15514160-HRS-Projec-on-tPERFORMANCE-APPRAISAL-SYSTEM (1)

IIPM Wipro BPO Ltd.

Project Report

On

A DETAILED AND ANALYTICAL STUDY OF

THE PERFORMANCE APPRAISAL SYSTEM

OF WIPRO BPO LTD.

1 4/8/2023 Group no. K-187 Human Resource

IIPM Wipro BPO Ltd.

Submitted by: Rohit maddila (p4) Submitted to: Prof Satish Kumar

Email id- [email protected]

Submission Date: 11/06/2008

Batch: Fall winter 2007-09

Indian Institute of Planning and Management, New delhi

Executive Summary

This project is a seminal work to study the Performance Appraisal in a BPO sector. The

research topic for the project is “Performance Appraisal in a BPO.” for which we focused on

Wipro BPO. The above mentioned company is in continuous process to mould itself in order to

decrease the high attrition rate of the company and improving the people’s performance and for

overall organizational development.

We started the research by circulating questionnaires, fixing appointments and collecting

secondary data through various sources like Internet (company’s website), books etc. Filled

questionnaires which we received from the organizations which gave a transparent view of how

companies perform and do performance appraisal, what are the criteria for performance appraisal

and what employees feel about the performance appraisal system prevalent in the company. We

took various steps to collect the feedback from employees and the management, like interviews

and questionnaires. We talk about the performance appraisal system and how it is implemented.


IIPM Wipro BPO Ltd. And it was learnt that the companies do performance appraisal of their employees based on their

performance & the amount of hard work put in by them in their day to day work.

It was also learnt that the feedback mechanism and Self-Assessment are very essential

and fruitful for the organization but the only constraint is that the appraisal cycle is yearly and

the appraisal done is for a very few employees.

Having good performance appraisal system is just the key to success; it helps in reducing

the attrition rate and motivates the employees to work hard and give their best. It is found that

company Wipro BPO is doing very well by following Self-Assessment performance appraisal

system.

This research helped us get a glimpse of the exciting world of BPO, formulating and

executing effective performance appraisal system.

Acknowledgement

We would specially like to thank Ms. Akansha (HR Consultant Wipro BPO, Delhi) for

her time and knowledge and all the agents, team leaders and senior group leader of Wipro BPO

who gave us their precious time to fill our Questionnaires and gives us a clear cut insight about

the organization performance appraisal system. We would also like to thank Mr. Vishal

(Technical Associate, Wipro BPO, Delhi) for helping us in getting the appointments from the HR

consultant, senior group leader and the team leaders and getting the questionnaires filled by

them.


IIPM Wipro BPO Ltd. We express our deep and sincere gratitude to our Project Guide, Prof. Satish Kumar for

his valuable and priceless guidance that paved the way for us to have practical learning. This

project has been an enlightening experience.

Last but not the least we would like to thank all those who have in some way or the other been

associated with and have helped in the successful completion of our project.

Table of Contents

INTRODUCTION…………………………………………………………………………7

OBJECTIVE AND SCOPE OF THE PROJECT………………………………………...8

THEORETICAL PERSPECTIVE:

History of performance appraisal…………………………………………………………….9-10

Definition and concept………………………………………………………………………..10

Objectives of Performance appraisal…………………………………………………………11-13

Process of performance appraisal……………………………………………………………...14


IIPM Wipro BPO Ltd. Challenges in performance appraisal…………………………………………………………14-15

Purpose of performance appraisal……………………………………………………………15-17

Performance appraisal and career development……………………………………………...17

Performance appraisal approaches…………………………………………………………17-18

Current global trends in performance appraisal program…………………………………18-20

Measuring employee performance…………………………………………………………..21-22

Methods and techniques of performance appraisal………………………………………….22-25

Aims Of performance Appraisal……………………………………………………………...27

Performance appraisal as motivation………………………………………………………27-28

Types of Performance Pay……………………………………………………………………28

Performance appraisal in govt. organizations………………………………………………29-30

Managing without performance appraisals………………………………………………….30-31

Arguments against performance appraisal………………………………………………….32-33

Appraisal for employees at different levels…………………………………………………33-35

Appraisal in BPO sector……………………………………………………………………35-36

COMPANY PROFILE……………………………………………………………………37-39

METHODOLOGY:

Data Collection Methods…………………………………………………………………….40-41

FINDINGS, ANALYSIS AND CONCLUSIONS:

Analysis of Questionnaire made for Employees……………………………………………..42-46

Conclusion……………………………………………………………………………………46-47

Analysis of Questionnaire made for Company……………………………………………….47-51

Conclusion……………………………………………………………………………………52

SUGGESTIONS & RECOMMENDATIONS…………………………………………….53


IIPM Wipro BPO Ltd. BIBLIOGRAPHY…………………………………………………………………………..54

A Copy of Questionnaires prepared……………………………………………………….55-60

INTRODUCTION

Down the ages in some or the other form Performance Appraisal has always been in vogue in mundane forms and features. Even today in the era of globalization Performance Appraisal has become very important and a dire necessity for the employees, both in the private as well as public sector organizations. This is basically a process which evaluates the performance of an employee from time to time. There are various parameters or yardsticks to measure the efficiency and capabilities of the employee and his dedication towards the organization.

Wipro BPO Ltd. Is the company on which this project is made on BPO sector has many trends and policies in the field of Performance Appraisal so Wipro BPO Ltd. proves to be an important study base for Performance Appraisal. We particularly chose this company also because we


IIPM Wipro BPO Ltd. happen to know people who work for the organization and can effectively help us in getting meaningful information. Wipro BPO has come a long way as a huge organization, a trend-setter. So our field of interest for research was Wipro BPO.

Performance Appraisal has different measures to judge the capabilities and efficiency of an individual in an organization- how far the targets have been achieved, how has his performance been! It plays a very important role in their analysis as it keeps the employees motivated towards their jobs. This assessment also helps in the overall growth of the organization. So Performance Appraisal today plays a very important role in keeping a track of various employees for different kinds of jobs in the organization.

OBJECTIVE AND SCOPE OF THE PROJECT

The objective is to undertake a thorough study of Performance Appraisal System of Wipro BPO Ltd. (Delhi), and also to understand as to what role Performance Appraisal plays in retention of employees in an organization because as it is, the attrition rate is sky rocketing in the BPO sector. Apparently we would like to know the strategies applicable to retain the employees and whether performance appraisal is playing a major role in these organizations to do so.

The project covers all the employees on the ranks of Technical Associates, Team leaders, Group leaders and an HR representative. Various questionnaires have been filled by 20 Employees, 4 Team leaders, 01 Group leader and 01 HR . This gives us a pretty clear study result, which is


IIPM Wipro BPO Ltd. further elaborated in the project. We have also gathered information through interviews and the information in the project is reliable.

Performance Appraisal:

History:

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. But this is not very helpful, for the same may be said about almost everything in the field of modern human resources management.

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


IIPM Wipro BPO Ltd. historical, it might well lay claim to being the world's second oldest profession!

There is"... a basic human tendency to make judgments 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 judgments 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.

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.

Sometimes this basic system succeeded in getting the results that were intended; but more often than not, it failed.

For example, early motivational researchers were aware that different people with roughly equal work abilities could be paid the same amount of money and yet have quite different levels of motivation and performance.

These observations were confirmed in empirical studies. 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.

DEFINATION AND CONCEPT:


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Performance Appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does.

According to Flippo, a prominent personality in the field of Human resources, “performance appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in the matters pertaining to his present job and his potential for a better job." Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during a given period of time and planning for his future.

