Action Research

KATHMANDU UNIVERSITY SCHOOL OF MANAGEMENT

Course: Leadership and Change Management

Design of Action Research Program at Hydro Solutions (P) Ltd.

High Turnover of Engineers in Hydro-Solutions (P) Ltd

About Hydro-Solution

Hydro Solutions (HSL) is a rapidly expanding, contemporary and conscientious group in hydropower sector providing integrated support to hydropower development that includes identification, development including project engineering. It assumes responsibilities ranging from consulting, planning, design, engineering, project finance, operations and construction supervision. HSL has initiated pre-construction/construction activities of projects with cumulative capacity of 100 MW, the first project commissioning in 2010. The construction of hydropower projects with a total capacity of 500 MW is scheduled to begin in 2011/12 and 2012 onwards, hydropower projects with cumulative capacity of 1000 MW is planned to go to floor. In total, HSL is actively developing numerous hydropower projects with cumulative capacity of about 1500 MW by 2020 ably contributing to sustainable hydropower developments in hydroelectric rich Nepal.

Our multidisciplinary expert teams are technical specialists with a wide variety of backgrounds and diversification of skills, ranging from civil, hydropower, electrical and mechanical engineers, architects, sociologists, geologists, surveyors, environmentalists, economists, financial analysts, industrialist, participation specialist and management consultants. Our teams can be composed to provide tailor made taskforce for all sorts of development projects of varying complexity. We also incorporate expertise of our affiliates/subsidiaries to provide value added services to clients. Hydro Solutions is completely independent of any contractor or manufacturer and exclusively represents the interests of its clients. It is the tenet of the company's philosophy to carry out successfully all projects that are undertaken. Our partnership is transparent, mutually beneficial, open and inclusive.

1. Identification of Problem

It has been observed through the management team of Hydro-Solutions (P) Ltd. that there is a huge turnover of engineers in Hydro Solutions (P) Ltd. Majority of the engineers are the civil engineers whereas others are electrical, mechanical and environmental. There is frequency of turnover of nearly 33% (10 out of 30) a year. More precisely it has been observed that 50% turnover is occurred within last 6 month.

2. Consultation with a behavioral scientist

HSL management team is in consultation with KUSOM HR expert team and agreed that the turnover rate of engineers can be drastically reduced. Improvement can be observed on the basis of at least 50% reduction on turnover rate.

HSL management forms a team of Admin Chief, Engineering Head and Account cum Finance Manger which is called change team to work on the mentioned issue to improve the situation within a week time frame.

3. Research Design

The research is all about to develop a plan to retain the employees in Hydro Solutions (P) Ltd and find out the major factors which determine the high turnover in the engineering department.

Objectives

 To identify the factors associated employee satisfaction and retention in Hydro Solutions (P) Ltd.

 To Design and implement action programs to reduce the turnover rate.

 To document the process and outcomes of the change program in employees turnover rate.

 To derive and disseminate learning associated with the employee turnover rate.

Research Question

 What are the major factors which cause high turnover of engineers in Hydro Solutions (P) Ltd?

 How to retain the engineers in Hydro Solutions (P) Ltd?

Hypothesis

 Turnover will decrease if the company has proper retention policy.

 Turnover will decrease if the company has above average salary of engineers in the market.

 Turnover will decrease if the company has plan for higher education scheme for engineers.

 Turnover will decrease if the company has proper and comfortable work environment.

 Turnover will decrease if the company has quick operating cash disbursement system.

 Turnover will decrease if the company has proper reward and incentive program.

Operational variables

 Working context like room heating and cooling system, computer table and noise from outside

 Company HR retention policy like surprise reward and incentive package

 Degree of authority in the immediate supervisor

 Complex accounting and financing system

 Slow administrative process

 Complex hierarchy system

Methodology

The action research study will be undertaken to solve the existing problem. It is a self-reflective cycle of identifying a situation or problem, planning a change, acting and observing the processes and consequences, and then re-planning, and so forth.

4. Data gathering & preliminary diagnosis

The change team interacts with engineers, conduct a survey and study the process related to the problem to identify the various parameters of manpower turnover. They conducted the survey with objective to know the facts of engineer's turnover and measure to retention them in the company. The survey questionnaires were sent to 30 existing engineers and received response from 24 engineers. The study included the process of providing petty cash for official purposes, cash for outside visit, administration process, hierarchy, authority of employee & situation of the canteen.

5. Feedback to Client

The