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Alarming Attrition Rate in Call Centers and BPO Industry

R. Ganapathi, S. Anbu Mala and R. Kanniah

Is Employer Branding an Influencing Factor for Accepting an Offer?

L.Gandhi and K. Senthil Kumar

An Empirical Study: Students Perception on Service Quality Using Malaysian Hedperf

Measurement Scale

K. Ravichandran and S. Arun Kumar

Global Recession and Microfinance Sector: A Study of Five Large MFIs in India

Amrit Lal Ghosh, Ranjit Singh and Anurag Singh

Employee Engagement @ Indian Retail Industry

Pooja Misra and Kokil Bhalotia

Knowledge Transfer by Repatriates for Organizationals Competitive Advantage

B.R. Santosh and Krishnaveni Muttiah

A Study on Evaluation of Intrinsic Value of Selected Public Sector Banks in India

Sunita Sukhija and Suman Ghalawat

Growth of Organized Food Retailing in Punjab: An Exploratory Study

K.C. Mittal, Anupama Prashar and Anmol Soi

Making Teaching Learning Process More Vibrant for Better Results

Neetu Jain

Positive Relationship of Foreign Direct Investment and Economic Growth

Mahesh Chandra Prasad

Pricing of Milk: A Study in Karnataka Milk Federation

M. Jeyarathnam and Geetha M. Rajaram

A Comparative Study on Financial Performance of Pre and Post Introduction of Core Banking in

Indian Bank and the South Indian Bank

N. Sundaram and C.M. Maran

RaiManagement

Journal Vol. 7 Issue 1

ISSN No: 0975-4326

An Initiative of Rai Business School

Price : 75/-

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June 2010 Vol. 7 Issue 1

Editor

Dr. Sheetal Kaul

Rai Business School, Delhi, India

Associate Editors

Prof. Gunjan A. Rana Prof. Lubna A KhanRai Business School, Delhi, India Rai Business School, Delhi, India

Prof. Piyush Ranjan Prof. U S WahieRai Business School, Delhi, India Rai Business School, Delhi, India

Advisory Board

Paul Edelblut Salehuddin AhmedSenior Vice President, Vantage Labs, New Jersey,USA Chief Technical Advisor, IPRCC, Beijing, China

Dr. Mahesh Chandra Dr. Annabel DroussiotisAssociate Professor, Hofstra University, New York, USA Associate Professor, Limassol, Cyprus, USA

Dr. B.K Mohanty Dr. R.K GuptaProfessor, Indian Institute of Management, Lucknow, India Professor, Punjab University, Chandigarh, India

Basab Bordoloi Himanshu ChawlaVice President- HR, Domino Pizza, Noida, UP, India Head Enterprize Partner Sales, Sun Microsystem India Pvt Ltd., Delhi, India

Upender RaiGeneral Manager - HRD, NTPC, Delhi, India

Editorial Board

Dr Abhishek Mishra Dr. Sukumar NandiAssistant Professor, Indian Institute of Management, Ahmedabad, India Professor, Indian Institute of Management, Lucknow, India

Dr Dinesh Kumar Dr. Anita GoyalProfessor, Indian Institute of Management, Bangalore, India Associate Professor, MDI, Gurgaon, India

Prof. Vivek Gupta Dr. Avanish KumarAssociate Professor, Indian Institute of Management, Lucknow, India Associate Professor, MDI, Gurgaon, India

Dr. M.Jayadev Dr. Sabita MahapatraAssociate Professor, Indian Institute of Management, Bangalore, India Assistant Professor, Indian Institute of Management, Indore, India

Dr. Neera Jain Prof. Sanjay DhamijaAssistant Professor, Management Development Institute, Gurgaon, India Professor, International Management Institute, Delhi, India

Prof. Harkirat Singh Prof. Pradip ChakrabortyProfessor, Indian Institute of Foreign Trade, Delhi, India Senior Professor, Fore School of Management, Delhi, India

Dr. Sandeep Anand Dr. P. N PandeyAssistant Professor, Xavier Institute of Management, Bhubaneswar, India Professor, CDAC, Delhi, India\

Dr. Parul Rishi Dr. Ambrish GuptaAssistant Professor, Indian Institute of Forest Management, Bhopal, India Senior Professor, Fore School of Management, Delhi, India

Dr. Biresh K Sahoo Prof. PR Ramanujam

Associate Professor, Xavier Institute of Management, Bhubaneswar, India Director, IGNOU, New Delhi, India

Dr. Manoj Srivastava Prof. Seema UnnikrishanAssistant Professor, Management Development Institute, Gurgaon, India Associate Professor, NITIE, Mumbai, India

Dr. Ranjana AgarwalAssistant Professor, IMT, Ghaziabad, India

[ 1 ]

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[ 2 ] Rai Management Journal

From the Editors Desk

t gives me immense pleasure to presentthe next issue of our management journal.As we complete one eventful year and

enter the second, I would like to express my sincerethanks to all for their support without which, itwould not have been possible to take this journal toan international level.

Rai Management Journal is a scholastic platformto share ideas, nourish and promote the culture ofacademic and industrial research. This biannual

journal invites and attracts best quality papersfrom all parts of the globe and reaches to a wide

variety of readers.

This journal publishes papers that impartknowledge through research on contemporarymanagement issues and the cases in functionalareas of marketing, finance, human resourcemanagement, information technology and generalmanagement.

In this edition I am delighted to bring the blindpeer reviewed research papers contributed byacademicians and professionals from varioussectors. The diversity of topics is nicely blendedand I am sure that the readers will appreciate thesame.

We thank the researchers for contributing papersfor the journal and would request academicians/research scholars to keep on contributing scholarly

papers, thereby helping us in our endeavour toenrich the value of our journal. On the other hand,the authors should not feel disheartened by therejection of their articles rather they should take itas a learning experience and analyze the lacunae intheir paper that led to the rejection, helping themto overcome these shortcomings while writingpapers in the future.

We have taken into consideration the viewpointsand suggestions of our reviewers and have madesincere efforts to incorporate the same. We wouldlike to appreciate the efforts of the editorial board

for working towards the betterment of our Journal.

We hope that our readers would find the blend ofconceptual and application based articles/ casestudies/ research papers valuable enough andintellectually gratifying. We however look forwardto your valuable feedback and constructivesuggestions that would help us in our journeytowards excellence.

Your comments and suggestions are welcome. Youcan reach us at [email protected]

I

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[ 3 ]

Contents


Alarming Attrition Rate in Call Centers and BPO Industry 4 - 24

Is Employer Branding an Influencing Factor for Accepting an Offer? 25 - 35

An Empirical Study: Students Perception on Service Quality Using Malaysian

Hedperf Measurement Scale36 - 54

Global Recession and Microfinance Sector: A Study of Five Large MFIs in India 55 - 67

Employee Engagement @ Indian Retail Industry 68 - 80

Knowledge Transfer by Repatriates for Organizationals Competitive Advantage 81 - 95

A Study on Evaluation of Intrinsic Value of Selected Public Sector Banks in India 96 - 111

Growth of Organized Food Retailing in Punjab: An Exploratory Study 112 - 128

Making Teaching Learning Process More Vibrant for Better Results 129 - 145

Positive Relationship of Foreign Direct Investment and Economic Growth 146 - 159

Pricing of Milk: A Study in Karnataka Milk Federation 160 - 169

A Comparative Study on Financial Performance of Pre and Post Introduction of

Core Banking in Indian Bank and the South Indian Bank170 - 191

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*Lecturer in Commerce, Directorate of Distance Education, Alagappa University, Karaikudi, Tamil Nadu,

India

**Lecturer in Commerce, Sri Krishna Arts & Science College, Coimbatore, Tamil Nadu, India

***Research Scholar, Department of International Business and Commerce, Alagappa University,

Karaikudi, Tamil Nadu, India


Alarming Attrition Rate in Call Centersand BPO Industry

Introduction

Call Centers and BusinessProcessing Outsourcing (BPOs) arethe new mantras of global businessscenario. They are called sunshineindustries as they provide jobopportunities and generate revenuesin India. Breakthrough

developments in the information

technology, severe globalcompetition, rapid organizational re-structuring, emerging marketeconomies and growing realization ofthe importance of customers haverevolutionized the new businessparadigm.