It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals.

By focusing the attention on performance, performance appraisal goes to the heart of personnel management and reflects the management’s interest in the progress of the employees.

Objectives Of Performance appraisal :

To review the performance of the employees over a given period of time.

To judge the gap between the actual and the desired performance.

To help the management in exercising organizational control.

Helps to strengthen the relationship and communication between superior subordinates and management – employees.

To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future.

To provide feedback to the employees regarding their past performance.


IIPM Wipro BPO Ltd. Provide information to assist in the other personal decisions in the organization.

Provide clarity of the expectations and responsibilities of the functions to be performed by the employees.

To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development.

To reduce the grievances of the employees.

PROCESS OF PERFORMANCE APPRAISAL:

ESTABLISHING PERFORMANCE STANDARDS: The first step in the process of performance appraisal is the setting up of the standards which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in measurable terms. In case the performance of the employee cannot be measured, great care should be taken to describe the standards.

COMMUNICATING THE STANDARDS: Once set, it is the responsibility of the management to communicate the standards to all the employees of the organization.

The employees should be informed and the standards should be clearly explained to the. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators and if required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators.


IIPM Wipro BPO Ltd.

MEASURING THE ACTUAL PERFORMANCE:

The most difficult part of the Performance appraisal process is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires the careful selection of the appropriate techniques of measurement, taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employees work.

COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE:

The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees’ performance.


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DISCUSSING RESULTS:

The result of the appraisal is communicated and discussed with the employees on one-to-one basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees’ future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better.

DECISION MAKING:

The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc.

PRE-REQUISITES FOR SUCCESSFUL PERFORMANCE APPRAISAL:

The essentials of an effective performance system are as follows:

1) Documentation – means continuous noting and documenting the performance. It also helps the evaluators to give a proof and the basis of their ratings.

2) Standards / Goals – the standards set should be clear, easy to understand, achievable, motivating, time bound and measurable.

3) Practical and simple format - The appraisal format should be simple, clear, fair and objective. Long and complicated formats are time consuming, difficult to understand, and do not elicit much useful information.

4) Evaluation technique – An appropriate evaluation technique should be selected; the appraisal system should be performance based and uniform. The criteria for evaluation should be based on observable and measurable characteristics of the behavior of the employee.

5) Communication – Communication is an indispensable part of the performance appraisal process. The desired behavior or the expected results should be communicated to the employees as well as the evaluators. Communication also plays an important role in the review or feedback meeting. Open communication system motivates the employees to actively participate in the appraisal process.


IIPM Wipro BPO Ltd. 6) Feedback – The purpose of the feedback should be developmental rather than judgmental. To maintain its utility, timely feedback should be provided to the employees and the manner of giving feedback should be such that it should have a motivating effect on the employees’ future performance.

7) Personal Bias – Interpersonal relationships can influence the evaluation and the decisions in the performance appraisal process. Therefore, the evaluators should be trained to carry out the processes of appraisals without personal bias and effectively.

CHALLENGES IN PERFORMANCE APPRAISAL:

In order to make a performance appraisal system effective and successful, an organization comes across various challenges and problems. The main challenges involved in the performance appraisal process are:

1) Determining the evaluation criteria:Identification of the appraisal criteria is one of the biggest problems faced by the top management. The performance data to be considered for evaluation should be carefully selected. For the purpose of evaluation, the criteria selected should be in quantifiable or measurable terms

2) Create a rating instrument:The purpose of the performance appraisal process is to judge the performance of the employees rather than the employee. The focus of the system should be on the development of the employees of the organization.

3) Lack of competence: Top management should choose the raters or the evaluators carefully. They should have the required expertise and the knowledge to decide the criteria accurately. They should have the experience and the necessary training to carry out the appraisal process objectively.

4) Errors in rating and evaluation:

Many errors based on the personal bias like stereotyping, halo effect (i.e. one trait influencing the evaluator’s rating for all other traits) etc. may creep in the appraisal process. Therefore the rater should exercise objectivity and fairness in evaluating and


IIPM Wipro BPO Ltd. rating the performance of the employees

5) Resistance:The appraisal process may face resistance from the employees and the trade unions for the fear of negative ratings. Therefore, the employees should be communicated and clearly explained the purpose as well the process of appraisal. The standards should be clearly communicated and every employee should be made aware that what exactly is expected from him/her.

PURPOSE OF PERFORMANCE APPRAISAL:

Performance Appraisal is being practiced in 90% of the organizations worldwide. Self-appraisal and potential appraisal also form a part of the performance appraisal processes.

Performance Appraisal is aimed at:

• To review the performance of the employees over a given period of time.

• To judge the gap between the actual and the desired performance.

• To help the management in exercising organizational control.

• To diagnose the training and development needs of the future.

•Provide information to assist in the HR decisions like promotions, transfers etc.

•Provide clarity of the expectations and responsibilities of the functions to be performed by the employees.

•To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development.

•To reduce the grievances of the employees.

•Helps to strengthen the relationship and communication between superior – subordinates and management – employees.


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According to a recent survey, the percentage of organizations (out of the total organizations surveyed i.e. 50) using performance appraisal for the various purposes are as shown in the diagram below:

The most significant reasons of using Performance appraisal are:

Making payroll and compensation decisions – 80%

Training and development needs – 71%

Identifying the gaps in desired and actual performance and its cause – 76%

Deciding future goals and course of action – 42%

Promotions, demotions and transfers – 49%

Other purposes – 6% (including job analysis and providing superior support, assistance and counseling)


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PERFORMANCE APPRAISAL AND CAREER DEVELOPMENT:

Performance appraisal is a part of career development. The latest mantra being followed by organizations across the world being – “get paid according to what you contribute” – the focus of the organizations is turning to performance management and specifically to individual performance. Performance appraisal helps to rate the performance of the employees and evaluate their contribution towards the organizational goals. Performance appraisal leads to the recognition of the work done by the employees, many a times by the means of rewards and appreciation etc. It plays the role of the link between the organization and the employees’ personal career goals.

Potential appraisal, a part of Performance appraisal, helps to identify the hidden talents and potential of the individuals. Identifying these potential talents can help in preparing the individuals for higher responsibilities and positions in the future. The performance appraisal process in itself is developmental in nature.

Performance appraisal is also closely linked to other HR processes like helps to identify the training and development needs, promotions, demotions, changes in the compensation etc. A feedback communicated in a positive manner goes a long way to motivate the employees and helps to identify individual career developmental plans. Based on the evaluation, employees can develop their career goals, achieve new levels of competencies and chart their career progression. Performance appraisal encourages employees to reinforce their strengths and overcome their weaknesses.

PERFORMANCE APPRAISAL APPROACHES:

Traditional approach:

Traditionally, performance appraisal has been used as just a method for determining and justifying the salaries of the employees. Than it began to be used a tool for determining rewards (a rise in the pay) and punishments (a cut in the pay) for the past performance of the employees.

This approach was a past oriented approach which focused only on the past performance of the employees i.e. during a past specified period of time. This approach did not consider the developmental aspects of the employee performance i.e. his training and development needs or career developmental possibilities. The primary


IIPM Wipro BPO Ltd. concern of the traditional approach is to judge the performance of the organization as a whole by the past performances of its employees

Therefore, this approach is also called as the overall approach. In 1950s the performance appraisal was recognized as a complete system in itself and the Modern Approach to performance appraisal was developed.

