Bharti Telecom Performance Appraisal in Bharti Telecom

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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Niti Arora Reg. No.200620949
CANDIDATES 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 Date: 4th June 2010
Niti Arora 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 Date: 4th June 2010
Niti Arora 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 managers trust and confidence in the system, thereby increasing his motivation and commitment towards work. A set of Performance factors that are used to evaluate employees 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 VPs, 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 VPs 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 dont get feedbacks properly as a result they cant 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 VPs do the appraisal system in many cases it is found that they are not fully aware of the persons 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
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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 peoples 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 Direct Exchange Lines Tax Capacity PCO (Local + STD) Satellite Earth Stations NSD Stations International Subscriber Dialing
(No's) ('000 lines) ('000 lines) ('000) (No's) (No's)
24,869 (310*) 21,594(3,600*) 1,467 520 439 18,000 236 countries/ destinations
Number of Employees Engineers/Managers Technicians/Operators Finance Managers/Personnel Others
24,465 2,69,971 4,928 1,25,939
COMPANY PROFILE BHARTI TELE-VENTURES LIMITED
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Building Telecom... Building Relationships.
"As we spread wings to expand our capabilities and explore new horizons, the fundamental focus remains unchanged: seek out the best technology in the world and put it at the service of our ultimate user: our customer."
Sunil Bharti Mittal (Chairman and Group Managing Director)
Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting investments in telecommunications services. Its subsidiaries operate telecom services across India.
Bharti Tele-Ventures is India's leading private sector provider of telecommunications services with an aggregate of 20,925,948 customers as of March 31, 2006, consisting of 19,579,208 GSM mobile and 1,346,740 broadband & telephone customers.
Bharti Tele-Ventures Ltd. the largest mobile service provider in the country, based on the number of customers with mobile operations in all the 23-telecom circles of India.
Bharti Tele-Ventures also provide broadband & telephone services and enterprise services. The enterprise services group has two sub-units 15
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 telecommunicationsrelated 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 Number of circles Area of the circles (in '000 sq km)(1) Market GSM Mobile subscribers in the 42.12 licensed areas (in Mn) Market Total wireless subscribers in the 53.22 licensed areas (in Mn)
(3) Market DELs in the licensed area (in Mn) (4) (3)
Bharti Circles 23 3,278 1027 42.12 53.22 37.7
Bharti as % of All India 100% 100% 100% 100% 100% 100%
23 3,278
Population in the licensed areas (in Mn)(2) 1,027
37.7
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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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AccomplishmentsThe 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 Indias 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 TeleVentures 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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HR Department Structure
R u G B b e n S E M - H R a n d 3 L V A D O R A Y
N D G B
S R I K A N J Tu h i M I S H R PA r a d e e p G U M - H RS r O M p g e r r a - t Hi o R n s & H A e d a dm -n T/ A r sa si i no a n d 2 B a n d 2 B a n d 2
L A RT I a k e s h B A K S H ci n i a g S t e &r M M D m g e vr g - m S t e c u r i t B a n d 2
P M g
r i y a d a r s h B i n i ri e G n U d P r a T A R r - H R ( R Ae c M r u g i tr m - eA A n d n t m B a n d 1 B a n d 1 E x B o M B D o j a A G g r - H R a n d 1 i n M B A R R i t W i k Aa L C H A A ( OM D g ) r - H R B a n d 1
A W A T R a j e s j& a i nn I n ia s d t P ur aS cS t ht i I i oN wo n Gn e ) tH a A MA L O M G g e - T r a A i n M i n g g r - C SB a T n r a n d F B a n d 1 N D H O ( E m p K C V o i bm h m a ) G A M A M g r - C S B a n d 1 e r p a l S M g m t g r - C S n d 1 rr yu B T
h K u m a r S H r A- S e c u r i t y ad i n 1 i n g
H I R r a i n
i n
e s h N E S G u I s m i t a S i n g h r - H R E x( E e Sc S - H & R P ( M A Ss s) o a n d 1 B a n d F g M O u s h u m f f - A d m B a n d F o i C i n h o u
I n d c i a t e A M B a d Vh aa E x B P O
I N T
H i n g
r a i n
n e - C a n d
J A L O T A S T r a i n i n 1 H i n A g
r a b o d h T R E f f - C S T r a i n B a n d F P a l l a v i J A I N f f - C S T r a i n B a n d F w a t i C H O U D - C S T r a i n a n d F
i n
S O
f f B
H A i n g
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Strengths
SWOT ANALYSIS
and Weaknesses
Right
products,
quality
reliability.
Superior product performance vs. competitors.
Some gaps in range for certain sectors.
Brand Image Products accreditations. have required
Not popular in the international market
Delivery-staff need training. Customer training. service staff needs
High
degree
of
customer
satisfaction.
Good place to work Lower response time with
Processes and systems, etc Management cover insufficient. Sectoral growth is constrained by low unemployment levels and competition for staff
efficient and effective service.
Dedicated workforce aiming at making a long-term career in the field.
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Threats Opportunities