Outsourcing is the byproduct of this

change. In general, when a company

Call centers and outsourcing have become the main components of globalization and is a result of

unparalleled scientific and technological development throughout the world. Because of the vast

employment opportunities provided by the Call Centres and Business Process Outsourcing (BPO), they are

called the sunshine industries. Today India is the hub of BPO because of the availability of cheap and

qualified workforce, state of the art technology, booming IT and telecommunication sectors and its unique

geographical location. But the alarming rate of employee turnover in the Call Centres and other BPO

sectors has become a stumbling block for the growth of this sector. In India, the average attrition rate in

the BPO sector is approximately 30-35 percent. It is true that this is far less than the prevalent attrition

rate in the US market (around 70 %), but the challenge continues to be greater considering the recent

growth of the industry in the country. Keeping low attrition levels is a major challenge as the demand

outstrips the supply of employees by a big margin. The sample size of 209 employees working in Call

Centres / BPOs, of Coimbatore, have been selected for this study. The objectives of the study are to analyzethe prevailing reasons for increasing attrition rate in BPOs / Call Centers in India, to study the employees

level of satisfaction towards his / her job, work environment, interpersonal relationship and benefits

enjoyed by him / her, to examine employers opinion on the increase in employee attrition rate, to examine

the factors that influence the employees to leave the BPOs / Call centers, to analyze employees perception

towards shift in their jobs and to suggest strategies to control the increasing attrition rate in BPOs / Call

Centre. The major findings of the study are that a majority of employees who have moved from one

company to another company in the field of Call Center / BPO industry belong to the age group of 25-30

years. Lack of safety and more career opportunities elsewhere are the topmost reasons for the employees to

quit their jobs. The main reason why people opt for a job in the Call Centres / BPOs is the compensation

package available. Constructive suggestions including formulation of an effective recruitment and

selection strategy and an integrated performance appraisal and reward system have been highlighted to

reduce the attrition rates with respect to this industry.

Keywords: Globalization, attrition, recruitment and appraisal

Today India is the hub

of BPO because of the

availability of cheap

and qualified workforce,

state of the art

technology, booming ITand telecommunication

sectors and its unique

geographical location.

R. Ganapathi*

S. Anbu Malar**

R. Kanniah***

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[ 5 ]

decides to focus on its core businessand outsource its non-core operations

such as customer care, finance,payment services, human resources,insurance claims etc it is calledbusiness outsourcing.

Of late, BPO has emerged as a popularcompetitive strategy formultinationals in many developingcountries and is creating goodopportunities for the educated,talented, unemployed youth incountries like India and China.Outsourcing broadly refers to the

transfer of an activity or operationand day-to-day management ofbusiness process to an external serviceprovider.

In India, the average attrition rate inthe BPO sector is approximately 30 to35 percent. It is true that this is farless than the prevalent attrition ratein the US market (around 70 %), butthe challenge continues to be greaterconsidering the recent growth of theindustry in the country. The BPOsector is estimated to be somewherearound three decades old. Keeping lowattrition levels is a major challenge asthe demand outstrips the supply ofgood agents by a big margin. Further,the salary growth plan for eachemployee is not well defined. All thisencourages poaching by othercompanies who can offer a highersalary.

Review of Literature

Karthik. D and Rao U. S (2004)identified how companies can addvalue to the existing processes beingoutsourced and be more efficient.Nitin Aggarwal (2005) examined the

key organizational challenge facingthe BPO companies in India. There

was consensus on attrition being theforemost challenge facing the BPOcompanies resulting in more cost ofattrition, recruitment, lostproductivity, training and lostknowledge. Bhaskara Rao V. K (2006)identified how day-by-day BPOindustries are raising all around inIndia. BPO has emerged as a popularcompetitive strategy formultinationals in many developingcountries and are creating goodopportunities for the educated.

Kulkarni P K and Gujarati (2006)examined career opportunities in theBPO industry. They express that BPOindustry offers good money,professional status, job satisfactionand intellectual challenge.Mohammed Ghazi Shahmawaz (2006)specified some occupational stressors;low salary, low time, low normativecommitment, work schedule,relationship etc. in call centres andBPO industries. Adilakhmi P (2006)analyzed segment attrition data,spending time during recruitment,build a value proposition and makeline managers equally responsible.

Abirami Devi and Ranjitham D (2007)identified high attrition rate as thebiggest challenge faced by IT sector.Nayanathara (2007) stated that themulti billion dollar BPO industryracking its brains to solve the crisis, acomplicated one that could prove to bedisastrous in the long run. Brand

building has become the panacea forthe attrition problem. Sanjeev (2008)mentioned that, the daily experienceis of repetitive, intensive and stressfulwork, based upon Taylorist principles,which frequently results in employeeburnout.

In India, the average

attrition rate in the

BPO sector is

approximately 30 to

35 percent.


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The present study is new of its kind inthis region and has revealed a

number of factors which determineand govern the attrition rate invarious BPO centers.

Objectives of the Study

The following are the objectives of thestudy:

1. To review theoretically theproblems of attrition in BPO firmsand Call centres.

2. To analyze the relationshipbetween personal factors andlevel of satisfaction of therespondents.

3. To analyze the correlationbetween job factors andperception of the employees

4. To offer suggestions forminimizing the attrition rate inBPO firms and Call centres.

Research Methodology

In line with the objectives, thisresearch is empirical and descriptivein nature as it is aimed to find out thereasons and the causes for theincreasing attrition rate in CallCentres / BPOs. The sample size forthe study is 209 respondents fromBPO and Call centre employees. The

study was conducted in Coimbatore

district of Tamil Nadu. Coimbatore,an important industrial center, and

seen as tire II city by various IT /BPO Industries. A number ofprestigious IT units have alreadyestablished their foot prints in thecity. Under the initiative of theGovernment of Tamil Nadu, a tidalpark is coming up in the city, which incoming years, promises to make theCoimbatore city, an important IT hubin the country.

The study being empirical in naturewould require immense database and

therefore the analysis is based onprimary as well as secondary datacollected. Questionnaire is used forcollecting data from Call Center /BPO employers and employees.Interview schedules are used as aprimary data tool. The secondary datasources include published books,articles, newspapers, and reports ofthe various consultancy firms,published and unpublished researchwork of various institutions. Inconducting this study, a sample unitwas selected from Coimbatore CallCenters / BPO Industries and theinformation was obtained from 209employees. Statistical tools such asMeasures of Dispersion, StandardDeviation, Co-efficient of Variance,

Arithmetic Mean, Rank Order,Likerts Scaling Technique, Chi-square Test, ContingencyCo-efficient, Factor Analysis andSpecimens RHO and t test were usedin the study. The period of the study

was from January 2009 to July 2009.

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[ 7 ]June 2010 Vol. 7 Issue 1

Analysis and Interpretationof the Data

The results of the analysis of thecollected data are presented in table 1

The majority of the respondents i.e.43.54% have joined for good salary37.32% have joined for Bright Career

Prospects, 15.31% have joined becausethey liked the working environment,

2.39% have joined as part time shiftand the rest of respondents i.e. 1.44%have joined for the reasons of makeshift job. Thus, it is inferred thatmajority of the respondents i.e,.43.54% have joined Call Center / BPOIndustry for good salary.

Sl.No. Reasons Number ofRespondents Percentage

1. Good salary 91 43.54

2. Working environment 32 15.31

3. Bright career Prospects 78 37.32

4. Part time job 5 2.39

5. Make shift job 3 1.44

TOTAL 209 100

Table 1: Reasons Stated For Joining A Call Center / BPO Job

Source: Primary Data

Table 2: Gender and Level of Satisfaction Towards Attrition Rate

Gender and Level of Satisfaction Towards Attrition Rate


Factor Calculated 2 Value Table Value Degree of freedom Remarks

Gender 0.477 5.991 2 Not Significant

Sl. No. GENDER LEVEL OF SATISFACTIONTOTAL

LOW MEDIUM HIGH

1. Male27

(58.7)

55

(55.6)

39

(60.9)121

2. Female19

(41.3)

44

(44.4)

25

(39.1)88

TOTAL 46 99 64 209

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The result of the chi square test intable 2 indicates that the calculated

value (0.477) is less than the tablevalue (5.991) at 5 per cent level ofsignificance for 2 degrees of freedom.Hence the null hypothesis is accepted.The association between the gender of

the respondents and their level ofsatisfaction towards attrition rate is

not significant. It can be concludedthat the association between thegender of the respondents and theirlevel of satisfaction towards attritionrate is not significant.

Table 3:Age and Level of Satisfaction Towards Attrition Rate


Sl. No. GENDER LEVEL OF SATISFACTION TOTALLOW MEDIUM HIGH

1. Below 30 years12

(26.1)

47

(47.5)

59

(92.2)118

2. 31 - 40 years29

(63.0)

28

(28.3)

3

(4.7)60

3. Above 40 years5

(10.9)

24

(24.2)

2

(3.1)31

TOTAL 46 99 64 209

Age and Level of Satisfaction Towards Attrition Rate

Factor Calculated 2 Value Table Value Degree of freedom Remarks

Age 67.472 9.488 4 Significant at5% level

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value (67.472) is greater than thetable value (9.488) at 5 per cent levelof significance for 4 degree of freedom.Hence the null hypothesis is rejected.The association between the age groupof the respondents and their level ofsatisfaction towards attrition rate issignificant. It can, therefore beconcluded that the associationbetween the two is significant.


value (51.027) is greater than thetable value (9.488) at 5 per cent levelof significance for 4 degree of freedom.Hence, the null hypothesis is rejected.The association between theeducational status of the respondentsand their level of satisfaction towardsattrition rate is significant. It can,therefore, be concluded that theassociation between the two issignificant.

