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A STUDY ON LABOUR TURNOVER WITH REFERENCE TO INDIAN RARE EARTH LIMITED, MANAVALA KURICHI PLANT INTRODUCTION This Project is to study the Maintenance of “Labour Turnover” in Indian Rare Earths Limited, ManavalaKurichi plant. "LABOUR TURN OVER" Labour tur nov er is concer ned wit h movements of ind ivi dua ls int o job s (hirings) and out of jobs (separations) over a particular period. However, the te rm is commonly us ed to re fe r on ly to ‘wasta ge or th e nu mber of  employees leaving. Labour turnover is the sum of job turnover, which relates to the expansion and contraction of establishments or firms, and the movement of workers into and out of ongoing jobs in establishments or firms. Workers leave firms and firms hire other workers to replace them, regardless of whether the firm itself is growing or declining. Hig h lab our turnover cau ses pro ble ms for business. It is cos tly , lowers productivity and morale and tends to get worse if not dealt with.

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A STUDY ON LABOUR TURNOVER WITH

REFERENCE TO INDIAN RARE EARTH LIMITED,

MANAVALA KURICHI PLANT

INTRODUCTION

This Project is to study the Maintenance of “Labour Turnover” in Indian

Rare Earths Limited, ManavalaKurichi plant.

"LABOUR TURN OVER"

Labour turnover is concerned with movements of individuals into jobs

(hirings) and out of jobs (separations) over a particular period. However, the

term is commonly used to refer only to ‘wastage’ or the number of 

employees leaving.

Labour turnover is the sum of job turnover, which relates to the expansion

and contraction of establishments or firms, and the movement of workers

into and out of ongoing jobs in establishments or firms. Workers leave firms

and firms hire other workers to replace them, regardless of whether the firm

itself is growing or declining.

High labour turnover causes problems for business. It is costly, lowers

productivity and morale and tends to get worse if not dealt with.

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MEASURING LABOUR TURN OVER 

The simplest measure involves calculating the number of leavers in a period

(usually a year) as a percentage of the number employed during the sameperiod. This is known as the "separation rate" or "crude wastage rate" and is

calculated as follows:

 

For example, if a business has 150 leavers during the year and, on average, it

employed 2,000 people during the year, the labour turnover figure would be

7.5%.

An alternative calculation of labour turnover is known as the "Stability

Index”. This illustrates the extent to which the experienced workforce is

being retained and is calculated as follows:

Number of employees with one or more years’ service now / Number 

employed one year ago x 100

Labour turnover will vary between different groups of employees and

measurement is more useful if broken down by department or section or 

according to such factors as length of service, age or occupation.

Number of leavers / average no employed x 100

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PATTERNS OF LABOUR TURN OVER 

The highest rate of labour turnover tends to be among those who have

recently joined a business.

Longer-serving employees are more likely to stay, mainly because they

become used to the work and the business  and have an established

relationship with those around them.

CAUSES/   FACTORS   INFLUENCING   LABOUR   TURN

OVER  

A high level of labour turnover could be caused by many factors:

• Inadequate wage levels leading to employees moving to competitors

• Poor morale and low levels of motivation within the workforce

• Recruiting and selecting the wrong employees in the first place, meaningthey leave to seek more suitable employment

• A buoyant local labour market offering more (and perhaps more attractive)

opportunities to employees

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COSTS OF LABOUR TURN OVER 

High rates of labour turnover are expensive in terms of:

Additional recruitment costs

Lost production costs

Increased costs of training replacement employees

Loss of know-how and customer goodwill

Potential loss of sales (e.g. if there is high turnover amongst the sales

force)

Damage that may be done to morale and productivity (an intangible

cost)

BENEFITS OF LABOUR TURN OVER 

Labour turnover does not just create costs. Some level of labour turnover is

important to bring new ideas, skills and enthusiasm to the labour force.

A "natural" level of labour turnover can be a way in which a business can

slowly reduce its workforce without having to resort to redundancies (this is

often referred to as "natural wastage".