Modern approach:

The modern approach to performance development has made the performance appraisal process more formal and structured. Now, the performance appraisal is taken as a tool to identify better performing employees from others, employees’ training needs, career development paths, rewards and bonuses and their promotions to the next levels.

Appraisals have become a continuous and periodic activity in the organizations. The results of performance appraisals are used to take various other HR decisions like promotions, demotions, transfers, training and development, reward outcomes. The modern approach to performance appraisals includes a feedback process that helps to strengthen the relationships between superiors and subordinates and improve communication throughout the organization.

The modern approach to Performance appraisal is a future oriented approach and is developmental in nature. This recognizes employees as individuals and focuses on their development.

CURRENT GLOBAL TRENDS IN PERFORMANCE APPRAISAL PROGRAM:

The performance appraisal process has become the heart of the human resource management system in the organizations. Performance appraisal defines and measures the performance of the employees and the organization as a whole. It is a tool for accessing the performance of the organization.

The important issues and points concerning performance appraisal in the present world are:

•The focus of the performance appraisals is turning towards career development relying on the dialogues and discussions with the superiors. Performance measuring, rating and review system have become more detailed, structured and person specific than before.


IIPM Wipro BPO Ltd. •Performance related pay is being incorporated in the strategies used by the organizations.

•Trend towards a 360-degree feedback system

•The problems in the implementation of the performance appraisal processes are being anticipated and efforts are being made to overcome them.

•In India, the performance appraisal processes are faced with a lot of obstacles, the most prominent being the lack of quantifiable indicators of the performance. GLOBAL TRENDS

The emergence of following concepts and the following trends related to Performance appraisal can be seen in the global scenario:

360 Degree Appraisal:

360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive appraisal where the feedback about the employees’ performance comes from all the sources that come in contact with the employee on his job. Organizations are increasingly using feedback from various sources such as peer input, customer feedback, and input from superiors. Different forms with different formats are being used to obtain the information regarding the employee performance.

Team Performance Appraisal:

According to a wall street journal headline, “Teams have become commonplace in U.S. Companies”. Most of the performance appraisal techniques are formulated with individuals in mind i.e. to measure and rate the performance of the individual employee. Therefore, with the number of teams increasing in the organizations, it becomes difficult to measure and appraise the performance of the team. The question is how to separate the performance of the team from the performance of the employees. A solution to this problem that is being adopted by the companies is to measure both the individual and the team performance. Sometimes, team based objectives are also included in the individual performance plans.

Rank and Yank Strategy:

Also known as the “Up or out policy”, the rank and yank strategy refers to the performance appraisal model in which best-to-worst ranking methods are used to


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identify and separate the poor performers from the good performers. Then the action plans and the improvement opportunities of the poor performers are discussed and they are given to improve their performance in a given time period, after which the appropriate HR decisions are taken. Some of the organizations following this strategy are Ford, Microsoft and Sun Microsystems.

PERFORMANCE APPRAISAL FEEDBACK:

Performance appraisal process is incomplete without the feedback given to the employee about his appraisal and his performance. But the way of giving as well as receiving the feedback differs from person to person and their way of handling and their outlook towards the issue. According to a popular saying:

“A SUCCESSFUL MAN IS ONE WHO CAN LAY A FIRM FOUNDATION WITH THE BRICKS OTHERS HAVE THROWN AT HIM.”

Therefore, On the part of the person receiving the feedback, the following points are important to be taken care of:

1) The employee should have a positive attitude towards the feedback process

2) He should listen to the suggestions of the appraiser calmly and try to incorporate them in his plans.

3) He should not hesitate to ask for the help of his superiors.

4) Should have a co-operative attitude during the feedback meeting.

5) Don’t judge the appraiser as a person.

6) Should take the feedback objectively.

7) Should not judge the appraiser as a person on the basis of the feedback.

On the part of the appraiser or the manager / person giving the feedback, the following points are to be taken care of:


IIPM Wipro BPO Ltd. 1) The appraiser should make the receiver feel comfortable during the feedback meeting.

2) The appraiser should make it a two – way conversation i.e. let the employee speak.

3) Listen to the employee and note his points, suggestions, problems etc.

4) The appraiser should not adopt a confrontational approach towards the meeting. The goal is not to criticize the employee.

5) Provide a constructive feedback to the employee i.e. in a way which will motivate him to perform better.

6) Have a positive attitude towards the process

7) Try to understand the reasons of his failure.

8) Be fair and objective

9) Prepare yourself for what to say and how to say.

10) Make the appraisal feedback meeting useful and productive for the organization and the employee.

MEASURING EMPLOYEE PERFORMANCE:

The most difficult part of the performance appraisal process is to accurately and objectively measure the employee performance. Measuring the performance covers the evaluation of the main tasks completed and the accomplishments of the employee in a given time period in comparison with the goals set at the beginning of the period. Measuring also encompasses the quality of the accomplishments, the compliance with the desired standards, the costs involved and the time taken in achieving the results.

Measuring employee performance is the basis of the Performance appraisal processes and performance management. Accurate and efficient performance measurement not only forms the basis of an accurate performance review but also gives way to judging and measuring employee potential.

For the purpose of measuring employee performance, different input forms can be used for taking the feedback from the various sources like the superior, peers, customers, vendors and the employee himself. All the perspectives thus received should be combined in the appropriate manner and to get an overall, complete view of the employees’ performance. Observation can also be exercised by the superior to obtain


IIPM Wipro BPO Ltd. information. Some suggestions and tips for measuring employee performance are:

• Clearly define and develop the employee plans of action (performance) with their role, duties and responsibilities.• Organizational outcomes or the achievement of organizational goals should also be kept in mind.• Focus on accomplishments and results rather than on activities.• Also take note of the skills, knowledge and competencies and behaviors of the employees that help the organization to achieve its goals.• If possible, collect the feedback about the performance of the employees through multi-point feedback and self-assessments.• Financial measures like the return on investment, the market share, the profit generated by the performance of the team should also be considered.

For an organization to be an effective organization and to achieve its goals, it is very important to monitor or measure its’ and its employee performance on a regular basis. Effective monitoring and measuring also includes providing timely feedback and reviews to employees for their work and performance according to the pre-determined goals and standards and solving the problems faced. Timely recognition of the accomplishments also motivates the employees and help to improve the performance.

Measuring the performance of the employees based only on one or some factors can provide with inaccurate results and leave a bad impression on the employees as well as the organization. For example: By measuring only the activities in employee’s performance, an organization might rate most of its employees as outstanding, even when the organization as a whole might have failed to meet its goals and objectives. Therefore, a balanced set of measures (commonly known as balanced scorecard) should be used for measuring the performance of the employee.

METHODS AND TECHNIQUES OF PERFORMANCE APPRAISAL:

TRADITIONAL METHOD:

1. ESSAY APPRAISAL METHOD: This traditional form of appraisal, also known as “Free Form method” involves a


IIPM Wipro BPO Ltd. description of the performance of an employee by his superior. The description is an evaluation of the performance of any individual based on the facts and often includes examples and evidences to support the information. A major drawback of the method is the inseparability of the bias of the evaluator.

2. STRAIGHT RANKING METHOD: This is one of the oldest and simplest techniques of performance appraisal. In this method, the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. It is quite useful for a comparative evaluation.

3. PAIRED COMPARISON: A better technique of comparison than the straight ranking method, this method compares each employee with all others in the group, one at a time. After all the comparisons on the basis of the overall comparisons, the employees are given the final rankings.

4. CRITICAL INCIDENTS METHODS: In this method of Performance Appraisal, the evaluator rates the employee on the basis of critical events and how the employee behaved during those incidents. It includes both negative and positive points. The drawback of this method is that the supervisor has to note down the critical incidents and the employee behavior as and when they occur.

