bharti telecom performance appraisal in bharti telecom[1]

A PROJECT REPORT

ON

PERFORMANCE APPRAISAL

IN

BHARTI TELECOM

Submitted in partial fulfilment of the requirements for the

award of

POST GRADUATE DIPLOMA IN BUSINESS

ADMINISTRATION

of

SYMBIOSIS CENTRE FOR DISTANCE LEARNING

by

NITI ARORA

1Niti Arora Reg. No.200620949

CANDIDATE’S DECLARATION

I hereby declare that the work which is being presented in the project

report entitled “Performance Appraisal in Bharti Telecom” submitted

in partial fulfillment of the requirement for the award of “Post

Graduate Diploma in Business Administration, PGDBA of Symbiosis

Centre for Distance Learning, Pune” is my original work and not

submitted for the award of any other degree, diploma, fellowship, or

any other similar title or prizes.

Place: New Delhi Niti Arora

Date: 4th June 2010 Reg. No.-200620949


ACKNOWLEDGEMENT

I express my heartiest gratitude to the management of Bharti Telecom

for giving me the opportunity of under going my summer training at their

office.

At the outset I would take this golden opportunity to render my sincere

gratitude to the respected director & project coordinator for their kind

approval to under take this project.

I convey my heartful affection to all those people who helped and

supported me during the course, for completion of my Project Report.

Place: New Delhi Niti Arora

Date: 4th June 2010 Reg. No.-200620949


EXECUTIVE SUMMARY

The performance appraisal is a major tool for identifying these deficiencies

and performance appraisal can be used as a criterion against which selection

devices and development programs are validated. I have evaluated the

performance appraisal method in Bharti Telecom and also suggested effective

measures for improving it. This research has been carried out using both the

primary as well as secondary sources of information.

A satisfactory performance implies doing a job effectively and efficiently,

with a minimum degree of employee disruptions. When employees perform

well the productivity increases. Yet productivity itself implies both concern

for effectiveness and efficiency. Effectiveness refers to goal accomplishment.

Efficiency evaluates the ratio of inputs consumed to outputs achieved. The

greater the output for a given input, the more efficient the employees.

Similarly, if output is a given, the lower input consumed to get that output

results in greater efficiency.


There are basically three purposes to which performance appraisal can be put.

First, it can be used as a basis for reward allocations. Decisions as to who gets

salary increases, promotions, and other rewards are determined by their

performance evaluation. Second, these appraisals can be used for identifying

areas where development efforts are needed. Management needs to spot those

individuals who have specific skill or knowledge deficiencies.


PREFACE

After carrying out this research on the performance appraisal of Bharti

telecom, I have concluded the following:-

Strengths

With the key result areas that are used for measuring individual Performance,

managers are able to focus their efforts and energies in the right direction and

be rewarded for the same. The appraisal is based more on facts than on value

judgments or intuitions and gives appraise full opportunity to discuss his

point of view. Every employee giving in writing their goals for the next

financial year is extremely beneficial since it ensures transparency in the

process and builds up the manager’s trust and confidence in the system,

thereby increasing his motivation and commitment towards work. A set of

Performance factors that are used to evaluate employee’s help in converging

the objectives of the individual and the company and helps organization in

reaching a position of excellence and sustained growth

Problems

The Performance appraisal form of each employee passes through a number

of heads and needs to be signed and rechecked by a number of VP‘s, which

may create lot of confusion and waste large amount of time. The appraisal

comprises of lot of comments and remarks by various heads and VP’s rather

than simple grading on the basis of points, which is not so practical and


convenient in evaluating. The appraisal system is done yearly and not

quarterly. Rewards based on appraisal system are given only occasionally

which hampers the motivation of the employees. Employees don’t get

feedbacks properly as a result they can’t work properly on it.

I have recommended the following:

Broader HRD base: One other thing to be noted is that there is only one HRD

office for the whole organization, which is not sufficient enough. The

company should have a few more of these department controls set up to make

it reachable to every employee of the organization.

The appraisal system should be done on half yearly basis that is at least one

appraisal system in every 6 months. This helps the employees to keep a track

of their own performance also.

The rewards based on appraisal system should be given often and regularly;

this gives motivation to the employees. The rewards should be given either in

monetary basis or reward basis.

Appraisal should be done by the very next boss (e.g., Sales manager should

appraise the business executive who are working under them only). If the

VP’s do the appraisal system in many cases it is found that they are not fully

aware of the person’s performance.


TABLE OF CONTENTS

INTRODUCTION

Indian Telecom Network

Company Profile

BHARTI TELE-VENTURES LIMITED

Business Strategy

Competitive Strengths

ABOUT AIRTEL

Accomplishments

Rewards and Recognitions

COMPANY

Key Developments

Latest Financial Updates on Bharti

CORPORATE STRUCTURE

Management structure

HR Department Structure

SWOT ANALYSIS

Research Methodology

Objectives of my study

Scope of my study


LIMITATIONS OF MY STUDY

Sampling design

Sampling Procedure

DATA COLLECTION

Statistical Tool used

CONCEPTUAL DISCUSSIONS

EMPLOYEE RETENTION AND ENGAGEMENT

Retention Practices

Customer Service Department at Airtel

Profile – Customer Care Agent

Analysis of Questionnaire

CONCLUSIONS

VARIOUS CALL CENTRES

Best practices cited out

American Express

Wipro Spectramind

HCL Technologies

Daksh IBM

Hutch

Findings and Conclusions

Recommendations and Suggestions

Bibliography


INTRODUCTION

Indian Telecom Industry: Path to Growth In so-called “developed”

countries, growth in telecoms is in value added services ,but in”

developing” countries like India, the priority is on providing basic

telephony and using telecoms to improve people’s lives arge populations

imply huge prospective markets. This is why multinational companies

invest in developing economies such as India with a population of nearly a

billion. Until the last decade, telecommunications was state run in India

largely due to economics; the private sector was reluctant to invest in long

gestation industries like telecoms. Learning from the experience of

developed countries, India moved towards privatization of telecoms by

adopting the Telecom Policy of 1994.

India's 21.59 million-line telephone network is one of the largest in the

world and the 3rd largest among emerging economies (after China and

Republic of Korea). Given the low telephone penetration rate - 2.2 per 100

people of population, which is much below the global average, India offers

vast scope for growth. It is therefore not surprising that India has one of

the fastest growing telecommunication systems in the world with system

size (total connections) growing at an average of more than 20 percent

over the last 4 years.


The industry is considered as having the highest potential for investment in

India. The growth in demand for telecom services in India is not limited to

basic telephone services. India has witnessed rapid growth in cellular,

radio paging, value-added services, internet and global mobile

communication by satellite (GMPCS) services. This is expected to soar in

the next few years.

Recognizing that the telecom sector is one of the prime movers of the

economy, the Government's regulatory and policy initiatives have also

been directed towards establishing a world class telecommunications

infrastructure in India. The telecom sector in India therefore offers an ideal

environment for investment.

The telecommunications initiative in the country is lead by Ministry of

Communications through the Department of Telecommunication &

Department Telecom Services and its undertakings for provision of basic

telephone services, national and international long distance

communications, manufacture of complete range of telecom equipment,

research and development, and consultancy services. The Telecom

Commission performs the Executive and Policy making functions. The

Telecom Regulatory Authority of India performs the functions of an

independent regulatory body.


In 1986, telecom operations were moved out of the Department of

Telecommunications (DoT) and given to Mahanagar Tele-phone Nigam Ltd

(MTNL), a public sector corporation. Following that, the government

launched Bharat Sanchar Nigam Limited (BSNL) in an effort to corporatize

the remainder of DoT, empowering the new company to venture into areas

like basic, cellular and Internet services. BSNL has the goal of providing

telephone on demand by 2002. Another important player is the Videsh

Sanchar Nigam Ltd (VSNL), the international access network.