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INDUSTRY PROFILE

BEACH AND SAND MINERALS

Rare earths elements, series of chemical elements of the periodic

table. The Rare elements include the elements with atomic numbers 57

through 71. In the early years these elements were considered as rare

elements and so they are called as rare earth metals. Later many elements in

this group were found splendid but their name remained unchanged. The

primary source of rare earth elements is greenish yellow coloured mineral

sand, which is Monazite .Its availability in nature is confined to certain

beaches and rock found in certain countries. The beaches containing the

monazite are found mixed with other minerals too. Most of these are ores for 

valuable metals. An ore is a mineral from which metal can be separated

economically. These ores are Ilmenite, Rutile, and Zircon. Ilmenite and

Rutile forms the ore for Titanium, Zircon for Zirconium; even though

Aluminium bearing metal Garnet and Sillimanite are also found along with

these beach sand minerals. But they are not commercially exploited for 

Aluminium production due to economic reasons. However Garnet and

Sillimanite, in their natural form, are commercially significant. Ilmenite

which is black in colour constitutes a major chunk of these minerals (60%)

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presence of these minerals makes the beaches appear black. These minerals

are commercially known as beach sand minerals or heavy minerals.

The origin of beach sand is from rocks, which are rich with heavy

minerals. This sand particle reaches sea through rivers. The sea level is not

remaining constant. It is regarded that the sea level, it is now really 100

meters above what we had seen 20,000 years ago. This white sand seen at

the beach area contains the main constitute as Quartz. This is lighter than

black sand .As a result of movements of the sea this sand will erode away

and black sand get deposited. The black sand thus deposited 100 years ago is

mined and processed.

In the year 1789 Fr. William George (1761-1817) discovered

Ilmenite at knower in England and started that this black sand contains some

important metal. But he failed to discover which metal it was. After several

time, in the year1875 the Hungarian scientist Martin Heen Witch Klapporth

found  the  same  metal  contents  in  the  Rutile  minerals  about  

Fr.William George mentioned. After a series of investigations are found

those metals content as Titanium after ‘Titan’ of Greek mythology.

 

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Technology developed over the years has made the beach sand.

Minerals are utilized in a variety of industrial and domestic applications.

Monazite was mainly used in the gas mantle industry. After the advent of 

electricity its  demand  decreased  in the gas mantle industry, Pigment

industry, welding electrode industry, Sillimanite is used in high temperature

refractory industry, ceramic industry etc Zircon is used in foundries,

ceramics, and refractories and in the manufacture of Zirconium chemicals,

metals and alloys. Zirflour used in foundries for high temperature castings.

Garnet is used in the manufacture of abrasive polishing glass, TV tubes for 

sand lasting and for water filtration. The beach sand mining and processing

industry has vast future because of their demand in nuclear industry too.

The current world production capacity of Ilmenite and other 

titanium feed stocks for production of titanium oxide pigment titanium

metal, welding electrodes etc is around 70 lakhs million tons per annum

(TPA). Approximately half of this is from beach sands and the balance from

Ilmenite rocks mostly found in Canada and Norway. In view of the limited

supply of natural Rutile, its share of consumption in pigment production is

rather small and 55% of its total availability of about 5lakh (TPA) is used in

the non pigment applications predominantly in the production of welding

rod and titanium metal.

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The present production capacity of pigment in the world just

above 40 lakhs TPA North America is the largest producer with 37% of the

global capacity is the second largest producer and Asia-Pacific region with

21% capacity, is the third. The balance 10% is distributed among the rest of 

the world.

India has the largest resources base of 278 million tones for 

Ilmenite. This is the single largest and least exploited mineral deposit in the

world. However 10% of this is only mineable. Resources base in India for 

other minerals are:

Mineral In million tones Contribution to world

Rutile 18 10%

Zircon 21 14%

Monazite 8 7%Sillmanite 130 25%

Ilmenite 107 35%

Garnet 8 7%

 

In India the installed production capacity for Ilmenite is around

5-2 lakh TPA (5-6% of global Ilmenite production) and the production of 

Ilmenite and Rutile during 2004-2005 was over 3-5 lakh tonnes and 1300

tonnes respectively.

