performance appraisal system in bpos: a field study

PERFORMANCE APPRAISAL SYSTEM IN BPOs: A FIELD STUDY

Forrester research predict that 3.3 millions US jobs to move offshore by 2015

Nasscon – mckinsey report says that total opportunity is at $148 billion

India - 540000 jobs with revenue of $24.67 billion

INTRODUCTION

3 R

RECRUITMENT

RETAINING

REWARDING

Rank Parameter score Rank Parameter score

111 Training 8.4 1 people 8.2

2 Overall satisfaction

8.3 2 Company culture

8.2

3 people 8.3 3 Overall satisfaction

8.1

4 Company culture

8.2 4 Training 8.0

5 Appraisal system

7.8 5 Composition satisfaction

7.6

6 Job content 7.7 6 Job content 7.5

7 Composition satisfaction

7.5 7 Appraisal system

7.5

8 Salary & compensation

7.4 8 Salary & compensation

7.1

REASONS FOR JOINING ORGANISATION

High growth opprtunity -51.8Salary is good - 45Good working environment – 44.9Transport facility available – 38.6Good benefits – 37.5 Job content – 36.2College like atmosphere – 33.3

Flexibility of time - 25.7 Can make a lot of friends – 22.6 Education level does not matter – 19.7 Attractive lifestyle – 18.9 Peers are of same age group – 17.7 Found nothing better to do – 10.2 Did not get a better job – 7.7

REASON FOR LEAVING ORGANISATION

For higher education – 42Salary – 39.7Timing – 35.1For marriage – 33No growth opportunity – 33 Illness – 27.2Physical strain – 27.1

No personal life – 24.6 Insufficient leave – 23.2Uneasy relationship with peers - 12.5Friends moving out – 10.8 Job contents – 9.9Transportation - 6.8Misguidance by the company – 5.1

CHARACTERISTICS OF GOOD PERFORMANCE MANAGEMENT

Career progression for all employeesMatch between organizational goals &

individual goals Employees involvement in setting up of goals A clear linkage between performance &

appraisal

BPO-1

PERFORMANCE APPRAISAL SYSTEM

Frequency of performance appraisal

once in a year

probation period Focus of the appraisal system Methodology of appraisal system

HR Manager

Report manager

Performance parameters

Goals

competencies Rating Feedback mechanism Rewards

BPO-2

INTRODUCTION

This BPO handles inbound process.Which means receiving calls from the

customers and solving there queries.

PERFORMANCE APPRAISAL SYSTEM

1. Frequency of performance appraisal

2. Focus of the appraisal system: KRA’s & KPA’s

3. Methodology of appraisal system: Structured differently for different levels.

4. Performance parameters: Job knowledge, Adherence to schedule, Adaptability & flexibility, Communication, Interpersonal Skills & Customer Orientation.

1. Ratings

2. Feedback mechanism

3. Rewards

BPO-3

INTRODUCTION

It was founded in March 2004. It is fully owned subsidiary of a leading

industrial conglomerate in India. It is latest venture of this grp. It caters to their internal needs/clients. It is now catering to customer care

requirements of grp. Of telecom Co. It is operating with 3000 plus workforce.

PERFORMANCE APPRAISAL SYSTEM

1. Frequency of performance appraisal

2. Focus of the appraisal system

3. Methodology of appraisal system

4. Performance parameters

5. Ratings

6. Feedback mechanism

7. Rewards

BPO-4

INTRODUCTION

Has its offices in 3 southern cities which provides data processing and customer service facilities.

There are 3 different types of organization structures :

Matrix based

BPO process based

Functional based

PERFORMANCE APPRAISAL SYSTEM

1. Frequency of performance appraisal

2. Focus of the appraisal system

3. Methodology of appraisal system

4. Performance parameters

5. Ratings

6. Feedback mechanism

7. Rewards

BPO-5

INTRODUCTION

Part of a global IT services company specializing in resting, development and certification solutions.

Provides quality assurance and third party confirmation.

Maintains testing facilities in Europe, USA and India.

PERFORMANCE APPRAISAL SYSTEM

1. Frequency of performance appraisal: After completion of 6 months from the date of joining thereafter once in a year.

2. Focus of the appraisal system: Responsibilities, Achievements and goals.

3. Methodology of appraisal system: Not disclosed

4. Performance parameters: Performance in work, role as a team member, new technologies learnt.

5. Ratings: Not disclosed

6. Feedback mechanism: Only in case of disagreements.

7. Rewards: Not disclosed.

BPO-6

INTRODUCTION

A captive BPO- leader in the business Services and Technology Solutions industry.

Established in 1997 in India, operates in 4 countries with a workforce of 18000 plus employees.

Its revenue in 2004 exceeded US$400 million.

PERFORMANCE APPRAISAL SYSTEM

1. Frequency of performance appraisal: Once in a year. For trainees after probation period of 6 months.

2. Focus of the appraisal system: Productivity and Quality.

3. Methodology of appraisal system: Done by team leader and reporting manager once a month.

4. Performance parameters: Handling time ASA- Average Speed to Answer ROC- Resolution On 1st Call PNR- Problem Not Resolved5. Ratings: Not disclosed6. Feedback Mechanism: Exists.7. Rewards: monthly as well as annual

incentives are given.

BPO-7

INTRODUCTION

Subsidiary of a telecom company.

Leading domestic call centre providing inbound and outbound services.

Start off operations in 1995 as a joint venture with a global electronics giant.

PERFORMANCE APPRAISAL SYSTEM

1. Frequency of performance appraisal: 2 in a yr, rewards on yrly basis.

2. Focus of the appraisal system: kpa’s for each appraisal.

3. Methodology of appraisal system: def a list of Job res of appraisee by apraiser, list of key achvmnts is cited by appraiser & later varified by appraisee.

PERFORMANCE PARAMETERS

1. Job: comm skills,contact ablity,planing,org.

2. General: punctual,absentism,cont for job,flexible.

3. Personal:ledrhip,tw,commitment,behav.

4. Feedback mechanism: signed by 2 parties.

COMPARATIVE ANALYSIS

1. Frequency of performance appraisal:1,5,6:- yrly ; 7:-2 in 1 yr ; 2:- 4 in 1 yr; 3:- monthly ; 4:- acc to str.

2. Focus of the appraisal system: productivity, goals, targets.

3. Methodology of appraisal system: 1:-same; 4:-spcfic job & role, 2,3,6,7:-immediate supervisor.

4. Performance parameters: focus on call,higher mngrl level, 3:- kat ; 6:- pnr.

5. Ratings: 3:- not given ; 1&6:- retraining.

6. Feedback mechanism: 1,2,6:- part of process others only for exception.

7. Rewards: 3:-most attractive.

RECOMMENDATIONS

Retaining & motivating employees are key challenges.

Must consider best practices of other companies at same situation.

Fair& relavant &link to tangible rewards.