Legislation could impact. Existing core business distribution risk.
Profit margins will be good.
End-users respond to new ideas. Could extend to overseas.
Retention of CSD staff critical. Vulnerable to reactive attack by major competitors.
New specialist applications.
Could seek better supplier deals. Fast-track career development
The cost of telecom and network infrastructure is much higher in India.
opportunities on an industry-wide basis.
An applied research centre to create opportunities for
Lack of infrastructure in rural areas could constrain investment.
developing techniques to provide
High volume/low cost market is intensely competitive.
added-value services
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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 dont 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: Sampling unit: Customer Care Deptt. 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.
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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.
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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.
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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.
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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 organizations Core Values: Respect for one another Cooperation Intellectual and spiritual growth Creative imaginings
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Pride in a job well done
PURPOSE
To appraise employees performance and potential on an annual basis predefined parameters with a view to facilitate his advancement in the companys 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. 2. Appraisal forms A, B, C & D Support appraisal forms A, B, C & D
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PROCEDURE
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:
48
(i)
For employees / officers up to level-14- GM/CC* will be the acceptor.
(ii) (iii)
For officers at level-15 - EDs/ CGMs** will be the acceptor. 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.
49
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:
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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
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1.
CONFIDENTIAL REPORT
This
is
traditional
form
of
appraisal
used
in
most
government organizations. A confidential report is a report prepared by the employees 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.
52
2.
FREE FORM OR ESSAY METHOD Under this method, the evaluator writes a short essay on the employees 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 evaluators 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.
53
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 A B C D E
RANK 2 1 5 4 3
Straight ranking is one of the oldest and simplest methods. It is time saving and a comparative evaluation technique of appraisal. But there are several weaknesses in this method. First, it involves bias and snap judgement because appraisal is not based on specifically defined measures of job related performance.
Secondly, ranking of individuals having varying behaviour patterns or traits is difficult especially when a large number of persons are to be rated. Thirdly, the method only indicates how a
54
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 A + + B + C D + + + E + + + + Final Rank 3 2 1 4 5
Here in, plus (+) sign implies the employee is considered better and minus (-) sign means worse than the other employee in the pair. E gets the highest number of plus signs, therefore, his rank is the highest and so on. Paired comparison method is easier and simpler than the ranking method. But it is subjective because appraisal is not based on specific job related performance.
55
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 raters bias of central tendency. Here also ranking technique is used. This method is highly simple to understand and easy to apply. Secondly, it helps to reduce bias involved in straight ranking and paired comparisons. But in this method employees are placed in a certain category and not ranked within a category. The method is based on the questionable assumption that all groups of employees have the same distribution of good and poor performances. The rater does not explain why an employee is placed in a particular category. Specific job related performance criteria are not used in ratings. The rater may resent the restriction placed on his freedom of choice.
No. of Employees
56
10% 10% P oor Excel l ent
20% B el ow Averag e
40% Averag e Good
20%
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 employees 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 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.
57
Poor Quantity of work Quality of work Job knowledge Dependability Attitude 0 1
Average 2
Good 3
Excellent 4 5
CONTINUOUS RATING SCALE
Attitude
No interest
Indifferent
Interested
Enthusiastic Very enthusiastic
Discrete or Discontinuous Rating Scale Fig. RATING SCALES
The rating scale method is widely used as it is easy to understand and use. It allows a statistical tabulation of scores and a ready comparison of scores among the employees is possible. It is economical to design and administer rating scales. The approach is multi dimensional as several significant dimensions of the job can be considered in evaluation. But the rating is generally arbitrary and subjective because specific job related performance criteria are not considered. Secondly, it is assumed that each trait
58
is equally important for all jobs. Thirdly, the descriptive words used in rating scales e.g. dependable may have different meanings to different raters. There is an implication that high rating on one factor can compensate for low score on other factor. Fourthly, the method imposes a heavy burden on the rater. he has to evaluate report performance on several factors each having five degrees. In practice, ratings tend to cluster on the high side. A supervisor often tends to rate his subordinates high to avoid criticism from them. To minimize this bias, the rater may be asked to give reasons to justify his rating.
7.
CHECKLIST METHOD