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Key success factor for the beach sand mineral industry are:

Increase the Ilmenite capacity to reach economic scale of production.

Value addition projects in minerals and rare earths compounds.

Initiate action to develop new mining areas.

Forward integrate through stake in world leader in pigment industry

like Tinfoss, DuPont or selling up a pigment plant.

Explore other mining options in neighbouring countries.

Social and political   Environment

PROFILE OF INDIAN RARE EARTHS LIMITED

Each and every organization has its own importance in the

economic wealth of the nation. Different organization meets different

needs of people by offering different products and services. Due to

globalization, the world has changed into a global village. In this fast

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exceeding Rs. 2600 million in 2000-01; with export component of above Rs.

1000 million.

This study is conducted at INDIAN RARE EARTHS LIMITED,

MANAVALAKURICHI (MK).IREL, MANAVALAKURICHI (MK) plant

is a panchayat town in Kanyakumari district in the Indian state of Tamil

Nadu. Manavalakurichi is located at 8°08′N 77°18′E/ 8.13°N 77.3°E. It has

an average elevation of 0 meters (0 feet). It is situated along the coast of the

Arabian Sea. Indian Overseas Bank, State Bank of Travancore are the bank 

available   here.   Only   one   ATM   in   IRE.   One   very   big   pond

cheramangalam One CSI community hall in cheramangalam. One Sivan

Temple in Kannivilai near cheramangalam. In Indian RARE earth the

ungraduate people bought more salary, but the graguate people bought low

salary. In manavalakurichi panchayat we have one animal hospital in

cheramangalam near peria kulam.

 

Plant is situated 25 Kms north of Kanyakumari (Cape Comorin),

the southern most tip of the Indian sub-continent. All weather major seaport

Tuticorin and the nearest airport at Thiruvananthapuram are equidistant,

about 65 kms from the plant site. Nagercoil at a distance of about 18 kms

from the plant is the closest major Railway station.

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REASONS FOR SELECTING IREL

IREL is one of the major mineral producing public sector companies of its

kind in India.

BRIEF HISTORY OF IREL

IREL’s history should not be narrated without mentioning the name of 

German Chemist Mr. Her Schomberg who has realized that the shining

yellowish- brown sand particles sticking to coir, a coconut fiber shipped

from India (1909) contained Monazite.

1948 The Government of India set up the Atomic Energy Commission under 

the Chairman ship of Dr. Homi Bhabha. The export of Monazite was

stopped and the possibility of setting up a facility to process the beach sand

mineral for the production of Rare Earths was examined.

1950 Indian Rare Earth Limited was incorporated in Bombay.

1951 IREL became a full fledged Central Government undertaking under 

Department of Atomic Energy and commenced construction of its Rare

Earths plant at Udyogamandl in Kerala.

1952 Rare Earth was dedicated to the nation on December 24, by the late

Prime Minister, Pandit Jawaharlal Nehru.

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1955 Opening of Thorium factory off Bombay.

1965 Opening  of  Minerals  Division  at   Quilon  in  Kerala  State  

manufacturing facilities at Chavara in Kerala and at Manavalakurichi at

Tamil Nadu and a giant mineral sand separation and synthetic Rutile plant at

Chatrapur in Orissa (1986) OSCOM.

Board of management

IREL shares are wholly owned by Govt; of India. The board of management

consists  of  seven  directors  under  the  chairman  ship  of     M

Subramanian appointed by Govt; of India. There are three fulltime directors

and  four  part  time  directors  who  are  nominated  by  DAE  and

Governments  in  addition,  nominee   from  the  president   of  India  

participate in Board meetings. Approximately 2750 people are employed by

IREL in all units and they constitute one of its greatest resource.

PRODUCTS OF IRE:

The main products of IRE are six types of sands. They are – 

1. Ilmenite

2. Rutile

3. Garnet

4. Monazite

5. Zircon

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6. Sillimanite

ILMENITE:

In this mineral is 60-65% of concentrate minerals, the chemical

composition is Fe2O3 (Ferric-oxide). It is black in color. It is used to

produce TiO2 (titanium-di-oxide) pigments synthetic rutile, titanium salts.