Table 4: Educational Status and Level of Satisfaction Towards Attrition Rate


Sl. No. GENDER LEVEL OF SATISFACTIONTOTAL

LOW MEDIUM HIGH

1. Graduates14

(30.4)

63

(63.6)

28

(43.8)105

2. Post Graduates13

(28.3)

23

(23.2)

36

(56.3)72

3. Diploma

19

(41.3)

13

(13.1) 0 32

TOTAL 46 99 64 209

Educational Status and Level of Satisfaction Towards Attrition Rate

Factor Calculated2 Value Table Value

Degree offreedom Remarks

EducationalQualification

51.027 9.488 4 Significant at5% level

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The result of the chi-square test intable 5 indicates that the calculatedvalue (51.315) is greater than thetable value (9.488) at 5 per cent levelof significance for 4 degree of freedom.Hence the null hypothesis is rejected.

The association between the MonthlyIncome of the respondents and theirlevel of satisfaction towards attritionrate is significant. It can, therefore, beconcluded that the associationbetween the two is significant.

Table 5: Monthly Income and Level of Satisfaction Towards Attrition Rate


Sl. No. GENDER LEVEL OF SATISFACTION TOTALLOW MEDIUM HIGH

1. BelowRs.10000

5

(10.9)

11

(11.1)

35

(54.7)51

2. Rs.10001 to20000

36

(78.3)

67

(67.7)

18

(28.1)121

3. AboveRs.20000

5

(10.9)

21

(21.2)

11

(17.2)37

TOTAL 46 99 64 209

Educational Status and Level of Satisfaction Towards Attrition Rate

Factor Calculated2 Value Table Value

Degree offreedom Remarks

Monthly Income 51.315 9.488 4 Significant at5% level

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From table 6 it is clear that themajority of the respondents i.e. 38.28have attributed Good Command overEnglish as the most important jobrequirement in Call Centres / BPOs.

The second place goes to MarketingSkills / Responding Skills. Then the3rd rank has been assigned tolistening skills and 4th rank to

Analytical Skills / Understanding

Skills. 5th and 6th ranks have beengiven to Phone Etiquette andKnowledge of consumer / Customerbehavior respectively. And the lastplace has gone to computer Literacy.

Thus, it is inferred that the majority ofthe respondents rank have chosenGood Command over English as themost important job requirement in thefield of Call Centers / BPO industry.


Table 6: Educational Status and Level of Satisfaction Towards Attrition Rate

Sl.No. Particulars

VeryHigh High

Neutral Low

VeryLow Total Mean Rank

1 Good Commandover English

80

(38.28)

118

(56.46)

10

(4.78)

1

(0.48)- 904 4.33 1

2 Marketing Skills /Responding Skills

24

(11.48)

118

(56.46)

59

(28.23)

8

(3.83)- 825 3.95 2

3 Listening Skills51

(24.40)

99

(47.37)

54

(25.84)

5

(2.39)- 823 3.94 3

4Analytical Skills /

Understandingskills

38

(18.18)

112

(53.59)

51

(24.40)

8

(3.83)- 807 3.86 4

5 Phone Etiquette43

(20.58)

102

(48.80)

59

(28.23)

5

(2.3)- 810 3.87 5

6Knowledge of

consumer /customer behavior

32

(15.31)

97

(46.41)

72

(34.45)

5

(2.39)

3

(1.44)777 3.72 6

7 Computer Literacy11

(5.26)

126

(60.29)

54

(25.84)

10

(4.78)

8

(3.83)749 3.56 7

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From table 7 it is clear that themajority of the surveyed respondentshave perceived that their personalinterests have an important effect onthe quality of their job. Freedom todecide and suggest has been rankedthe second and the belief that they arecapable to do more challenging jobhas been assigned the 3rd place in the

perception of the respondents. Andthe rest of the respondents haveperceived that they are overburdenedin their job. Thus, it is observed thatthe majority of the respondents haveperceived that their personalinterests have an important effect onthe quality of their job in the CallCenters / BPO industry.

Table 7: Employees Level of Satisfaction Towards Job, Working Environmentand Working Culture in General

Sl.No. Particulars

HighlySatisfied

Satisfied

Neutral

Dissatisfied

HighlyDissatisfied Total Mean Rank

1 Job60

(28.71)

55

(26.32)

44

(21.05)

40

(19.14)

10

(4.78)742 3.55 1

2Working

Environment

32

(15.31)

57

(27.27)

72

(34.45)

25

(11.96)

23

(11.00)677 3.23 2

3

WorkingCulture in

theOrganizatio

n

27

(12.92)

25

(11.96)

52

(24.88)

60

(28.71)

45

(21.53) 556 2.66 3


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[ 13 ]

From table 8 it is clear that themajority of the surveyed respondentshave perceived that their personalinterests have an important effect onthe quality of their job. Freedom todecide and suggest has been rankedthe second and the belief that they arecapable to do more challenging job hasbeen assigned the 3rd place in the

perception of the respondents. And therest of the respondents have perceivedthat they are overburdened in their

job. Thus, it is observed that themajority of the respondents haveperceived that their personal interestshave an important effect on thequality of their job in the Call Centers/ BPO industry.


Table 8: Employees Level of Perception Towards the Job

Sl.No. Particulars VeryHigh High Neutral Low VeryLow Total Mean Rank

1

Personal interesthas an important

effect on thequality of the job

51

(24.40)

99

(47.37)

54

(25.83)

5

(2.39)- 823 3.93 1

2 Freedom to decideand suggest

43

(20.57)

102

(48.80)

59

(28.23)

5

(2.39)- 810 3.88 2

3Capable to do

more challengingjob

37

(17.70)

113

(54.07)

51

(24.40)

8

(3.83)- 806 3.86 3

4 Overburdened inthe job

24

(11.48)

118

(56.46)

59

(28.23)

8

(3.83)- 785 3.76 4


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Table 9 deals with the respondentsperception about their superiors.Majority of the surveyed respondentsi.e. 19.15 % perceive their superiors tobe egoistic. 15.79% of the respondentsfeel that the superiors behave morelike a boss than a leader. While 11%of the respondents think that their

superiors are biased, 8.13% opine thattheir superiors treat them fairly.Only 3.83% of the respondentsperceive their superiors to be effectivemanagers. Thus, it is found that themajority of the respondents view theirsuperiors to have ego problem.

Table 9: Employees Level of Perception Towards Superior SubordinateRelationship

Table 10: Srearmans Rank Order Correlation Co-Efficient (Rho)

Correlation between Employees relationship with superior and colleagues

Sl.No.

Level ofPerception Strongly

AgreeAgree Neutral

Disagree

Strongly

Disagree

Total Mean Rank

1 Superior has selfego problem

40

(19.15)

42

(20.09)

42

20.09)

52

(24.88)

33

(15.79)631 3.02 1

2Superior is morea BOSS than a

leader

33

(15.79)

38

(18.18)

52

(24.88)

38

(18.18)

48

(22.97)597 2.86 2

3 Superior is biased 23(11.00)

23(11.00)

73(34.93)

45(21.53)

45(21.53)

561 2.65 3

4 Superior treatsfairly

17

(8.13)

15

(7.18)

33

(15.79)

96

(45.93)

48

(22.97)484 2.31 4

5 Superior is aneffective manager

8

(3.83)

10

(4.78)

40

(19.14)

79

(37.80)

72

(34.45)430 2.06 5


Source: Calculated from Primary Data

R R2 CalculatedValue of tTable Value of

tLevel of

Significance

0.50 0.25 1 2.776 5 per cent

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[ 15 ]

In table 10 the calculated correlationvalue R is 0.50 and R2 is 0.25. The

calculated value of t is 1 at 5 percentlevel of significance which is greaterthan the table value of 2.776, thus the

hypothesis framed is accepted. Thus itis calculated that the relationship

with the superior and colleagues is animportant factor resulting in quitingthe Call Center / BPO jobs.


Table 11: Level of Satisfaction Towards Benefits Provided by Employer


Sl.No.

Level ofSatisfaction

HighlySatisfied

Satisfied

Neutral

Dissatisfied

HighlyDissatisfied Total Mean Rank

1Number of

days ofvacation

54

(25.83)

29

(13.88)

52

(24.88)

46

(22.01)

28

(13.40) 662 3.17 1

2 Sick leavepolicy

40

(19.14)

38

(18.18)

48

(22.97)

45

(21.53)

38

(18.18)624 2.99 2

3Leavetravel

allowances

44

(21.05)

29

(13.88)

44

(21.05)

50

(23.92)

42

(20.09)610 2.92 3

4 Paid leavepolicy

40

(19.14)

21

(10.05)

46

(22.01)

65

(31.10)

37

(17.70)

589 2.81 4

5 Health carebenefits

28

(13.40)

42

(20.09)

46

(22.01)

48

(22.97)

45

(21.53)587 2.79 5

6 Insurancebenefits

19

(9.09)

44

(21.05)

40

(19.14)

60

(28.71)

46

(22.01)557 2.66 6

7ProvidentFund andGratuity

19

(9.09)

44

(21.05)

40

(19.14)

60

(28.71)

46

(22.01)557 2.66 7

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From table 11 it is clear that themajority of the respondents i.e.

25.83% are satisfied with the numberof days of vacation available in thisfield. The next compensation factorgiving them satisfaction is theemployee sick leave policy followed byleave travel allowances paid to them.The next two factors giving themsatisfaction are paid leave facility and

health care benefits. Provident Fundand Gratuity and Insurance benefits

are the last compensation factors thatmake the employees happy. Thus, it isfound that the majority of therespondents rank the number of daysof vacation provided to them in thefield of Call Centre / BPO Industry asthe first compensation factor thatsatisfies them.

