Performance Apprisal

Performance Appraisal

CHAPTER 1

INTRODUCTION

MEANING AND DEFINITION

PERFORMANCE APPRAISAL AS A NATURAL PROCESS

OF MANAGEMENT

OBJECTIVES OF PERFORMANCE APPRAISAL

BENEFITS OF PERFORMANCE APPRAISAL

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INTRODUCTION:

Today’s working culture demands a great deal of commitment and effort

from the employees, who in turn naturally expect a great deal more

from their employers. The development of much more participative

style of management in many organizations is a positive step towards

meeting such heightened expectations. This participative style can be

expressed in a variety of practical ways. For eg: work teams, quality

circles, and of course regular performance appraisals.

Appraising the performance of individuals and groups and organizations

has been a common practice in all societies. While in some instances,

these appraisal processes are structured and formally sanctioned, in

other instances they are informal and integral part of daily activities.

Performance appraisal is the method of evaluating the behavior of an

employee at the work place, normally including both quantitative and

qualitative aspects of job performance. Performance here refers to the

level of accomplishments. In the sense that there are expectations from

every person in an organization, a certain level of output or

performance is expected from all. How an employee actually performs

in the light of the expectations determines whether his performance is

exceptional, good, average or below that. It is always measured in term

of results. This process has very a high implication on various other HR

functions, like recruitment, training, manpower planning etc.

It is important that the employees are aware of their goals, how to

achieve them, how they are matching up to them, what should be done

if they are not. There is not one right way of doing the performance

appraisals. The most appropriate route to be taken will depend upon the

current style and status of the organization. People do have a negative

attitude about the performance appraisals. Many have the complaints

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such as, “It’s just yearly rollicking”, or “It is like school report time”

or “Nothing comes out of it anyway.” A significant consideration in

choosing how to go about introducing or revising a performance

appraisal scheme will be an understanding of how such attitudes have

been perpetuated and how they might be overcome. People carry bad

experiences with them for a long time, in this case, perhaps from job to

job. Much has to be done at the time of introducing or revising a

performance appraisal scheme to reassure those who will be involved

that the intentions behind conducting the performance appraisal are

sincere and positive.

Performance appraisal must be seen as an intrinsic part of a manger’s

responsibilities, not an unwelcome an time consuming addition to them.

It is about improving performance and ultimately the effectiveness all

apart of the manager’s remit.

1.1 MEANING AND DEFINITION:

In simple terms performance appraisal may be understood as the

assessment of an individual’s performance in a systematic way, the

performance being measured against such factors as job knowledge,

quality, quantity of output, initiative, leadership abilities, supervision,

dependability, co-operation, judgement, verstality, health, and the

like. Assessment should not be confined to past performance alone.

Potentials of the employee for future performance must also be

assessed.

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A formal definition of performance appraisal is:

“It is the systematic evaluation of the individual with respect to

his or her performance on the job and his of her potential for

development.”

A more comprehensive definition is:

“Performance appraisal is a formal structured system of

measuring and evaluating an employee’s job, related behavior, and

outcomes to discover how and why the employee is presently

performing on the job and how the employee can perform more

effectively in the future so that the employee, organization, and the

society all benefit.”

The second definition includes employee’s behavior as part of the

assessment. Behavior can be active or passive – do something or do

nothing. Either way behavior affects job results. The other terms used

for performance appraisal are: performance rating, employee

assessment, employee performance review, performance appraisal,

performance evaluation, employee evaluation and merit rating. In a

formal sense, employee assessment is as old as the concept of

management.

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MEANING:

Performance in a job is a matter, which needs to be considered both in

terms of results achieved and behavior demonstrated. Results required in

relation to quantity, quality or timing can be established in most aspects if

a large number of jobs. Comparing results reached to results required is

essential in evaluating the performance. Reviewing results in the context of

actions and behavior is necessary to develop a full understanding of

individual performance. In determining what actions have led to success or

the lack of it , this aspect of examining performance will represent a

significant element in forming plans for the future, so that strengths can be

built upon and weakness addressed. There are, of course, certain jobs or

features of certain jobs, where it is not always possible to state a required

result or standard that clearly. In these instances considering behavior

assumes a greater significance when appraising the performance. The

manager for the home for the elderly, for example would be able to show

ability in controlling budgets in a tangible manner by keeping within

certain financial guidelines. The most important part of such job however,

would concern the health and well being of residents. Apart from being

difficult to measure, these aspects could be somewhat beyond the

manager’s control, and it would be unfair to make an assessment on the

amount of medicines used or the mortality rate. Therefore it follows that

the manager’s actions in promoting the good health and well- being of the

residents are the most relevant factor in evaluating performance, rather

than the results. In this case, examples of such action might be ensuring

that specialized help is summoned when necessary, listening to residents

who want to talk about their problems, or perhaps arranging appropriate

diversions and entertainment.

Performance appraisal appraises performance of an operating unit, l ike

department or section, or of an individual. The Government of India may

appraise the performance of the BARC as an organization. The Director of

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BARC may appraise the performance or any department of division. These

appraisals start from facts/data, lead to opinions on adequacy/

appropriateness and should lead further to some decisions being made on

whether any changes are necessary in the manner or direction of work of

the appraised unit, individual. At the operating unit level the decision may

relate to the allocations of resources. The decisions may also relate to the

continuance.

In the case of the individual, the appraisal may be of

a. His outputs (how well has the work been done) or of

b. Inputs (what are his skills, behavior patterns, motivation etc.)

The appraisal of outputs helps in deciding on rewards, commendations etc.

The appraisal of inputs helps in deciding on development, including

promotion transfer (job or location) or both. These decisions have

implications in terms of the careers of persons and therefore the quality of

appraisal is major concern in organization all over the world. Some of these

controversies and the suggested remedies will be discussed during the

session.

1.2 PERFORMANCE APPRAISALS AS A NATURAL PROCESS OF

MANAGEMENT:

Performance appraisal as a natural process of management for three

reasons:

MEASURING PERFORMANCE:

Performance can be used as a means of measuring performance in

accordance with the adage: ‘If you cannot measure it you can’t manage it .’

But the purpose of measurement is to indicate not only where things are not

going according to the plan (i.e. there is a negative variance from the

anticipated result) but also to identify where things are going well (a

positive variance) so that steps can be taken to build on success.

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Performance appraisal is means for creating and maintaining a ‘climate of

success in the organization.’ Have a success – oriented strategy does not

only mean expecting people to succeed but also if they do not succeed,

helping them to succeed.

1.2.1 IMPROVING PERFORMANCE:

Building a climate of success involves taking specific steps to improve

the performance of individuals or teams. Because managers depend on that

performance, they have a major and continuing responsibility to take

whatever action is necessary to improve it . This is an entirely natural

process of management and whenever anyone completes a task or project

good managers will consciously or unconsciously consider the following

points:

How well was that done?

Could it have been better?

Was the right person selected for the job?

In what ways, if any, does the person need to improve?

What guidance or help can be provided to this person to ensure that

better results are achieved next time?

1.2.2 EXERCISING LEADERSHIP:

There are many ways of defining leadership. Basically, however it is

about getting things done through people. Leaders point out the way and

ensure that everyone gets there. Leadership is about encouraging and

inspiring individuals and teams to give their best to achieve a desired

result. Managers as leaders have to achieve the task. That is why they and

their teams exist. The leader’s role is to ensure that the team’s purpose is

fulfilled. If it is not, the result is frustration, disharmony, criticisms and,

eventually perhaps disintegration of the group.