The specific gravity is 4.45 to 4.54. The bulk density is 2600-2850. The

crystal structure is Hexagonal.

RUTILE:

It is black in color; fine particles and some brown content are mixing.

It is used in welding industries, TiO2 (titanium-di-oxide) pigments industries

and manufacturing of titanium and its alloy. The specific gravity is 4.25. The

bulk density is 2800. The crystal structure is tetragonal.

ZIRCON:

It is sandal in color, fine particles and the chemical composition is

ZrSiO4  (Zirconium  and   Silicate)  the  property  is   with  stand  at

temperature up to 90,000◦C.The specific gravity is 4.68. The bulk density is

3000. The crystal structure is tetragonal.

MONAZITE:

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It is a valuable rare earth, cerium oxide, thorium oxide & small amt of 

uranium. It is gray in color. It is in high radioactivity. The specific gravity is

5.22. The bulk density is 3000. The crystal structure is monoclinic.

GARNET:

It is light and red in color, and fine particles. The chemical

combination is Ferrous oxide and Aluminum oxide (3Feo+Al2O3). It is a

high abrasive particle. It is used in water jet cutting, water filtration, grinding

stone (wheel) and emery sheet. The specific gravity is 4.11. The bulk density

is 2300.

SILLIMANITE:

It is in high sandal color, it is in fine particles. It is used in iron and

steel industries, glass industries and ceramics industries.

PROPERTIES OF MINERALS:

 

Sl.No Minerals Properties

1 Ilmenite Conducting and Magnetic minerals

2 Rutile Conducting and Non-magnetic minerals

3 Garnet Non-Conducting and Magnetic minerals

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4 Monazite Non-Conducting and freely magnetic minerals

5 Zircon Non-Conducting and Non-magnetic minerals

6 Sillimanite Non-Conducting and Non-magnetic minerals

 

IRE PLANT DETAILS

 In the below figure (1.1) there are two types of deposits available.

a) Beach deposits – its type is replenish-able (action is

repeated again and again).

b) Inland deposits – its type is non-replenish-able (action

take place once a time).

Raw sand is taken from those deposits. The collected raw sand

is processed using Beach Washing Plant (BWP), Heavy Up gradating Plant

(HUP) and Fluidized Bed Drier (FBD). Based on these principles of specific

gravity heavy mineral is passed inner portion of dry mill through spirals in

wet condition, also light (tails or silica) mineral is passed outer portion of dry mill through spirals in wet condition. Both heavy and light minerals are

separated in form of conducting and magnetic minerals.

1. Ilmenite

2. Rutile

3. Zircon

4. Monazite

5. Garnet

6. Sillimanite

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FIG1.1 IRE PLANT DETAILS

Raw Sand from Sea shore/ Inland

BWP, HUP

FBD

Dry mill

Output

Remova

l of 

waste

Heating and

dry of wet sand

Separation

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VISION

o To be a leading supplier of beach sand minerals from Asia by

supplying 10% of the world demand for beach sand minerals over the

next 7-10 years. It would be achieved by maximum utilization of 

existing  capacities,  new  capacity   addition,  and  capturing  maj

portion of the incremental growth in the global TiO2 feedstock 

demand and by developing competitive value added Rutile, zircon,

Sillimanite and garnet products that make handsome contribution to

revenue and profits.

o To become the preferred rare earths products supplier (producer 

and / or marketer) for domestic customers to ensure long-term

sustenance and profitability of rare earths business and to achieve

adequate efficiency in monazite processing as long as it is necessary /

worthwhile.

 

MISSION

• To harness beach sands in an environmentally and

socially responsible manner for efficiently producing minerals and

their traditional and innovative value-added products of world-class

quality, that are used to make increasingly superior / novel products

required by customers.

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• To play a dominant role in developing domestic

rare earths market by producing and / or marketing the quality value-

added products to realize maximum potential of rare earths in a range

of applications.