5. FIELD REVIEW:

In this method, a senior member of the HR department or a training officer discusses and interviews the supervisors to evaluate and rate their respective subordinates. A major drawback of this method is that it is a very time consuming method. But this method helps to reduce the superiors’ personal bias.

6. CHECKLIST METHOD:

The rater is given a checklist of the descriptions of the behavior of the employees on


IIPM Wipro BPO Ltd. job. The checklist contains a list of statements on the basis of which the rater describes the on the job performance of the employees.

7. GRAPHIC RATING SCALE:

In this method, an employee’s quality and quantity of work is assessed in a graphic scale indicating different degrees of a particular trait. The factors taken into consideration include both the personal characteristics and characteristics related to the on-the-job performance of the employees. For example a trait like Job Knowledge may be judged on the range of average, above average, outstanding or unsatisfactory.

8. FORCED DISTRIBUTION: To eliminate the element of bias from the rater’s ratings, the evaluator is asked to distribute the employees in some fixed categories of ratings like on a normal distribution curve. The rater chooses the appropriate fit for the categories on his own discretion.

MODERN APPRAISAL:

360 DEGREE PERFORMANCE APPRAISAL:

360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive appraisal where the feedback about the employees’ performance comes from all the sources that come in contact with the employee on his job.

360 degree respondents for an employee can be his/her peers, managers (i.e. superior), subordinates, team members, customers, suppliers/ vendors - anyone who comes into contact with the employee and can provide valuable insights and information or feedback regarding the “on-the-job” performance of the employee.

360 degree appraisal has four integral components:


IIPM Wipro BPO Ltd. 1. Self appraisal

2. Superior’s appraisal

3. Subordinate’s appraisal

4. Peer appraisal.

Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his achievements, and judge his own performance. Superior’s appraisal forms the traditional part of the 360 degree appraisal where the employees’ responsibilities and actual performance is rated by the superior.

Subordinates appraisal gives a chance to judge the employee on the parameters like communication and motivating abilities, superior’s ability to delegate the work, leadership qualities etc. Also known as internal customers, the correct feedback given by peers can help to find employees’ abilities to work in a team, co-operation and sensitivity towards others.


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Self assessment is an indispensable part of 360 degree appraisals and therefore 360 degree performance appraisals have high employee involvement and also have the strongest impact on behavior and performance. It provides a "360-degree review" of the employees’ performance and is considered to be one of the most credible performance appraisal methods.

360 degree appraisal is also a powerful developmental tool because when conducted at regular intervals (say yearly) it helps to keep a track of the changes others’ perceptions about the employees. A 360 degree appraisal is generally found more suitable for the managers as it helps to assess their leadership and managing styles. This technique is being effectively used across the globe for performance appraisals. Some of the organizations following it are Wipro, Infosys, and Reliance Industries etc.

ARGUMENTS AGAINST 360 DEGREE APPRAISAL:

Despite the fact that 360 degree appraisals are being widely used throughout the world for appraising the performance of the employees at all levels, many HR experts and professionals argument against using the technique of 360 degree appraisals.

The main arguments are:

1)) 360 performance rating system is not a validated or corroborated technique forPerformance appraisal.

2) With the increase in the number of raters from one to five (commonly), it become difficult to separate, calculate and eliminate personal biasness and differences.

3) It is often time consuming and difficult to analyze the information gathered.

4) The results can be manipulated by the employees towards their desired ratings with the help of the raters.

5) The 360 degree appraisal mechanism can have a adversely effect the motivation and the performance of the employees.

6) 360 degree feedback – as a process- requires commitment of top management and the


http://appraisals.naukrihub.com/

IIPM Wipro BPO Ltd.

HR, resources (time, financial resources etc), planned implementation and follow-up.

7) 360 degree feedback can be adversely affected by the customers’ perception of the organization and their incomplete knowledge about the process and the clarity o f the process.

8) Often, the process suffers because of the lack of knowledge on the part of the participants or the raters.

Aims Of performance Appraisal:

Give feedback on performance to employees. Identify employee training needs.

Document criteria used to allocate organizational rewards.

Form a basis for personnel decisions: salary increases, promotions, disciplinary actions, etc.

Provide the opportunity for organizational diagnosis and development.

Facilitate communication between employee and administrator.

Validate selection techniques and human resource policies to meet federal Equal Employment Opportunity requirements.

PERFORMANCE APPRAISAL AS MOTIVATION:


IIPM Wipro BPO Ltd.

Keeping in mind the growing attrition rates and the employee dissatisfaction among the employees, the HR professionals are approaching and using the performance appraisal as a fuel to motivate employees. The latest trend being followed by the HR professionals is to use the performance appraisal and review process as a motivating mechanism. Various surveys and studies have testified the relationship between performance review, pay and motivation.

Other than the traditional goal of accessing the performance of the employees, Performance appraisals and reviews can be used as a tool to reinforce the desired behavior and competent performance of the employees.

One of the most motivating factors for the employees, in the performance appraisal processes is to receive a fair an accurate assessment of their performance. Inaccurate evaluation is one reason because of which most employees dread going through performance appraisals. An employee always expects his appraiser to recognize and appreciate his achievements, support him to overcome the problems and failures.

The discrepancies and the inaccuracies in the performance review can de motivate the employees, even if there has been an increase in the salary. Such inaccuracies can kill the innovating and risk taking enthusiasm and spirit in the employees. Similarly, inaccurate reviews with no hike in compensation can increase the attrition rate in the organization, forcing the employees to look out for other options.

An employee prefers an accurate performance review with no increase in the salary over inaccurate performance review with an increase in salary.

Employees, who receive both accuracy and a pay increase during their performance review, are likely to be the most motivated. Therefore, performance appraisal (review and its consequence in the form of compensation adjustments) has the potential of motivating employees and increasing their job satisfaction.


IIPM Wipro BPO Ltd. Types of Performance Pay:

Merit pay – The first step to performance pay, merit pay means setting some basic salary according to the position and the rank of the employee and the variable part of the salary is based on the periodic performance reviews.

Profit Sharing – Sharing the profits of the enterprise with the employees as bonus.

Incentives and Performance Bonus – Rewards for special accomplishments or fulfillment of the targets set such as sales commission.

Gain sharing - Sharing of gains as a result of the increased performance of the employees with them.

Although performance related pay has always been a topic of discussions and controversies with many arguments against it, but it has also been proved that performance based pay motivates employees to perform better and earn, and encourages learning, innovation, creativity, problem solving and empowerment which can be facilitated through proper performance measurement and reviews.

PERFORMANCE APPRAISAL IN GOVT. ORGANISATIONS:

The commitment to the performance appraisal system in public organizations in India is very low. Low commitment and lack of accountability are the major reasons for the low institutionalization of the performance appraisal processes in government organizations. Performance appraisal in most of the government enterprises is not directly linked to rewards, training or promotions due to which the approach towards the whole process remains unprofessional. There is a lack of the appropriate atmosphere and professional approach towards the performance appraisal system and the objective of the whole exercise is defeated.


IIPM Wipro BPO Ltd.

1) The most common method of performance appraisal that is used in most of the government organizations is confidential report (popularly known as CR) written by the superior of the employees.