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Achieving the task involves leaders in getting answers to the following

questions:

What needs to be done and why?

What results have to be achieved?

What problems have to overcome?

Is the solution to these problems straightforward or is there a

measure of ambiguity?

Is this a crisis situation?

What is the time-scale for completing the task?

In the light of this analysis leaders have to take whatever steps are

necessary to motivate the individuals in their team and also, importantly; to

develop good teamwork.

Motivating individuals is a matter of:

o Understanding their needs – are they interested primarily in money,

security, status, advancement, achievement, or what?

o Remembering that money is not the only reward that most people

need and want. People can also be motivated by recognition, praise,

and the opportunity to make the best use of their skills and abilities

and, indeed, to enhance them.

o Bearing in mind the importance of expectations as an influence on

motivation. A reward, whether financial of non financial, will be

much more effective when people know what they can get if they

work well enough.

o Creating conditions where individuals can best satisfy their own

needs by directing their efforts towards achieving the success of their

team, department and, ultimately, the organization. This is why one

of the arts of leadership is to get people to think for themselves

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about what they can and should do and by getting them to understand

and agree to the standards and targets they are expected to achieve.

o Recognizing the fact that people can be motivated by the work itself

if it satisfies their need for responsibility and achievement. This can

be done by :

Increasing individual responsibility, ‘ empowering’ them ;

Giving them more scope to vary the methods, sequence and pace of

work;

Giving people a complete natural unit of work, thus reducing

specialization;

Giving people the control information to monitor their own

performance.

The process of performance appraisal is essentially a means for

managers to develop and improve their leadership skills in each of the

areas described above.

1.3 OBJECTIVES OF PERFORMANCE APPRAISAL:

Performance appraisal is potentially useful for managers in many ways.

At base however there are two fundamental reasons for developing such

systems.

Assessing past, which outlines the evaluative aspect of

performance appraisal.

Improving future performance, which highlights the development

aspect of performance appraisal.

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1.3.1 OTHER OBJECTIVES ARE AS FOLLOWS:

a) Promotion, separation, and transfer decisions.

b) Feedback to the employee regarding how the organization viewed

the employee’s performance.

c) Evaluation of relative contribution made by individuals and entire

departments in achieving higher level organization goals.

d) Criteria for evaluating the effectiveness of selection and

placement decisions, including the relevance of the information

used in the decisions within the organization.

e) Reward decisions, including merit increases, promotions and

other rewards.

f) Ascertaining and diagnosing training and development decisions.

g) Criteria for evaluating the success of training and development

decisions.

h) Information upon which work scheduling plans, budgeting, and

human resources planning can be used.

i) Provided employees the opportunity to formally indicate the

direction and level of the employee’s ambition.

j) Show organizational interest in employee development, which

was cited to help the enterprise retain ambitious, capable

employees instead of losing the employees to competitors.

k) Provided a structure for communications between employees and

management to help clarify expectations of the employee by

management and the employee.

l) Provide satisfaction and encouragement to the employee who has

been trying to perform well.

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1.3.2 PURPOSE:

The purpose can be highlighted by way of the following chart:

General application Specific purpose

Development Uses: Identification of individual needs.

Performance feedback.

Determining transfers.

Identification of individual strengths and

developmental needs.

Administrative uses: Salary.

Promotion.

Retention of individual performance.

Recognition of individual performance.

Lay-offs.

Identification of poor performers.

Organizational maintenance / objectives

HR planning.

Determining organizational training needs.

Evaluation of organizational goal achievement.

Information for goal identification.

Evaluation of HR systems.

Reinforcement of organizational development needs.

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1.4 BENEFITS OF PERFORMANCE APPRAISAL:

The benefits of performance appraisal are two fold. The employees develop

themselves while the organization gets the benefit of improved workforce.

A few benefits are stated below:

1.4.1 A. Benefits to the organization :

Facilitates the achievement of organization goals and

strategies.

Contributes to improved staff morale.

Facilitates continuous performance improvement, organization

development and culture change.

Assists in establishing a performance culture – of quality,

efficiency and achievement.

Provides a formal means of discussing competency gaps and

how to address these – leading to more competent work force.

Helps build a climate of openness and trust.

Adds to a participative work culture.

Forms part of the legal process in addressing persistent poor

performance.

Provides the basis for fair remuneration based on actual

performance, so employees can see and experience a clear link

between their performance and the rewards they receive.

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Also provides systematic judgments to back up transfers,

demotions or terminations, in extreme cases.

1.4.2 B. BENEFITS TO EMPLOYEES:

An opportunity to get formal feedback from line managers on

how their performance is viewed – so that they can learn what

they do well and what needs to improve.

Ensures clarity regarding work expectations and standards,

reducing anxiety / stress and conflict with line managers.

An opportunity to discuss their job competencies (or lack

thereof) – leading to targeted training and development –

helping them to realize their full potential.

Provides a forum to share new idea and to air views.

Can be used as a base for coaching and counseling the

individual by the superior.

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CHAPTER 2

APPRAISAL AND MANAGEMENT STYLE

APPRAISAL AND COMMUNICATION

APPRAISAL AND MOTIVATION

APPRAISAL AND REWARD

APPRAISAL AND PERFORMANCE STANDARDS

APPRAISAL AND TRAINING AND DEVELOPMENT

APPRAISAL AND PLANNING

APPRAISAL AND RECORD KEEPING

APPRAISAL AND STAFF RETENTION

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ROLE OF PERFORMANCE APPRAISAL IN AN ORGANIZATION:

A major step in devising a performance appraisal scheme is deciding

exactly why it is necessary to have one. Organizations need to consider

their objectives long before they design their schemes, if they are to

ensure progress towards meeting their objectives. To establish the

relevance of objectives in performance appraisal they have to be

considered in the light of organization objectives. Is there a statement

of plans for next three to five years? Are the objectives of the appraisal

scheme consistent with those plans? Objectives must also be considered

in the much wider context of people management and how they relate to

organizational priorities in maximizing human resources.

2.1 Appraisal and Management style:

The practice of monitoring and improving performance is all part of

being a good manager. Consulting on problems, maintaining standards,

assisting in reaching targets, and improving effectiveness are some of

the ways in which results are obtained through people. Introducing

performance appraisal into an organization whose management is

generally autocratic would be something of an anomaly. It would also

be doomed to failure, since it would be greeted with a fair degree of

suspicion. Commitment to it would be lacking. Introduction or revision

of an appraisal scheme can be natural extension to the increasing

professionalism in a participative style of management.

2.2 Appraisal and Communication:

Since appraisal is a particularly refined form of corporate

communication, using it to improve communications is a relevant

objective. This applies both to communication on one to one basis

between managers and staff, and to management communication in

general. Here is an opportunity to ensure that all issues relating to

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performance are clarified and to exchange information in order to

improve operational effectiveness. Seen as a way of strengthening good

communications, performance appraisal has a rightful place in an

organization’s communications policy. What must be avoided, however,

is introducing appraisal because communications are bad. An appraisal

scheme will not create better corporate communication on its own. It

can only serve as a part of a system where regular updates, team

briefings, meetings, and consultation are the norm. If communication is

bad, what is going to happen to all the feedback obtained from

appraisees? There is a strong likelihood that it will fade away under the

pressures of day-to-day operational needs.