 

• To build a professional, creative and committed

workforce and nurture an environment that fosters learning, sharing

and development

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RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

Research methodology is a way to solve systematically the

research problems. The research methodology refers to the behavior and

instruments that is used in performing the research operations such as

making observation recording data and the technique of processing data.

RESEARCH DESIGN

Research design is specification of the methods and

procedures   for   acquiring   the   information   needed   to   structure   w

information is to be collected from which sources and by what procedures.

Descriptive research design is used in this study. A descriptive

research design is undertaken in order to ascertain and be able to describe

the characteristic of the variables of interest in this study.

SAMPLING

Sampling is the process of collecting the data from the population.

SAMPLING TECHNIQUE

Simple random sampling technique is used in this study for 

collecting the sample, which is a probabilistic sampling method.

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SAMPLING SIZE

The sampling size of the study is 100. This sample was

collected from those respondents.

DATA COLLECTION

There are mainly two types of data that is primary and secondary.

a. Primary data

In these, data which are collected for the first time and are

original  in  nature.  Data  collected  through  face  to  face  conversinterview and questionnaires.

b. Secondary data.

In these, data which have been already collected from books,

journals, brochures and from the company management through available

records and internet.

PERIOD OF STUDY

The period of study for research work is 75 days.

STATISTICAL TECHNIQUES USED

Different statistical tools used for analysis of data such as,

Mean

Percentage analysis

Chart

Chi-square test

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DATA COLLECTION TOOLS

The structured tool is used as instrument for data collection, has

prepared the same in consultation with the respondents. The questions are in

the form of open-ended and closed-ended questions. Interview method also

used here.

OBJECTIVE OF  THE STUDY

Primary Objectives

To envisage the reasons for labour turnover which becomes inevitable

in every organization.

To determine the extent of labour turnover in the organization which

is a major problem interms of its growth and excellence.

To   enumerate   the   impact   of   labour   turnover   behavior  

organizational efficiency.

Secondary Objectives

To analyze the degree of labour turnover and its consequences

envisaged by the organization.

To enable the organization to determine the intention of employees to

leave the organization and its causes.

To  enumerate  the   attitude  of  workforce   towards  their  work

environment and its impact on their morale.

To anticipate the level of dissatisfaction among the employees at work 

place.

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To  elaborate  the  extent   of  switch  over   of  employees  to  

organization.

To establish various factors influencing the degree of labour turnover 

in the organization.

To evaluate the cost incurred by the organization by means of 

unnecessary turnover.

To examine the employee-employer relationship by measuring the

extent of labour turnover in the organization.

To evaluate strategies encompassed by the organization to retain the

employees.

NEED OF  THE STUDY

The study is required for the following purpose

1. To examine and evaluate the degree of labour turnover in the

organization.

2. To   analyse   the   perception   of   employees   about   their   work

environment.

3. To find out the reasons for voluntary quitting of employees from the

organization.

4. To help the organization to bring about changes in their HR polices.

5. To enable the organization to retain best talents within the company.

6. To help organization to have competitive advantage over other related

firms.

7. To assist the organization in framing the recruitment policy.

8. To enable the organization to ascertain the employee’s expectation

and fulfill their needs.

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9. To help the organization to reduce the cost incurred by the firm due to

labour turn over (both direct and indirect cost).

10.To stimulate the organization to analyse the various causes and

rectification of turnover.

SCOPE OF  THE STUDY

 There is a problem with defining scope in labour turn over account.

Although buyers and sellers of labour need to “meet or communicate” their 

seems to be no easyway for defining its size. This also facilitates predication

of levels of labour demand and supply or price.

LIMITATION OF  THE STUDY

• The data has been taken only for 5 years.

• Time was a main constraint for explaining the questions and getting

relevant answer.

• The workers were given very short time duration for answering the

questions.

• This study is based on assumption that the respondents are giving

honest views.

• The views are based on individuals understanding of his job profile

and his own perception.

• The study is restricted to office staffs and executive level employees

only.

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