Reducing attrition in organization Peoples Capability Maturity model

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People process and technology are the three main components of any organization. All these components are interrelated. In the case of technology and processes the best in the industry can be picked up and applied across various organizations but for these to succeed the third component (people) must respond accordingly. A finest process of the industry can fail if the people of that organization are not willing to perform or if the people are not competent to perform the given task.

The main essence of any organization is the human aspect of that organization. The entire process of hiring the people who are a perfectly fit the requirement and are willing to perform in the organization and most important those who are culturally fit for the organization.

For small and medium sized organization it is a challenge to attract the right type of candidates at the right time and retain the talent force. This brings into picture the role of the human resources departments' role. Ideally entrepreneurs start with their relatives and family and when they grow they hire talent from the industry. This is where the problem begins. The talent hired is not a cultural fit for the organization. The way the family members work together and the kind of professionalism expected by the new recruit are a complete mismatch this leads to increased attrition in the organization. Increased attrition will consequently increase the burden on the organization for filling up the vacancy for completing the leaving formalities of the employee willing to quit. Here we can see that the expenditure on recruitment and training and development deprive the company of the low cost benefits. Hence attrition has been an area of concern for many organizations as it affects their bottom-line. In sectors like IT/ITES and BPO firms there is huge hue-and-cry of talent shortfall and high attrition rates. On analyzing we can see that the fault lies in the first stage that is hiring the employee that is culturally a misfit for the organization. In such a scenario it can be notices that a best practice of the industry cannot be copy pasted in any other organization

Similarly, for large scale organization setting up the process is not difficult but the implementation in the right manner to yield the desired results is a challenge. The culture is to be build for people to sustain the change that is to be introduced and developing a culture is done over a period of time. Also in today's time when the world is seen as a global village and companies are striving to tackle issues like multi-culture and multi-geographic workforce rapid growth and creating a favorable culture for all is a task for the HR professionals. And in the process creating value for the end customer moving up the value chain and handling the ever growing competition. It involves change in attitude of the leaders and team heads the commitment from the managers a strong leadership that nurtures talent. In big structures every process has a specific flow and in such kind of rigid environment idealism does not work one best practice of some other firm cannot be picked up as it is. One needs to have a more practical approach.

The need of the hour is to take a holistic view of the organizations business, culture, technology, and talent needs and adapt solutions based on an integrated approach towards developing and engaging talent, growing the business and delighting the customers. To motivate attract and retain talented employees organizations need to create an environment of employee engagement by offering tangible rewards quality of work, future growth opportunities, inspirational values, work life balance and improved work force policies. This cannot be achieved by business process reengineering, employee stock options, and 360degree appraisal we need something more holistic and more sustainable.


People Capability Maturity Model (PCMM) developed at SIE (software engineering institute) provides the solution. This model guides the organization in improving their ability to attract develop motivate organize and retain talent based on the best current practices in fields such as human resource, knowledge management and organizational development. The PCMM guides the organization in improving their processes for managing their workforce and developing it. The PCMM helps the organization in assessing the maturity of their workforce and develop a program to enhance its workforce culture and improve the processes to achieve excellence .Peoples capability maturity model available to help the organizations to help them achieve their goals CMM helps organization to build optimal and standardized processes. However it was felt that lasting improvements in performance could not be achieved without involving workforce hence PCMM acts as a benchmark against which the present practices of the workforce are measured. It also serves as a template in designing and applying activities aimed at improvement. It helps organization in improve the skill and competencies of the manpower since it contains distinct levels from initial to optimum level it helps organization to assess its present level and make measurable and concrete steps to advance the levels. It acts as a guide in improvement programs within the organization it provides guidance at two levels viz. the strategic level for building the organization and guidance and practices which can be used in the organizations. Practices used in PCMM are from the past global experiences because they have significant impact on the individual team and organizational performance.

The main premise is that the workforce practices will not survive unless an organization behavior changes to support them. The people capability maturity model has five stages-evolutionary stages, through which an organizations workforce practices and processes evolve. At each level a new system is added to those implemented earlier level. Each overlay of practices raises the level of sophistication through which the organization develops its workforce. Within this environment individuals experience greater opportunity to develop their career potential and re more motivated to align their performance with the objectives of the organization.

PCMM is mainly used by IT/ITES companies historically, Mahindra holiday and resort India has been a pioneer in using PCMM being a non it company. Table-I gives a picture of number of companies in each level of maturity level in India and table-II gives a list of companies that have completed the five stages of maturity and have received an accreditation from QAI

People CMM benefits

Strategic objectives of PCMM

Improve the capability of the organization buy increasing the capability of the workforce

Ensures the process capability is an attribute of the organization rather that n a few people

Aligns and motivates individuals with organizational goals

Retains human assets within the organization

The PCMM helps the organization to

Characteristic the maturity in the human resource practices of the organization

Guide a program me of continuous human resource management

Focus on improving individual and team capabilities

Establishes a culture

Aligns human resource with business goals

The client

Our client has a pan India presence and its head office is located in Mumbai. It follows industries best practices and metric based quality norms for all its operations and processes


High attrition rates in the industry and low availability of talent pool with skills for direct employment without prior training. Client could foresee he raise in expenditure in recruiting, training and development, depriving the client of low cost benefits. Managing attrition became a strategic priority. Client wanted to create an environment of employee engagement by offering quality of work future growth opportunities, inspirational values, work life balance and improved workforce policies.


PCMM was identified as a global and well structured approach for assessing and improving the current people practices the augment of this process would enhance the existing people practices procedures. All the processes were reviewed against the PCMM model then they were changed and improved

A team was formed to define the road map and give a structure to the working. Domain experts and leaders were a part of the core team because the designing and implementation of the new process was to be done by them. Balanced score card approach was selected to design the KRA's of all the employees

The PCMM was initiated by developing the competency framework this was done with the help of team heads and leaders along with functional heads. This detailed information on the competency and the proficiency level was defined for each individual this information is crucial for recruitment and training and development.

Competency based development of employees was initiated this helps the organization to look at the available talent pool and the future requirement. This gave a clear vision to the employees about their future growth prospects the client enhanced their recruitment and training practices and hired a better quality talent. This builds confidence in the employees and creates a positive image of the client


Reduction in attrition

Increased efficiency improved performance

Reduction in time required for each process

Effective training

Revenue increased

Way ahead

The client aspires to attain the level five maturity level.


Certification level-wise (as in March 2006)

Levels Number of Companies

Level-2 5

Level-3 6

Level -4 1

Level -5 18


PCMM Level 5 Companies in India (as on March 2006)

S.No. Name of Company

1. Accenture Services Pvt. Ltd.

2. Caritor (India) Pvt. Ltd.

3. Cognizant Technology Solutions Pvt. Ltd.

4. Computer Sciences Corporation India Pvt. Ltd.

5. Covansys India Ltd.

6. Cranes Software International Ltd.

7. Datamatics Ltd.

8. Honey Well Technology Solutions Lab Pvt. Ltd.

9. IBS Software Services (P) Ltd.

10. Infosys Technologies Ltd.

11. Larsen and Toubro Info tech Ltd.

12. Mind Tree Consulting Ltd.

13. NASTEK Ltd.

14. Perot Systems TSI (India) Ltd.

15. Satyam Computers Services Ltd.

16. Sobha Renaissance Information Technology Pvt. Ltd.

17. Tata Consultancy Services Ltd.

18. Wipro Technologies Ltd.

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