The Telecom Policy of 1994 saw liberalization of the sector. Since even

average telecom services were difficult for the government to provide, basic

and value added services were thrown open to private players. Three to four

leading private players emerged as competition to the incumbents. The Tata

Group, Reliance Infocom and Bharti Televentures have announced plans to

emerge as integrated telecom companies offering end-to-end services to

customers. Hutchison and IDEA Cellular, on the other hand, appears to be

focused on cellular services, with no stated intention of entering other

businesses.


Indian Telecom Network

Telephone Exchanges (No's) 24,869 (310*)

Direct Exchange Lines ('000 lines) 21,594(3,600*)

Tax Capacity ('000 lines) 1,467

PCO (Local + STD) ('000) 520

Satellite Earth Stations (No's) 439

NSD Stations (No's) 18,000

International Subscriber Dialing236 countries/

destinations

Number of Employees

Engineers/Managers 24,465

Technicians/Operators 2,69,971

Finance Managers/Personnel 4,928

Others 1,25,939


COMPANY PROFILE

BHARTI TELE-VENTURES LIMITED

“Building Telecom... Building Relationships.”

"As we spread wings to expand our capabilities and explore new

horizons, the fundamental focus remains unchanged: seek out the best

technology in the world and put it at the service of our ultimate user:

our customer."

Sunil Bharti Mittal (Chairman and Group Managing Director)

Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for

promoting investments in telecommunications services. Its subsidiaries

operate telecom services across India.

Bharti Tele-Ventures is India's leading private sector provider of

telecommunications services with an aggregate of 20,925,948

customers as of March 31, 2006, consisting of 19,579,208 GSM

mobile and 1,346,740 broadband & telephone customers.


Bharti Tele-Ventures Ltd. the largest mobile service provider in the

country, based on the number of customers with mobile operations in

all the 23-telecom circles of India.

Bharti Tele-Ventures also provide broadband & telephone services and

enterprise services. The enterprise services group has two sub-units -

carriers (long distance services) and corporate. All these services are

provided under the Airtel brand.

As per un-audited US GAAP financial statements, for the quarter

ended March 31, 2006, its Total Revenues and EBITDA were Rs.

34,113 million (US$ 767 million) and Rs. 12,782 million (US$ 287

million) respectively and for the full year ended March 31, 2006, its

Total Revenues and EBITDA were Rs. 116,633 million (US$ 2,622

million) and Rs. 43,601 million (US$ 980 million) respectively.

The net profit for the quarter and full year ended March 31, 2006, was

Rs. 6,823 million (US$ 153 million) and Rs. 22,585 million (US$ 508

million) respectively. During the year ended March 31, 2006, mobile

services contributed to 71% of its total revenues.


Business Strategy

Bharti Tele-Ventures' strategic objective is:

“To capitalize on the growth opportunities that the Company believes are

available in the Indian Telecommunications market and consolidate its

position to be the leading integrated telecommunications services provider in

key markets in India, with a focus on providing mobile services”.

The Company has developed the following strategies to achieve its

strategic objective:

Focus on maximizing revenues and margins;

Capture maximum telecommunications revenue potential with

minimum geographical coverage;

Offer multiple telecommunications services to provide customers with

a "one-stop shop" solution;

Position itself to tap data transmission opportunities and offer

advanced mobile data services;

Focus on satisfying and retaining customers by ensuring high level of

customer satisfaction;

Leverage strengths of its strategic and financial partners; and


Emphasis on human resource development to achieve operational

efficiencies.

Businesses

Bharti Tele-Ventures current businesses include -

Mobile services

Fixed-line

National and international long distance services

VSAT, Internet services and network solutions

Competitive Strengths

Bharti Tele-Ventures believes that the following elements will contribute to

the Company's success as an integrated telecommunication services provider

in India and will provide the Company with a solid foundation to execute its

business strategy:

Nationwide Footprint - As of Dec 31, 2005, 100% of India's total

mobile subscribers resided in the Company's twenty-three mobile

circles. These 23 circles collectively accounted for approximately

100% of India's land mass;


Focus on telecommunications to enable the Company to better

anticipate industry trends and capitalize on new telecommunications-

related business opportunities;

The strong brand name recognition and a reputation for offering high

quality service to its customers;

Quality management team with vision and proven execution skills;

and

The Company's strong relationships with international strategic and

financial investors such as SingTel, Warburg Pincus, International

Finance Corporation, Asian Infrastructure Fund Group and New York

Life Insurance.


The key demographics of Bharti Tele-Ventures' mobile circles are set forth below.

All

India

Bharti

Circles

Bharti as % of

All India

Number of circles 23 23 100%

Area of the circles (in '000 sq km)(1) 3,278 3,278 100%

Population in the licensed areas (in Mn)(2) 1,027 1027 100%

Market GSM Mobile subscribers in the

licensed areas (in Mn) (3)

42.12 42.12 100%

Market Total wireless subscribers in the

licensed areas (in Mn) (3)

53.22 53.22 100%

Market DELs in the licensed area (in Mn) (4) 37.7 37.7 100%


ABOUT AIRTEL

Airtel comes to you from Bharti Cellular Limited - a part of the biggest

private integrated telecom conglomerate, Bharti Enterprises. Bharti provides

a range of telecom services, which include Cellular, Basic, Internet and

recently introduced National Long Distance. Bharti also manufactures and

exports telephone terminals and cordless phones. Apart from being the largest

manufacturer of telephone instruments in India, it is also the first company to

export its products to the USA. Bharti is the leading cellular service provider,

with a footprint in 21 states covering all four metros and more than 8 million

satisfied customers.

Vision- To be globally admired for telecom services that delight customers.

Mission- We will meet global standards for telecom services that delight

customers through:

• Customer Service Focus

• Empowered Employees

• Innovative Services

• Cost Efficiency


Accomplishments-

The largest private sector integrated telecommunications services group in

India in terms of the number of customers.

i) Largest Mobile footprint in India, covering 21 of the 23 licensed

areas.

ii) Proven track record of managing growth - both organic as well as

by way of acquisitions.

iii) First and largest private telecommunications services company

offering fixed-line services in India.

iv) Existing foreign shareholders have acquired direct and indirect

equity interests in the Company for a total consideration exceeding

US$1 billion.

v) First private telecommunications company to launch long distance

services.

vi) First off the block to launch fixed-line services in all the four

circles of Delhi, Haryana, Karnataka and Tamil Nadu.


REWARDS AND RECOGNITIONS

The “Techies” award from Information Communications World, an

international business magazine, for four consecutive years (1997 to

2000) for brand excellence, network quality, customer service and value

added service in our Delhi mobile circle.

i) Golden Peacock National Training Award – 1999 to Bharti

Cellular for our Delhi mobile operations from the Institute of

Directors, a non-profit association in India committed to improving

the competitiveness of Indian business by focusing on development

of business leaders, for the best human resources and training

practices.

ii) Ascent – Times of India and Sodexho Pass award in 1999 from the

Asia Pacific HRD conclave to Bharti Cellular for corporate

excellence in the category of most innovative human resource

practices.

iii) Mr. Sunil Bharti Mittal (Chairman and Group Managing Director)

was honored as “One of the Top Entrepreneurs Worldwide" for the

year 2000 and "Stars of Asia" for the year 2001 by international

business magazine, Business Week.


iv) Mr. Sunil Bharti Mittal was selected as the "Businessman of the

year 2002" by Business India.

v) Mr. Sunil Bharti Mittal was awarded the “Dataquest IT man of the

year 2002”.

vi) Mr. Sunil Bharti Mittal was selected the "CEO of the year 2002"

by World HRD congress.

vii) Hewitt Associates awarded the “Best Employer Award” Bharti for

the year 2004. the “BEST INDIAN CARRIER” at Telecom Asia

Awards 2006


COMPANY

Key Developments

South East Asia, Middle East and Western Europe 4 (SEA-ME-

WE-4), the next generation undersea cable systems developed &

owned by a consortium of 16 international telecommunications

companies including Bharti Tele-Ventures Ltd. was launched &

successfully commissioned on December 13, 2005.

