HRS Projec on tPERFORMANCE APPRAISAL SYSTEM

8/14/2019 HRS Projec on tPERFORMANCE APPRAISAL SYSTEM

1/55

IIPMWipro BPO Ltd.

Project Report

On

A DETAILEDANDANALYTICALSTUDYOF

THE PERFORMANCE APPRAISAL SYSTEM

OF WIPRO BPO LTD.

1 5/16/2009 Group no. K-187 HumanResource


2/55

IIPMWipro 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 peoples performance and for

overall organizational development.

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

secondary data through various sources like Internet (companys 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.



3/55

IIPMWipro 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.



4/55

IIPMWipro 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

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



5/55

IIPMWipro BPO Ltd.

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.



6/55

IIPMWipro BPO Ltd.

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.



7/55

IIPMWipro BPO Ltd.

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 wellas 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 ofothers, 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 feltthat a cut in pay, or a rise, should provide the only required impetus for an employee to either



8/55

IIPMWipro BPO Ltd.

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 ofmotivation and performance.

These observations were confirmed in empirical studies. Pay rates were important, yes; but theywere 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 developmentwas 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 employees 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 managements interest in the progress of the employees.



9/55

IIPMWipro BPO Ltd.

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.

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:



10/55

IIPMWipro BPO Ltd.

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 goalsand 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 andif required, the standards can also be modified at this stage itself according to the relevant

feedback from the employees or the evaluators.



11/55

IIPMWipro 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 specifiedperiod 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 andproviding 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. Thecomparison 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 relatedto the employees performance.



12/55

IIPMWipro BPO Ltd.

DISCUSSING RESULTS:

The result of the appraisal is communicated and discussed with the employees on one-to-onebasis. 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 tosolve 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 theperformance 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; theappraisal system should be performance based and uniform. The criteria for evaluationshould be based on observable and measurable characteristics of the behavior of the

employee.

5) Communication Communication is an indispensable part of the performanceappraisal process. The desired behavior or the expected results should be communicated tothe employees as well as the evaluators. Communication also plays an important role in the



13/55

IIPMWipro BPO Ltd.

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 thanjudgmental. To maintainits 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 thedecisions 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 topmanagement. 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 theemployees 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 therequired expertise and the knowledge to decide the criteria accurately. They should have theexperience 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



14/55

IIPMWipro BPO Ltd.

influencing the evaluators rating for all other traits) etc. may creep in the appraisal process.

Therefore the rater should exercise objectivity and fairness in evaluating and rating theperformance 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 clearlycommunicated 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.



15/55

IIPMWipro BPO Ltd.

Provide clarity of the expectations and responsibilities of the functions to be performed bythe 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 thediagram below:



16/55

IIPMWipro BPO Ltd.

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)



17/55

IIPMWipro BPO Ltd.

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 theperformance 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 mostprominent being the lack of quantifiable indicators of the performance. GLOBAL TRENDS

The emergence of following concepts and the following trends related to Performance

appraisalcan 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



18/55

IIPMWipro BPO Ltd.

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 fromsuperiors. 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 andappraise 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 thepoor 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 SunMicrosystems.

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.



19/55

IIPMWipro BPO Ltd.

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) Dont 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.



20/55

IIPMWipro BPO Ltd.

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 themain 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 costsinvolved and the time taken in achieving the results.

Measuring employee performance is the basis of the Performance appraisal processes andperformance 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 andthe 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 suggestionsand 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 alsomotivates the employees and help to improve the performance.



21/55

IIPMWipro BPO Ltd.

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 theorganization. For example: By measuring only the activities in employees 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 theperformance 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 ofthe 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.



22/55

IIPMWipro BPO Ltd.

4.CRITICAL INCIDENTS METHODS:

In this method of Performance Appraisal, the evaluator rates the employee on the basis of critical eventsand 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 thesuperiors personal bias.

6.CHECKLISTMETHOD:

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 employees 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 raters ratings, the evaluator is asked to distribute the

employees in some fixed categories of ratings like on a normal distribution curve. The rater



23/55

IIPMWipro BPO Ltd.

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 incontact 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 contactwith 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. Superiors appraisal

3. Subordinates 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. Superiors appraisal forms the traditional part of

the 360 degree appraisal where the employees responsibilities and actual performance is ratedby the superior.

Subordinates appraisal gives a chance to judge the employee on the parameters like

communication and motivating abilities, superiors ability to delegate the work, leadership

qualities etc. Also known as internal customers, the correct feedback given by peers can help to



24/55

IIPMWipro BPO Ltd.

find employees abilities to work in a team, co-operation and sensitivity towards others.



25/55

IIPMWipro BPO Ltd.

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 employeesperformance 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 atregular 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 theirleadership and managing styles. This technique is beingeffectively 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 levelmanagement:

Degree of organizational growth and expansion

Extent of achievement of organizational goals

Contribution towards the society

Profitability and return on capital employed

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


26/55

IIPMWipro 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 providerof 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.