2.3 Appraisal and Motivation:

It is now understood that achievement, recognition involvement, job

satisfaction and development are more likely to motivate than anything

else, given that they are provided in satisfactory working conditions

and that rewards are appropriate.

Appraisal links into the motivational aspect of the manager’s job in that

it can be aimed at giving recognition, helping people achieve, involving

them, assisting in creating job satisfaction and providing a forum in

which to discuss development.

How individuals are managed has a direct relevance to how motivated

they are likely to be. There is no doubt that appraisal well handled,

strengthens relationship because of the opportunities it creates for good

quality communication.

Appraisal also offers a good opportunity for the managers to keep in

touch with their employee’s changing capabilities and aspirations.

Performance appraisal also compliments the idea that with agreed levels

of attainment individuals will work willingly and reasonably

interdependently towards achieving goals.

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2.4 Appraisal and Reward:

2.4.1 Money

There is something fundamentally right about allowing those who

achieve more and contribute more in an organization to reap a larger

proportion of the rewards it has to offer.

As a basis for distributing pay, a performance appraisal scheme can be

helpful particularly if it concentrates on quantifiable standards and

targets. It is certainly better than some alternatives, which may amount

to no more than a series of decisions about who “ deserves” what.

However, the disadvantages of linking reward to appraisal may

outweigh the advantages. The problem of relating pay and performance

is that, for it to be absolutely fair, everyone must be enabled

consistently. The abilities of employee’s immediate superiors, both as

manager and assessors, is rarely uniformly good across and

organization, similarly, the distribution of resources is often

inconsistent, resulting in difficulties which may mean that the potential

for good performance is frustrated. Often performance is affected by

other matters beyond the control of managers or subordinates.

It may also happen, that if there is performance – related pay scheme,

employees may feel that too much of emphasize is on quantity rather

than quality and the standards have to be ceased to be important.

2.4.2 Promotion

The concept of discussing promotion potential and career planning has

been questioned from time to time. For certain employees the exercise

may have little point if such issues are not discussed. However, a prime

contender for an impending promotional opportunity is not necessarily

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going to be completely honest about current problem area at an

appraisal interview.

Career planning is too important both to individuals and organizations.

To give it due emphasize, and to remove a possible obstacle to

appraisal processes, career planning may well be need to be the subject

of a separate exercise.

2.5 Appraisal and Performance Standards:

Discussing and agreeing standards of performance is an ongoing part of

manager’s job. As is continual assessment and considering how to

maximize performance potential. Appraisal is a formal extension of this

responsibility, and given that it is carried out with commitment and a

degree of skill by the managers, raising levels of efficiency in the

organization as a whole is a natural outcome.

2.6 Appraisal and Training and Development:

To analyze training and development needs is often a stated objective

of performance appraisal, and one that focuses on benefits to the

individual and the organization. The real benefit of appraisal in this

area is that it reaffirms that managers are responsible for the training

and development of their own staff. An appraisal report form with the

appropriate reminders on it creates an added discipline to ensure that

managers are aware of this responsibility. Appraiser and appraisee

discussing previous training experiences, agreeing the best options and

formalizing what improvements are expected to result from learning, is

the most pertinent way to ensure that any training carried out actually

has some impact. Evaluation of training is also a part of appraisal

process, since any plans for training made during an appraisal must be

thoroughly followed up. Evaluation of training should be carried out as

a separate, specifically designed exercise, but the information obtained

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at an appraisal will be an additional indicator as to how well training

resources are being used.

2.7 Appraisal and Planning:

Planning current and future staffing needs is a legitimate aim in

performance appraisal; although not always an easy one to reach

coherently, because of the many influences that can have negative or

positive impact on the planning system.

2.7.1 Manpower Planning

Performance appraisal can give a lot of data about who is in the right

job, who wants to change jobs and who should be considered for

development or promotions.

2.7.2 Job Contents

Feedback from the jobholders often gives a better insight into the

evolution, which takes place almost unnoticeably in certain in certain

jobs. Appraisal is an ideal situation in which to discuss and recognize

changes in job content that have not been formalized.

An individual may have stopped performing a key task of the job

description because they do not like it and could have coerced others

into doing it for them. This does not alter the fact that they should be

doing it , and operational needs determine that they should still at least

carry out the function when necessary. The manager has to collate

feedback and review it in relation to departmental and organizational

needs. The main task is to follow through and either to make

appropriate changes or to explain why no changes can be made.

2.7.3 Evaluating Trends

Appraisals can be extremely helpful in highlighting certain trends. On

the basis that not all of the people can be wrong all of the time, some

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issues may emerge which need attention at senior level.. Additionally,

individual managers can learn a great deal about the impact of their

management style and practices, and how they might make changes for

the better.

2.8 Appraisal and Record Keeping:

Whilst appraisal should never be a “paper-based” procedure, a record of

it is essential for some sensible reasons. An action plan would need to

be written down, and it is always practical to have a record of

employee’s performance standards, aspirations, and potential for

planning purposes and possibly for the allocation of the salary awards.

2.9 Appraisal and Staff Retention:

Many vacancies are unavoidable through retirement, illness, etc.

However, many can be avoided if managers address themselves to some

of the other issues which cause staff to leave for alternative

employment – frustration, boredom, lack of opportunity, lack of

recognition, etc. Both continuous and formal appraisal must be seen as

a way of identifying problems before they reach the point of no return

and another employee ends up as a statistic on the labour turnover

analysis. With the help of performance appraisal the retention can be

done successfully.

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CHAPTER 3

SKILLS REQUIRED TO CARRY OUT PERFORMANCE

APPRAISAL PROCESS

PERFORMANCE GUIDELINES FOR MANAGERS

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SKILLS REQUIRED TO CARRY OUT PERFORMANCE

APPRAISAL PROCESS:

The skills required by managers to carry out a performance appraisal

process are often underestimated. They need to know how to agree

clear, measurable and achievable objectives with their staff. They need

to know to define and assess competence requirements. They have to

provide the feedback and know, not only how to commend staff on their

achievements in appraisal discussion meeting, but also how to coach

them and help them to recognize where their performance has been

substandard and needs to be improved.

The manager is faced with a new and more challenging situation:

feedback, coaching, and counseling skills and the ability to handle and

encourage upward appraisal all come to the fore.

However, performance appraisal does not require managers to act out of

character. In fact this would be most undesirable. It is no use managers

being sweetly reasonable and consultative during the appraisal

discussion and then reverting to their autocratic, directive type of

behaviour for the rest of the year. This sort of behavior would only

confirm the suspicions of some people that appraisal is meaningless

affair. What such managers can be persuaded to do, however, is to learn

that the skills of performance appraisal that can help them to get better

results from their staff and that some modification of their behavior

during the course of their day – to – day work would have beneficial

results in the shape of improved performance.

Interpersonal or interactive skills are those used by people to build and

maintain relationships with one another in order to achieve a purpose

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(which may or may not be articulated). The social interaction, which

takes place when using interpersonal skills involves both verbal

behavior ( asking or replying to questions, making statements, etc.), or

the non – verbal communication ( facing people, looking at them,

reacting physically to what they say or do etc. by nodding, smiling

etc.).

Interpersonal skills are exercised when an appraiser, initiates action to

achieve an aim which is dependent on the reaction and the agreement of

the appraissee. The appraisee may have their own objectives and will

certainly not be inert or passive. Appraisees will produce behavior and

reactions which have to be taken into account by appraisers who will

order their behavior in a way it is believed will contribute to achieving

their objectives. Appraisers have to ensure that appraisees will interact

with them productively and this will be affected by how appraisers see

appraisees and vice versa.