Bharti Tele-Ventures was awarded with “Avaya Global Connect

Customer Responsiveness Awards, 2005” for Best Customer

Service in the telecom sector on December 16, 2005,

Mr. Sunil Bharti Mittal, Chairman & Group Managing Director of

Bharti Tele-Ventures Limited was adjudged as “The Best CEO,

Telecommunications, Asia” in the best CEO in the region category

and “Best CEO, India” in the best CEO in the country category in

the sell side view in a survey conducted by institutional investor on

November 02, 2005. The company has also been conferred with 1st

place in the telecommunications sector by sell side for investor

Relations.

Bharti Tele-Ventures was awarded with “Best Managed Company

Award 2005 in the large cap category by Asia Money.


Airtel, introduced India’s first Rs. 999 Lifetime prepaid card with a

life time validity with which a mobile user can continue to receive

calls for a lifetime without having to recharge or worry about the

about the validity period of the card or coupon on December 23,

2005. The lifetime prepaid card also offers the user full talk time

on every future recharge of any denomination.

Vodafone acquired 10% economic interest in Bharti Tele-Ventures

on October 28, 2005. further to the announcement of October 28,

2005 Vodafone subscribed for convertible debentures in Bharti

Enterprises Private Limited representing a 4.39% indirect

economic interest in Bharti Tele-Ventures Limited (“BTVL”) and

completed the acquisition f the 5.61% direct interest in BTVL from

warburo Pincus LLC on November 18. 2005.


LATEST FINANCIAL UPDATES ON BHARTI


CORPORATE STRUCTURE


MANAGEMENT STRUCTURE


The group has been structured to create functional and operational

specialization with a linear vision of business lines and functional areas.

Chairman and Group Managing Director- Sunil Bharti Mittal who is assisted

by two Joint Managing Directors- Akhil Gupta and Rajan Bharti Mittal head

the Company.

The Company also has two Presidents- President Mobile Services and

President Infotel Services; this responsibility includes Fixed-line, Long

Distance and Broadband Services.

The Presidents report to the Group Chairman and Managing Director. The

head of units and SBUs report to the respective business's President.

An apex team of Corporate Directors has been constituted. The corporate

directors have supervisory and strategic responsibilities for functional areas

across business lines.


The directors oversee functional areas including Business Development,

Human Resources, Marketing, Corporate Communication, IT & Technology,

Finance, Legal, Corporate Affairs, Corporate Strategy & Planning and

Supervisory Director cum Chief Mentor - mobility.

The organization structure is designed to ensure that identical businesses are

run along similar lines and best resources in any functional field, be tapped to

serve the best interests of the entire group.

The structure also defines the role of the Head of the units who are totally

empowered to manage their respective companies and is fully responsible for

business operations to build world-class organizations with a high degree of

customer focus

.



Priyadarshin i G UPTA

M gr - HR (R ecruitment & Induction)Band 1

Pooja AGA RWAL M gr - HR (O D)

Band 1

Dinesh NEG IA M gr - HR (E SS & PM S)

Band 1

N. SR IK ANTDG M - H R Operations

Band 2

Bir endr a RA WAT

A M gr - Administ rationBand 1

Ritika C HAN DHO KA M gr - HR (E mp C omm)

Band 1

Susmita SinghExec - H R (Associate Mgmt

Band F

M oushu mi ChoudharyOff - Ad min

Band F

Juhi MISH RASr M gr - H R & Admn/Associate Mmgmt

Band 2

Anjana P SINGH ALExe - Tr aining

Band F

Shw eta M OG HAA M gr - CS Training

Band 1

Vibha GAM B HIRA M gr - CS Training

Band 1

Inderpal S IN GHA M gr - CS Training

Band 1

Varun JALO TAExe - C S Training

Band 1

Prabodh TRE HANOff - C S Training

Band F

Pallavi JAINOff - C S Training

Band F

Sw ati C HOU DHA RYOff - C S Training

Band F

Pradeep GULA TIHead - Traiining & D ev

Band 2

Rajesh K umar SINGH

A M gr - SecurityBand 1

Rakesh B AKSH ISr M gr - Security

Band 2

Ruben SELV ADO RAYGM - HRBand 3

HR Department Structure

Strengths

Right products, quality and

reliability.

Superior product performance vs.

competitors.

Brand Image

Products have required

accreditations.

High degree of customer

satisfaction.

Good place to work

Lower response time with

efficient and effective service.

Dedicated workforce aiming at

making a long-term career in the

field.

Weaknesses

Some gaps in range for certain

sectors.

Not popular in the international

market

Delivery-staff need training.

Customer service staff needs

training.

Processes and systems, etc

Management cover insufficient.

Sectoral growth is constrained by

low unemployment levels and

competition for staff


SWOT ANALYSIS

Opportunities

Profit margins will be good.

End-users respond to new ideas.

Could extend to overseas.

New specialist applications.

Could seek better supplier deals.

Fast-track career development

opportunities on an industry-wide

basis.

An applied research centre to

create opportunities for

developing techniques to provide

added-value services

Threats

Legislation could impact.

Existing core business distribution

risk.

Retention of CSD staff critical.

Vulnerable to reactive attack by

major competitors.

The cost of telecom and network

infrastructure is much higher in

India.

Lack of infrastructure in rural

areas could constrain investment.

High volume/low cost market is

intensely competitive.


OBJECTIVES OF MY STUDY

The following are the research objectives of my study:-

1. To make a study of Bharti telecom as a whole.

2. To study about different Appraisal methods

3. To study and analyze the Appraisal system and practices prevailing in

Bharti Telecom

4. To suggest effective measures to improve the Appraisal system.


MANAGERIAL USEFULNESS OF THE STUDY

Appropriate appraisal methods helps in increasing profit by a cut in

cost incurred for separation as well as for new recruitments.

Appropriate appraisal methods can help the management decide not to

outsource the call centre, which they are planning to do.

Appropriate appraisal methods can help the organisation in retaining

their employees for a longer time

SCOPE OF MY STUDY

My study includes the employees of the Call Centre who are on the payrolls

of Bharti. The sample covered mostly agents i.e. Customer Care

Representative and few Team Leaders. The Departments covered are:

Hotline

Caretouch


LIMITATIONS OF MY STUDY

One of the major problems faced was to get the questionnaire filled.

Since the call centre employees work in shifts and they don’t have

much of free time on the floor, it was difficult for me to get enough

time with them.

Since most of the call centre employees are not on the payrolls of

Bharti, I could cover a sample size of only 30 employees.

During the benchmark study on Performance Appraisal practices, I

was not allowed to meet the employees of other call centres during the

shift timings inside the office.

Since Performance Appraisal is a sensitive and furtive issue for the

Company, I was not given access to all the data related to Performance

Appraisal.

Workstation and PCs were not available which led to increased time

and effort in completion of project.


SAMPLING DESIGN

Universe: Customer Care Deptt.

Sampling unit: Employees in Hotline & Caretouch (Call

Centre)

Sample size: 30 employees

SAMPLING PROCEDURE

Simple Random Sampling to select the sample from the call centre

DATA COLLECTION

Sources of data: 1) Primary Data which included the input

received from directly the employees

through questionnaire and interview

2) Secondary data from the HR manual,

policy manuals, books and internet etc.

Method of collecting data: 1) Questionnaire (Schedule) & Interview

method

2) Survey and PI method for the

benchmark study

STATISTICAL TOOL USED

The data was shown with the help of matrix table and bar diagrams.