A checklist is a list of statements that describe the characteristics and performance of employees on the job. The rater checks to indicate if the behaviour of an employee is positive or negative to each statement. The performance of an employee is rated on the basis of number of positive checks. There are three types of checklists that can be used
a.
Simple checklist (Table as given below). Wherein
equal importance is given to each statement,
59
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 raters personal bias.
TABLE : SIMLE CHECKLIST
1. 2. 3. 4.
Is the employee regular on the job Is the employee respected by his subordinates Is the employee always willing to help his peers Does the employee keep the equipment in order
Yes/ Yes/ Yes/ Yes/
No No No No
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TABLE : FORCED CHOICE BLOCK
1.
Regularly on the job (a) Always regular (b) Informs in advance for absence / delay (c) Never regular (d) Remains absent without prior notice (e) Neither regular nor irregular
Most
Least
TABLE: WEIGHTED CHECKLIST
S.No.
Traits
Weights
Performance Ratings (Scale 1 to 5)
1. Attendance 0.5 2. Knowledge of the job 1.0 3. Quantity of work 1.0 4. Quality of work 1.5 5. Dependability 1.5 6. Interpersonal relations 2.0 7. Organisational loyalty 1.5 8. Leadership potential 1.5 Checklist method is a descriptive technique and it provides concrete examples of evaluation. But is a time consuming and expensive method as a different checklist must be developed for each job category. Secondly, it is difficult to assemble, analyse and weigh several statements that properly describe job related behaviour and performance. The statements may be interpreted differently by different raters. The rater may not know which
61
statement contributes most to successful performance. Trained raters are required. But they must resist the restrictions imposed on them under the forced choice method.
8.
CRITICAL INCIDENTS METHOD
In this method the supervisor keeps a written record of critical (either good or bad) events and how different employees behaved during such events. The rating of an employee depends on his positive / negative behaviours during these events. These critical incidents are identified after thorough study of the job and discussion with the staff. For example, a fire, a sudden breakdown of machinery, a serious accident, etc may be
identified as critical incidents for the working of a factory. Table (as given below) illustrates the behaviour of five workers during machine breakdown.
Worker A B C D E
Reaction Informed the supervisor immediately Became anxious of loss of output Tried to repair the machine Complained of poor maintenance Was happy to get forced rest
Score 5 4 3 2 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
62
discussed with the employee to allow improvements. The rater can fully defend his ratings on the basis of his record. But this method suffers from several problems. First, it is very time consuming and cumbersome for the superior to maintain a written record for each employee during every major event. Secondly, quoting incidents after considerable time lapse may evoke negative emotions from employees. Thirdly, subjective judgment of supervisor is involved in deciding critical incidents and desirable response to an event. Fourthly, the supervisor may commit errors in recording behaviours of different employees during a short duration event. Sixthly, critical incidents occur infrequently and therefore, a continuous record of performance might not be available. Lastly, the employees are likely to become concerned with what the supervisor records rather than with daily job routine.
9.
GROUP APPRAISAL METHOD Under this method, a group of evaluators accesses employees. This group consists of the immediate supervisor of the employee, other supervisors having close contact with the employees 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
63
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 this method, a training officer from the personnel
In
department interviews line supervisors to evaluate their respective subordinates. The interviewer prepares in advance the questions to be asked. By answering these questions a supervisor gives his opinions about the level of performance of his subordinate, the subordinates 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 employees personnel service file.
This system relieves the supervisor of the need for filling in appraisal forms. The supervisors 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
64
consuming method. The success of this method depends upon the competence and sincerity of the interviewer.
The traditional methods given above all focus more on the traits of an employee than on his job performance. In the absence of predicated performance criteria or standards, the personal bias or subjectivity of the evaluator affects the ratings.
One study of appraisal in general electric Co., USA revealed that the traditional approach to performance appraisal caused the following responses:
(a) (b)
The very nature of the appraisal system led to criticism. Criticism attainment. exercised a negative impact on goal
(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.
65
In order to overcome these weaknesses some new techniques of performance appraisal have been developed. These techniques are described below:
MODERN METHODS
11.
ASSESSMENT CENTRE METHOD
An assessment centre is a group of employees drawn from different work units. These employees work together on an assignment similar to the one they would be handling when promoted. Evaluates observe and rank the performance of all the participants. Experienced managers with proven ability serve as evaluators. This group evaluators all employees both individually and collectively by using simulation techniques like role playing, business games and in basket exercises. Employees are evaluated on job related characteristics considered important for job success. The evaluators observe and evaluate employees as they perform jobs. Assessments are done generally to determine employee potential for promotion. The evaluators prepare a summary report and feedback is administered on a face to face basis to the employees who ask for it.
An
assessment
centre
generally
measures
interpersonal
skills,
communicating ability, ability to play and organize, etc. Personal