Table 12: Level of Satisfaction Towards Reward and Recognition ProgrammesPracticed in Call Center / BPO Firms

Sl.

No Rewards

Level of satisfaction

Total Mean RankHighlySatisfied Satisfied Neutral Dissatisfied HighlyDissatisfied

1 Incentivesand Awards

94

(44.98)

29

(13.88)

50

(23.92)

21

(10.05)

15

(7.17)793 3.79 1

2 Organization Awards

21

(10.05)

64

(30.62)

51

(24.40)

67

(32.06)

6

(2.87)654 3.13 2

3

Outing forDe-

stressingand TeamBuilding

19

(9.09)

70

(33.49)

35

(16.75)

59

(28.23)

26

(12.44)624 2.99 3

4Free

MedicalAdvice

11

(5.26)

48

(22.97)

51

(24.40)

86

(41.15)

13

(6.22)585 2.80 4

5 Family Day11

(5.26)

27

(12.92)

75

(35.89)

80

(38.27)

16

(7.66)564 2.69 5

6Club

Membership

5

(2.39)

35

(16.75)

88

(42.11)

51

(24.40)

30

(14.35)561 2.68 6

7Fully paidoverseas

trip

19

(9.09)

43

(20.57)

32

(15.31)

67

(32.06)

48

(22.97)

545 2.60 7

8 Freebies3

(1.44)

38

(18.18)

64

(30.62)

77

(36.84)

27

(12.92)540 2.58 8


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[ 17 ]

From table 12 it is clear that themajority of the respondents have

expressed highest level of satisfactiontowards incentives and awards. Theyhave assigned the second place toorganization awards, third place toouting for de-stressing and teambuilding and fourth place to freemedical advice. Celebration of family

day enjoys the fifth place and clubmembership the sixth place. Fully

paid overseas trips and freebies enjoythe last two positions. Thus, it is foundthat the majority of the respondentshave expressed highest level ofsatisfaction towards incentives andawards given in the Call Centre / BPOfirms.


Table 13: Employees Level of Satisfaction Towards Fringe Benefits in CallCenter / BPO Industry

Sl.No

FringeBenefits

Level of satisfactionTotal Mean RankHighly

Satisfied

Satisfie

d

Neutra

l

Dissati

sfied

Highly

Dissatisfied

1Food

facilities Canteen

27

(12.92)

126

(60.28)

54

(25.84)

2

(0.96)- 805 3.85 1

2Transportat

ionAllowances

8

(3.83)

102

(48.82)

59

(28.23)

40

(19.14)- 705 3.37 2

3 Sick leavepolicy

3

(1.44)

64

(30.62)

64

(30.62)

72

(34.45)

6

(2.87)613 2.93 3

4Mediclaim,

LIC etc.

10

(4.78)

46

(22.01)

46

(22.01)

86

(41.15)

21

(10.05) 565 2.70 4

5Any health

careallowance

3

(1.44)

40

(19.14)

72

(34.45)

88

(42.10)

6

(2.87)573 2.69 5

6 Retirementprogramme

13

(6.22)

24

(11.48)

67

(32.06)

75

(35.89)

30

(14.35)542 2.59 6

7 Any paidleave policy

8

(3.83)

35

(16.75)

56

(26.79)

80

(38.28)

30

(14.35)538 2.57 7

8 Visioncoverage3

(1.44)

43

(20.57)

48

(22.97)

88

(42.10)

27

(12.02)534 2.55 8


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From table 13 it is clear that themajority of the surveyed respondents

have expressed highest level ofsatisfaction about the food facilitiesoffered in the Call Centres / BPOindustry which is followed bytransportation allowances. The thirdand fourth places go to sick leavepolicy and mediclaim, LIC etcrespectively. The fifth most satisfying

factor is health care allowances,followed by retirement programme.

The last two items are paid leavepolicy and employee vision coverage.It is, thus seen that the majority ofthe surveyed respondents, haveexpressed highest level of satisfactionabout the food facilities offered in theCall Centres / BPO industry.

Table 14: Level of Satisfaction Towards Employee Development Programmes

Sl.No

Development

Programmes

Level of satisfactionTotal Mean RankHighly

SatisfiedSatisfie

dNeutra

lDissatisfied

HighlyDissatisfied

1

Highereducationand skill

development

opportunity

18

(15.65)

58

(50.43)

32

(27.83)

7

(6.07)- 432 3.76 1

2Job in the

field ofinterest

16

(13.91)

68

(59.13)

24

(20.87)

2

(1.74)

2

(1.74)430 3.74 2

3 Good salary12

(10.43)

62

(53.11)

40

(34.78)

2

(1.74)

- 432 3.76 3

4 Betteropportunity

9

(7.82)

59

(51.30)

39

(33.91)

5

(2.56)

6

(5.22)410 3.57 4

5 Careercounseling

6

(5.22)

63

(54.78)

39

(33.93)

4

(3.48)

3

(2.61)410 3.57 5

6Foreign

assignments providing

2

(1.74)

61

(53.14)

44

(38.26)

7

(6.07)

2

(1.74)402 3.50 6

7

Assessmenttechniqueprovided by

thisorganizatio

n

6

(5.22)

43

(37.39)

57

(49.57)

9

(7.82)- 391 3.40 7


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[ 19 ]

From table 14 it is clear that amongthe respondents, best choice of the

development opportunities that areprovided in the Call Centres / BPO, itis the facility for higher education andskill development which is followed bythe opportunity to work in the field oftheir choice. The third place goes togood salary and the fourth place tocareer counseling and better

opportunity. Foreign assignmentsoccupy the fifth place which is

followed by assessment technique.Thus, it is found that the respondentsbest choice of the developmentopportunities that are provided in theCall Centers / BPO is the facility forhigher education and skilldevelopment.

From table 15 it is clear that themajority of the respondents haveexpressed highest level of satisfactiontowards the on-the-job trainingprovided to them in this industry. Thesecond and third positions go tocommunication training and team

building games respectively. Thus, itis seen that the majority of therespondents have expressed highestlevel of satisfaction towards the on-the-job training provided to them inthe Call centers / BPO industry.



Table 15: Level of Satisfaction Towards Training Programmes

Sl.No

Training

Programmes


Total Mean RankHighlySatisfied

Satisfied

Neutral

Dissatisfied

HighlyDissatisfied

1 On the jobtraining

29

(13.88)

108

(51.67)

72

(34.45)- - 793 3.79 1

2Communica

tiontraining

24

(11.48)

91

(43.54)

67

(32.06)

24

(11.53)

3

(1.48)764 3.66 2

3

Teambuildinggames

session

21

(10.05)

75

(35.89)

59

(28.23)

38

(18.18)

16

(7.65)

674 3.22 3

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Table 16: Influences of Various Factors on Increasing Employee Attrition Rate

Sl.No Factors


Total Mean RankVeryHigh High Neutral Low Very Low

1

Lack ofcareer

opportunities

84

(40.19)

90

(43.06)

10

(4.78)

22

(10.52)

3

(1.28)857 4.10 1

2 Healthissues

30

(14.35)

99

(47.37)

75

(35.89)

5

(2.39)- 781 3.74 2

3

No propercommunica

tionchannels

establishedin the

company

26

(12.55)

102

(48.80)

59

(28.23)

11

(5.26)

11

(5.26)748 3.58 3

4Poor

promotionpolicies

53

(25.36)

70

(33.49)

36

(17.22)

17

(8.13)

33

(15.79)720 3.44 4

5

Inadequatecompensati

on andbenefits

72

(34.44)

41

(19.61)

28

(13.39)

36

(17.22)

32

(15.31) 712 3.40 5

6 Poor salary21

(10.05)

54

(25.84)

113

(53.07)

16

(7.65)

5

(2.39)697 3.33 6

7

Unnecessary inferenceof superior

in theemployees

work

48

(22.97)

60

(28.71)

24

(11.48)

21

(10.05)

21

(10.05)650 3.11 7


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[ 21 ]

From table 16 it is clear that themajority of the surveyed respondents

rank the Lack of Career Opportunitiesas the first main factor influencing theincreasing Employees Attrition Rate.The second and third place goes tohealth issues and impropercommunication channels establishedin the company. Poor PromotionPolicies and inadequate compensationand benefits have been assigned thefourth and fifth places. The sixth placegoes to poor salary and the seventhplace to unnecessary interference ofsuperior in the employees working.

Thus, it is seen that the majority ofthe respondents feel that the lack ofcareer opportunities is the first mainfactor influencing the increasedemployees attrition rate in the CallCentre / BPO firms.

FINDINGS

1. Majority of the respondents i.e.43.54% have joined Call centre /BPO for good salary package.

2. The association between thegender of the respondents andtheir level of satisfaction towardsattrition rate is not significant.

3. The association between the agegroup of the respondents and theirlevel of satisfaction towardsattrition rate is significant.

4. The association between theeducational status of therespondents and their level ofsatisfaction towards attrition rateis significant.