The attitude of appraiser will depend partly upon their knowledge of the

appraisees but may be affected by deep routed feelings about people in

general or the appraissees in particular.

3.1 PERFORMANCE GUIDELINES FOR MANAGERS:

3.1.1 Professional and technical knowledge:

Has expertise in the productive marketing of the business unit’s

services.

Has expert knowledge of business unit’s services and sufficient

familiarity with other business unit’s services to enable customer

needs to be met.

Has expert knowledge of basic operations of the total business

unit and the appropriate management information.

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3.1.2 Organizational and Business Knowledge:

Understands and applies organizational knowledge to the

business unit.

Knows whom to contact to gain additional knowledge.

Appropriately applies knowledge of the team to enhance the

operations of the business unit.

3.1.3 Interpersonal and Communications:

Responds constructively when dealing with customers and

colleagues.

Can establish rapport easily with a range of different people.

Helps people in groups and teams to ‘get on together’.

Can say “No” when necessary and set standards/ limits for others.

Makes it easy for others to be open and honest.

Presents ideas and information clearly in speech and writing.

3.1.4 Influencing Skills:

Maintains a good relation with customers even when their needs

can’t all be met.

Actively involves others in decision- making and wins co-

operation.

Uses contacts appropriately to obtain information and help.

It is assertive for self and /or on team’s behalf without damaging

relationships.

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3.1.5 Critical Thinking:

Readily spots trends and patterns in job–related quantitative and

qualitative data.

Tests the quality of available information and draws logical

conclusions from it.

Can analyze varied major problems and at the same time identify

appropriate actions.

3.1.6 Self – Managing and Learning:

Is objective about own strengths and weaknesses.

Prepared to back own judgment publicly.

Concentrates and maintains focus, even when constantly

interrupted.

Makes good use of opportunities to learn.

Recognizes and deals effectively with personal stress.

3.1.7 Achievement and Action:

Is clear about what ‘success’ means for the business; successful

in overcoming obstacles.

Makes decisions without ‘passing the buck’ and sets personal

performance standards, too.

Take early actions to deal with problems even if it is difficult or

unpopular.

Makes best use of resources to achieve objectives.

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3.1.8 Initiative and Innovation:

Identifies option for improvement and acts on them – or

motivates others to do so.

Challenges accepted ways of doing things when this means

breaking with ‘time honoured’ traditions.

Activity encourages the team to come up with new ideas and

approaches.

Experiments and learns from mistakes.

3.1.9 Strategic perspective :

Understands key organizational aims, values and strategies.

Anticipates how trends and events in different areas of the

business and environment will affect them.

Actively encourages and supports people when they offer

different perspectives and opinions.

3.1.10 Capacity for Change:

Gradually modifies approach or strategy as the situation changes.

Can accept and work with new approaches, even if not totally in

agreement with them. Keeps focused in the phase of uncertainty.

Helps the team to accept and adjust to changed approaches.

Matches opinions in response to contrary evidence. Can modify

on style when appropriate.

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CHAPTER 4

THE APPRAISAL PROCESS

SETTING THE OBJECTIVES OF PERFORMANCE

APPRAISAL

ESTABLISHING JOB EXPECTATIONS

DESIGNING THE APPRAISAL PROGRAMME

PERFORMANCE INTERVIEW

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THE APPRAISAL PROCESS:

4.1 I. Setting the objectives of performance appraisal:

The purpose for evaluating the performance of the employee

can be for:

Training (finding the deficiency in the performance and

imparting training accordingly).

Promotions (finding the most suitable employee from the

cluster so that he can face the new challenges posed by the

promotions).

Transfers (finding out the employees potential, interests

and accordingly transferring him to the most suitable job in

order to get the best out of him and retain him in the

organization).

Giving pay increases (finding out the employee who is

efficient and effective in performing his tasks at work he

does).

Thus depending on the necessity of appraisal the performance

objectives will be designed. The objectives should enable the

employees to know exactly the standards of performance they have to

maintain. It helps the organization to set standard of performance

against which the actual performance of the employees would be rated

and thus the organizations goal would be met in an efficient and

effective manner.

4.2 II. Establishing job expectations:

After formulating the performance objectives a discussion is

held with the employees who’s performance is to be rated. The

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supervisor makes the job expectations, duties and what is expected out

of him clear to the employees.

4.3 III. Designing the appraisal programme :

In order to design the appraisal system various aspects are to be

considered in order to satisfy the purpose of the appraisal system. This

would include;

i. The person who’s performance would be assessed,

ii . The person who will assess the performance,

iii . The possible problems that would be faced,

iv. The possible solutions that would solve the problem.

v. The methods to be used to appraise the performance.

vi. The period when the performance is to be appraised.

The decision regarding whether the appraisal would be done in a formal

way, i .e. once in a year or twice or it can be done on informal basis i .e.

whenever there is a need to appraise the performance depending on the

needs of the organization.

For example, for promotion or transfer or when there is an emergency

situation. It is however better to have a formal appraisal system in

order to know whether the performance standards are met, in addition

informal appraisal system would help to go to the deeper aspects like,

when the employee is not able to perform to the standards of

completing the job on time, then he can be asked for the reason which

can be personal or organizational, this can help to identify the cause of

the deficiency and coming up with appropriated solution in order to

make the employee complete his job on time.

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4.3.1 Ratees and Raters:

A ratee may be defined as an individual, work group, division, or an

organization whose performances need to be rated. Raters can be

immediate supervisors, specialists from the HR department,

subordinates, peers, committees, clients, self-appraisal, or a

combination of several.

The choice of raters is done according to the category of the ratee

whose performance is evaluated. For instance:

Immediate supervisors are fit to appraise the performance

of their subordinates as they might be more familiar with

his or her performance.

Peers are better position to evaluate facts such as

contribution to work groups projects, interpersonal

effectiveness, communication skill , reliability and

initiative of job performance.

Clients that are within the organization who have direct

contact with the ratee or the external clients can also be

used for rating the employee performance.

Rating Committees comprises of immediate supervisors

and other supervisors who are in contact with the ratee are

adopted where employee performs variety of tasks in

different environment.

In self-appraisal employee himself or herself evaluates his

or her own performance. This may be best suited where

self-development is the main purpose of evaluation.

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4.3.2 Criteria for Rating Performance:

It includes the basis or criteria for performance appraisals. It should be

determined on the basis of the employees perform. The criteria should

be such that it enables the assessment of the jobholder’s performance in

a fair and accurate manner. Depending upon the job the employee does,

the standard for the criteria would be determined. For example, a shop

floor worker should be more proficient in technical skills hence his

performance appraisal should emphasize more on technical skills. While

for a managerial position the emphasis should be more on social skills.

The current approach in setting the criteria is to make them SMART :

Specific

Measurable

Achievable

Relevant

T imed

Keeping the smart approach in mind performance can be assessed

depending on the following criteria;

Quality: This answers the question, how well? When an

employee is given a task, a certain level of quality is expected.

If the employee exceeds the expectations then the quality of

work performed is considered to be excellent and if it is below

the expectation, it is considered poor in quality.

Quantity: This answers the question, How much? For example,

measuring the performance based on the number of units

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produced, volume of sales achieved or the number of activity

cycles completed.