66
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 Raters personnel bias is reduced. But this is a time consuming and expensive method. Further the candidates who receive a negative report from the assessment centre may feel demoralized. In order to make this method effective, it is necessary to state the goals clearly, to obtain top management support, to conduct job analysis, to train the assessors, and to periodically evaluate and revise the assessment programme.
12.
HUMAN RESOURCE ACCOUNTING METHOD Human resources are a valuable asset of any organization. This asset can be valued in terms of money. When competent and well trained employees leave an organization the human asset is decreased and vice versa. Under this method performance is judged in terms of costs and contributions of employees. Costs of human resources consist of
67
expenditure on human resource planning, recruitment, selection, induction, training, compensation, etc. Contribution of human resources is the money value of labour productivity or value added by human resources. Difference between cost and contribution will reflect the performance of employees.
This method is still in the transitionary stage and is, therefore, not popular at present.
13.
BEHAVIOURALLY ANCHORED RATING SCALES (BARS)
This method combines graphic rating scales with critical incidents method. BARS are descriptions of various degrees of behaviour relating to specific performance dimensions. Critical areas of job performance and the most effective behaviour for getting results are determined in advance. The rater records the observable job behaviour of as employee and compares these observations with BARS. In this way an employees 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.
68
(b)
Select performance dimensions:
The persons than cluster the
behavioural incidents into a smaller set (usually five to ten) of performance dimensions.
(c)
Retranslate the incidents:
Another group of knowledgeable
persons assign each incident to the dimension that it best describes. Incidents for which there is less than 75 percent agreement with the first group are not retranslated.
(d)
Assign scales to incidents: The second group rates each incident on a seven or nine point scale. Rating is done3 on the basis of how well the behaviour described in the incident represents performance on the appropriate dimensions. Means (averages) and standard deviations are then calculated for the scale values assigned to each incident. Incidents that have standard deviations of 1.5 or less (on a seven point scale) are included in the final anchored scales.
(e)
Develop final instrument: A subset of the incidents that meets both the retranslation and standard deviation criteria is used as a behavioural anchor for the final performance dimensions. A final BARS instrument typically comprises a series of vertical scales (one scale per dimension) that are endorsed by the included incidents. Each incident is positioned on the scale according to its mean value.
69
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 raters bias is reduced. Systematic clustering of critical incidents helps in making the dimensions independent of one another. Thirdly, ratings are likely to be more acceptable due to employee participation. Fourthly, the method provides a basis for setting developmental goals for employees as it differentiates between behaviour, performance and results. Lastly, the use of critical incidents is useful in providing feedback to the employee being rated.
BARS method, however, suffers from weaknesses. First, it is very time consuming and expensive to develop BARS for every job. Secondly, behaviours used are more activity oriented than results oriented. Several appraisal forms are required to accommodate different types of jobs in an organization. Despite its intuitive appeal, this method is not necessarily superior to the traditional methods of appraisal.