5. The association between theMonthly Income of the

respondents and their level ofsatisfaction towards attrition rateis significant.

6. Majority of the respondents i.e.38.28% have attributed GoodCommand over English as themost important job requirement inCall Centres / BPOs.

7. Majority of the surveyedrespondents have expressedhighest level of satisfaction with

their job followed by high level ofsatisfaction with the workingenvironment.

8. Majority of the surveyedrespondents have perceived thattheir personal interests have animportant effect on the quality oftheir job.

9. Majority of the surveyedrespondents i.e. 19.15 % perceivetheir superiors to be egoistic.

10. Majority of the respondents i.e.25.83% are satisfied with thenumber of days of vacationavailable in this field.

11. Majority of the respondents haveexpressed highest level ofsatisfaction towards incentivesand awards.

12. Majority of the respondents

surveyed have expressed highestlevel of satisfaction about the foodfacilities offered in the CallCentres / BPO industry.

13. Among the respondents best


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choice of the developmentopportunities that are provided in

the Call Centres / BPO, it is thefacility for higher education andskill development.

14. Majority of the respondents haveexpressed highest level ofsatisfaction towards the on-the-

job training provided to them inthis industry.

15. Majority of the surveyedrespondents rank, Lack of CareerOpportunities as the first main

factor influencing the increasingEmployees Attrition Rate.

SUGGESTIONS

1. The age at which employees jointhe Call Centers / BPO industrieshas a positive effect on theaverage tenure of employees in anorganization. Employees taken inat a comparatively lower age havea higher propensity to leave the

job. It, therefore, requires aneffective recruitment andselection strategy. Then, thereshould be an integratedperformance appraisal andreward system which shouldinclude proper recognition andreward devices and counselingand feed back arrangements toeffectively curtail the increasingattrition rate in the Call Centers /BPO industry.

2. A very good command overEnglish language is the main skillrequired. Freshers have toundergo intense training to makethem suitable for the job.

3. Most BPO firms will have to lookto add value to the customers

processes thereby climbing up thevalue chain.

4. A detailed analysis of strengths,weaknesses, opportunities andthreats are required beforeentering value added segments.

5. It is not enough to just scaletechnology solutions, rather skill,efficiency and domain expertisemust become an integral part of acompanys strategy, and

organizational functions andprocesses must be adapted tocomplement the IT up gradation.

6. To reduce location risks firmsmust establish business centersin different locations in thecountry.

7. World-class certification is arequirement to prove a firmscredibility which will help toretain the existing employees.

8. Customers must take anintegrated approach to BusinessProcess Outsourcing and seek re-engineered processes from theiroutsourcing firms. BPO mustreduce complexity and increasevelocity.

9. Call centers can curb attrition byoffering a better workingcondition in the work place.

10. Employers should concentrate onleadership and brand building aspeople prefer to be associatedwith a brand. Respect should becreated for the job.

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[ 23 ]

The growth of

ITES and BPO

companies is

enormous; they

provide substantial

employmentopportunities.

Though the attrition

rate is not very high

in India as

compared to US,

even if one employee

leaves the

organization, it

causes substantial

loss to the company.

11. Job rotation and part-timetraining programme should be

offered to make the employeesskilled in the particular work.

12. Jobs of executives should berotated from voice to non-voice. Asignificant amount of valueaddition must be introduced andincluded.

CONCLUSION

Call centre is the latest buzzword on

the Indian business scenario. Its eco-nomic rationale is well established butpeople off late have started question-ing its human implications. Thegrowth of ITES and BPO companies isenormous; they provide substantialemployment opportunities. Thoughthe attrition rate is not very high inIndia as compared to US, even if oneemployee leaves the organization, itcauses substantial loss to the companyas discussed earlier. This means, thecompany needs to solve this problemby adopting a suitable strategy toreduce attrition rate in future.

Human Resource practices play a vitalrole in the organization. The mainfunction of the HR is to find the rightperson, for the right job at the righttime. But, it is very difficult to find theperson who can stay with theorganization for a long time especiallyin ITES and BPO companies. There isa need to identify the people with a

mind-set who would stick with theorganization for a long period. Theymust adopt the best HR practiceswhich help to identify the right

persons and also help to retain themin the organization.

They must provide better welfarefacilities like housing, transport,medical, insurance, recreation,canteen, etc. to meet their needs.Since many organizations providethese benefits, they must focus on thespecific needs or desires of theemployees and try to satisfy them asmuch as possible. Diversification interms of age, experience, qualification,family background, culture etc, bringsmore innovativeness to the

organization. The company couldprovide employment to the categorieslike physically challenged people,youngsters from rural areas,housewives, etc.

BPO is likely to continue under allkinds of circumstances. Thecompanies around the world havebecome habitual in moving their BPOwork to India. The future of BPOindustry appears to be bright andshining. BPO has been in greatdemand in India because of low costsand educated workforce. The BPOCompanys reward and recognitionprogrammes have become the trend-setters in setting new ways andschemes to retain the employees. Inthis background, the supply of jobs ishigher than the demand and thusattrition is rampant, as people look forhigher pay packages, better lifestyleand convenient work timings. As such,the BPO companies are expected to

continuously innovate their rewardand recognition programs to keeptheir professionals on their rolls andto attract prospective employees.


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References

Abirami Devi K and Ranjitham D,Attrition Rate way to control, MBA Review

Vol. VI, Issues II, February 2007.

Adilakshmi P, Employee Attrition Critical

Issues HRD Times, Vol.11, No.7,

September 2006, pp.11-13.

Ananthan K, IT Destination Nest

Accenture BPO in Emerging Markets: Boom

Time, June 2006.

Babu P. Ramesh (2004), Cyber coolies in

BPO insecurities and Vulnerabilities of Non

standard Work, Economic and Political

Weekly, January, p. 492.

Baskara Rao. V. K Growth of BPO and

Call Centers in India, HRD Times, April

2006, Vol. 8, No.4, pp.14-15.

Catriona M. Wallace (2000), The

Sacrificial HR Strategy in Call Centers,

International Journal of Service Industry

Management, 2000, Vol. 11, No. 2, pp. 174-

185.

Gopala Krishna Chitta, BPO: Driving

Shift in Business Module, Prajnan, Vol.

XXXIII, No. 3, 2004-05.

Karthik. D and Rao U. S, (2004),

Strategies for entering high value added

BPO services, IBAT Journal of

Management, Vol. 1, No. 1, January 2004,

pp. 157 168.

Kipins. D (1976) The power holders

(Chicago: University of Chicago Press,

1976)

Kothari C. R, Research Methodology,

Wishua Prakashan, New Delhi, 2008.

Kulakarni P. K and Gujarati, Career

opportunities in BPO, MBA Review Vol. V,

No. VIII, August 2006.

Mohammed Ghazi Shahnawaz

Occupational stress in call centers Myth orReality, Abhigyam, Vol. XXIV, No.3,

October December 2006, pp. 30-38.

NASSCOMS featured article, Can BPOs

handle the challenge? August 06, 2002.

NASSCOM, ITES-BPO forum, Super Nine-

Indian, ITES Destinations, August 06,

2002.

NASSCOM finding, Attrition in IndianBPO Industry, September 2004.

NASSCOM, Shades of Ancient Rome in

Call Centers, 2006.

Nayanathara (2007), Indian BPO

industry, Chille Breeze, July 2007.

Nitin Aggarwal (2005), Making the right

call Managing Attrition in BPO

companies, Indian Management, December

2005, Vol.44, Issue. 12, pp. 40-42.

Prasad Unawane, Call Center in India -

Call Center Industry in India, January 23,

2008.

Raman R. The BPO Revolution; Strategies

to control high rate of attrition Udyog

Pragati, Oct-Dec.2004, Vol.28, No.4.

Sanjeev (2008), Stress, Human Issues in

Call Centers and BPO industry, January

2008.

Scalem M and Adarsh Ravichandranathan,

Managing attrition in the BPO industry;

Critical factors and strategic

recommendations, Vol. XXIII, No. 3, Oct-

Dec. 2005.

Tripathi P. C, Personnel Management and

Industrial Relations, Sultan Chand &Sons, New Delhi.

Vikas Gupta, Call Center / BPO Training

Course, Patparganj, New Delhi.

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www.assureconsulting.com

Zigon J (1994), Making performance

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1994, pp. 58-63.

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[ 25 ]

Is Employer Branding an InfluencingFactor for Accepting an Offer?

L. Gandhi*

K. Senthil Kumar**

Introduction

Employer branding is defined as theimage of the organization as a greatplace to work in the minds of currentemployees and key stakeholders in theexternal market (active and passivecandidates, clients, customers andother key stakeholders). Employerbranding is an effective tool for anyemployee. The study is conducted toknow how far the employees considerthe employer branding as a factor foraccepting employment and otherwise.The term simply signifies the image ofthe organization in the minds of theemployees. The opinion of theemployees, its stakeholders and thecustomers towards the organization is

what is observed in this particularstudy. Some of the views of the expertsin this regard are as follows:

According to Goutam Sinha, CEO,TVS Infotech, employees who arein the industry for 3-4 years,brand is the first priority, forthose who have spent 5 years inany industry the job role isimportant and for those with 10years behind them the job rolebecomes the critical factor.