LITERATURE REVIEW

INTRODUCTION TO PERFORMANCE APPRAISAL

The history of performance appraisal is quite brief. Its roots in the early 20th

century can be traced to Taylor's pioneering Time and Motion studies. As a

distinct and formal management procedure used in the evaluation of work

performance, appraisal really dates from the time of the Second World War -

not more than 60 years ago. Yet in a broader sense, the practice of appraisal is

a very ancient art. In the scale of things historical, it might well lay claim to

being the world's second oldest profession!

There is, says Dulewicz (1989), "... a basic human tendency to make

judgements about those one is working with, as well as about oneself."

Appraisal, it seems, is both inevitable and universal. In the absence of a

carefully structured system of appraisal, people will tend to judge the work

performance of others, including subordinates, naturally, informally and

arbitrarily. The human inclination to judge can create serious motivational,

ethical and legal problems in the workplace. Without a structured appraisal

system, there is little chance of ensuring that the judgements made will be

lawful, fair, defensible and accurate. Performance appraisal systems began as

simple methods of income justification. That is, appraisal was used to decide

whether or not the salary or wage of an individual employee was justified.


The process was firmly linked to material outcomes. If an employee's

performance was found to be less than ideal, a cut in pay would follow. On

the other hand, if their performance was better than the supervisor expected, a

pay rise was in order. Little consideration, if any, was given to the

developmental possibilities of appraisal. If was felt that a cut in pay, or a rise,

should provide the only required impetus for an employee to either improve

or continue to perform well. Pay rates were important, yes; but they were not

the only element that had an impact on employee performance. It was found

that other issues, such as morale and self-esteem, could also have a major

influence. As a result, the traditional emphasis on reward outcomes was

progressively rejected. In the 1950s in the United States, the potential

usefulness of appraisal as tool for motivation and development was gradually

recognized. The general model of performance appraisal, as it is known

today, began from that time.


Modern Appraisal

Performance appraisal may be defined as a structured formal interaction

between a subordinate and supervisor, that usually takes the form of a

periodic interview (annual or semi-annual), in which the work

Performance of the subordinate is examined and discussed, with a view to

identifying weaknesses and strengths as well as opportunities for

improvement and skills development.

In many organizations - but not all - appraisal results are used, either

directly or indirectly, to help determine reward outcomes. That is, the

appraisal results are used to identify the better performing employees who

should get the majority of available merit pay increases, bonuses, and

promotions.

By the same token, appraisal results are used to identify the poorer

performers who may require some form of counseling, or in extreme

cases, demotion, dismissal or decreases in pay. (Organizations need to be

aware of laws in their country that might restrict their capacity to dismiss

employees or decrease pay.)

Whether this is an appropriate use of performance appraisal - the

assignment and justification of rewards and penalties - is a very uncertain

and contentious matter.


PERFORMANCE APPRAISAL-DIFFERENT SCHOOLS

OF THOUGHT

There are many respected sources - researchers, management commentators,

psychometricians - who have expressed doubts about the validity and

reliability of the performance appraisal. Some have even suggested that the

process is so inherently flawed that it may be impossible to perfect it

(Derven, 1990, for example).

At the other extreme, there are many strong advocates of performance

appraisal. Some view it as potentially "... the most crucial aspect of

organizational life" (Lawrie, 1990).

Between these two extremes lie various schools of belief. While all

endorse use the use of appraisal, there are many different opinions on how

and when to apply it.

There are those, for instance, who believe that performance appraisal has

many important employee development uses, but scorn any attempt to link

the process to reward outcomes - such as pay rises and promotions.


This group believes that the linkage to reward outcomes reduces or

eliminates the developmental value of appraisals. Rather than an

opportunity for constructive review and encouragement, the reward-linked

process is perceived as judgmental, punitive and harrowing.

For example, how many people would gladly admit their work problems

if, at the same time, they knew that their next pay rise or a much-wanted

promotion was riding on an appraisal result? Very likely, in that situation,

many people would deny or downplay their weaknesses.

Nor is the desire to distort or deny the truth confined to the person being

appraised. Many appraisers feel uncomfortable with the combined role of

judge and executioner.

Such reluctance is not difficult to understand. Appraisers often know their

appraises well, and are typically in a direct subordinate-supervisor

relationship. They work together on a daily basis and may, at times, mix

socially. Suggesting that a subordinate needs to brush up on certain work

skills is one thing; giving an appraisal result that has the direct effect of

negating a promotion is another.

The result can be resentment and serious morale damage, leading to

workplace disruption, soured relationships and productivity declines.


On the other hand, there is a strong rival argument which claims that

performance appraisal must unequivocally be linked to reward outcomes.

The advocates of this approach say that organizations must have a process

by which rewards - which are not an unlimited resource - may be openly

and fairly distributed to those most deserving on the basis of merit, effort

and results. There is a critical need for remunerative justice

In organizations. Performance appraisal - whatever its practical flaws - is

the only process available to help achieve fair, decent and consistent

reward outcomes.

It has also been claimed that appraises themselves are inclined to believe

that appraisal results should be linked directly to reward outcomes - and

are suspicious and disappointed when told this is not the case. Rather than

feeling relieved, appraises may suspect that they are not being told the

whole truth, or that the appraisal process is a sham and waste of time.


OBJECTIVES OF THE PERFORMANCE

APPRAISAL PROCESS

Clearly define job expectations Improve communication between

employee and supervisor

Align employee goals with the overall goals of the organization,

division and department

Link performance with rewards such as compensation increases,

promotions, recognition, assignments, professional development

opportunities, and career advances

Identify employee training and professional development needs

Establish clear-cut intervention strategies when performance does not

meet identified job requirements

Process is aligned with the organization’s Core Values:

Respect for one another

Cooperation

Intellectual and spiritual growth

Creative imaginings

Pride in a job well done 45

Niti Arora Reg. No.200620949

PURPOSE

To appraise employee’s performance and potential on an annual basis

predefined parameters with a view to facilitate his advancement in the

company’s hierarchy, by way of promotions and training and

development.

SCOPE

The procedure covers all categories of company employees appraised

through an appraisal system using predefined appraisal form. For

employees in level 1 to 9, the review period is from October 1 to

September 30 of next year and for employees in levels 10 to 20 the

review period is from April 1 to March 31 of the next yer. Each format

is independently designed to meet the appraisal needs of the respective

levels of employees. A support performance appraisal form provides

an independent on appraisal by another officer in the company officer

in the company, to the reviewer. The support form essentially seeks to

minimize element of bias in assessment.

REFERENCES

1. Appraisal forms A, B, C & D

2. Support appraisal forms A, B, C & D

PROCEDURE46

Niti Arora Reg. No.200620949

Appraisal forms of appropriate categories, as indicated in Para 5.6, are

prepared after recording/ entering the requisite data of appraise on its

first page along with support appraisals forms.

These are checked with the description of existing manpower in

various divisions/ departments.

Instructions / Rules for appraisal are updated and made readily

available.

Division / department wise sets of appraisal forms along with

guidelines are issued to heads of various divisions / departments

around the end of the appraisal year for which appraisal is being done.

Request is made to each HOD to complete the appraisal process within

next six to eight weeks and return the forms under ‘confidential’ cover

to the management development team (MDT) by a scheduled date.

Support appraisal form which records evaluation by another officer, as

decided by the HOD, indirectly associated of the appraise is provided to the

reviewer as an independent opinion about the employee performance. The

reviewer not only considers this appraisal but also give his own assessment

about the appraise in the place provided for him in the main appraisal form.

All these appraisals are completed as per following procedure:


(i) For employees / officers up to level-14- GM/CC* will be the

acceptor.

(ii) For officers at level-15 - EDs/ CGMs** will be the acceptor.

(iii) For officers at level-16 & 17, EDs/ CGMs ** will be the

appraisers/ Reviewers and directors will be the acceptor.