27/55

IIPMWipro BPO Ltd.

Mission and Vision of Wipro:

Having already achieved the pinnacles of process and quality credentials (through ISO 9000, SEICMM, 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.

Wipros 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 e-

Business solutions. Wipros 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



28/55

IIPMWipro BPO Ltd.

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 worlds largest technology infrastructure management practicesand 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.

Wipros 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

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



29/55

IIPMWipro BPO Ltd.

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

Indias largest employers. Wipros business success combined with its strong legacy of Values

makes it one of the top IT companies globally, and amongst Indias 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) Interview with the HR representative.



30/55

IIPMWipro BPO Ltd.

2. Secondary Data Sources:

Internet

We referred a book from library (HRS), in which information regarding performance

appraisal was given.



31/55

IIPMWipro 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%

Over all experience in BPO sector -



32/55

IIPMWipro BPO Ltd.

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?



33/55

IIPMWipro 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 companys Performance Appraisal System?

Yes - 70%

No - 30%

Interpretation- As 70% of the employees believe that the companys Performance

Appraisal system is quite satisfactory, we can assume Wipro BPOs

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

Performance appraisal procedure followed by the company.



34/55

IIPMWipro BPO Ltd.

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 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.



35/55

IIPMWipro BPO Ltd.

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

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?



36/55

IIPMWipro 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 theincrements given should be more.

- But they like the trend that the feedback of previous years 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

todays HR system. It is used in retention of employees and a great deal to evaluatetheir 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 individuals 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.



37/55

IIPMWipro BPO Ltd.

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

Age group:

- 25 30 years = 4 - 67%

- 30 years onwards = 2 - 33%

Qualification:

- MBAs - 2 - 33.3%

- B-techs - 2 - 33.3%



38/55

IIPMWipro BPO Ltd.

- 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 employees performance. - 33%

Recognize training needs of employee. - 00%

Criteria utilized to assign rewards. - 00%

Shape criteria for salary increments, promotions etc.

- 67%

Offer the chance for organizational analysis and improvement.



39/55

IIPMWipro BPO Ltd.

- 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 years 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 toevaluate their employees. In this, feedback from everyone with whom the

employees come in contactsupervisors, 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.



40/55

IIPMWipro 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 isextremely 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 individuals 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 andattendance.

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

appraisal?



41/55


42/55

IIPMWipro BPO Ltd.

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-

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.



43/55

IIPMWipro BPO Ltd.

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 Appraisals

main purpose is to shape criterion for salary, increments and promotions. The mosteffective 360 degree appraisal system is used in Wipro BPO Ltd.

They feel that most important part of an individuals appraisal is his/her performance

instead of team or groups 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.



44/55

IIPMWipro BPO Ltd.

Suggestions & Recommendations:

After analyzing the data provided by the employees, team leaders, group leaders andthe

HRrepresentative 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 employeesare 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 individuals performance rather

than the Teams or Groups performance, so HR department should focus more on



45/55

IIPMWipro BPO Ltd.

individual performance appraisal system. This would definitely motivate the employees

to give their best and stick to Wipro BPO.

BIBLIOGRAPHY-

Performance Appraisal (Theoretical) Links:



46/55

IIPMWipro BPO Ltd.

- 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:

http://www.google.com/http://www.appraisals.naukrihub.com/http://www.rediff.com/getahead/2008/mar/11appraisal.htmhttp://www.performance-appraisal.com/info.htmhttp://www.businessballs.com/performanceappraisal.htmhttp://www.bpo.knowledgehills.com/http://www.businessweek.com/it100/2005/company/WIT.htmhttp://www.google.com/http://www.appraisals.naukrihub.com/http://www.rediff.com/getahead/2008/mar/11appraisal.htmhttp://www.performance-appraisal.com/info.htmhttp://www.businessballs.com/performanceappraisal.htmhttp://www.bpo.knowledgehills.com/http://www.businessweek.com/it100/2005/company/WIT.htm


47/55

IIPMWipro BPO Ltd.

- 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?



48/55

IIPMWipro 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 companys 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



49/55

IIPMWipro BPO Ltd.

Give reasons, if any:

How Performance Appraisal helps in retention of employees?

What are the parameters that determine the Performance Appraisal of an

individual?


Quarterly

Half-Yearly

Yearly



50/55

IIPMWipro BPO Ltd.

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

company?

Is the content of performance appraisal reports freely accessible andcommunicated 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:



51/55


52/55

IIPMWipro BPO Ltd.

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



53/55

IIPMWipro BPO Ltd.

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



54/55

IIPMWipro BPO Ltd.


Quarterly

Half-Yearly

Yearly

Are the performance appraisal reports freely accessible and communicated to your

employees?

Yes

No

If yes, how (please mention):



55/55

IIPMWipro BPO Ltd.

.

Documents

HRS Projec on tPERFORMANCE APPRAISAL SYSTEM