A Study of Impact of Leadership Practices in Retaining Talent with Special Reference to Automobile Sector

Abstract

Employee retention by employers to create and foster an environment that motivates existing employees to stay with by having policies and practices in place that address their diverse needs is a systematic effort. An employee must find his job challenging and as per his interest to excel at work and stay with the organisation for a longer period of time. Here, the role of a leader plays an important role. Leadership is a very important aspect that affects the functioning, existence and stability of any group or organisation. There are two main functions that leaders are bounded to perform. The first is central on accomplishing the task towards the attainment of goals such as initiating actions, keeping members attention on the goal, clarifying issues, helping the group develop a procedural plan, evaluating the work done and making expert information available. The second is on developing member's feelings to maintain the strength of the organisation. Leaders are expected to keep interpersonal relations, arbitrate excuse and provide encouragement, give chance to divert, stimulate self-direction and increase interdependence among organisational members. The main purpose of this study was to empirically examine the role of a leader and its impact on employee retention. The study was conducted primarily to evaluate the current leadership practices followed in the sample automobile industries. The results indicate that a leader has a significant impact on the decision of an employee to stay.