(iv) For officers at level-18 - GMs/ CCs/ EDs/ CGMs will be the

Appraiser, EDs/ CGMs/ Directors will be the reviewers and

MD will be the acceptor.

(v) For officers at level-19, EDs/ directors will be the

Appraisers, directors/ MD will e the reviewers and all the

appraisals will finally be accepted by MD.

(vi) For officers at level-20, directors will be the appraisers and

MD will be the reviewer / acceptor.

* Heads of division only if GM not in position and Head of the

Department only if Head of division is also not in position.

** Not below GM/ CC if ED/ CGM not in position.


For director level positions, C&MD is the appraising officer and the

forms are sent to the ministry of petroleum and natural gas.

The completion of appraisals is expedited by the MDT with the help of

reminders/ personal follow up till all forms are received. All

appraqisals are chedked by the MDT with respect to the instructions/

guidelines for fillijng up appraisals blanks, for the relevant employee

level, which have already been issued to heads of various divisions /

departments.

The assessment of the appraisal is finally converted into a numerical

value on a predefined rating scale. The scale of assessment /

description for various levels of employees is given below:


METHODS OF PERFORMANCE

APPRAISAL

Several methods and techniques are used for evaluating employee

performance. These may be classified into two broad categories

as shown in the following Figure.

Performance Appraisal

Traditional Methods Modern

Confidential report

Free form or essay

Straight ranking

Paired comparisons

Forced distribution

Graphic rating scales

Checklist method

Critical incidents

Group appraisal

Field review

Assessment centre

Human resource

accounting

Behaviourally anchored

rating scales

Appraisal through MBO


1. CONFIDENTIAL REPORT

This is a traditional form of appraisal used in most

government organizations. A confidential report is a report

prepared by the employee’s immediate superior. It covers the

strengths and weaknesses, main achievements and failure,

personality and behaviour of the employee. It is descriptive

appraisal used for promotions and transfers of employees. But

it involves a lot of subjectivity because appraisal is based on

impressions rather than on data. No feedback is provided to

the employee being appraised and, therefore, its credibility is

very low. The method focuses on evaluating rather than

developing the employee. The employee who is appraised

never knows his weaknesses and the opportunities available

for overcoming them. In recent years a negative confidential

report is required to be communicated to the employee. If the

employee disagrees, a noting to that effect has to be made on

the report. This has been made necessary by trade unions and

courts.


2. FREE FORM OR ESSAY METHOD

Under this method, the evaluator writes a short essay on the

employee’s performance on the basis of overall impression.

The description is expected to be as factual and concrete as

possible. An essay can provide a good deal of information

about the employee especially if the evaluator is asked to give

examples of each one of his judgments. But this method

suffers from several drawbacks. First, it involves bias as

evaluation is not based on specific performance dimensions

related to the job. Bias may also arise because rating is in the

evaluator’s own words. The appraisal may be loaded with a

flowery language rather than appraisal of actual performance.

There is no common criterion for appraisal. Secondly, the

quality of appraisal depends on the writing ability of the

evaluator rather than on employee performance. One evaluator

may be a good essay writer but the other may not be. Thirdly,

it is a very time consuming method of appraisal. This method

may be appropriate for assessing senior executive where the

number involved is small. Fourthly, it is not possible to

compare two essay appraisals due to variations in their length

and contents.


3. STRAIGHT RANKING METHOD

In this technique, the evaluator assigns relative ranks to all

the employees in the same work unit doing the same job.

Employees are ranked from the best to the poorest on the basis

of overall performance. The ‘whole man is compared with the

whole man’ without analyzing performance. The relative

position of an employee is reflected in his numerical rank.

For instance, if five persons A, B, C, D and E are to be ranked

the ranking may be as follows:

EMPLOYEE RANK

A 2

B 1

C 5

D 4

E 3

Straight ranking is one of the oldest and simplest methods. It is

time saving and a comparative evaluation technique of appraisal.

But there are several weaknesses in this method. First, it involves

bias and snap judgement because appraisal is not based on

specifically defined measures of job related performance.


Secondly, ranking of individuals having varying behaviour

patterns or traits is difficult especially when a large number of

persons are to be rated. Thirdly, the method only indicates how a

person stands in relation to others in the group but does not tell

how much better or worse he is than another.

4. PAIRED COMPARISONS METHOD

This is a modified form of man to man ranking. Herein, each

employee is compared with all the others in pairs one at a time.

The number of times an employee is judged better than the others

determines his rank. Comparison is made on the basis of overall

performance. The number of comparisons to be made can be

decided on the basis of the following formula:

N(N-1) , Where N is the number of persons to be compared. This

2

method is illustrated below: -

A B C D E Final Rank

A - - - + + 3

B + - - + + 2

C + + - + + 1

D - - - - + 4

E - - - - - 5


Here in, plus (+) sign implies the employee is considered better

and minus (-) sign means worse than the other employee in the

pair. E gets the highest number of plus signs, therefore, his rank

is the highest and so on. Paired comparison method is easier and

simpler than the ranking method. But it is subjective because

appraisal is not based on specific job related performance.

Secondly, it becomes very cumbersome when the number of

employees to be rated is large.

5. FORCED DISTRIBUTION METHOD

In this technique, the rater is required to distribute his ratings

in the form of a normal frequency distribution as shown in the

following Figure. The purpose is to eliminate the rater’s bias

of central tendency. Here also ranking technique is used. This

method is highly simple to understand and easy to apply.

Secondly, it helps to reduce bias involved in straight ranking

and paired comparisons. But in this method employees are

placed in a certain category and not ranked within a category.

The method is based on the questionable assumption that all

groups of employees have the same distribution of good and

poor performances. The rater does not explain why an

employee is placed in a particular category. Specific job


related performance criteria are not used in ratings. The rater

may resent the restriction placed on his freedom of choice.

10% 20% 40% 20%

10%

Poor Below Average Good

Excel lent

Average

Figure : Forced distribution curve.

6. GRAPHIC RATING SCALES

It is a numerical scale indicating different degrees of a particular trait. The rater is

given a printed form for each employee to be rated. The form contains several

characteristics relating to the personality and performance of employee.

Intelligence, quality of work, leadership skills, judgement, etc are some of these

characteristics. The rater records his judgment on the employee’s trait on the scale.

The numerical points given to an employee are added up to find out his overall

performance a standing in the group. Rating scales are of two types viz, continuous


No.

of

Em

ploy

ees

and discontinuous. In continuous scale the degrees of a trait are measured in

numbers ranging from 0 to 5 whereas in a discrete or discontinuous scale

appropriate boxes or squares are used. The following Figure contains rating scales.

Poor Average Good Excellent

Quantity of work 0 1 2 3 4 5

Quality of work

Job knowledge

Dependability

Attitude

CONTINUOUS RATING SCALE

Attitude

No Indi f fe ren t In te res ted Enthus ias t ic Very

in te res t en thus ias t ic

Discrete or Discontinuous Rating Scale

Fig. RATING SCALES

The rating scale method is widely used as it is easy to understand

and use. It allows a statistical tabulation of scores and a ready

comparison of scores among the employees is possible. It is


economical to design and administer rating scales. The approach

is multi dimensional as several significant dimensions of the job

can be considered in evaluation. But the rating is generally

arbitrary and subjective because specific job related performance

criteria are not considered. Secondly, it is assumed that each trait

is equally important for all jobs. Thirdly, the descriptive words

used in rating scales e.g. ‘dependable’ may have different

meanings to different raters. There is an implication that high

rating on one factor can compensate for low score on other

factor. Fourthly, the method imposes a heavy burden on the rater.

he has to evaluate report performance on several factors each

having five degrees. In practice, ratings tend to cluster on the

high side. A supervisor often tends to rate his subordinates high

to avoid criticism from them. To minimize this bias, the rater

may be asked to give reasons to justify his rating.

