Retention Strategy for Talented Faculty: A Study on Private Management Institutions in Bangalore

Retention Strategy for Talented Faculty: A Study on Private Management Institutions in Bangalore Ligo koshy 1, Anesh Babu Ganesh Babu 2 1 (Department of management studies, Mar Athanasios College for Advanced Studies Tiruvalla (MACFAST), MG University, India, koshyligo@yahoo.com) 2 (Department of management studies, Mar Athanasios College for Advanced Studies Tiruvalla (MACFAST), MG University, India, anesh@macfast.org) Abstract Although the concept of retention has attracted scholarly attention across multiple organizations like, manufacturing industry, information technology, research organizations, etc research on retention in the field of management education faculty remains limited. In particular, little research in this field has examined the nature of retention and whether it relates to the tasks performed, monetary benefits and occupational settings. As we are living in a fast moving world of infinite knowledge; academics and research plays a key role nowadays to keep us updated with the latest information. Education plays a major role in molding a person from scratch to a knowledgeable and accountable person. In such a scenario much emphasis has to be laid on the various aspects in education and educational institutions. The study identifies various factors that influence faculties to be retained in an institution. The study also helps institutions to understand faculty needs. Most of institutions are facing tremendous problems in getting and retaining talented faculty. Thus, getting and retaining talented knowledge faculty has become the key issue in management education. The study made use of primary and secondary data. A well-structured questionnaire was prepared to collect primary data. Rating scale is used. The techniques used for the analysis are Descriptive statistics, correlation, hypothesis testing etc Keywords: Retention, Talented Faculty, compensation, empowerment, training and development 1. INTRODUCTION Education institutions are the pillars on which teachers build the nations. Only one third who enters schools make it to secondary level and just 11% of the relevant population enrolls into colleges. Governmental spending is a mere 0.37% of GDP on higher education. All the committees on management education in India namely Nanda committee in 1981, Kurien committee in 1992, Iswar Dayal committee in 2001 and AICTE committee in 2003 opined

that one of the major problems in management education in India is the shortage of talented quality knowledge worker. Talented knowledge worker is the most important requirement for the good quality management education. There are three types of candidates come forward to render their services in education field Fresh management Graduates, who are seeking first break after successful completion of their course. Industry to Academia job-hoppers, the experienced industrial professionals who want to stable their life, with lesser pressure job. Academia job-hoppers, who are disappointed with their present assignments, desire for a better salary, working environment, promotion, performance privilege and other fringe benefits. Knowledge faculty includes Teachers, Researchers and others. Knowledge Faculties contribute for the development of Society by educating Students. The various activities involved by Faculties are Teaching, Research, Evaluation, Syllabus formulation, course design, Institution building, counseling and many. As per Sinha, D P (2004), As of now, for 70,000 graduates studying MBA, B-Schools require a minimum of 7,000 Ph.D. faculty. We have hardly 2000 available at this point of time. The growth of Ph.D in management is 4% and MBA programs registered 800% growth. The gap should be filled by encouraging research and further studies. According to Kondapalli Rama, Deputy Advisor at National Assessment and Accreditation council (NAAC) said; The quality of teachers that serve the educational system of a country is crucial for the development and progress of country. Therefore the quality of the training and education a teacher receives is of crucial significance. The emergence of standards in India started after the principle Enunciated in the report of Education Commission (1964-1966) and National Policy on Education (NPE 1986) that quality education could become an instrument par excellence for national development. A decade after, when the system came under severe criticism on the quality provision specially as an aftermath of Privatization, the Ministry of Human Resource Development (MHRD), 1986 with some seriousness. Enactment of the NCTE act in 1993 and its establishment in 1995 as a statutory body marked the most purposeful and determined action taken at the national level on quality improvement in teacher education. The enactment of NCTE Act brought the badly needed corrective to the imbroglio. It was aimed at introducing clear and well defined norms and standards for the