The following are the major discrepancies found in the performance appraisal processes being followed at the government organizations:

o Most of the indicators used for measuring the performance the employees are not quantifiable in nature, making it difficult to measure the performance.

o Due to the lack of accountability and job security, most government employees have a laisser faire attitude towards their work.

o Unavailability of the job descriptions for many employees.

o Most of the objectives in government organizations are unchallenging, unrealistic and not timely reviewed and updated.

o It is difficult to measure the average performance of the government employees.

o Unprofessional and unstructured approach towards the process.

o There is often a lot of bias and subjectivity involved in the ratings given by the superiors.

o Lack of complete information on appraisal forms due to expertise and relevant training; often, the appraisals are not conducted on a regular basis.

o In government organizations, team appraisal is often not possible.

o Other HR decisions like rewards, training or promotions are not directly linked to the results of the performance appraisal process.


http://appraisals.naukrihub.com/

IIPM Wipro BPO Ltd.

MANAGING WITHOUT PERFORMANCE APPRAISALS:

According to Tom Coens and Mary Jenkins, (the authors of “Abolishing Performance Appraisals”) - while eighty percent of U.S. businesses use performance appraisals, ninety percent of them are dissatisfied with the process.

Various researches have proved that performance appraisal is an effective means of neither motivating people nor improving their future performance. Performance appraisal is generally seen as a judgment of the management rather than feedback.

1) A culture of open communication and feedback is recommended where the information and suggestions regarding the system is shared freely.

2) The “appraisals and review meetings”, continuous accountability and check can cause emotional stress for the employees. Therefore, it is recommended to create such a work culture wherethe employees are made responsible for their own performance and the

development.

3) The manager’s / superior’s suggestions, inputs are encouraged and Incorporated in the actions.

Changing pay practices:

Instead of the rise in the pay on the basis of the results of the Performance appraisal (i.e. merit pay) a periodic cost-of-living increases, rewards on some accomplishments, tem bonuses, profit and gain sharing are good alternatives.

Motivating people:

Researches have proved that appraisals have little or almost negligible motivating effect on the employees. The employees should be motivated by creating challenging and interesting work, telling them their contribution towards the organizational goals, their career development in the organization etc.


IIPM Wipro BPO Ltd. Therefore, creating an organization with a culture that encourages creativity fosters innovative efforts and productivity, teamwork, empowerment requires around two years of time, reformulating strategic plans and assumptions but can be effectively put into place without the need of performance appraisals.

First of all, they list a number of false assumptions underlying the PA process, such as:

A mandatory, organization-wide, one-size-fits-all annual face-to-face feedback process is effective for just about everyone in all functions and groups;

All our managers have the requisite interpersonal skills and sensitivity to give feedback accurately and counsel around emotional reactions to the feedback;

The boss has the prime responsibility for ensuring the employee performs and develops himself;

Ratings are objective enough to be perceived as fair and to motivate effort;

PA's are objective enough to stand up in court;

People will withhold performance if they are not appraised and rewarded annually (i.e. they need their PA "fix" or they won't continue to produce).

ARGUMENTS AGAINST PERFORMANCE APPRAISAL:

A large number of managers, human resource professionals, human resource consultants and researchers are recommending companies to get rid of the performance appraisal systems. The main argument given by the researchers is that the system of performance appraisals itself is based on a few wrong assumptions and it fails to fulfill its basic purpose.

The major arguments given in favor of abolishing the performance appraisals are:

1) The first and the foremost argument is the fact that discrepancies between the theory and its application. There is often a disconnect between the theory


IIPM Wipro BPO Ltd. and the practical implementation.

2) PA is a bitter process for most of the employees which can create emotional pressures and stress for the employees

The focus of the PA process is too narrow i.e. just to determine the rewards and punishments for the employees by measuring their past performance.

PA is often looked upon as a tool to control the employees by the superiors who dampen the intrinsic motivation of the employees.

Most of the managers and superiors are not trained enough to carry the processes in the appropriate and the structured manner.

PA process increases the dependency of the employees on their superiors.

PA process encourages accountability, approvals and discourages the spirit of creativity and initiative by employees and also demotivates them.

Performance appraisals are conducted by managers who are often not trained to be appraisers. This obstructs the genuine feedback, as it includes subjectivity and bias of the raters leading to incorrect and unreliable data regarding the performance of the employees.

PA can adversely affect the morale of the employees and create dissatisfaction among them, thereby affecting the organizational performance.

Performance appraisals and reviews are often time consuming, with faulty methods to measure performances and generating false results and the decisions taken can be politically influenced.

An example to support the above mentioned points would be the case of an call centre employee - The appraisal of a call center employee is based on the amount of work they do, the number of calls they receive, the amount of revenue they collect, the average time they append on each call. But if analyzed, all these factors depend on other factors like the response of the callers, the availability of the information asked for, the nature of the calls etc. which are often not considered during appraisals. But the employee being aware of all these factors, the situation can create stress and dissatisfaction among the employee.


IIPM Wipro BPO Ltd. APPRAISAL FOR EMPLOYEES AT DIFFERENT LEVELS:

Performance appraisal is important for employees at all levels throughout the organization. The parameters, the characteristics and the standards for evaluation may be different, but the fundamentals of performance appraisal are the same. But as the level of the employees’ increases, performance appraisal is more effectively used as the tools of managing performance.

Performance appraisal of Managers:

Appraising the performance of managers is very important, but at the same time, it is one of the most difficult tasks in the organization. It is difficult because most of the managerial work cannot be quantified i.e. it is qualitative in nature like leading his/her team, guiding, motivating, planning etc.

Therefore, the two things to be noted and evaluated for the purpose of appraisals are:

Performance in accomplishing goals, and

Performance as managers

Performance in accomplishing goals:

Managers are responsible for the performance of their teams as a whole. Performance in accomplishing goals would mean to look at the completion or achievement of the goals set for a team of employees which is being assigned to or working under a particular manager. The best measuring criteria for a manager are hi goals, his plans of course of action to achieve them and the extent of achievement of the goals.

Performance as managers:

The responsibilities of managers include a series of activities which are concerned with planning, organizing, directing, leading, motivating and controlling. Managers can be rated on the above parameters or characteristics

Criteria for measuring performance at different levels:

The criteria for measuring performance changes as the levels of the employees and their roles and responsibilities change.


IIPM Wipro BPO Ltd.

A few examples for each level are described below:

For top level management:

Degree of organizational growth and expansion

Extent of achievement of organizational goals

Contribution towards the society

Profitability and return on capital employed

For middle level managers:

Performance of the departments or teams

Co-ordination with other departments

Optimal use of resources

Costs Vs. revenues for a given period of time

The communication with superiors and subordinates

For front line supervisors :

Quantity of actual output against the targets

Quality of output against the targets

Number of accidents in a given period

Rate of employee absenteeism

APPRAISAL IN BPO SECTOR:

Business Process Outsourcing (BPO) is relatively a new sector in the Indian industry, but has established itself well and is growing at a rapid rate. BPO sector offers handsome initial salary, good growth and many other benefits to its employees. Keeping in mind the attrition rates in the sector, the performance measurement and appraisal processes are of extreme importance in BPO’s. It is


IIPM Wipro BPO Ltd. often used as one of the tools to retain the employees.

BPO employees have the advantage of getting performance based incentives. In most of the BPO organizations, there are well designed schemes for awarding the performance based incentives to the individuals and/or the teams as a whole. An incentive on the completion of the defined targets is a common practice in BPO’s.

The general parameters for the measurement of employees’ performance are:

Speed i.e. process performance,

Accuracy and

Productivity of each process,

Although the measuring parameters are different for employees at different level, but the general classification of the above mentioned parameters for “Customer Care Executives” and “Team leaders” are as follows:

Average Call Value (the sales made or the revenue collected etc.)