7. CHECKLIST METHOD

A checklist is a list of statements that describe the characteristics

and performance of employees on the job. The rater checks to

indicate if the behaviour of an employee is positive or negative

to each statement. The performance of an employee is rated on

the basis of number of positive checks. There are three types of

checklists that can be used


a. Simple checklist (Table as given below). Wherein equal

importance is given to each statement,

b. Weighted checklist (Figure). In which weights are assigned to

different statements to indicate their relative importance, and

c. Forced choice checklist (Figure). Wherein five statements are

given for each trait, two most descriptive statements, two least

descriptive statements and one neutral statement. The rate is

required to check one statement each from the most

descriptive and least descriptive ones. The aim is to minimize

the rater’s personal bias.

TABLE : SIMLE CHECKLIST

1. Is the employee regular on the job Yes/ No

2. Is the employee respected by his subordinates Yes/ No

3. Is the employee always willing to help his peers Yes/ No

4. Does the employee keep the equipment in order Yes/ No


TABLE : FORCED CHOICE BLOCK

1. Regularly on the job Most Least

(a) Always regular

(b) Informs in advance for absence /

delay

(c) Never regular

(d) Remains absent without prior notice

(e) Neither regular nor irregular

TABLE: WEIGHTED CHECKLIST

S.No. Traits Weights Performance

Ratings

(Scale 1 to 5)

1. Attendance 0.5

2. Knowledge of the job 1.0

3. Quantity of work 1.0

4. Quality of work 1.5

5. Dependability 1.5

6. Interpersonal relations 2.0

7. Organisational loyalty 1.5


8. Leadership potential 1.5

Checklist method is a descriptive technique and it provides

concrete examples of evaluation. But is a time consuming and

expensive method as a different checklist must be developed for

each job category. Secondly, it is difficult to assemble, analyse

and weigh several statements that properly describe job related

behaviour and performance. The statements may be interpreted

differently by different raters. The rater may not know which

statement contributes most to successful performance. Trained

raters are required. But they must resist the restrictions imposed

on them under the forced choice method.

8. CRITICAL INCIDENTS METHOD

In this method the supervisor keeps a written record of critical

(either good or bad) events and how different employees behaved

during such events. The rating of an employee depends on his

positive / negative behaviours during these events. These critical

incidents are identified after thorough study of the job and

discussion with the staff. For example, a fire, a sudden

breakdown of machinery, a serious accident, etc may be

identified as critical incidents for the working of a factory. Table

(as given below) illustrates the behaviour of five workers during

machine breakdown.


Worker Reaction Score

A Informed the supervisor immediately 5

B Became anxious of loss of output 4

C Tried to repair the machine 3

D Complained of poor maintenance 2

E Was happy to get forced rest 1

Critical incidents method helps to avoid vague impressions and

general remarks as the rating is based on actual records of

behaviour/ performance. The feedback from actual events can be

discussed with the employee to allow improvements. The rater

can fully defend his ratings on the basis of his record. But this

method suffers from several problems. First, it is very time

consuming and cumbersome for the superior to maintain a written

record for each employee during every major event. Secondly,

quoting incidents after considerable time lapse may evoke

negative emotions from employees. Thirdly, subjective judgment

of supervisor is involved in deciding critical incidents and

‘desirable’ response to an event. Fourthly, the supervisor may

commit errors in recording behaviours of different employees

during a short duration event. Sixthly, critical incidents occur

infrequently and therefore, a continuous record of performance


might not be available. Lastly, the employees are likely to

become concerned with what the supervisor records rather than

with daily job routine.

9. GROUP APPRAISAL METHOD

Under this method, a group of evaluators accesses employees.

This group consists of the immediate supervisor of the

employee, other supervisors having close contact with the

employee’s work, head of the department and a personnel

expert. The group determines the standards of performance for

the job, measures actual performance of an employee, analyses

the causes of poor performance and offer suggestions for

improvements in future. The advantage of this method is that

it is simple yet more thorough. Due to multiple evaluators

personal bias is minimized. But it is a very time consuming

process.

10. FIELD REVIEW METHOD

In this method, a training officer from the personnel

department interviews line supervisors to evaluate their

respective subordinates. The interviewer prepares in advance

the questions to be asked. By answering these questions a

supervisor gives his opinions about the level of performance


of his subordinate, the subordinate’s work progress, his

strengths and weaknesses, promotion potential, etc. The

evaluator takes detailed notes of the answers which are then

approved by the concerned supervisor. These are then placed

in the employee’s personnel service file.

This system relieves the supervisor of the need for filling in

appraisal forms. The supervisor’s personal bias is reduced due

to the active involvement of the personnel officer. The ratings

are usually classified into three categories, i.e. outstanding,

satisfactory and unsatisfactory. This is, however, a time

consuming method. The success of this method depends upon

the competence and sincerity of the interviewer.

The traditional methods given above all focus more on the

traits of an employee than on his job performance. In the

absence of predicated performance criteria or standards, the

personal bias or subjectivity of the evaluator affects the

ratings.

One study of appraisal in general electric Co., USA revealed that

the traditional approach to performance appraisal caused the

following responses:


(a) The very nature of the appraisal system led to criticism.

(b) Criticism exercised a negative impact on goal

attainment.

(c) Criticism increased antagonism and defensiveness

among employees resulting in inferior performance.

(d) Praise had little effect one way or the other.

The traditional systems of appraisal are based on judgment role

of the supervisor.

In order to overcome these weaknesses some new techniques of

performance appraisal have been developed. These techniques are

described below:

MODERN METHODS

11. ASSESSMENT CENTRE METHOD

An assessment centre is a group of employees drawn from

different work units. These employees work together on an

assignment similar to the one they would be handling when

promoted. Evaluates observe and rank the performance of all

the participants. Experienced managers with proven ability


serve as evaluators. This group evaluators all employees both

individually and collectively by using simulation techniques like role

playing, business games and in basket exercises. Employees are evaluated

on job related characteristics considered important for job success. The

evaluators observe and evaluate employees as they perform jobs.

Assessments are done generally to determine employee potential for

promotion. The evaluators prepare a summary report and feedback is

administered on a face to face basis to the employees who ask for it.

An assessment centre generally measures interpersonal skills,

communicating ability, ability to play and organize, etc. Personal

interviews and projective tests are used to assess work motivation, career

orientation and dependence on others. Paper and pencil tests are used to

measure intellectual capacity.

Assessment centres are not only a method of appraisal but helps to

determine training and development needs of employees and provide data

for human resource planning. This method is also used to select students

for entry level positions. All candidates get an equal opportunity to prove

their merit. They are evaluated by a team of trained assessors under

similar conditions Rater’s personnel bias is reduced. But this is a time

consuming and expensive method. Further the candidates who receive a

negative report from the assessment centre may feel demoralized. In order


to make this method effective, it is necessary to state the goals clearly, to

obtain top management support, to conduct job analysis, to train the

assessors, and to periodically evaluate and revise the assessment

programme.

12. HUMAN RESOURCE ACCOUNTING METHOD

Human resources are a valuable asset of any organization. This asset can

be valued in terms of money. When competent and well trained

employees leave an organization the human asset is decreased and vice

versa. Under this method performance is judged in terms of costs and

contributions of employees. Costs of human resources consist of

expenditure on human resource planning, recruitment, selection,

induction, training, compensation, etc. Contribution of human resources is

the money value of labour productivity or value added by human

resources. Difference between cost and contribution will reflect the

performance of employees.

This method is still in the transitionary stage and is, therefore, not popular

at present.

13. BEHAVIOURALLY ANCHORED RATING SCALES (BARS)

This method combines graphic rating scales with critical incidents method.

BARS are descriptions of various degrees of behaviour relating to specific


performance dimensions. Critical areas of job performance and the most

effective behaviour for getting results are determined in advance. The rater

records the observable job behaviour of as employee and compares these

observations with BARS. In this way an employee’s actual job behaviour is

judged against the desired behaviour. The steps involved in constructing

BARS are as follows:

(a) Identify critical incidents: Persons with knowledge of the job to be

appraised (job holders/ supervisors) describe specific examples of

both effective and ineffective job behaviours.