various types and levels of teacher education programmes that existed in the country so as to bring into operation uniform standard and approach which could be nationally acceptable. Foreign universities are seeking to operate in India either directly or through collaborative arrangement for higher education thereby creating need for talented faculty from the existing talented pool. 2. STATEMENT OF THE PROBLEM There are many retention practices implemented around the globe operated routinely by either small setups or big enterprise, even in private education sector. A large number of talented faculties are leaving the educational institutions before 5 years of service due to absence of proper retention policy of the private educational institutions. The study will investigate significance of empowerment, training, performance appraisal and compensation on retention of talented faculties in management institutes. 3. LITERATURE REVIEW Employee retention refers to policies and practices companies use to prevent valuable employees from leaving their job. It involves taking measures to encourage employees to remain in the organization for the maximum period of time. Hiring knowledgeable people for the job is essential for an employer. But retention is even more important than hiring. This is true as many employers have underestimated costs associated with turnover of key staffs (Ahlrichs, 2000). Most researchers (Bluedorn, 1982; Kalliath and Beck, 2001) have attempted to answer the question of what determines people's intention to quit, unfortunately to date, there has been little consistency in findings. Therefore, there are several reasons why people quit their current job and switch for other organization. The extend of the job stress, low commitment in the organization; and job dissatisfaction usually result in resignation of employees, (Firth 2007). Abundant studies have also certified the relation between satisfaction and behavioral intentions of the employees (Anderson and Sullivan, 1993). Many critical analysis are conducted to minimize the possible occurrence of shortage of highly skilled employees who posses specific knowledge to perform at high levels, as such event will lead to unfavorable condition to many organizations who failed to retain these high performers. They would be left with an understaffed, less qualified workforce that will directly reduce their competitiveness in that particular industry. (Rappaport, Bancroft, & Okum, 2003).

Numerous studies showed how high employees involvement is can relate to the intention of leaving an organization (Arthur 1994). Lacking of opportunities to learn and self development in the workplace can be the key for employee dissatisfaction which leads to turnover. Other studies also indicated that employees will retain in their organization if he or she has a good relationship with the people he or she is working around with (Clarke 2001). FIG. 1: RETENTION MODEL 4. OBJECTIVES OF THE STUDY The Study Has Been Undertaken from the Faculty Point of View To determine various factors that influence in Retention of Faculties in Management Institutes To understand the various facilities a management institution should have in order to retain talented faculty To determine the career viability for management graduates in academics. 4.1 Hypothesis H1: There is significant relationship between appraisal system and employee retention. H2: There is significant relationship between employee compensation and employee retention. H3: There is significant relationship between employee training and employee retention. H4: There is significant relationship between employee empowerment and employee retention. 5. Research Methodology

Sample size of 50 was taken with the help of convenience sampling. The survey was completed within 3 months and respondents include both Male and Female faculties from designations of Lecturer to Professor. The study made use of primary and secondary data. A well-structured questionnaire was prepared to collect primary data. The questionnaire consists of two parts; the first part consists of characteristic of faculties and second part consists of factors. Rating scale is used. The techniques used for the analysis are Descriptive statistics, correlation, Hypothesis Testing Limitations The study is restricted only to teaching staffs. Findings of the study are on the basis of the information provided by the respondents The survey was limited to Bangalore south city only of private institutions The study is restricted only to Management institutions. The study has been undertaken from the faculty point of view. 6. Analysis and Interpretation Descriptive Statistics Gender No. of Respondents Percentage Male 23 46% Age Female 27 54% 25-35 39 78% 36-45 5 10% 46-60 5 10% Marital Status >60 1 2% Unmarried 19 38% Educational Qualification Married 31 62% PG 42 84% Salary Ph.D 8 16% 10000-20000 22 44% 20001-30000 16 32% 30001-40000 4 8% >40000 8 16% Table:1 : Table Descriptive showing the Statistics demographic profile of the respondents

54% of the faculties are female followed by 46% of male faculties. The gap between the percentage of male and female faculties is gradually decreasing. There is a recent trend that males are also attracted towards teaching. 78% of the faculties in the private management institutions are of the age group of 25-35. This shows that there is an interest in young management graduates to take-up the teaching profession. Out of the respondents only 16% of people are hiving a PhD. The organisation should encourage the employees to pursue higher education. 6.1 Hypothesis Testing H1: There is Significant Relationship between Employee Compensation and Employee Retention. From the hypotheses testing, it shows that there is significantly positive relationship between independent variable compensation and dependent variable retention. Retention is positively correlated to compensation as the value is 0.508.H1 is supported as its and its p-value is 0.00 (p< 0.01). In order to retain the employees a fair and equitable compensation system should be maintained by the institution. If the employee perceives an equitable and fair compensation the organisational citizenship will also increase. H2: There is significant relationship between employee empowerment and employee retention. From the hypotheses testing, it shows that there is significantly positive relationship between independent variable empowerment and dependent variable retention. Retention is positively correlated to employee empowerment as the value is 0.632. H2 is supported as p=0.032 (p<0.05). The raise of empowerment of an employee will likely to generate higher retention to the organization.the organisation should provide authority and responsibility to the employees to control and use the organisation resource to achieve organisation goal. This would motivate and satisfy the employees because the organisation has provided responsibilities to them. H3: There is Significant Relationship between Employee Training and Employee Retention. From the hypotheses testing, it shows that there is significantly positive relationship between independent variable training and dependent variable retention. Retention is positively correlated to employee training as the value is 0.594. H3 is supported as the p-value is 0.028 (p<0.05).the organisation should take proper steps to impart training and development