Time and cost per call

Average Handling Time (talk time and after call wrap up)

Adherence to Schedule (availability to take calls etc.)

Percentage of abandoned calls

Discipline

Attendance

According to a recent survey – “The Pay for Performance can be as much as 22% of the salary.” Therefore, performance evaluation, reviews and appraisal play a vital role in the performance management in BPO sector and all the above mentioned parameters are used in performance appraisals to evaluate and review the performance of the employees.


IIPM Wipro BPO Ltd.

COMPANY PROFILE:

Wipro Limited (NYSE:WIT), incorporated in 1945, is a leading multi-business corporation. It is a major player in the global Information Technology industry, and it has a significant presence in Consumer Products and in Infrastructure Engineering. Wipro Technologies is the No.1 provider of integrated business, technology and process solutions on a global delivery platform.Wipro Technologies is a global services provider delivering technology-driven business solutions that meet the strategic objectives of its clients.

History:

1945: Incorporation of Western India Vegetable Products Limited

1975: Wipro Fluid Power established

1980: Wipro Info tech Launched

1986: Santoor Soap launched

1988: Wipro BioMed established

1990: Wipro GE Medical Systems Ltd. Incorporated

1991: Wipro Lighting established


IIPM Wipro BPO Ltd. 1998: Wipro launched its repositioned Identity (Rainbow Flower and Applying Thought) and articulates its externally oriented values.

2000: Wipro Listed on New York Stock Exchange 1999- Wipro becomes#1 in market capitalization in the country.

2003: Three major acquisitions during the year 2003 are – Spectramind, Global Energy Practice of AMS Inc. and R&D labs of Ericsson.

Wipro has over 18,500 professionals and 4000 professionals’ onsite.

Mission and Vision of Wipro:

Having already achieved the pinnacles of process and quality credentials (through ISO 9000, SEI CMM, PCMM and Six Sigma), Wipro's Vision is focused on attaining leadership in the areas of business, customer and people.

Business Leadership: Among the top 10 Information Technology Services companies globally and the No.1 Information Technology company in India.

Customer Leadership: The No.1 choice of customers through innovative solutions and Six Sigma processes.

People Leadership: Among the top 10 most preferred employers globally by creating an environment of empowerment, intellectual challenge and wealth sharing.

Brand Leadership: Wipro to be among the 5 most admired brand in India.

Wipro Technologies, the global IT services business, offers comprehensive services across Americas, Europe and Japan in the areas of product Engineering, Enterprise Solutions, Solutions for Financial Services and Business Process Outsourcing, Wipro InfoTech, India, Asia-Pac and Middle East IT Services business offers a comprehensive range of IT solutions that encompass best-of-breed IT services and Enterprise solutions.

Wipro’s complete range of IT Services addresses the needs of both technology and business requirements to help organizations leverage leading-edge technologies for business improvement. Wipro takes charge of the IT needs of the entire enterprise. The gamut of services


IIPM Wipro BPO Ltd. extends from Enterprise Application Services (CRM, ERP, e-Procurement and SCM), to e-Business solutions. Wipro’s enterprise solutions have served and continue to serve clients from a range of industries including Energy and Utilities, Finance, Telecom, and Media and Entertainment.

Wipro has 40+ ‘Centers of Excellence’ that create solutions around specific needs of industries. Wipro delivers unmatched business value to customers through a combination of process excellence, quality frameworks and service delivery innovation. Wipro is the World's first CMMi Level 5 certified software services company and the first outside USA to receive the IEEE Software Process Award. It is the first Indian Company to embrace Six Sigma, and the first to adapt Lean to the IT context. Wipro is the world's largest contract R&D house for telecom, auto and electronics, has among the world’s largest technology infrastructure management practices and is among the top 3 offshore BPO service providers from India. Wipro has

developed a model called "Extended Engineering” that leverages synergies across the value chain. As product manufacturers and platform vendors across the world strive to make better products with shorter development cycles and reduced total cost of ownership, Wipro Technologies partner with them to provide comprehensive solutions in product lifecycle management and product realization. Wipro has developed a model called "Extended engineering" that allows to leverage synergies across the value chain and progress swiftly from concept to market.

Wipro’s Technology Infrastructure Services (TIS) is the largest Indian IT infrastructure service provider in terms of revenue, people and customers with more than 200 customers in US, Europe, Japan and over 650 customers in India. It is powered by the expert skills of over 6,500 technical specialists and state-of-the-art BS 15000 certified infrastructure for operations support.

A phased approach towards process standardization, process optimization and process re-engineering, Wipro BPO is the global, technology services division of Wipro Ltd. With over two decades of IT experience, Wipro BPO have pioneered the offshore delivery model. Combining extensive capabilities in technology with deep domain expertise, they deliver seamless solutions that bring tangible business value to leading organizations around the world. The Company Headquarters are located in New Delhi, with six state-of-the-art facilities in Mumbai, Pune, Chennai & Kolkata and global offices in US, UK and Canada. Wipro BPO provides a broad range of services from customer relationship management, back office transaction processing to industry specific solutions. The key element of services delivery is an integrated approach towards providing increasing value over the entire course of their client relationships. This involves a phased approach towards process standardization, process optimization and process re-engineering. As organizations around the world strive to improve the quality of their processes while managing their bottom-lines. Business process outsourcing has become the new


IIPM Wipro BPO Ltd. imperative.

Wipro Consumer Care and Lighting is a large marketer of branded consumer products in India. Its products range spans several households’ categories- personal care, baby care, foods, and home lighting. This apart, it also has a significant institutional presence in lighting solutions and modular furniture. Wipro Infrastructure Engineering is a leading provider of solutions ranging from Precision Engineered Products to value added services to customers serving the core infrastructure sector in India and abroad.

Today, Wipro has a large workforce spanning 26 countries. At the same time, it is amongst India’s largest employers. Wipro’s business success combined with its strong legacy of Values makes it one of the top IT companies globally, and amongst India’s most admired corporations.

Methodology:

A sample size was of 26 in which 20 agents, 4 team leaders, a senior group leader and a HR

representative of the company were taken.

Data Collection methods:

1. Primary Data Sources:

Questionnaire: Both Open-ended (left open for the information) and close ended

questionnaires (answers are pre-defined) were used. Two questionnaires were prepared, one for

the agents of the company and the other questionnaire was for the team leaders, senior group

leader and the HR representative.

i) First Hand Information was collected from the agents.

ii) From team leaders.

iii) From senior group leader.


IIPM Wipro BPO Ltd. Interview.

i) Interview with the HR representative.

2. Secondary Data Sources:

Internet

We referred a book from library (HRS), in which information regarding performance appraisal was given.


IIPM Wipro BPO Ltd.

Analysis and Summarization of Data collected on


Questionnaire: Employees

Sample size - 20

Age- Ranges from:

20 – 25 = 07 - 35%

25 – 30 = 09 - 45%

30 onwards = 04 - 20%

Qualification:

Graduates - 12 - 60%

M.B.A - 04 - 20%

M.C.A - 02 - 10%

B.Tech - 02 - 10%


IIPM Wipro BPO Ltd. Over all experience in BPO sector -

0-2 years - 8 - 40%

2-4 years - 5 - 25%

4-6 years - 7 - 35%

Years of experience in Wipro BPO –

0-2 years - 10 -50%

2-4 years - 6 -30%

4-6 years - 4 -20%

What according to you is Performance Appraisal?