(b) Select performance dimensions: The persons than cluster the

behavioural incidents into a smaller set (usually five to ten) of

performance dimensions.

(c) Retranslate the incidents: Another group of knowledgeable

persons assign each incident to the dimension that it best describes.

Incidents for which there is less than 75 percent agreement with the

first group are not retranslated.

(d) Assign scales to incidents: The second group rates each incident

on a seven or nine point scale. Rating is done3 on the basis of how

well the behaviour described in the incident represents performance

on the appropriate dimensions. Means (averages) and standard

deviations are then calculated for the scale values assigned to each


incident. Incidents that have standard deviations of 1.5 or less (on a

seven point scale) are included in the final anchored scales.

(e) Develop final instrument: A subset of the incidents that meets both

the retranslation and standard deviation criteria is used as a

behavioural anchor for the final performance dimensions. A final

BARS instrument typically comprises a series of vertical scales

(one scale per dimension) that are endorsed by the included

incidents. Each incident is positioned on the scale according to its

mean value.

BARS method has several advantages. First, the ratings are likely to be

accurate because these are done by experts. Secondly, the method is more

reliable and valid as it is job specific and identifies observable and

measurable behaviour. The rater’s bias is reduced. Systematic clustering of

critical incidents helps in making the dimensions independent of one another.

Thirdly, ratings are likely to be more acceptable due to employee

participation. Fourthly, the method provides a basis for setting developmental

goals for employees as it differentiates between behaviour, performance and

results. Lastly, the use of critical incidents is useful in providing feedback to

the employee being rated.

BARS method, however, suffers from weaknesses. First, it is very time

consuming and expensive to develop BARS for every job. Secondly,


behaviours used are more activity oriented than results oriented. Several

appraisal forms are required to accommodate different types of jobs in an

organization. Despite its intuitive appeal, this method is not necessarily

superior to the traditional methods of appraisal.

Always shows understanding,

sensitivity, support, courtesy, fact

and cooperation in interaction with

others.

could be expected to explain to

patient that the nurse is

supposed to roll up the bed and

show patient how to call the

nurse.

could be expected to remain

calm and polite when

confronted by an abrupt

visitor, offering assistance to

help with the problem.

Usually shows understanding,

sensitivity, support, courtesy, tact


others.

could be expected to become

frustrated in some staff

dealings.

could be expected to resent

assistance offered by coworker


or supervisor.

Seldom shows understanding

sensitivity, support, courtesy, tact


others.

Could be expected to be

concerned with own problems

and not to help others.

could be expected to speak

abruptly and discourteously

when answering customer’s

inquiry about an entire dish

and was new to the regular

menu.

FIGURE : Behaviourally Anchored Rating Scale

(SOURCE: Hammer, W.C. & Schmidt, FI (Eds.) Contemporary

Problems in Personnel, Chicago, 1977)


14. APPRAISAL BY RESULTS OR MBO

The concept of management by objectives (MBO) was developed

by Peter Drucker in 1954. He called it ‘management by

objectives and self control’. Since then MBO has became an

effective and operational technique of performance appraisal and

a powerful philosophy of managing. It is also known as work

planning and review or goal setting approach to appraisal.

Management by objectives has been defined as “a process

whereby the superior and subordinate managers of an

organization jointly identify its common goals, define each

individual’s major areas of responsibility in terms of result

expected of him ad use these measures as guides for operating

the unit and assessing the contributions of each of its members.

In other words, MBO involves appraisal of performance against

clear, time bound and mutually agreed job goals.


CONCEPTUAL DISCUSSIONS

1. Overview of Working of a Call Centre

Its not all about the pay package clubbed with perks, and weekend

parties. There’s more to it than meets the eyes. There are many of you

out there who have visited a call centre, and left the place much

impressed by its décor, and the architecture. But the few who have

ever set their foot on the floor know the other side of the story.

2. It’s a different world altogether………….!!!

Rows of two-feet by four-feet cubicles run from one end to the other,

all of which are filled by agents who are busy responding to customer

queries. The call centre executives receiving the calls are supposed to

adhere to strict guidelines. While each and every action of the

executives is monitored through the CCTV cameras, their conversation

with the customers also gets recorded. They have a specific AHT

(average handling time) that they have to stick to. The AHT ranges

from 3-4 minutes to several hours, depending upon the type of the

work handled by a call centre. Exceeding that time calls for an

explanation, and affects their incentives, as well as performance

reports.


3. “It's not about social skills, but survival skills!”

The fact lies that the amount of stress faced by the call centre

executives is having its toll. On one-side lies the pressure of

maintaining strict quality standards, while on the other are irate

customers hurling abuse. Caught between the devil and the deep sea,

what many agents do is leave the job.

4. What is actually a Call Centre??

Call centre is a centralised office of a company that answers incoming

telephone calls from customers. A call center may be an office that

makes outgoing telephone calls to customers (telemarketing). Such an

office may also responds to letters, faxes, e-mails and similar written

correspondence.

5. Mathematical theory: The mathematical problems encountered in a

call centre are generally statistical in nature and revolve around the

probability that an arriving call will be answered by an available and

appropriately trained person. Forecasting the call arrival rates and then

scheduling the number of staff required on duty at particular times of

the day are challenging problems faced by most call centre managers.


http://www.bambooweb.com/articles/t/e/Telemarketing.html

6. Personnel Management: Centralised offices mean that large numbers

of workers can be managed and controlled by a relatively small

number of managers and support staff. They are often supported by

computer technology that manages measures and monitors the

performance and activities of the workers. Normally, personnel costs

are the most significant expense of a call centre operation and even

seemingly small inefficiencies can have significant cost issues.

Computer systems that mean staff take 1 or 2 seconds longer than

necessary to process a transaction can often be quantified in staff cost

terms that may be sufficient to justify a complete system upgrade or

replacement. Consequently the level of computer support that may be

adequate for staff in a branch office may prove totally inadequate in a

call centre.


7. Technology: Call centres have been aided by a range of

telecommunications and computer technologies, including automatic

call distribution (ACD), interactive voice response (IVR),

computer telephony integration (CTI), which allows the actions of

the computer to be synchronised with what is happening on the phone.

In addition, early customer relationship management (CRM)

technologies have been heavily employed in call centres. The latest

internet technologies allow "virtual" call centres to be established

across a company's telecommunications network without physically

putting all the people in one office.

8. Call dynamics Types of calls are often divided into outbound and

inbound. Inbound calls are calls that are initiated by the customer to

obtain information, report a malfunction or ask for help. This is

substantially different from outbound calls where the agent initiates

the call to a customer mostly with the aim to sell a product or a service

to that customer.

9. The staff of the call center is often organized in tiers, with the first tier

being largely unskilled workers who are trained to resolve issues using

a simple script. If the first tier is unable to resolve an issue the issue is

escalated to a more highly skilled second tier. In some cases, there

may be third or higher tiers of support.


http://www.bambooweb.com/articles/c/u/Customer_relationship_management.html

http://www.bambooweb.com/articles/c/o/Computer_telephony_integration.html

http://www.bambooweb.com/articles/i/n/Interactive_voice_response.html

http://www.bambooweb.com/articles/a/u/Automatic_call_distribution.html

http://www.bambooweb.com/articles/a/u/Automatic_call_distribution.html

10. Call centres have their critics as well...

Some critics argue that the work atmosphere in such an environment is

de-humanising. Others point to the low rates of pay and restrictive

working practices of some employers. There has been much

controversy over such things as restricting the amount of time that an

employee can spend in the washrooms.