Timeliness: This answers the question, By what time? For every

activity, some time is required to complete it as per the

standards. The less the time taken by the employee to perform

the activity, maintaining the standard quality of work, the higher

he is rated for timeliness.

Cost effectiveness: This answers the question, At what cost? It

refers to optimum utilization of organizational resources, be it

human, financial, technological or material. That is, the

organization’s resources are used in such a way that the returns

are maximum.

Need for supervision: This answers the question, What level of

self sufficiency? This means how well an employee can carry out

his job without seeking his superior’s help. How self sufficient

and independent the employee is, in carrying out any task given

to him.

Interpersonal impact: This answers the question, How social he

is? That is how well the employee co-ordinates and co-operates

with his superiors, colleagues and customers and maintains a

good rapport with all and fosters a feeling of goodwill.

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Skills: This answers the question, How efficient he is? That is

does he poses personal, social, technical skills. Personal skills

include such things as to listen, to question, to debate, to

experiment etc. Social skills include such skills as the ability to

encourage, to motivate other, to meet people, to support people,

to train others and so on. Technical skills include area which

covers all the aspects of work that require people to do

something specific. For example, wide technical knowledge of

company’s product with specialist knowledge of some.

Knowledge: This answers the question, How much a person

knows and how well can he retain the information? That is how

a person keeps himself/ herself aware of what is happening

around and to use his /her knowledge whenever needed.

Experience: This answers the question, How experienced a

person is? That is whether a person has done the same thing

over and over again or they have done many different things.

The first four- quality, quantity, time and cost are objective and the

next two- supervision and social relationship are subjective. Hence the

appraisal criteria are either person – oriented (subjective) or result’s

oriented (objective).

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4.4 IV. Performance Interview:

The performance interview is the formal face-to face meeting

between the employee and the appraiser. In such interviews the

information, which is obtained from the appraisal form, is discussed.

This discussion is important as the employees receive feedback about

where they stand in the eyes of supervisors. After this important

decision regarding salary, promotion and training, etc are made.

Feedback is necessary in order to bring improvement in the performance

especially when performance is not as expected. Performance interview

has following goals:

To change behavior of employees whose performance does not

meet organizational requirements or their own personal goals.

To maintain the behavior of employees who perform in an

acceptable manner.

To recognize superior performance behavior so that they will be

continued.

To provide a rationale for salary reviews.

To improve communication between superior and subordinates.

Raters offer feedback to ratees through several methods. The most

popular methods include tell and sell, tell and listen, problem solving

and mixed.

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In tell and sell (direct interview ) the manager tells the

subordinate how well he is doing and persuades him to accept

what has been decided for him in terms of specific goals for

improvement.

In the tell and listen interview the manager tells the subordinate

how he is doing but then sits back and listens to the individuals

point of view both about the appraisal and about any follow-up

action required. This provides the subordinates with chances to

participate and establish a conversation with his superior.

In problem solving (participative interview) an active and open

conversation is established between the superior and the

subordinates. Here the superior puts aside his role as a judge,

rather he openly discusses with his subordinate. They mutually

reflect on the progress and further action required. Solution to

problems are presented, discussed and sort.

Mixed interview is combination of tell and sell and problem

solving interviews. Here the superior shares the problems and

solution with the subordinates keeping their side of story in

mind.

35


CHAPTER 5 METHODS OF APPRAISALS

PAST-ORIENTED APPRAISALS METHODS

FUTURE –ORIENTED APPRAISALS METHODS

36


METHODS OF APPRAISALS

METHODS OF APPRAISALS

Rating Scales MBO

Checklists

360◦Appraisal

ForcedChoiceMethod Psychological

appraisal

Critical Incident Method Assessment Centers

Behaviorally Anchored Method

Field Review Method

Performance Test and Observations

Annual Confidential Reports

Essay Method

Cost Accounting Approach

Comparative Evaluation Approach

37

Past Oriented Future Oriented


5.1 PAST – ORIENTED METHODS:

5.1.1 Rating scales:

This is the simplest and most popular technique for appraising

employee performance. The typical rating-scale system consists of

several numerical scales, each representing a job – related performance

criteria such as dependability, initiative, output, attendance, attitude,

co-operation, etc.

Excellent Good Acceptable Fair Poor 5 4 3 2 1

Dependability - - - - -Initiative - - - - -Overall output - - - - -Attendance - - - - -Attitude - - - - -Co-operation - - - - -

- - - - -- - - - -

Quality of work - - - - -Total - - - - -Total score - - - - -

Each scale ranges from excel linked to salary increase, whereby so

many points equal a rise often to poor. The appraiser checks the

appropriate performance level on each criterion, and then computes the

employee’s total numerical score. The number of points scored may be

linked to salary increase, whereby so many points equal a rise of

percentage.

Instruction : For the following performances factors please indicate on the rating

Scale your evaluation of the employee named below.

Employee’s Name: Department :

Rater’s Name: Date:

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Rating scales offer the advantages of adaptability, relatively easy

use and low cost. Nearly every type of job can be evaluated with the

rating scale, the only requirement being that the job – performance

criteria should be changed. This way, a large number of employees

can be evaluated in a short time, and the rater does not need any

training to use the scale. The disadvantages of this method are

several. The rater’s biases are likely to influence evaluation and the

baises are pronounced in subjective criteria such as co-operation,

attitude and initiative. Moreover, numerical scoring gives an

illusion of precision that is really unfounded.

5.1.2 Checklist:

In this method, a checklist of statements on the traits of the

employee and his or her job is prepared in two columns viz. a ‘Yes’

column and a ‘No’ column. All that the rater (immediate superior)

should do is tick the ‘Yes’ if the answer to the statement is positive

and in the column ‘No’ if the answer is negative. After ticking off

against each item, the rater forwards the list to the HR department

where the actual assessment of the employee takes place and the

actual evaluation is done by the HR department. The HR department

assigns certain points to each ‘Yes’ ticked. Depending on the

number of ‘Yes’ the total score is arrived at. When points are

allotted to the checklist it becomes weighted checklist. The

advantages of this method are economy, ease of administration,

limited training of rater, and the standardization. The disadvantages

include, susceptibility to rater’s baises, use of personality criteria

instead of performance criteria, misinterpretation of checklist items,

and the use of improper weights by the HR department, it also does

not allow the rater to give up relative ratings.

Yes No

39


1. Is the employee really interested in the job? - -

2. Does he/ she possess adequate knowledge about the

job?

- -

3. Is his/her attendance satisfactory? - -

4. Does he/she maintain the equipment in a good

condition?

- -

5. Does he/she co-operate with co-workers? - -

6. Does he/she observe safety precautions? - -

7. Does he/she complete what he/she commences? - -

8. Does he/she evade the responsibility? - -

5.1.3 Forced Choice Method:

In this the rater is given a series of statements about an employee.

These statements are arranged in blocks of two or more, and the

rater indicates which statement is most or least descriptive of the

employee. Typical statements are:

1) Learns fast………………..Works hard.

2) Work is reliable…………..Performance is a good example for.

3) Absents often……………..Others usually tardy.

The rater is simply expected to select statements, which are

readymade. The advantage of this method is the absence of personal

bias in rating. The disadvantage is that the statements may not be

properly framed- they may not be precisely descriptive of the

ratee’s traits.

5.1.4 Forced Distribution Method

40


One of the errors in rating is leniency-clustering a large number of

employees around a high point on rating scale. The forced

distribution method seeks to overcome the problem by compelling

the rater to distribute the ratees on all points on the rating scale.

