Hrs Projec On Tperformance Appraisal System

IIPM Wipro BPO Ltd.

Project Report On

A DETAILED AND ANALYTICAL STUDY OF THE OF

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PERFORMANCE APPRAISAL SYSTEM WIPRO BPO LTD.

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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. 2 Resource

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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.

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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 Table of Contents...............................................................................................................4

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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 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.

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

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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 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 7 Resource

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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:

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. 8 Resource

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Objectives Of Performance appraisal : •

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

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

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To help the management in exercising organizational control.

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

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

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To provide feedback to the employees regarding their past performance.

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Provide information to assist in the other personal decisions in the organization.

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

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

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To reduce the grievances of the employees.

PROCESS OF PERFORMANCE APPRAISAL:

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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.

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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 12 Resource

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review or feedback meeting. Open communication system motivates the employees to actively participate in the appraisal process. 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 13 Resource

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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 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. Selfappraisal 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. 14 Resource

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•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. 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:

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The most significant reasons of using Performance appraisal are: •

Making payroll and compensation decisions – 80%

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Training and development needs – 71%

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

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Deciding future goals and course of action – 42%

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Promotions, demotions and transfers – 49%

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

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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.

•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 17 Resource

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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 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.”

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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: 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. 19 Resource

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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 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 multipoint 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. 20 Resource

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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 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. 21 Resource

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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 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 22 Resource

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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:

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 23 Resource

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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: For top level management: •

Degree of organizational growth and expansion

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Extent of achievement of organizational goals

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Contribution towards the society

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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 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. 26 Resource

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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 extends from Enterprise Application Services (CRM, ERP, e-Procurement and SCM), to eBusiness 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 27 Resource

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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 reengineering, 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 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 28 Resource

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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.

•

Interview.

i)

29 Resource

Interview with the HR representative.

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2. Secondary Data Sources: •

Internet

•

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

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Analysis and Summarization of Data collected on Performance Appraisal: 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%

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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.

• 32 Resource

Why do you think companies have Performance Appraisal system? 5/16/2009

Group no. K-187

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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.

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•

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

 Yes

- 60%

 No

- 10%

 May be

- 30%

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 selfassessment 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.

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•

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? -

•

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

•

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Majority of employees feel that effective Performance Appraisal helps a great deal in retention of employees. They get monetary benefits which enhance 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.

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?

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IIPM Wipro BPO Ltd. - 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. -

•

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

•

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.

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 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.

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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 Performance Appraisal:

QUESTIONNAIRE: COMPANY

It Includes Team leads, Group lead and a HR person Sample size - 06

Age group:

- 25 – 30 years

= 4

- 67%

- 30 years onwards = 2

- 33%

Qualification:

-

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MBA’s

-2

- 33.3%

- B-tech’s

-2

- 33.3%

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- Graduates - 2

- 33.3%

Over all experience in BPO sector : Years of experience in Wipro BPO:

2 – 4 years 2 - 4 years

What according to you is Performance Appraisal?

 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%



Criteria utilized to assign rewards.

- 00%



Shape criteria for salary increments, promotions etc. - 67%

 38 Resource

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- 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. 39 Resource

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•

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?

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IIPM Wipro BPO Ltd.  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.

•

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.

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•

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 areProcess 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.

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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.

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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 halfyearly 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 44 Resource

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individual performance appraisal system. This would definitely motivate the employees to give their best and stick to Wipro BPO.

BIBLIOGRAPHY-

Performance Appraisal (Theoretical) Links: 45 Resource

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- 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

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

Book Referred: 46 Resource

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- Book- Gary Dessler

Questionnaire: Employees

Age: Education Qualification: Overall experience in BPO sector: Years of experience in Wipro BPO:

•

What according to you is Performance Appraisal?

 Evaluation of employees  Part of career development If any other, please specify:

•

47 Resource

Why do you think companies have Performance Appraisal system?

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 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 48 Resource

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Give reasons, if any:

•

How Performance Appraisal helps in retention of employees?

•

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

•

What is your Performance Appraisal cycle?

 Quarterly  Half-Yearly  Yearly

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•

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  No

•

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

QUESTIONNAIRE: COMPANY

Age: 50 Resource

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Education Qualification: Overall experience in BPO sector: Years of experience in Wipro BPO:

•

What according to you is Performance Appraisal?

 Evaluation of employees  Part of career development If any other, please specify:

•

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

•

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. 51 Resource

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•

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 52 Resource

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 Important  Least important  Not at all important

•

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

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•

What is your Performance Appraisal cycle?

 Quarterly  Half-Yearly  Yearly

•

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

 Yes  No If yes, how (please mention):

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.

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