11. Furthermore, call centers have been the subject of complaints by

callers who find the staff of the call centers often does not have

enough skill or authority to resolve problems. Owing to the highly

technological nature of the operations in such offices, the close

monitoring of staff activities is easy and widespread. This can be

argued to be beneficial, to enable the company to better plan the

workload and time of its employees. Some people have argued that

such close monitoring breaches human rights to privacy. Yet another

argument is that close monitoring and measurement by quantitative

metrics can be counterproductive in that it can lead to poor customer

service and a poor image of the company.


ANALYSIS OF QUESTIONNAIRE

Male 70%

Female 30%


The analysis of Performance Appraisal system is done on the basis of

Interpretation of the primary data is done by evaluating the questionnaire that

was filled by the employees of the Bharti Telecom. Analysis is done even on

the basis of taking interview from the employees and then after collecting the

data we come to certain conclusions which can be very well described by the

below figures.


Q1. Your Opinion about APPRAISAL SYSTEM in general?

Affair assessment of ability and performance

An annual ritual

A management gimmick

A necessary evil

Something useful for the employee and the organization

Any other (Pl. specify__________)


The primary source of data shows that most of the employees of Bharti

Telecom are aware of the appraisal system used by Bharti.85% of the

employees are of the opinion that the appraisal system used by the Bharti are

for the betterment of the employees. It not only give a rough diagram of the

overall performance of the employees but it also help both the organization

and the employees to overcome the drawbacks. Performance appraisal is an

ongoing process in this organization and it’s a very important part of HR .In

order to assist the performance appraisal important factors has to be taken

into consider.

1. The performance appraisal must be conducted according to some

established intervals. i.e., either it has to be taken quarterly or

annually. In good organizations Appraisal system is generally taken

yearly.

2. Appraisers must be trained in the process, i.e. any employee actions,

like a promotion or termination must be based on valid data.


Q2. Is the assessment an on going process?

Yes

No

can’t say


Q3. How do you rate the factor / traits of evaluation?

Excellent

Good

Satisfactory

Poor


Q4. In which following areas (one more than one) does the present system

help you to understand your ability? (Pl. specify__________)

Planning

Ability to motivate

Identify training needs

Communication

Any other (Pl. specify_________)

BENEFICTS OF USING APPRAISAL SYSTEM

ProblemSolving

Ability tomotivate

Identify trainingneeds

Communication


The primary data shows that the employees have different views about the

use of appraisal system Maximum number of employees think that the

appraisal system helped in Problem solving. It point out the drawbacks and

give proper suggestions and planning to overcome this problem. The next

majority of people think that the appraisal system helps to find out the

training needs in the organization.

Only a few percentages of the employees think that the appraisal system

helps in extending the communication system between the different

departments. Where ever 20% of the employees think that the appraisal

system helps in motivation. This indicates that Bharti Telecom is unable to

give sufficient motivation to the employees. The appraisal system in Bharti

helps in monetary benefits.

The performance of the employees is mainly checked by the monetary

benefits they bring to the organizations. The appraisal system also helps in

prioritize the responsibilities of the employees. In any organization it is found

that the biggest motivation comes from rewards. Rewards are of many types

like monetary rewards or rewards in kinds.


But in Bharti Telecom the employees doesn’t feel too much motivated

because here the reward is given very occasionally. So Bharti Telecom

should give more importance to the reward section of the HR department in

order to maximize the work from the employees.

Another drawback of Bharti is that the feedback is not given properly to the

employees. In many times it is found that biasness is found while appraising.

The employee does not get to know where they are lacking because the

appraisal given by Bharti is only yearly and not quarterly. More over the

appraisers approach in the appraisal process should be excellent; the person

should know the proper way to appraise. He should be given proper training

in this field. Questions should be cleared to him before he appraises anybody.


Q5. In your opinion who should appraise you? (Rank them according to the

importance)

Your immediate supervisor

Department head

Appraisal committee

Self-appraisal

Satisfied with the present system


Q.6 How do you find the appraiser’s approach in appraisal process?

Excellent

Good

Satisfactory

Poor

0

2

4

6

8

10

12

14

Execellent Good Satisfactory Poor

TRAIT OF PERFORMANCE APPRAISAL

More over it is found that the trait of appraisal system in Bharti Telecom is

only in satisfactory state. This is mainly because proper kind of appraisal is

not used and employees do not know properly who should appraise them

whether they should be appraised by their immediate supervisor or

department.


Q7. Is the system linked to monetary benefit? If yes, does it extend to you

Yes

No

Can’t say


Q8. Does the present system help in rewards for performing well?

Rarely

On a few occasion

Sometimes

Often

Almost Always


Q9. Does it help prioritize your area of responsibility?

Yes

No

Can’t say


Q10.Does this system provides feedback on your performance?

Rarely

On a few occasion

1. The appraisers should be given proper training program so that their

appraisal system should not carry any biasness and they should know

the proper way of measuring the performance.

2. The employees should get the feedback properly so that they can work

properly on it. Proper training programs should be given to them to

upgrade their drawbacks.


CONCLUSION

STRENGTHS

With the key result areas that are used for measuring individual

Performance, managers are able to focus their efforts and energies in

the right direction and be rewarded for the same.

The appraisal is based more on facts than on value judgments or

intuitions and gives appraise full opportunity to discuss his point of

view

Every employee giving in writing their goals for the next financial

year is extremely beneficial since it ensures transparency in the

process and builds up the manager’s trust and confidence in the

system, thereby increasing his motivation and commitment towards

work.

A set of Performance factors that are used to evaluate employee’s help

in converging the objectives of the individual and the company and

helps organization in reaching a position of excellence and sustained

growth.


PROBLEMS

The Performance appraisal form of each employee passes through a

number of heads and needs to be signed and rechecked by a number of

VP‘s, which may create lot of confusion and waste large amount of

time

The appraisal comprises of lot of comments and remarks by various

heads and VP’s rather than simple grading on the basis of points,

which is not so practical and convenient in evaluating.

The appraisal system is done yearly and not quarterly.

Rewards based on appraisal system are given only occasionally which

hampers the motivation of the employees.

Employees doesn’t get feedbacks properly as a result they cant work

properly on it.

The employees don’t get the proper training programs all the time.


RECOMMENDATION

Recommendations

1. Broader HRD base

One other thing to be noted is that there is only one HRD office for the

whole organization, which is not sufficient enough. The company should

have a few more of these department controls set up to make it reachable

to every employee of the organization. Currently a lower cadre employee

can only send his petition when his self-appraisal form is reviewed. The

only other channel is through his subordinates. This might lead to

suppression of grievances of the junior employees, which could be

avoided by making the access to HRD departments easier with lesser

intermediaries involved in it.

2. The appraisal system should be done on half yearly basis that is at least

one appraisal system in every 6 months. This helps the employees to keep

a track of their own performance also.

3. The rewards based on appraisal system should be given often and

regularly; this gives motivation to the employees. The rewards should be

given either in monetary basis or reward basis.

4. Appraisal should be done by the very next boss (e.g., Sales manager

should appraise the business executive who are working under them

only).If the VP’s do the appraisal system in many cases it is found that

they are not fully aware of the persons performance.


BIBLIOGRAPHY

Books

Bhattacharya, Research Methodology, Publisher

Customer Service Manual (Airtel)

HR Manual, Policies & Procedures, BTVL

Internet

www.callcentrehelper.com

www.keepemployees.com

www.airtelworld.com

www.bhartiteleventures.com

www.hronline.com (airtel)

Search engines like google, ask, altavista etc.

Magazines & Journals

HR Executive Editorial Survey (2006), Workplace Turnover Study,

Human Resource Executive Magazine

Indian Management Magazine, Vol 44 Issue 1, Jan2005


http://www.hronline.com/

http://www.bhartiteleventures.com/

http://www.airtelworld.com/

http://www.keepemployees.com/

http://www.callcentrehelper.com/

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