Always
shows
understanding,
could be expected to explain to patient that the nurse is
sensitivity, support, courtesy, fact and cooperation in interaction with others.
supposed to roll up the bed and show patient how to call the nurse.
70
Niti Arora
Reg. No.200620949
could be expected to remain calm and polite by an when abrupt
confronted
visitor, offering assistance to help with the problem. Usually shows understanding, could be expected to become frustrated dealings. in some staff
sensitivity, support, courtesy, tact and cooperation in interaction with others.
could be expected to resent assistance offered by coworker or supervisor.
Seldom
shows
understanding
Could be expected to be concerned with own problems and not to help others.
sensitivity, support, courtesy, tact and cooperation in interaction with others.
could be expected to speak abruptly and discourteously when answering customers inquiry about an entire dish
71
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)
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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 individuals 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.
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CONCEPTUAL DISCUSSIONS
1. Overview of Working of a Call Centre Its not all about the pay package clubbed with perks, and weekend parties. Theres 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 dcor, and the architecture. But the few who have ever set their foot on the floor know the other side of the story.
2. Its 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.
74
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.
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.
75
5. 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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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.
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.
6. 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.
77
7. 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.
8. 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
gender distribition about the employees questionned 70% 60% 50% 40% 30% 20% 10% 0% male female male female
Male Female
70% 30%
79
age distribition about the employees questionned
35% 30% 25% 20% 15% 10% 5% 0% 20-25 25-30 30-35 35-40 40+ 20-25 25-30 30-35 35-40 40+
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__________)
30% 25% 20% 15% 10% 5% 0%
a fair assessment
annual ritual
management necessary evil useful for gimmick employee & organization management gimmick
a f air assessment necessary evil
annual ritual useful for employee & organization
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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 its 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.
82
Q2. Is the assessment an on going process? Yes No cant say
60%
50%
40%
yes no can't say
30%
20%
10%
0%
yes
no
can't say
83
Q3. How do you rate the factor / traits of evaluation? Excellent Good Satisfactory Poor
40% 35% 30% 25% 20% 15% 10% 5% 0%
excellent excellent
good good
satisfactory satisfactory poor
poor
84
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_________)
B N FICTS O U G APPR EE F SIN AISAL SYSTE M
P roblem Solving Ability to m otivate Identify training needs C m om unication
85
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.
86
But in Bharti Telecom the employees doesnt 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.
87
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
30% 20% 10% 0% immediate supervisor dept head appr commttee satisfied with the current system
88
Q.6 How do you find the appraisers approach in appraisal process? Excellent Good Satisfactory Poor
TRAIT OF PERFORMANCE APPRAISAL

