PERFORMANCE

APPRAISAL SYSTEM IN
BPOs: A FIELD STUDY
 INTRODUCTION
Forrester research predict that 3.3 millions
US jobs to move offshore by 2015
Nasscon – mckinsey report says that total
opportunity is at $148 billion
India - 540000 jobs with revenue of $24.67
billion
 3R

RECRUITMENT

RETAINING

REWARDING
Rank Parameter score Rank Parameter score
111 Training 8.4 1 people 8.2
2 Overall 8.3 2 Company 8.2
satisfaction culture
3 people 8.3 3 Overall 8.1
satisfaction
4 Company 8.2 4 Training 8.0
culture
5 Appraisal 7.8 5 Composition 7.6
system satisfaction
6 Job content 7.7 6 Job content 7.5
7 Composition 7.5 7 Appraisal 7.5
satisfaction system
8 Salary & 7.4 8 Salary & 7.1
compensation compensation
 REASONS FOR JOINING
ORGANISATION
 High growth opprtunity -51.8
 Salary is good - 45
 Good working environment – 44.9
 Transport facility available – 38.6
 Good benefits – 37.5
 Job content – 36.2
 College like atmosphere – 33.3
 Flexibility of time - 25.7
 Can make a lot of friends – 22.6
 Education level does not matter – 19.7
 Attractive lifestyle – 18.9
 Peers are of same age group – 17.7
 Found nothing better to do – 10.2
 Did not get a better job – 7.7
 REASON FOR LEAVING
ORGANISATION
 For higher education – 42
 Salary – 39.7
 Timing – 35.1
 For marriage – 33
 No growth opportunity – 33
 Illness – 27.2
 Physical strain – 27.1
 No personal life – 24.6
 Insufficient leave – 23.2
 Uneasy relationship with peers - 12.5
 Friends moving out – 10.8
 Job contents – 9.9
 Transportation - 6.8
 Misguidance by the company – 5.1
 CHARACTERISTICS OF
GOOD PERFORMANCE
MANAGEMENT
 Career progression for all employees
 Match between organizational goals & individual goals
 Employees involvement in setting up of goals
 A clear linkage between performance & appraisal
BPO-1
 PERFORMANCE
APPRAISAL SYSTEM
 Frequency of performance appraisal
once in a year
probation period
 Focus of the appraisal system
 Methodology of appraisal system
HR Manager
Report manager
 Performance parameters
Goals
competencies
 Rating
 Feedback mechanism
 Rewards
BPO-2
 INTRODUCTION

 This BPO handles inbound process.

 Which means receiving calls from the
customers and solving there queries.
 PERFORMANCE
APPRAISAL SYSTEM
1. Frequency of performance appraisal
2. Focus of the appraisal system: KRA’s & KPA’s
3. Methodology of appraisal system: Structured
differently for different levels.
4. Performance parameters: Job knowledge,
Adherence to schedule, Adaptability & flexibility,
Communication, Interpersonal Skills & Customer
Orientation.
1. Ratings
2. Feedback mechanism
3. Rewards
BPO-3
 INTRODUCTION
 It was founded in March 2004.
 It is fully owned subsidiary of a leading
industrial conglomerate in India.
 It is latest venture of this grp.
 It caters to their internal needs/clients.
 It is now catering to customer care requirements
of grp. Of telecom Co.
 It is operating with 3000 plus workforce.
 PERFORMANCE
APPRAISAL SYSTEM
1. Frequency of performance appraisal
2. Focus of the appraisal system
3. Methodology of appraisal system
4. Performance parameters
5. Ratings
6. Feedback mechanism
7. Rewards
BPO-4
 INTRODUCTION
 Has its offices in 3 southern cities which
provides data processing and customer service
facilities.
 There are 3 different types of organization
structures :
Matrix based
BPO process based
Functional based
 PERFORMANCE
APPRAISAL SYSTEM
1. Frequency of performance appraisal
2. Focus of the appraisal system
3. Methodology of appraisal system
4. Performance parameters
5. Ratings
6. Feedback mechanism
7. Rewards
BPO-5
 INTRODUCTION
 Part of a global IT services company specializing
in resting, development and certification solutions.

 Provides quality assurance and third party

confirmation.

 Maintains testing facilities in Europe, USA and

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

2. Focus of the appraisal system: Responsibilities,

Achievements and goals.

3. Methodology of appraisal system: Not disclosed

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

5. Ratings: Not disclosed

6. Feedback mechanism: Only in case of

disagreements.

7. Rewards: Not disclosed.

BPO-6
 INTRODUCTION
 A captive BPO- leader in the business Services
and Technology Solutions industry.

 Established in 1997 in India, operates in 4

countries with a workforce of 18000 plus
employees.

 Its revenue in 2004 exceeded US$400 million.

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

2. Focus of the appraisal system: Productivity and

Quality.

3. Methodology of appraisal system: Done by team

leader and reporting manager once a month.
4. Performance parameters:
 Handling time
 ASA- Average Speed to Answer
 ROC- Resolution On 1st Call
 PNR- Problem Not Resolved
5. Ratings: Not disclosed
6. Feedback Mechanism: Exists.
7. Rewards: monthly as well as annual
incentives are given.
BPO-7
 INTRODUCTION

 Subsidiary of a telecom company.

 Leading domestic call centre providing

inbound and outbound services.

 Start off operations in 1995 as a joint

venture with a global electronics giant.
 PERFORMANCE
APPRAISAL SYSTEM
1. Frequency of performance appraisal: 2 in a
yr, rewards on yrly basis.

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

appraisal.

3. Methodology of appraisal system: def a list

of Job res of appraisee by apraiser, list of key
achvmnts is cited by appraiser & later
varified by appraisee.
 PERFORMANCE
PARAMETERS
1. Job: comm skills,contact ablity,planing,org.

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

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

4. Feedback mechanism: signed by 2 parties.

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

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

3. Methodology of appraisal system: 1:-same; 4:-spcfic job & role,

2,3,6,7:-immediate supervisor.

4. Performance parameters: focus on call,higher mngrl level, 3:-

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

6. Feedback mechanism: 1,2,6:- part of

process others only for exception.

7. Rewards: 3:-most attractive.

 RECOMMENDATIONS

 Retaining & motivating employees are key

challenges.

 Must consider best practices of other

companies at same situation.

 Fair& relavant &link to tangible rewards.