongly disagree or dissatisfied with the
kind of work they are doing.

28

Table 14
Most people on this job are very satisfied with the job.
Valid
Cumulative
Frequency
Percent
Percent
Percent
Strongly agree
12
24.0
24.0
24.0
Agree
18
36.0
36.0
60.0
Uncertain
11
22.0
22.0
82.0
Disagree
7
14.0
14.0
96.0
Strongly disagree
2
4.0
4.0
100.0
Total
50
100.0
100.0

Most people on this job are very satisfied with the job, in this question
36% of respondents are respond agree, 24% are respond strongly agree and
only 4% respondents are respond Strongly disagree.

29

Table 15
People on this job often think of quitting
Strongly agree
Agree
Uncertain
Disagree
Strongly disagree
Total

Frequency
7
11
11
15
6
50

Percent
14.0
22.0
22.0
30.0
12.0
100.0

Valid Percent
14.0
22.0
22.0
30.0
12.0
100.0

Cumulative
Percent
14.0
36.0
58.0
88.0
100.0

In this question 30% respondents are Disagree because they are not
think of Quitting their job, 14% respondents are strongly agree they are think
of quitting.

30

Table 16
As soon as I can find a better job, Ill leave.
Strongly agree
Agree
Uncertain
Disagree
Strongly disagree
Total

Frequency
13
12
11
10
4
50

Percent
26.0
24.0
22.0
20.0
8.0
100.0

Valid Percent
26.0
24.0
22.0
20.0
8.0
100.0

Cumulative
Percent
26.0
50.0
72.0
92.0
100.0

In our respondents 26% are strongly agree and 24% are agree because
they are finding opportunities and want to move and only 08% respondents
are disagree they are not think of quitting even they have better opportunities.

31

Table 17
I am seriously thinking about quitting my job.
Strongly agree
Agree
Uncertain
Disagree
Strongly disagree
Total

Frequency
7
8
11
16
8
50

Percent
14.0
16.0
22.0
32.0
16.0
100.0

Valid Percent
14.0
16.0
22.0
32.0
16.0
100.0

Cumulative
Percent
14.0
30.0
52.0
84.0
100.0

I am seriously thinking about quitting my job, in this question 32%

Respondents are disagree because they are not think of quitting, 14% are
seriously think of quitting and want to leave their present job.

32

Table 18
I am actively looking for a job outside.
Valid
Frequency
Percent
Percent
Strongly agree
8
16.0
16.0
Agree
13
26.0
26.0
Uncertain
11
22.0
22.0
Disagree
13
26.0
26.0
Strongly disagree
5
10.0
10.0
Total
50
100.0
100.0

Cumulative
Percent
16.0
42.0
64.0
90.0
100.0

I am actively looking for a job outside, 26% respondents are respond

Agree and also 26% are disagree, 16% are Strongly agree and 10% are
strongly disagree. Majority of respondents are actively looking for new job.

33

Table 19
The company is meeting my expectation.
Strongly agree
Agree
Uncertain
Disagree
Strongly disagree
Total

Frequency
10
16
9
10
5
50

Percent
20.0
32.0
18.0
20.0
10.0
100.0

Valid Percent
20.0
32.0
18.0
20.0
10.0
100.0

Cumulative
Percent
20.0
52.0
70.0
90.0
100.0

32% Respondents are said that the company is meeting their

expectations but on the other hand 10% respondents are strongly disagreeing
with this question.

34

Table 20
The training has increased work efficiency and effectiveness.
Cumulative
Frequency
Percent
Valid Percent
Percent
Strongly agree
27
54.0
54.0
54.0
Agree
21
42.0
42.0
96.0
Uncertain
1
2.0
2.0
98.0
Disagree
1
2.0
2.0
100.0
Total
50
100.0
100.0

The training has increased the work efficiency and effectiveness,

Majority of the respondents 54% are Strongly Agree 42% are agreed and only
2% disagreeing with this question.

35

Table 21
There are appropriate orientation procedures in this company for new
hires.
Cumulative
Frequency
Percent
Valid Percent
Percent
Strongly Agree
16
32.0
32.0
32.0
Agree
16
32.0
32.0
64.0
Uncertain
8
16.0
16.0
80.0
Disagree
6
12.0
12.0
92.0
Strongly disagree
4
8.0
8.0
100.0
Total
50
100.0
100.0

In this question 32% Strongly agree and 32% are agree and only 8%
are strongly disagree with that the appropriate orientation procedure in this
company for new hires.

36

Table 22
I have received the training I need to do a good job.

Strongly agree
Agree
Uncertain
Disagree
Strongly disagree
Total

Frequency
11
27
9
2
1
50

Percent
22.0
54.0
18.0
4.0
2.0
100.0

Valid Percent
22.0
54.0
18.0
4.0
2.0
100.0

Cumulative
Percent
22.0
76.0
94.0
98.0
100.0

In our respondents 54% are agreed to receive training which they need
22% are strongly agree and only 2% are strongly disagree and not received
training they need for good job.