activities to the faculties by encouraging them to attend various FDP programmes which increase the skill set. Once they are confident and motivated to perform a task, they are more likely to be committed to their job and reduced the turnover rate. H4: There is Significant Relationship between Appraisal System and Employee Retention. From the hypotheses testing, it shows that there is significantly positive relationship between independent variable appraisal and dependent variable retention. Retention is positively correlated to appraisal as the value is 0.659. H4 is supported as the p-value is 0.00 (p< 0.01). A fair appraisal system is essential in any organisation to retain valuable employees. It enables employees to understand their job responsibilities and show them the path towards individual growth. Proper Appraisal system with a proper feedback and the linking of performance with the rewards influence the employee to stay back in the institution for a longer period. Employee participation in the appraisal process, equity, fairness and justice will give benefits to organizational commitment 7. FINDINGS There is a significant relationship between compensation, empowerment, training and development, performance appraisal system on the retention of faculty. It is a good sign that younger generation are interested in the Academics 80% of the respondents agree that Training and Developmental activities contributes to retention of Faculties 76% people agree that Health insurance contributes to retention 84% agree that Real time research Projects should be encouraged in the Education Institutions. 82% say BEST TEACHER AWARD should be given per semester 8. SUGGESTIONS Fair and unbiased performance appraisal to be implemented Provide good working academic environment Give more responsibility to faculty members Making provisions for the faculties to attend FDP(faculty development programs) and conferences Stress on Academic Audit and Accountability from Faculties

Give freedom for faculty to take best out of them Faculty exchange programs to be initiated. Encouragement and reward for Research activities Encourage sabbatical leave for the faculties 9. CONCLUSION Faculties are the knowledge Asset of country. More steps have to be taken to retain them in Education sector. Being the most responsible persons of the society, they themselves are Responsible for developing a code of ethics for their profession. Proper recognition and Respect for the work done. Teaching is an activity oriented field that is linked closely to Application. Retention can be achieved by giving primary importance to task orient factors, secondary importance to monetary benefits and occupation setting.institutions have to take interest in developing and retaining faculty taking into consider the various factors of retention. As more and more management institutions are mushrooming in kerala the above study has implications in the kerala scenario too. Further Research areas of retention to be considered: How to improve the nature, productive and meaningful work of the faculty for retention? To what extent real time projects can be provided for faculty apart from academic research and teaching? How to recognize talented faculty and the retentions methods, systems and evaluation methods of retention? REFERENCES [1] C.R.Kothari. (1985). Research Methodology, Delhi, New Age International (p) limited [2] Jayanta Kishore Nandi. (2005). Management Education: Retention Strategies, The Icfai University press [3] V.R.K Prasad. (Eds.) (2006). Education sector: HR Perspective.vol 1. Icfai University Press [4] HRM Review. (2005). The Icfai University press. [5] Talya Bauer. (Eds.) (2011). Journal of Management. Vol. 37, Southern Management Association [6] V.R.K Prasad. (Eds.) (2007). Education sector: HR Perspective.vol 2. Icfai University Press

[7] Dharni P Sinha. (2004). Management Education in India- Perspectives and Challenges. Icfai Books (pg 2-7). [8] Saumya Goyal. (2009). Diversity at workplace. HRM Review, Icfai University Press [9] Dr. D. B. Rane. (2011). Employee job Satisfaction: An essence of Organization, HRM Review. Icfai University Press (pg 10-16) [10] Hashim and Mahmood (2011). State of Commitment to Service Quality Among Academic staffs at Malaysian Universities. Canadian Journal on Scientific and Industrial Research Vol. 2, No. 2, February 2011 [11] Ahlrichs, N.S. (2000). Competing for talent. Key recruitment and retention strategies for becoming an employer of choice: Palo Alto, CA: Davies-Black Publishing. [12] Rappaport, A., Bancroft, E., & Okum, L. (2003). The aging workforce raises new talent management issues for employers. Journal of Organizational Excellence, 23, 55-66 [13] Clarke, K.F. (2001). What businesses are doing to attract and retain employee becoming an employer of choice. Employee Benefits Journal, March, pp. 34-37.