The method operates under assumption that the employee’s

performance level conforms to a normal statistical distribution.

Generally, it is assumed that employee performance level conforms

to a bell shaped curve.

The major weakness of the forced distribution method lies in the

assumption that employee performance level always conform to a

normal (or some other) distribution. In organizations that have done

good job of selecting and retaining only the good performers, the

use of forced distribution approach would be unrealistic as well as

possibly destructive to the employee morale.

5.1.5 Critical Incidents Method:

The critical incidents method of employee assessment approach

focuses on certain critical behaviors of an employee that make all

the difference between effective and non-effective performance of a

job. Such incidents are recorded by the superiors as and when they

occur.

One of the advantages of the critical incidents method is that the

evaluation is based on actual job-behavior. Giving job-related

feedback to the employee is also easy. However, the following

drawbacks are there:

Negative incidents are generally more noticeable than

the positive ones.

The recording of incidents is a chore to the supervisor

and may be put off and easily forgotten.

Overly close supervision may result.

5.1.6 Behaviorally Anchored Scale:

41


In this approach, broad categories of practice are identified, ideally

through collaborations between supervisors and staff. Specific job

behaviors are then linked to the categories. Measures of staff

member behavior are rated on a scale in relation to specific

behavior items, such as “understands department functions”. Job

dimensions usually yield similar broad categories, such as planning,

setting priorities, and responsiveness to supervision. Categories

such as these may be useful in framing evaluation criteria in this

approach to appraisal.

Another means of approaching behavior- based appraisal is the

behavioral frequency scale . Here, desired behaviors are described

and the staff member is evaluated on how often those behaviors

occur.

5.1.7 Field Review Method:

This is an appraisal by someone outside the assessee’s own

department, usually by someone from the corporate office or the HR

department. The outsider reviews employee records and holds

interviews with the ratee and his/ her superior. The method is used

primarily for making promotional decisions at the managerial level.

Field reviews are also useful when comparable information is

needed from employees in different units or locations.

The disadvantages of this method are:

1. An outsider is usually not familiar with the conditions in an

employee’s work environment that may affect the employee’s

ability or motivation to perform.

2. An ‘outsider’ review does not have the opportunity to observe

employee behavior of performance over a period of time and

in a variety of situation but only in an artificially structured

interview situation which extends over a very short period of

time.

42


5.1.8 Performance Tests and Observations:

With a limited number of jobs, employee assessment may be based

upon a test of knowledge or skills. The test must be reliable and

validated to be useful. Even then, performance tests are apt to

measure potential more than actual performance. In order to test to

be job related, observations should be made under circumstances

likely to be encountered. Practically it may suffer from the costs of

test development or cost of administration.

5.1.9 Essay Method:

In the essay method, the rater must describe the employee within a

number of broad categories, such as:

i . The rater’s overall impression of the employee’s

performance.

ii . The promotability of the employee.

iii . The jobs that employee is now able or qualified to

perform.

iv. The strengths and weakness of the employee.

v. The training and assistance required by the employee.

This method is useful in filing the information gaps about the

employees that often occur in the better-structured checklist

method. However, the major drawback can be that many raters do

not have good writing skills. They become confused about what to

say, how much they should state and the depth of narration. Another

problem with this method is that the ratees may be rated on the

quality of the appraisal that they give. The quality standard for the

appraisal may be influenced by appearance rather than content.

Thus, a ‘high quality’ appraisal may provide little useful

information about the performance of the ratee.

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5.1.10 Cost Accounting Method:

This method evaluates performance from the monetary returns the

employee yields to his/ her organization. A relationship is

established between the cost included in keeping the employee and

the benefit the organization derives from him or her. Performance of

the employee is then evaluated based on the established relationship

between the cost and the benefit.

5.1.11 Comparative Evaluation Approaches:

There are two methods that are used to compare one worker’s

performance to that of his or her co-worker.

5.1.11.1 Ranking Method:

In this, the superior ranks his or her subordinates in the order of

their merit, starting from the best to the worst. All that the HR

department knows is that A is better than B. The ‘how’ and ‘why’

are not questioned. No attempt is made to fractionalize what is

being appraised into component elements. To avoid the biases, two

or more people can do rankings and then average can be taken. Its

advantages include ease of administration and explanation.

5.1.11.2 Paired-Comparison Method:

Under this method, the appraiser compares each employee with

every other employee, one at a time. For example, there are five

employees named A,B,C,D and E. The performance of A is first

compared to B and a decision is made about whose performance is

better. Then A is compared with C,D,E in that order. The same

procedure is repeated for other employees. The number of

comparisons may be calculated with the help of a formula:

N(N-1)/2, where N stands for the number of employees to be

44


compared. If there are 10 employees, the number of comparisons

will be 10(10-1)/2=45. After the completion of the comparison,

results can be tabulated and rank is created from the number of

times each person is considered to be superior.

5.2 Future Oriented Appraisals Methods:

5.2.1 Management By Objectives (MBO):

MBO emphasizes participation by all organization members. The

following core elements in MBO:

Formation of trusting and open communication throughout the

organization

Mutual problem solving and negotiations in the establishment of

objectives

Creation of win-win relationships

Organizational rewards and punishments based on job-related

performance and achievement.

Minimal uses of political games, forces and fear.

Development of a positive, proactive, and challenging

organizational climate.

Following are the 6 steps in the MBO process:

i. Formulate long range goals and strategic plans

ii. Develop overall organizational objectives

iii . Established derivative objectives for major operating units

iv. Set realistic and challenging objectives and standards of

performance for members of the organization.

v. Formulate action plans for achieving the stated objectives

vi. Implement the action plans and take corrective action when

required to ensure the attainment of objectives.

MBO evaluation report for a call center person:

45


Objectives set Period

objectives

Accomplishments variance

Number of calls 100 104 104

Number of new customers

contacted

20 18 90

Number of deals cracked 30 30 100

Customer complaints 34 11 66.66

Number of reports in

home office

12 10 80

Number of sales

correspondence courses

successfully completed

4 2 50

Deals failed 2 0 0

5.2.2 Psychological Appraisals:

Large organizations employ full-time industrial psychologist. When

psychologists are used for evaluations they assess an individual’s

future potential and not past performance. The appraisal normally

consists of in-depth interviews, psychological tests, discussions

with supervisors and a review of other evaluations. The

psychologist then writes an evaluation of the employee’s

intellectual, emotional, motivational and other related

characteristics that suggest individual potential and may predict

future performance. From these evaluations, placement and

development decisions may be made to shape the person’s career.

5.2.3 Assessment Centers:

46


An assessment center is a central location where managers may

come together to have their participation in job related exercises

evaluated by trained observers. The principle idea is to evaluate

managers over a period of time, say by one to three days, by

observing and evaluating their behavior across a series of selected

exercises or work samples. Assesses are requested to participate in

work groups (without leader), role-playing and other similar

activities, which require the same attributes for successful

performance, as in the actual job. After recording their observation

of ratee behaviors, the raters meet to discuss these observations.

The decision regarding the performance of each assessee is based

upon this discussion of observations.

5.2.4 360 Degree Feedback:

Where multiple raters are involved in evaluating performance, the

technique is called 360 o appraisal. The 360 o technique is understood

as systematic collection of performance data on an individual or

group, derived from a number of stake holders- stakeholders being

the immediate supervisors, team member, customers, peers, and

self. In fact, anyone who has useful information on ‘how an

employee does the job’ may be one of the appraisers. It enables an

employee to compare his or her perceptions about self with the

perceptions of others. However, receiving feedback on performance

from multiple sources can be intimidating. It may also take a long

time on selecting the rater, designing questionnaire, and analyzing

the data.