According to Sasken, People firstpolicy is given primaryimportance. According to Fedexpeople - service - profit is the corepolicy which communicates to usthe order of the preference inframing policies.

Bill Marriott of Marriott Hotels,

believes that one should "take careof the associates, and they'll takegood care of the guests, and the

*Lecturer, Guruvayurappan Institute of Management, Coimbatore, Tamil Nadu, India

**Research Scholar, Department of Commerce, Periyar University, Salem, Tamil Nadu, India

Employer branding

is defined as the

image of the

organization as a

great place to work

in the minds of

current employees

and key stakeholders

in the external

market


Employer branding simply signifies the image of the organization in the minds of the employees. This

study observes the opinion of the employees, its stakeholders and the customers towards the organization

and also evaluates the parameters which are being considered by the employees to accept a job offer. The

various factors that the employees take into account include employment package, environment, brand

image and personal factors. The study also focuses on the influence of branding and non branding factors

on the employees. The importance of employer branding is significantly increasing, since the talent

enriched workforces expectations in terms of reputation and image of the company as well as the package

are steadily increasing in recent days. In todays era the emphasis is on policies that are employer friendly

and strategies that can retain them. Employer branding is the process of creating an identity andmanaging the companys image in its role as an employer.

Keywords:Branding, stakeholders and company image

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An organizationmust adopt a

concerted and focused

approach to building

and maintaining its

reputation as a Best

Workplace and

constantly work

towards reinforcingthis branding

through continuous

exercises.


guests will come back." Thereforeit is believed that if the company

takes care of people, people willtake care of the company.

D K Srivastava, Vice President,HR at HCL Comnet says, It issaid that an unsatisfied customertells ten people about hisexperience while an unsatisfiedemployee tells a hundred.Employer branding reflects thework culture in an organization.Therefore, it is of muchsignificance. Through right

branding, the company canrecruit the best talent andreinforce its positioning amongstits employees. Srivastava evensaid that we expect to see moreinnovation within organizationsto improve our corporate image.Training programmes,motivational classes, employeecareer plans have become acommon phenomenon now a days.What organizations would beaiming towards is not employeesatisfaction but employeedelight! He further said, Ibelieve that the most credibleforms of communication are notthe ads, literature and websites,but the behaviour of ones ownemployees and accounts of theirown work experience.

Commenting on the changingscenario, Arun Tadanki, the chiefexecutive officer of

Monsterindia.com, says, Tillrecently, employment ads werejust showing the job description ofthe vacancy. The focus in the lasttwo-three years has shifted and islargely driven by the IT & ITESemployers, to create a powerful

image for the organization as adream place to work.

Pramode Sadarjoshi, Director,Human Resources, CognizantTechnology Solutions, points outthat employer branding is not aneasy task as it is a long-termprocess. It takes tremendouseffort and a strategic blend oflogic and intuition in the brand-building exercise. The companyhas to have superior leadership,operational excellence, customerfocus and most importantly

people-orientation in a genuineway, for the branding exercise tobe successful.

R Shekar, Senior Vice Presidentand Head HR, Corporate Strategyand Business Excellence ofPolaris Software says, Anorganization must adopt aconcerted and focused approach tobuilding and maintaining itsreputation as a Best Workplaceand constantly work towardsreinforcing this branding throughcontinuous exercises.

The above citations indicate theefforts taken by the organizations tobuild their brands in the changingscenario. The study is undertakenwith a view to evaluate theparameters that are more significantto accept the employment. Theparameters which are beingconsidered to accept an offer by the

employees are employment package,culture & environment, brand image,management performance, personalfactors, economical environment,financial requirements etc. The studyfocuses on the influential nature ofbranding factors such as package

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[ 27 ]

image Vs non branding factors such asgeographical convenience and limited

job opportunities etc.

Literature review

Simon Barrow, Chairman, People inBusiness, is the pioneer in employerbranding researchers. According tohim, bringing the best brand to peopleat work has mentioned theimperatives of employer branding onthe following four parameters:

I. Employment package

II. Management performance

III. Brand Image

IV. Culture & Environnent

Personal factors are some of the otherfactors that influence employees to

accept an offer.

According to Indranil Banerjee,Manager, West Bengal ElectricityDistribution co. ltd., Kolkata theemployer branding tools is:

i. internal benchmarks

ii. current management practices

iii. great place to work

iv. competitors branding strategies

v. contribution in literature forums

The literature facilitates employerbranding and its importance. Thestudy concentrates more on theinfluential nature of employer

The employer branding factors are stated below

(Source: www.sitehr.com)


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There are thirteenvariables to evaluate

influence of

employer branding

like Vision and size

of the company,

leadership, package,

management

performance,transparency in the

system are used in

the questionnaire for

assessment.

branding with reference to acceptingthe offer.

Objectives:

(i) The study is made to assess theinfluence of employer brand as akey factor for an employee toselect his employer.

(ii) The study is also extended toknow the other factors whichinfluence the employee to acceptan offer.

Hypothesis:

Null Hypothesis: H0: The influence ofboth the branding factors and non-branding factors are equal 1=2

Alternative Hypothesis H1: TheInfluence of the branding factors aregreater than the non branding factorsi.e. 1 is greater than 2

Alternative Hypothesis H2: TheInfluence of the non branding factorsare greater than the branding factors2 is greater than 1

Research Methodology

A questionnaire was prepared toassess the factors which influence anemployee to accept the offer. Thebranding and non-branding factors

were sourced from the referencesmentioned above. There are thirteenvariables to evaluate influence ofemployer branding like Vision andsize of the company, leadership,package, management performance,

transparency in the system are usedin the questionnaire for assessment.

There are thirteen non brandingvariables like personal factors,economical constraints, challengingcapacity of the individual, nature ofthe job, geographical inconvenience,etc. which are used in thequestionnaire for assessment. A pilotsurvey was conducted to refine thepattern of questions and variables.The variables were scaled from 1 to 5,strongly disagree to strongly agree asper the Likerts scale. Therespondents are the employees

belonging to corporate at Salem city.

Sampling characteristics

The research is based on theconvenience sampling method, due totime constraints the respondentswere selected at random. The samplesize is restricted to 30 only .Therespondents are the employees ofvarious organizations in the Salemcity.

Research Tools

Half of the questions were used toevaluate branding factors and theremaining were focused on the nonbranding factors.

Z test for equality of 2 sample meanswere tested. Sample mean 1represents branding factors and

sample mean 2 represents the nonbranding factors. [Questionnaire isannexed]

Mean and variance are also used astools to interpret the data.


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[ 29 ]

...branding factors

are influencing more

when compared to

non-branding factors

with respect toaccepting an offer by

an individual.

Results & Interpretations

The Maximum possible scores for

branding as well as non brandingsfactors are 65. The actual of maximumscores are 61 and 54 respectively andthe means are 46.43 and 43.17respectively. It implies that brandingfactors are influencing more when

compared to non-branding factors

with respect to accepting an offer byan individual. The minimum scoresare 35 & 29 for branding and non-branding factors respectively. Itimplies that the branding factors aregiven more importance.

Branding factor Non Branding factor

Mean 46.43333333 Mean 43.16667

Standard Error 1.124117363 Standard Error 0.966191

Median 46 Median 43

Mode 45 Mode 48StandardDeviation 6.157044372

StandardDeviation 5.292046

Sample Variance 37.9091954 Sample Variance 28.00575

Kurtosis 0.003879083 Kurtosis 0.312779

Skewness 0.311096696 Skewness -0.41561

Range 26 Range 25

Minimum 35 Minimum 29

Maximum 61 Maximum 54

Sum 1393 Sum 1295

Count 30 Count 30

Table 1: Represents the descriptive statistics of branding and non brandingfactors


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Among the branding factors thefollowing factors are given priority bythe employees

(Based on the mean values which aremore than 3.5)

i. Vision of the company

ii. The company being forefront in

the industryiii. Policies & Procedures

iv. CSR activities

v. Welfare schemes, Transparency &

Career advancement

The Top managements vision,leadership and its ethicalpractices are more valued followedby the ethical & HR practiceswithin the organization.

Size of the organization andmanagement performance are

given less priority while acceptingan offer.

The expectations of the employeeswith regard to size of theorganization and the companybeing forefront in the industry are

Table 2: Branding variables

Sl.No. Variables Mean Variance

1. Policies & Procedures 3.7 0.562069

2. Vision of the company 3.933333 0.409195

3. Executives inspiration 3.466667 0.878161

4. Reputation 3.8 0.993103

5. Concerned towards employees 3.3 0.906897

6. CSR activities 3.633333 0.929885

7. Employee referrals 3.533333 0.947126

8. Management Performance 3.433333 0.874713

9. Being forefront in the industry 3.733333 1.305747

10 Welfare schemes 3.566667 0.805747

11 Size of the organization 3.2 1.062069

12 Transparency 3.566667 0.874713

13 Career advancement 3.566667 0.598851

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[ 31 ]

varying widely which implies someof the employees give less

importance to these factors.

Every employee considers thevision of the company as an

important factor for employment.

