Impact of Human Capital Management on Employee Retention in Automobile Industry with special reference to Selected Companies in Bengaluru

Abstract

 Human Resource Management is all about managing human resource or employees of anorganization in a single focused line where employees are hired only for productivity. Human capital Management is a complete or total development of human potentials for creating organizational value. Human Capital Management is about creating value through people and it is a people oriented philosophy aiming at the development of people.Every employee needs to be empowered with knowledge, resources and relationshipbytheirautomobilecompanies. The main outcome of Human Capital Management practices in Automobile company is the total organizational effectiveness which paves the way to retain the employees within the organization. In particular, the Human Capital Management strategies increase the Organizational Efficiency, Individual Efficiency and create conclusive situations for carrier development of employees. This leads to, monetary and non – monetary benefits to the employees which in turn directly or indirectly create impact on the psychology of the employees to show the loyalty to the organization.The main objective of study is to know the Factors responsible for Human Capital Management in Automobile companies and to classify Employee Perception towards Employee Retention in the study domain, and to measure the Influence of Personal and Organizational Variables on Human Capital Factors and Employee Retention in Automobile Companies. The author finally to know the Impact of Human Capital Management on Employee Retention in Automobile Companies in Bengaluru. The main hypothesis of the study indicates that the Employees in different Managerial Levels do not differ in their Perception of Human Capital Management and there is no significant influence of Years of Service on Human Capital Management perception.There is no significant Impact of Human Capital Factors on Employee Retention. The employees strongly agreed that this system typically interviews the candidates before Placement and provides quality candidates on time and effectively administers the total number of employees required are discussed in the top management level whereas they moderately agreed towards this process of selecting quality candidates based on performance appraisal system scores and the transparency in judging the performance Appraisal System in the organization.To conclude, the Automobile Industry need to find a way to increase employee retention to achieve more organizational goals. Moreover, the organization should understand the potential grievances that prevent employees from leaving. Automobile Industry that continually seeks to improve HCM practices and there is no single policy to retain the employees.