5.2.5 Performance Interview:

47


Performance interview is another step in the appraisal process. The

raters should discuss and review the performance with the ratees, so

that they will receive the feedback about where they stand in the

eyes of superiors. Feedback is necessary to effect.

48


CHAPTER 6

PERFORMANCE APPRAISAL PROCESS

PREPARE

INFORM

VENUE

LAYOUT

INTRODUCTION

REVIEW AND MEASURE

AGREE AN ACTION PLAN

AGREE SPECIFIC OBJECTIVES

AGREE NECESSARY SUPPORT

CLOSE POSITIVELY

RECORD MAIN POINTS, AGREED

ACTIONS AND FOLLOW-UP

PERFORMANCE APPRAISALS PROCESS

49


6.1 Prepare

Prepare all materials, notes agreed tasks and records of

performance, achievements, incidents, reports etc – anything

pertaining to performance and achievements- obviously include

the previous performance appraisal documents and current job

description. A good appraisal form will provide a good natural

order for proceedings, so use one. Whatever you use, ensure you

have the necessary approval from your organization, and

understand how it works. Organize your paperwork to reflect the

order of the appraisal and write down the sequence of items to be

covered. If the appraisal form includes a self- assessment section

and/or feedback section (good ones do) ensure this is passed to

the appraisee suitably in advance of the appraisal with relevant

guidance for completion. A sample performance appraisal

template is available, which you can use as it is or adapt to

create your own form.

6.2 Inform

Inform the appraisee-ensure the appraisee is informed of a

suitable time and place (change it if necessary), and clarify

purpose and type of appraisal –give the appraisee the chance to

assemble data and relevant performance and achievement records

and materials. If the appraisal form does not imply a natural

order for the discussion then provide an agenda of items to be

covered.

6.3 Venue

50


Ensure a suitable venue is planned and available – private and

free from interruptions.

6.4 Layout

Room layout and seating are important elements to prepare also

– don’t simply accept whatever layout happens to exist in a

borrowed or hired room- layout has a huge influence on

atmosphere and mood- irrespective of content, the atmosphere

and mood must be relaxed and informal- remove barriers- don’t

sit in the boss’s chair with the other person positioned humbly

on the other side of the desk, you must create a relaxed situation,

preferably at a meeting table or in easy chairs-sit at an angle to

each other, 90 degree ideally- avoid face to face, its

confrontational.

6.5 Introduction

Relax the appraisee – open with a positive statement, smile, be

warm and friendly – the appraisee may well be terrified; it’s

your responsibility to create a calm and non-threatening

atmosphere. Set the scene-simply explain what will happen –

encourage a discussion and as much input as possible from the

appraisee- tell them it’s their meeting not yours. Confirm the

timings, especially finishing time. If helpful and appropriate

begin with some general discussion about how things have been

going, but avoid getting into specifics, which are covered next

(and you can say so). Ask if there are any additional points to

cover and note them down so as to include them when

appropriate.

6.6 Review and measure

51


Review the activities, tasks, objectives and achievements one by

one, keeping to distinct separate items one by one – avoid going

off on tangents or vague unspecific views. If you have done your

preparation correctly you will have and order to follow. If

something off subject comes up then note it down and say you

will return to it later (and ensure you do). Concentrate on hard

facts and figures, solid evidence – avoid conjecture, anecdotal or

non-specific opinions, especially about the appraisee. Being

objective is one of the greatest challenges for the appraiser – as

with interviewing, resist judging the appraisee in your own

image, according to your own style and approach-facts and

figures are acid test and provide a good neutral basis for the

discussion, free of bias and personal views. For each item agree

a measure of competence or achievement as relevant, and

according to whatever measure or scoring system is built into the

appraisal system. This might be simply a yes or no, or it might

be a percentage or a mark out of ten, or an A, B, C. Reliable

review and measurement requires reliable data-if you don’t have

the reliable data you can’t review and you might as well re-

arrange the appraisal meeting. If a point of dispute arises, you

must get the facts straightened out before making an important

decision or judgment, and if necessary defer to a later date.

6.7 Agree an action plan

An overall plan should be agreed with the appraisee, which

should take account of the job responsibilities, the appraisee’s

career aspirations, the departmental and whole organization’s

priorities, and the reviewed strengths and weakness. The plan

can be staged if necessary with short, medium and long-term

aspects, but importantly it must be agreed and realistic.

52


6.8 Agree specific objectives

These are the specific actions and targets that together form the

action plan. As with any delegated task or agreed objective these

must adhere to the SMARTER rules-specific, measurable,

agreed, realistic, time-bound, enjoyable, recorded. If not, don’t

bother. The objectives can be anything that will benefit the

individual, and that the person is happy to commit to. When

helping people to develop, you are not restricted to job-related

objectives, although typically most objectives will be.

6.9 Agree necessary support

This is the support required for the appraisee to achieve the

objectives, and can include training of various sorts (external

courses and seminars, internal courses coaching, mentoring ,

secondment, shadowing, distance-learning, reading, watching

videos, attending meeting and workshops, workbooks, manuals

and guides; anything relevant and helpful that will help the

person develop towards the standard and agreed task. Be careful

to avoid committing to training expenditure before suitable

approval, permission or availability has been confirmed-if

necessary discuss likely training requirements with the relevant

authority before the appraisal to check. Raising false hopes is

not helpful to the process.

6.10 Close positively

Thank the appraisee for their contribution to the meeting and

their effort through the year, and commit to helping in any way

you can.

6.11 Record main points, agreed actions and follow-up

53


Swiftly follow-up the meeting with all necessary copies and

confirmations, and ensure documents are filed and copied to

relevant departments, (HR, and your own line manager

typically).

54


CHAPTER 7

THE JOINT APPROACH

OPENING AND CREATING A RAPPORT

QUESTIONING

LISTENING SKILLS

KEEPING CONTROL

GETTING PEOPLE TO OPEN UP

OVER COMPLIANCE

DISAGREEMENT, CONFRONTATION, ARGUING

AGREEING ACTION PLAN

55


THE PERFORMANCE APPRAISAL INTERVIEW:

7.1 The Joint Approach:

The appraisal interview should adopt the “joint approach”. The joint

approach is based on the idea that confrontation about shortcomings

in performance and the imposition of solutions to them are not

going to get the commitment required from employees to make

improvements. Managers have to see themselves not as “judge and

jury” but as “enabler” in the appraisal situation. The joint approach

employs a discussion technique, which is designed to avoid

patronizing appraisee or confronting them about their strength and

weakness. It is about developing awareness and gaining agreement

to plans for development or improvement.

7.2 Opening and creating rapport:

The opening phases of an appraisal interview are very important in

determining the atmosphere, which will prevail throughout the

meeting. Making people comfortable is an important opening skill .

This will enable them to enter into an honest and productive

discussion.

The comfortable and preferably familiar room layout is important.

An initial reminder from the manager about the purpose of

performance appraisal and the appraisal inter is important. The first

stages of the appraisal interview should be thought out carefully, so

as to reduce any apprehension, suspicion or nervousness perhaps

felt by both sides. A great deal of the potential for apprehension

about the event can be removed during the preparatory stages. A

few well-chosen words and gestures to get the meeting on its way

are worth some consideration before hand.