Amongst the non-branding factors thefollowing factors are given priority bythe employees

(Based on the mean values which aremore than 3.5)

i. Personal factors & Jobopportunities

ii. Interest in facing challenges

iii. Economical constraints

iv. Interest towards the industry

v. Nature of the job

Table 3: Non Branding Variables

Sl.No. Variables Mean Variance

1. Geographical Convenience 3.033333 1.205747

2. Interest towards the Industry 3.633333 0.722989

3. Uncertainty 3.166667 0.833333

4. Nature of Job 3.466667 0.671264

5. Traditional Profession 2.6 1.558621

6. Challenges in getting job 3.433333 1.633333

7. Intuition 3.233333 1.012644

8. Interest in facing challenges 3.766667 0.805747

9. Work experience in the previousorganization 3.266667 1.167816

10 Economical constraints 3.733333 1.305747

11 Job opportunities 3.966667 1.205747

12 Pink slips 1.9 0.093103

13 Personal factors 3.966667 0.929885


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Personal factors and theavailability of jobs are the leading

factors to accept an offer.

The employees have notconsidered the downtrend as afactor for accepting an offer.

The employees do not show muchinterest to continue with theirfamily vocation as they are moreinterested in facing challenging

jobs.

The expectations of the employees

with regard to challenges ingetting job is varying widelywhich implies some of theemployees feel that getting into anorganization is not a difficult task.

Most of the employees feel thedown trend has less significancewhile accepting an offer.

Influence of branding andnon branding factors

The study is carried on to find theinfluencing nature of the factorsbetween the branding factors andnon- branding factors for an employeein accepting an offer. Z test is a moresuitable tool to assess the equality oftwo means. The sample mean forbranding factors and sample mean fornon branding factors have been testedfor equality

Null Hypothesis: H0 : The influence

of both the branding factors and non-branding factors are equal 1=2

Alternative Hypothesis H1 : TheInfluence of the branding factors aregreater than the non branding factorsi.e. 1 is greater than 2

Alternative Hypothesis H2 : TheInfluence of the non branding factorsare greater than the branding factors2 is greater than 1

z-Test: Two Sample forMeans

Branding factors Non Branding factors

Mean 46.43333333 43.1666667

Known Variance 37.91 28

Observations 30 30

Hypothesized MeanDifference 0

z 2.203889382

P(Z

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[ 33 ]

The critical value for one tailed test is1.644.The calculated Z value is 2.203

and therefore null hypothesis isrejected and H1 is accepted. i.e. theinfluence of the branding factors isgreater than the non branding factors.The branding factors are influencingmore even in the current scenario ofrecession and downtrend in theeconomy.

Limitations and futureresearch

The study is conducted in the Salemcity only due to geographicalconvenience. The size of therespondents is limited to 30 only. Afew factors are considered to test thehypothesis mentioned above and thestudy is restricted to a few companies.

From the study it is understood thatthere is mismatch between theinternal identity and the externalimage which may lead todissatisfaction among the employeesand can be tested further.

The data can also be used to clusterthe variables. The factor analysis isalso possible for understanding theassociation of the variables in a betterway.

Conclusion

D K Srivastava, vice president- HR at

HCL Comnet has rightly said that asatisfied employee would certainlyperform better if he is taken care bythe organization.

A survey taken by CNBC TV 18 statesthat the preference of employees to get

in to BPO jobs which are not branded,is also declining. The importance ofemployer branding is significantlyincreasing, since the talent enrichedworkforces expectations in terms ofreputation and image of the companyas well as the package are steadilyincreasing in recent days. Thecorporates have understood thecurrent scenario and therefore theemphasis has been shifted towardspolicies that are employee friendly andstrategies that can retain them. The

measures taken by the corporate are toretain and to attract the deserving HRasset; reputation and image of theorganization in the market and itsinternal and external status are alsoconsidered the need of the hour.

The hypothesis testing in the studyreveals that the branding factors doinfluence an employee to accept anoffer.

References

Graeme Martin, Phillip Beaumont, Rosalind

Doig and Judy Pate, Branding: A New

Performance Discourse for HR? Employer

Branding-ICFAI Publications

Tapomoy Deb Building Employer Branding

for competitive advantage-HRM Review,

April 2007, ICFAI Publications

Indranil Banerjee Designing Employer

Branding strategic Initiative -HRM Review,October 2007

The employer brand: Bringing the best brand

to people at work. Simon Barrow and

Richard Mosley

www.sitehr.com

The importance of

employer branding is

significantlyincreasing, since the

talent enriched

workforces

expectations in

terms of reputation

and image of the

company as well as

the package are

steadily increasing in

recent days.


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www.cipd.co.uk

www.wikiepidea.com

Annexure

The questionnaire has been designedto assess the factors that would inducea candidate to accept the particular

job. We appreciate and thank you forsparing your valuable time to fill thequestionnaire. The data is collectedpurely for research work and would be

kept confidentially.

Name :

Age :

Sex :

Name of the Organization :

Designation :

Years of experience :

S.No Particulars StronglyDisagree Disagree Neutral AgreeStronglyagree

1The policies & procedures ofthe organization appeal tome.

2The companys vision is adriving force for acceptingthe offer

3Top level executives were amotivational factor foraccepting the offer

4I accepted the offer due tothe reputation of theorganization

5The organization is moreconcerned towardsemployees.

6I was attracted by thecontributions made by theorganization to the society

7The references that I hadwith the employees mademe accept the offer

8I have accepted the offerdue to economicalconstraints

9I have accepted the offerdue to limited jobopportunities

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S.No Particulars StronglyDisagree Disagree Neutral AgreeStronglyagree

10I have accepted the offer insuch a period when most ofthe organizations issue pinkslips

11 I have accepted the offer onpersonal grounds

12 The size of the organizationattracted me very much

13The appraisal system in theorganization is moretransparent.

14 I have better scope in mycareer advancement

15I have opted thisorganization because ofgeographical convenience

16 I like to work in thisparticular Industry

17 I have opted because ofuncertainity.

18 The nature of job impressedme to accept.

19 Forefathers in my family arein the same profession.

20 I feel getting job else where

is difficult.21 My intuitions directed me toaccept the offer

22I like to face challenges,which provoked me to acceptthe job.

23

I have accepted the offer dueto the companysachievement and awardsreceived by the company inthe yester years.

24 My company is in theforefront in the industry

25 I am attracted by thewelfare schemes offered bythe organization.

26The working atmospherewas not conducive in theprevious organization


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In today's world of

global competition,

rendering quality service

is a key for survival and

success and many experts

concur that the most

powerful competitive

trend currently shaping

marketing and business

strategy is service quality

(Zeithaml et al, 1996).


An Empirical Study: StudentsPerception on Service Quality Using

Malaysian Hedperf Measurement Scale

The purpose of this paper is to empirically measure the service quality level using the new industry specific

scale called HEdPERF (Higher education performance-Measurement Scale) among engineering

colleges/Institutions which are offering professional courses in Tiruchirappalli, Tamilnadu, India. In this

study, Purposive Non-Probability sampling techniques were adopted with a sample size of 106 respondents

who were administered using structured questionnaire. Statistical tools namely Univariate analysis,

Multiple regression analysis and Factor analysis were used for this study. From the study findings using

multiple regression analysis, attributes namely standardized syllabus and structure, quality programs,students feedback for progressive measures, empathetic administrative staffs to solve students problem

and fair and equal treatment are the dominant variables which strongly predicts the overall service

quality. Also, from the study findings using factor analysis, it is inferred that a HEdPERF scale is not

factor loaded as per the proposed original four dimensions, instead we got a loading of eleven [1]

factors/Dimensions. Hence, professional engineering institutions should concentrate their efforts on the

extracted dimensions[1] perceived to be important rather than focusing their energy on a number of

different attributes, which they feel are important determinants of service quality.

Keywords:Service quality, Professional Engineering colleges, Higher education, Performance -HEdPERF

*Assistant Professor, College of Business Administration, King Saud University, Saudi Arabia

**Assistant Professor, Saranathan College of Engineering, Trichy, Tamilnadu, India

Introduction

Service industries are playing anincreasingly important role in theoverall economy of many nations. Intoday's world of global competition,rendering quality service is a key forsurvival and success and manyexperts concur that the mostpowerful competitive trend currentlyshaping marketing and businessstrategy is service quality (Zeithaml

et al, 1996). Since 1980s service

quality has been linked withincreased profitability and it is seenas providing an importantcompetitive advantage by generatingrepeat sales, positive word-of-mouthfeedback, customer loyalty, andcompetitive product differentiation.

As Zeithaml and Bitner (1996, p. 76)point out," the issue of highestpriority today involvesunderstanding the impact of servicequality on profit and other financial

outcomes of the organization".

K. Ravichandran*

S. Arun Kumar**

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Although

researchers have

devoted a great deal

of attention toservice quality there

are still some

unresolved issues

that need to be

addressed and the

most controversial

one refers to the

measurement

instrument...