37

Table 23
The skill(s) acquired through training/development program has
increased my capability.
Cumulative
Frequency
Percent
Valid Percent
Percent
Strongly agree
19
38.0
38.0
38.0
Agree
21
42.0
42.0
80.0
Uncertain
5
10.0
10.0
90.0
Disagree
1
2.0
2.0
92.0
Strongly disagree
4
8.0
8.0
100.0
Total
50
100.0
100.0

The skills acquired through training & development program has

increased capability 38% Respondents are Strongly agree , 42% are Agree
and only 8% are strongly disagree.

38

Table 24
Training added value by providing opportunity to develop skills and
knowledge?
Cumulative
Frequency
Percent
Valid Percent
Percent
Strongly agree
27
54.0
54.0
54.0
Agree
20
40.0
40.0
94.0
Uncertain
3
6.0
6.0
100.0
Strongly agree
27
54.0
54.0
54.0
Agree
20
40.0
40.0
94.0
Total
50
100.0
100.0
Total

Training added value by providing opportunity to develop skills and

knowledge, in this question 54% Respondents are strongly agree and 40% are
agreed and only 6% are uncertain. No one respondents are responding
disagrees or strongly disagrees.

39

5.2 Conclusions
Employees are the very valuable asset of the organization.
Organization spends a lot of resources on an employee. Organization spends
financial and time cost to make an employee trained. When an employee
spends some time in the organization become aware of with different
organizational strategies and plan. When this employee leaves the
organization and joins the organization of the competitor. It becomes more
costly for the organization. That is why the turnover is major issue for the hr
manger because of the significant cost of hiring and replacement. Employee
wants to switch when they are dissatisfied with the job and the organization. a
satisfied employee is more committed and loyal with the and want to stay for
the organization for the longer time period .Organization want to retain the
employees because they are the asset for the organization, organization spend
a lot of cost to retain their employees.
HR practices are the tool to satisfy the employees. Through HR
practices employees are facilitated what they desire. Training and
development opportunities are provided to the employees to expand their
career in the organization.
These three components of HR practices are the valuable source of
retaining of the employees. HR practices are positively associated with
employee retention. Training and development is positively associated with
the retention of the employees. Employees Selection is also positively linked
with employee retention. Same with the employee satisfaction, it is also
positively associated with the retention of the employees.
All the results show the significance relationship of the HR practices
and the retention of the employees. Results show the relationship of the
independent and dependent variable. The respondent is 68% male and 32%
female employees. The data was collected from all kind of the employees like
front line manger, supervisor, administrative staff and office staff. There are
four age groups in this study Start from 17 to more than 40. The data was
collected from the two companies.

40

5.3Contributions & Implications

This research is based on HRM. The problem of employee turnover is
discussed in that study. The human resource is the key element in any of the
organization. The success and failure of the business is based on the
employees. The retention of the skillful employees is very fruitful for the
organization. If the organization want to be progressive and core competent,
it is necessary to retain the skillful talent of the organization. There are many
tools that keep the employees retain in the organization. Employees need
satisfaction from the job and opportunities of the advancement. There are
various ways to make the employees satisfied and keep them retain in the
organization. The HR practices are the one of the major tools that can be used
for the satisfaction of the employees and ultimately the retention of the
employees. HR practices include training and development, employees
selection is very productive for the satisfaction and commitment of the
employees.
If the employees are satisfied and committed about job they will be
more productive and want to stay in the organization. Through proper
implantation of HR practices the problem of turnover can be controlled.
Organization spends a lot of cost on an employee. Organization faces lot of
cost on an employee, start from hiring and stuffing to training and
development of the employee. Moreover if the employee spends some time in
the organization, he/she have a lot of secret about the organization. if such
employee join the organization of the competitor then it become more risky
for the organization and their all of the cost spend on the employee become
useless. It is the responsibility of human resource department to make it
assure that employees will stay in the organization for the longer time period.
They should focus on the human resource practice.
There are few factors those tested in this study to show the relation
with retention of the employees. HR practices contain various functions there
are only three factors discus in that study. Some other HR practices can also
be applied for the retention of the employees. The further study can be
conducted in that field. Organization those are serious about the retention of
the employees can be successful and productive.

41

5.4Limitations & Directions

The research is depending on the response of the employees, Research
has to face low response rate, the research is related to the retention of the
employees, and employees feel hesitation and feel insecurity while giving the
response. There is chances that the response cannot be independent this is the
limitation of the study that affects the accuracy of the result and finding. The
research may not be widely applicable it is relevant to a specific sector. It
may not be applicable to all the sectors and all the fields. The research is not
completed in all aspects it may need further investigation. The tests of HR
practices of all tools are not possible. The research is conducted in the
specific area. For this research I selected the few numbers of populations to
select the sample.
The human capital is very important in every organization. The success
of the organization is depending on the skillful human talent and their
retention. This study is focus on the human capital and their retention. This
research is focusing the effect of human resource practices and its impact on
the retention of the employee. This study determines the factor effect the
retention of the employees. This study clears that how the human resources
practices can use to retain the employees. Organization faces lot of cost in
respect of turnover. How the HR practices influence the retention of the
employee will determine by my study. This study is the causal type of study.
In this study I am basically find out the relationship of human resource
practices and the retention of the employee.

42

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44