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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
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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
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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
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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.
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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.
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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
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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.
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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
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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
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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.
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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.
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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.
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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
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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.
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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.
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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
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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;
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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.
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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%
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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
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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.
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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.
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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
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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.
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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.
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LATEST FINANCIAL UPDATES ON BHARTI
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CORPORATE STRUCTURE
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MANAGEMENT STRUCTURE
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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.
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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
.
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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
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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.
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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.
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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
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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.
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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.
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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.
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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.
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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.
41Niti Arora Reg. No.200620949
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.
42Niti Arora Reg. No.200620949
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.
43Niti Arora Reg. No.200620949
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.
44Niti Arora Reg. No.200620949
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:
47Niti Arora Reg. No.200620949
(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.
48Niti Arora Reg. No.200620949
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:
49Niti Arora Reg. No.200620949
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
50Niti Arora Reg. No.200620949
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.
51Niti Arora Reg. No.200620949
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.
52Niti Arora Reg. No.200620949
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.
53Niti Arora Reg. No.200620949
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
54Niti Arora Reg. No.200620949
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
55Niti Arora Reg. No.200620949
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
56Niti Arora Reg. No.200620949
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
57Niti Arora Reg. No.200620949
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
58Niti Arora Reg. No.200620949
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
59Niti Arora Reg. No.200620949
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
60Niti Arora Reg. No.200620949
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.
61Niti Arora Reg. No.200620949
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
62Niti Arora Reg. No.200620949
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
63Niti Arora Reg. No.200620949
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:
64Niti Arora Reg. No.200620949
(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
65Niti Arora Reg. No.200620949
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
66Niti Arora Reg. No.200620949
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
67Niti Arora Reg. No.200620949
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
68Niti Arora Reg. No.200620949
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,
69Niti Arora Reg. No.200620949
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
and cooperation in interaction with
others.
could be expected to become
frustrated in some staff
dealings.
could be expected to resent
assistance offered by coworker
70Niti Arora Reg. No.200620949
or supervisor.
Seldom shows understanding
sensitivity, support, courtesy, tact
and cooperation in interaction with
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)
71Niti Arora Reg. No.200620949
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.
72Niti Arora Reg. No.200620949
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.
73Niti Arora Reg. No.200620949
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.
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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.
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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.
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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.
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ANALYSIS OF QUESTIONNAIRE
Male 70%
Female 30%
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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.
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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__________)
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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.
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Q2. Is the assessment an on going process?
Yes
No
can’t say
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Q3. How do you rate the factor / traits of evaluation?
Excellent
Good
Satisfactory
Poor
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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
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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.
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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.
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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
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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.
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Q7. Is the system linked to monetary benefit? If yes, does it extend to you
Yes
No
Can’t say
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Q8. Does the present system help in rewards for performing well?
Rarely
On a few occasion
Sometimes
Often
Almost Always
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Q9. Does it help prioritize your area of responsibility?
Yes
No
Can’t say
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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.
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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.
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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.
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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.
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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
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