Evaluation of employees - 70% Part of career development - 15% Both - 15%

Interpretation- A trend has been noticed that the majority of the people (70%) think of

Performance Appraisal as a tool for evaluating employees and very few believe it to be a

career development program or both. The employees think that performance appraisal

gives a clear view of how they are performing, where they can improve . They think that

performance appraisal helps in their personal development. A performance appraisal

system is a means for both setting and recognizing the achievement of goals or

standards and also helps them in planning their career and overall development.

Why do you think companies have Performance Appraisal system?


IIPM Wipro BPO Ltd. Retention of employees - 15% Increase in utilization of skills - 00% Increase knowledge and ability to perform - 10% Rewards, promotions and salary increments - 50%

a, c & d. - 25%

Interpretation-The view of the employees is quite distributed but 50% of the employees

consider Performance Appraisal as a system of reward, promotion and salary increments.

Employees feel that by giving rewards and salary increments, companies motivate them

to give their best and by giving promotions companies try to reduce the attrition rate.

Employees feel good about themselves when they get promotions and salary-increments

for their achievements. This does not mean that performance appraisal is the only way of

getting the best from the employees.

Are you satisfied with the company’s Performance Appraisal System?

Yes - 70% No - 30%

Interpretation- As 70% of the employees believe that the company’s Performance

Appraisal system is quite satisfactory, we can assume Wipro BPO’s

Performance Appraisal system to be good enough and the employees are happy with the

Performance appraisal procedure followed by the company.

Do you think self- appraisal plays an important role in your performance appraisal?

Yes - 60% No - 10% May be - 30%


IIPM Wipro BPO Ltd. Interpretation- It is noticed that self-appraisal does play an important role in

Performance Appraisal as 60% of the employees say so as self- appraisal helps the

employees to evaluate themselves. Self-Appraisal gives an opportunity to the

employees to document not only the achievements, but also the difficulties encountered

while working. It also helps the appraiser understand the gap between the self-

assessment of the appraised and the assessment by the appraiser.

What is your Performance Appraisal cycle?

Quarterly - 10% Half-Yearly - 00% Yearly - 90%

Interpretation- Employees unanimously gave their assent that

Performance Appraisal cycle is yearly.

Is the content of performance appraisal reports freely accessible and communicated to the employees?

Yes - 80% No - 20%

Interpretation- Content of Performance Appraisal is freely accessible and communicated to the employees. The employees can check their ratings and can see that what ratings their superiors have given to them, where they need to improve and what are their strengths.

How Performance Appraisal helps in retention of employees?- Majority of employees feel that effective Performance Appraisal helps a great

deal in retention of employees. They get monetary benefits which enhance


IIPM Wipro BPO Ltd. their confidence and motivates them to work towards organizational goal. Performance Appraisal helps in the personal development of the employees and thus the employees in planning their own career development. Few employees think that Performance Appraisal gives HR an insight about how the employee is performing.

What are the parameters that determine the Performance Appraisal of an individual?

- Most say that the major parameters that determine Performance of an individual are whether he has met the targets (CPM) or not. It depends a lot on customer satisfaction. Rest of the parameters is like their attitude towards seniors and colleagues and attendance, how they work in a team and also last years records also affect the Performance Appraisal system.

What do you like or dislike about the Performance Appraisal policy of your company?

- Most employees dislike the fact that Performance Appraisal happens yearly and in that also the salary hike is minimal. They get no incentives to be loyally attached to the organization. The employees want that the performance appraisal cycle should be half- yearly or quarterly and not yearly and the increments given should be more.

- But they like the trend that the feedback of previous year’s Performance is given to them by their supervisors and also self-assessment performance appraisal system is there. They think that self-assessment brings more motivation and they are happy that it is a part of Performance Appraisal.

If given a chance what changes would you like to bring in the Performance Appraisal policies of your company?

- Almost all the employees feel that Performance Appraisal should be done on individual ground instead of team or group capabilities. They would really like to change the Appraisal Cycle from yearly to half-yearly or quarterly. Last but not the least they would like salary hikes and loyalty bonuses.

Conclusion - Performance Appraisal has become the most important part of today’s HR system. It is used in retention of employees and a great deal to evaluate their performance. It is believed that it is a system of reward, promotion and salary


IIPM Wipro BPO Ltd. increments. Most employees who we interviewed said that they are satisfied with the Performance Appraisal system of their company.

It is noticed that self- appraisal plays an important role in Performance Appraisal. An effective Performance Appraisal system can motivate employees to a great height and increase productivity. This also helps the seniors to tap full potential of their employees as they keep a track on every individual’s performance.

In Wipro BPO the main parameter of Performance Appraisal is meeting their CALL targets and satisfied customers. The Performance Appraisal cycle is yearly even though employees would like it to be half-yearly or quarterly. They would like a salary hike because the present hike is not sufficient according to them. They believe that Performance Appraisal should be done on individual basis and more loyalty bonus should be given.

The employees of Wipro BPO are really glad about the fact that the last years Performance Appraisal reports are accessible to them and that their supervisors give them effective feedback of their last years’ performance, what are their weakness and how they can improve on it.

Analysis and Summarization of Data collected on


QUESTIONNAIRE: COMPANY

It Includes Team leads, Group lead and a HR person

Sample size - 06


IIPM Wipro BPO Ltd.

Age group:

- 25 – 30 years = 4 - 67%

- 30 years onwards = 2 - 33%

Qualification:

- MBA’s - 2 - 33.3%

- B-tech’s - 2 - 33.3%

- Graduates - 2 - 33.3%

Over all experience in BPO sector : 2 – 4 years

Years of experience in Wipro BPO: 2 - 4 years


Evaluation of employees - 84% Part of career development - 16%

Interpretation- 84% feels that Performance Appraisal majorly revolves around evaluation

of employees. The company thinks that performance appraisal gives a clear view of

how the employees are performing and where they can improve . They think that performance

appraisal helps in their personal development. A performance appraisal system is a

means for both setting and recognizing the achievement of goals or standards and also

helps them in planning the employees own career development.

What are the purposes of performance appraisal in a company?

Give feedback on employee’s performance. - 33% Recognize training needs of employee. - 00%


IIPM Wipro BPO Ltd. Criteria utilized to assign rewards. - 00% Shape criteria for salary increments, promotions etc.

- 67% Offer the chance for organizational analysis and improvement.

- 00%

Bridge the communication gap between employee and administrator. - 00%

Interpretation- Majority (67%) of them feel that the main purpose of Performance Appraisal in a company is to shape criteria for salary increments, promotions etc. and the remaining think that performance appraisal is done to give feedback to the employees on their last year’s performance. The company feels that salary increments and promotions help the employees to perform their best; by this they somehow try to attract and retain the hard-working, dedicated and efficient employees.

What type of performance appraisal system do you use for evaluating your employees?

360-Degree Performance Appraisal - 66% General Performance Appraisal - 17% Technical/Administrative Performance –Appraisal

- 00% Manager Performance Appraisal - 00% Employee Self-Assessment - 17% Project Evaluation Review - 00% Sales Performance Appraisal - 00%

Interpretation- Most superiors use 360- degree Performance Appraisal system to evaluate their employees. In this, feedback from everyone with whom the employees come in contact—supervisors, coworkers, partners, subordinates is taken. It is a method of collecting input from many sources in an employee's environment .This seems to be the most effective system. Self –Assessment and General Performance Appraisal is also preferred by few superiors.


IIPM Wipro BPO Ltd. How important Performance Appraisal is in utilizing the optimal skills, knowledge

and abilities of the employees?