Service quality has since emerged as apervasive strategic force and a key

strategic issue on management'sagenda (Bowers, 1997). It is nosurprise that practitioners andacademics alike are keen on accuratelymeasuring service quality in order tobetter understand its essentialantecedents & consequences andultimately establish methods forimproving quality to achievecompetitive advantage and buildcustomer loyalty (Bitner, 1993). Thepressures driving successfulorganizations toward top quality

services make the measurement ofservice quality and its subsequentmanagement of utmost importance(Webster, 1989). However, theproblem inherent in theimplementation of such a strategy hasbeen compounded by the elusivenature of the service quality construct,rendering it extremely difficult todefine and measure (Parasuramanetal., 1985; Carman, 1990;BoltonandDrew, 1991b).

Although researchers have devoted agreat deal of attention to servicequality there are still some unresolvedissues that need to be addressed andthe most controversial one refers tothe measurement instrument(Babakus and Boiler, 1992; Buttle,1996; Robinson, 1999). An attempt todefine the evaluation standardindependent of any particular servicecontext has stimulated the setting upof several methodologies. In the last

decade, the emergence of diverseinstruments of measurement such asSERVQUAL (Parasuraman et al.,1988), SERVPERF (Cronin and

Taylor, 1992) and evaluatedperformance (EP) (Teas, 1993a) has

contributed enormously to thedevelopment in the study of servicequality. SERVQUAL operationalisesservice quality by comparing theperceptions of the service receivedwith expectations, while SERVPERFmaintains only the perceptions ofservice quality. On the other hand, EPscale measures the gap betweenperceived performance and the idealamount of a feature rather than thecustomer's expectations. Diversestudies using these scales have

demonstrated the existence ofdifficulties resulting from theconceptual or theoretical component asmuch as from the empirical component(Carman, 1990; Babakus and Boiler,1992; Boulding et al, 1993; Quester etal, 1995).

Nevertheless, many authors concurthat customer' assessments ofcontinuously provided services maydepend solely on performance, therebysuggesting that performance-basedmeasures explain more of the variancein an overall measure of servicequality (Oliver, 1989; Bolton andDrew, 1991a, b; Cronin and Taylor,1992; Boulding et al, 1993; Quester etal., 1995). These findings areconsistent with other research thathave compared these methods in thescope of service activities, thusconfirming that SERVPERF(performance-only) results in morereliable estimations, greater

convergent and discriminant validity,greater explained variance, andconsequently less bias than theSERVQUAL and EP scales (Cronin


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Whilst its impact inthe service quality

domain is

undeniable,

SERVPERF being

a generic measure of

service quality may

not be a totally

adequate instrumentby which to assess

the perceived quality

in as unique a sector

as higher education.


and Taylor, 1992; Parasuraman et al,1994a; Quester et al, 1995; Llusar and

Zornoza, 2000). Whilst its impact inthe service quality domain isundeniable, SERVPERF being ageneric measure of service qualitymay not be a totally adequateinstrument by which to assess theperceived quality in as unique a sectoras higher education.

Firdaus (2004), on the other hand,proposed HEdPERF conceptual framework (Higher EducationPerformance), a new and more

comprehensive performance-basedmeasuring scale that attempts tocapture the authentic determinants ofservice quality within the highereducation sector in Malaysia. The 41-item instrument has been empiricallytested for unidimensionality,reliability and validity using bothexploratory and confirmatory factoranalysis. Therefore, the primary issueaddressed by this paper is aboutapplication of Malaysian HEdPERFservice quality measurement scale ina different cultural and demographicarea like India, hence an empiricalstudy got attempted in a singleindustry like higher education sectorin Trichirappalli, Tamilnadu, India.The goal is to assess the relativestrengths and weaknesses of theinstrument in order to determinewhether instrument has the superiormeasurement capability in terms ofreliability, validity, and explainedvariance of service quality.

Research Objectives:

To understand the Socio-demographic and rational profile

of students from professionalengineering institutions in

Tiruchirappalli, Tamilnadu,India.

Aims to evaluate the applicationof Malaysian HEdPERF (Firduas,2004) measurement scale formeasuring service qualityperception among students ofprofessional engineeringinstitutions in Tiruchirappalli,Tamilnadu, India.

To identify the important

underlying perceived servicequality dimensions amongstudents of professionalengineering institutions inTiruchirappalli, Tamilnadu,India.

To identify the dominantvariables, which is a strongerpredictor of service quality?

Review of Literature:

Many researchers (Parasuraman etal, 1985; Carman, 1990; Bolton andDrew, 1991b) concur that servicequality is an elusive concept and thereis considerable debate about how bestto conceptualize this phenomenon.Hence, they concomitantly come to anagreement that a comprehensivedefinition of service quality isnotoriously difficult to produce. Lewisand Booms (1983, p. 100) were

perhaps the first to define servicequality as a "measure of how well theservice level delivered matches thecustomer's expectations". Thereafter,there seems to be a broad consensusthat service quality is an attitude of

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[ 39 ]

...most researchers

acknowledge that

customers have

expectations and

these serve as

standards or

reference points to

evaluate the

performance of an

organization.

overall judgment about servicesuperiority, although the exact nature

of this attitude is still hazy. Somesuggest that it stems from acomparison of performanceperceptions with expectations(Parasuraman et al, 1988), whileothers argue that it is derived from acomparison of performance with idealstandards (Teas, 1993a) or fromperceptions of performance alone(Cronin and Taylor, 1992).

In terms of measurementmethodologies, a review of literature

provides plenty of service qualityevaluation scales. Some stem from therealization of conceptual modelsproduced to understand the evaluationprocess (Parasuraman et al, 1985) andothers come from empirical analysisand experimentation on differentservice sectors (Cronin and Taylor,1992; Franceschini and Rossetto,1997b; Parasuraman et al, 1988). Themost widely used methods applied tomeasure perceived quality can becharacterized as primarilyquantitative multi-attributemeasurements. Within the attribute-based methods, a great number ofvariants exist and among thesevariants, the SERVQUAL andSERVPERF instruments haveattracted the greatest attention.

Generally, most researchersacknowledge that customers haveexpectations and these serve asstandards or reference points to

evaluate the performance of anorganization. However, the unresolvedissues of expectations as adeterminant of perceived servicequality have resulted in twoconflicting measurement paradigms:

the disconfirmation paradigm(SERVQUAL) which compares the

perceptions of the service receivedwith expectations and the perceptionparadigm (SERVPERF) whichmaintains only the perceptions ofservice quality. These instrumentsshare the same concept of perceivedquality. The main difference betweenthese scales lies in the formulationadopted for their calculation and moreconcretely, the utilization ofexpectations and the type ofexpectations that should be used.

Most research studies do not supportthe five-factor structure ofSERVQUAL posited by Parasuramanet al. (1988), and administeringexpectation items is also consideredunnecessary (Carman, 1990;Parasuraman etal, 1991a; Babakusand Boiler, 1992). Cronin and Taylor(1992) were particularly vociferous intheir critiques, thus developing theirown performance-based measure,dubbed SERVPERF. In fact, theSERVPERF scale is the unweightedperception components ofSERVQUAL, which consists of 22perception items thus excluding anyconsideration of expectations. In theirempirical work in four industries,Cronin and Taylor (1992) found thatunweighted SERVPERF measure(performance-only) performs betterthan any other measure of servicequality, and that it has greaterpredictive power (ability to provide anaccurate service quality score) than

SERVQUAL. They argue that currentperformance best reflects a customer'sperception of service quality and thatexpectations are not part of thisconcept.


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Llusar andZornoza (2000)

confirmed that

SERVPERF

results in more

reliable estimations,

greater convergent

and discriminant

validity, greaterexplained variance,

and consequently less

bias than the EP

scale.

Likewise, Boulding et al. (1993) rejectthe value of an expectations-based

SERVQUAL, and concur that servicequality is only influenced byperceptions.

Quester et al. (1995) performedsimilar analysis to Cronin and Taylorin the Australian advertisingindustry, and their empirical testsshow that SERVPERF performs best,while SERVQUAL performs worst,although the differences are small. Atea (1993a) on the other hand,discusses the conceptual and

operational difficulties of using the"expectations minus performance"approach, with a particular emphasison expectations. His empirical testsubsequently produces twoalternatives of perceive servicequality measures namely EP andNormed quality (NQ). He concludesthat the EP instrument, whichmeasures the gap between perceivedperformance and the ideal amount ofa feature rather than the customer'sexpectations, outperforms bothSERVQUAL and NQ.

A review of service quality literaturebrings forward diverse arguments inrelation to the advantages anddisadvantages in the use of theseinstruments. In general, thearguments make reference to aspectsrelated to the characteristics of thesescales notably their reliability andvalidity. Recently, Llusar and Zornoza(2000) confirmed that SERVPERF

results in more reliable estimations,greater convergent and discriminantvalidity, greater explained variance,and consequently less bias than theEP scale. These results are consistent

with earlier research that hadcompared these methods in the scope

of service activities (Cronin andTaylor, 1992; Parasuraman et al,1994a). In fact, the marketingliterature appears to offerconsiderable support for thesuperiority of simple performance-based measures of service quality(Mazis et al, 1975; Churchill andSurprenant, 1982; Carman, 1990;Bolton and Drew, 1991a, b; Bouldinget al, 1993; Teas, 1993a; Quester et al,1995).

Description - ConceptualFramework of HEdPERFScale:

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