14 12 10 8 6 4 2 0 Execellent Good Satisfactory Poor
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.
89
Q7. Is the system linked to monetary benefit? If yes, does it extend to you Yes No Cant say
60% 50% 40%

yes
30% 20% 10% 0%
no can't say
90
Q8. Does the present system help in rewards for performing well? Rarely On a few occasion Sometimes Often Almost Always
25% 20% 15% 10% 5% 0%

rarely few times some times often almost always
91
Q9. Does it help prioritize your area of responsibility? Yes No Cant say
60% 50% 40%

yes
30% 20% 10% 0%
no can't say
92
Q10.Does this system provides feedback on your performance? Rarely On a few occasion
60% 50% 40% 30% 20% 10% 0%

rarely on a few ocassions rarely on a few ocassions
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.
93
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 managers trust and confidence in the system, thereby increasing his motivation and commitment towards work. A set of Performance factors that are used to evaluate employees help in converging the objectives of the individual and the company and helps organization in reaching a position of excellence and sustained growth.
94
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 VPs, 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 VPs 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 doesnt get feedbacks properly as a result they cant work properly on it.
The employees dont get the proper training programs all the time.
95
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 VPs do the appraisal system in many cases it is found that they are not fully aware of the persons performance.
96
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
97

Bharti Telecom Performance Appraisal in Bharti Telecom

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Bharti Telecom Performance Appraisal in Bharti Telecom

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A PROJECT REPORT ON PERFORMANCE APPRAISAL IN BHARTI TELECOM

Submitted in partial fulfilment of the requirements for the award of

Place: New Delhi Date: 4th June 2010

Niti Arora Reg. No.-200620949

Place: New Delhi Date: 4th June 2010

Niti Arora Reg. No.-200620949

Latest Financial Updates on Bharti

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

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

The industry is considered as having the highest potential for

(No's) ('000 lines) ('000 lines) ('000) (No's) (No's)

Number of Employees Engineers/Managers Technicians/Operators Finance Managers/Personnel Others

24,465 2,69,971 4,928 1,25,939

COMPANY PROFILE BHARTI TELE-VENTURES LIMITED

Building Telecom... Building Relationships.

Sunil Bharti Mittal (Chairman and Group Managing Director)

Leverage strengths of its strategic and financial partners; and

Emphasis on human resource development to achieve operational efficiencies.

Bharti Circles 23 3,278 1027 42.12 53.22 37.7

Bharti as % of All India 100% 100% 100% 100% 100% 100%

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

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

Largest Mobile footprint in India, covering 21 of the 23 licensed areas.

First private telecommunications company to launch long distance services.

REWARDS AND RECOGNITIONS

Golden Peacock National Training Award 1999 to Bharti

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

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

year 2002" by Business India.

by World HRD congress.

Hewitt Associates awarded the Best Employer Award Bharti for

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

Bharti Tele-Ventures was awarded with Avaya Global Connect

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

Bharti Tele-Ventures was awarded with Best Managed Company

Award 2005 in the large cap category by Asia Money.

Vodafone acquired 10% economic interest in Bharti Tele-Ventures

LATEST FINANCIAL UPDATES ON BHARTI

Superior product performance vs. competitors.

Some gaps in range for certain sectors.

Brand Image Products accreditations. have required

Not popular in the international market

Delivery-staff need training. Customer training. service staff needs

Good place to work Lower response time with

efficient and effective service.

Dedicated workforce aiming at making a long-term career in the field.

Legislation could impact. Existing core business distribution risk.

Profit margins will be good.

End-users respond to new ideas. Could extend to overseas.

Retention of CSD staff critical. Vulnerable to reactive attack by major competitors.

New specialist applications.

Could seek better supplier deals. Fast-track career development

The cost of telecom and network infrastructure is much higher in India.

opportunities on an industry-wide basis.

An applied research centre to create opportunities for

Lack of infrastructure in rural areas could constrain investment.

developing techniques to provide

High volume/low cost market is intensely competitive.

MANAGERIAL USEFULNESS OF THE STUDY

STATISTICAL TOOL USED

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

Whether this is an appropriate use of performance appraisal - the