Very important - 100% Important - 00% Least important - 00% Not at all important - 00%

Interpretation- 100% people agree to the fact that Performance Appraisal is extremely important in utilizing the optimal skills, knowledge and abilities of the employees. Performance appraisal motivates the employees to perform their best by utilizing their knowledge and abilities to fullest.

What do you consider as vital for performance appraisal of an individual?

Experience - 00% Individual performance - 66% Individual potential - 33% Current performance - 00

Interpretation- 66% i.e. the majority feels that the most vital thing for Performance Appraisal is an individual’s performance even more than the Team or Group performance. Individual performance is taken into account, that, has the employee met his given targets, their attitude towards seniors and colleagues and attendance.

Are employees given an opportunity to make an input to their own performance appraisal?

Yes - 100% No - 00%

Interpretation- 100% employees are given opportunities to make inputs to their own Performance Appraisal by filling the employee Self-Assessment Questionnaire. The employees can document not only their achievements, but also the difficulties encountered while working.


IIPM Wipro BPO Ltd. What is your Performance Appraisal cycle?

Quarterly - 00% Half-Yearly - 00% Yearly - 100%

Interpretation- Performance Appraisal cycle of Wipro BPO Ltd. is yearly.

Are the performance appraisal reports freely accessible and communicated to your employees?

Yes - 83% No - 17%

Interpretation- In Wipro BPO the Performance Appraisal reports are freely available to the employee which is a good thing. Only few team leaders think that performance appraisal reports are not so easily accessible. The employees can easily check what ratings they have got from their superiors and also what their weaknesses are and what are their strengths.

What are the procedures followed for performance appraisal in your company?

- A person is evaluated on the basis of his/her performances and interpersonal skills which includes extra initiative taken by an individual to increase the overall process efficiency and productivity. Statistical Analysis of the last year performance followed by coach feedback and repeated revision by senior management before approval and finally implementation of the policy.Self-Appraisal by employees-Appraisal by supervisor-Appraisal by process head and then finally confirmation by HRD and then feedback is given to the employee.

Who are the persons involved in performance appraisal system of your company?

- People involved in the Performance Appraisal system are-


IIPM Wipro BPO Ltd. Process AVP Manager- Group leader- Supervisor- and the employees. Above all on a broader perspective we can call the HR Department which is responsible for Performance Appraisal system of a company.

Conclusion - Team leaders and Group leaders are of the opinion that Performance Appraisal is mainly used for retention of employees through evaluation of employees.The HR Department is responsible for the Performance Appraisal system along with the AVP Manager and Supervisors. They evaluate a person on their overall performance, efficiency, satisfied customers and productivity. They say that Performance Appraisal’s main purpose is to shape criterion for salary, increments and promotions. The most effective 360 degree appraisal system is used in Wipro BPO Ltd.They feel that most important part of an individual’s appraisal is his/her performance instead of team or group’s performance as the team leaders and the group leaders feel that if every individual gives his/her best, then the team or the group performance will itself become good. The company has an annual Performance Appraisal cycle.The employees are free to access the previous Performance Appraisal reports as feedbacks at any convenient time. Performance Appraisal system is now an entire field on its own. It is an inevitable system of an organization.


IIPM Wipro BPO Ltd.

Suggestions & Recommendations:

After analyzing the data provided by the employees, team leaders, group leaders and the HR representative of the company it is clear that majority of them are satisfied with the present Performance Appraisal system of Wipro BPO Ltd. (Delhi). But still we feel that more bonuses should be given to the employees to motivate them to stay in this company as the attrition rate is still very high. Salary hike should definitely increase a little more. Every employee wants Performance Appraisal cycle to be half-yearly or quarterly instead of annually. The employees should be given more salary as it is one of the main reasons of BPO employees to change their company and switch over to a new company, the salary hike in Wipro BPO is minimal and so, many of the employees are not happy with their increments.Almost all the employees and the team leaders and the group leader think that Performance Appraisal system should be based on an individual’s performance rather than the Teams or Groups performance, so HR department should focus more on individual performance appraisal system. This would definitely motivate the employees to give their best and stick to Wipro BPO.


IIPM Wipro BPO Ltd.

BIBLIOGRAPHY -

Performance Appraisal (Theoretical) Links:

- www.google.com

- www.appraisals.naukrihub.com

- www.rediff.com/getahead/2008/mar/11appraisal.htm

- www.performance-appraisal.com/info.htm

- www.businessballs.com/performanceappraisal.htm

Company Profile Links:

- www.bpo.knowledgehills.com


http://www.bpo.knowledgehills.com/

http://www.businessballs.com/performanceappraisal.htm

http://www.performance-appraisal.com/info.htm

http://www.rediff.com/getahead/2008/mar/11appraisal.htm

http://www.appraisals.naukrihub.com/

http://www.google.com/

IIPM Wipro BPO Ltd.

- www.businessweek.com/it100/2005/company/WIT.htm

Book Referred:

- Book- Gary Dessler

Questionnaire: Employees

Age:

Education Qualification:

Overall experience in BPO sector:

Years of experience in Wipro BPO:


Evaluation of employees Part of career development

If any other, please specify:

Why do you think companies have Performance Appraisal system?


http://www.businessweek.com/it100/2005/company/WIT.htm

IIPM Wipro BPO Ltd. Retention of employees Increase in utilization of skills Increase knowledge and ability to perform Rewards, promotions and salary increments

If any other (please mention):

Are you satisfied with the company’s Performance Appraisal System?

Yes No

If No, give reasons:

Do you think self- appraisal plays an important role in your performance appraisal?

Yes No May be

Give reasons, if any:

How Performance Appraisal helps in retention of employees?


IIPM Wipro BPO Ltd.

What are the parameters that determine the Performance Appraisal of an individual?


Quarterly Half-Yearly Yearly

What do you like or dislike about the Performance Appraisal policy of your company?

Is the content of performance appraisal reports freely accessible and communicated to the employees?

Yes


IIPM Wipro BPO Ltd. No

If given a chance what changes would you like to bring in the Performance Appraisal policies of your company?

QUESTIONNAIRE: COMPANY

Age:

Education Qualification:

Overall experience in BPO sector:

Years of experience in Wipro BPO:


Evaluation of employees Part of career development

If any other, please specify:

What are the procedures followed for performance appraisal in your company?


IIPM Wipro BPO Ltd.

What are the purposes of performance appraisal in a company?

Give feedback on employee’s performance. Recognize training needs of employee. Criteria utilized to assign rewards. Shape criteria for salary increments, promotions etc. Offer the chance for organizational analysis and improvement. Bridge the communication gap between employee and administrator.

What type of performance appraisal system do you use for evaluating your employees?

360-Degree Performance Appraisal General Performance Appraisal Technical/Administrative Performance Appraisal Manager Performance Appraisal Employee Self-Assessment Project Evaluation Review Sales Performance Appraisal

Who all are involved in performance appraisal system of your company?

How important Performance Appraisal is in utilizing the optimal skills, knowledge and abilities of the employees?

Very important Important Least important Not at all important


IIPM Wipro BPO Ltd.

What do you consider as vital for performance appraisal of an individual?

Experience Individual performance Individual potential Current performance

If other, please specify:

Are employees given an opportunity to make an input to their own performance appraisal?

Yes No


Quarterly Half-Yearly Yearly

Are the performance appraisal reports freely accessible and communicated to your employees?

Yes No

If yes, how (please mention):


IIPM Wipro BPO Ltd.

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IIPM Wipro BPO Ltd.


Documents

15514160-HRS-Projec-on-tPERFORMANCE-APPRAISAL-SYSTEM (1)