7.3 Questioning:

56


Since the main objective of the appraisal interview is to get people

talking and to find out their views on matters, the appraising

manager needs to consider how best to construct questions and

statements to keep the discussion moving and relevant.

Open questions begin with what, who, why, where, how or when are

useful in getting people to talk and open up. However, too much use

of these will make the interviewer sound more like an interrogator.

Therefore, at some stage, closed questions i.e. those question

having answers as “Yes” or “No” are necessary to keep the

conversation relevant. Hypothetical questions, which offer possible

solutions, can be used to test the reactions of the appraisee and the

validity of feedback.

Rebound questions, which simply repeat the last part of the

appraisee’s response, are very useful for those who are less

forthcoming and are also helpful in probing more deeply when

necessary.

The use of silence is something, which is essential. This will help to

overcome the temptation to answer their own questions that can

influence appraisee’s reactions. The proportion of participation

should be 30% from appraiser and 70% from appraisee.

7.4 Listening skills:

Listening to the answers carefully is equally important as asking the

right questions. Maintaining eye contact, nodding, gesturing, and

keeping an open structure are all physical indicators that listening is

taking place. The proof of real listening however is in the

interviewer’s responses in that question should be linked to the

appraisee’s answers. The best test of listening comes when the

manger summarizes. If listening and understanding has taken place

the summary will be an accurate one.

7.5 Keeping control:

57


Dealing with the talkative appraisee may be interesting but inkling

to go off at irrelevant tangents. To control this situation the

interviewer can blatantly interrupt to get the interview back on the

track or perhaps try a summary of the important points so far so that

it is clear that enough has been said. Changing the pace of the

interview by using more closed and specific questions for a while

might be advisable in a case like this one.

7.6 Getting people to open up:

Not getting someone to open up is the less obvious form of losing

interview control. To some degree the interviewee has control here

for often it is he or she who has decided that they will not assist in

achieving a productive outcome. Plenty of open or rebound

questions may help to get the response from less talkative subject.

The use of periods of silence by the appraiser is also worth a try.

However, the real issue here will be why the appraisee does not

want to open up. Is it mistrust of appraisal in general or of the

appraiser. Is it a failure to comprehend the relevance of the

exercise, or the lack of communication skills. It also can be a fear

of confrontation or criticism or it is the desire not to co-operate.

7.7 Over compliance:

Some appraisees approach appraisal with an over complient attitude.

They agree to everything, accept any extra objectives and take on

board any praise or criticisms that are leveled at them. It is possible

that this attitude is taken by the appraisee to be the one that

confirms that he or she is an exemplary employee. In such cases, the

appraiser needs to investigate it and make it clear that the purpose

of the appraisal meeting is to communicate honestly so that

improvements can take place for the benefit of all . Feedback, both

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negative and positive, is required from the appraisee so that this

objective can be reached and this must be emphasized.

7.8 Disagreement, confrontation, arguing:

An occasional disagreement, confrontation and argument is

inevitable in the appraisal. Dealing with heated emotions and

confrontation is a matter of stopping proceedings before they get

out of control. There is no point in carrying on a discussion in

which the parties are unlikely to reach agreement. Steering the

conversation back to an even pitch and trying to salvage a positive

conclusion is vital. Perhaps the matter can be discussed at another

time when both the sides have had time to consider it .

7.9 Agreeing action plans:

The action, which will result from an appraisal interview, will fall

broadly in 3 categories:

1. Training or remedial action in order to bring weaker areas

upto standard.

2. Further training, coaching or planned experience to develop

satisfactory or stronger areas and to broaden experience with

advancement in mind and

3. Targets or objectives to give the appraisee some goals to

work towards in the following months.

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CHAPTER 8

OVERCOMING THE PROBLEMS OF PERFORMANCE

APPRAISAL

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OVERCOMING THE PROBLEMS OF PERFORMANCE

APPRAISAL

o Appraisal is a time consuming exercise if carried out properly,

but should be considered as an investment.

o Manager’s ability to appraise will inevitably vary throughout the

organization. This emphasizes the needs for thorough training and

monitoring.

o Resistance to form filing may be encountered and any “paper

work” must be user friendly.

o The greatest resistance is often to the use of job description.

These are desirable to keep appraisal on an objective footing.

Where it is deemed inappropriate to use them, the burden of

maintaining objectivity is heavier.

o Often, negative attitude within the organization, run deep and are

difficult to overcome. It is important that something is seen to

happened as a result to appraisal, as soon as possible.

o Certain problems of structure may create difficulties in carrying

out appraisal :

Teams that are geographically disparate;

Teams that are too big ;

Individual who work for more than 1 boss or who move

from project to project;

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Certain production jobs may be seen as too basic to

warrant appraisal;

Opportunities for development and promotion are

sometimes very limited.

o A lack of commitment on the part of appraisers should be

addressed by stressing benefits and ensuring that managers are

consulted as to how their responsibilities for staff development

can be carried out.

Most problems in implementing performance appraisal are

surmountable, providing that they are understood and addressed

appropriately.

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CHAPTER 9

TYPICAL RATING ERRORS

FIRST IMPRESSIONS

STEREO TYPING

HALO EFFECT

HORN EFFECT

CENTRAL TENDENCY

COOKIE CUTTER EFFECT

FOLLOW UP AND FEEDBACK

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SOME TYPICAL RATING ERRORS:

9.1 First impressions

Raters may identify some specific qualities or features of the

appraisee and quickly form an impression about him or her.

9.2 Stereo typing

It is a standard mental picture that an individual holds about a

person. It can be of that person’s sex, caste, age, physical

characteristics or features. Stereo typing results in over simplified

view of the individual and may blur the rater’s perception and

assessment of the person’s performance on the job.

9.3 Halo effect

Basing the entire appraisal on the basis of own perceived positive

quality feature or trail in the individual. Affiliation with views may

result in a higher rating than it should be.

9.3 Horn effect

Basing the entire appraisal on the basis of own negative quality or

feature of an individual. These results in an overall low rating than

what it should be.

9.4 Central tendency

Most of the appraisal forms require the rater to justify if the

assessment is outstanding or poor. Therefore, some of the raters

may think of rating the most of the appraisees as “average

performers” to avoid giving any justification or clarification.

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9.5 Cookie cutter effect

Not focusing on individual specific performance and rating all the

employees or groups of the employees the same.

9.6 Follow-up and Feedback:

Following up action plans agreed at appraisal assists in keeping

the processes a continuous one. Follow-up is important to

maintain the credibility of the appraisal scheme, the

management of the organization and the individuals who

carry out the appraisals.

The responsibility for individual follow-up rests firmly with

managers, who should incorporate their efforts to maintain the

momentum of appraisal into their normal priorities.

Individuals must be given recognition and feedback about their

progress in carrying out the action plans.

Potential failure should be picked up and dealt with before it

causes serious demotivation.

Senior managers should review the departments and managers.

They are responsible for picking up and act on trends, and to

consider the abilities of their managers as appraisers.

Feedback about the appraisal scheme also should be co-ordinated

from all levels, so that it can be considered in the light of

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making any necessary changes to keep the scheme as effective

as possible.

The test of the effectiveness should be whether or not the

appraisal has met its stated objectives, if it is not so, then

concerns must be competently addressed to ensure the continued

validity of performance appraisal in the organization.

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CHAPTER 10

INDUSTRY PROFILE

BPO SECTOR

BPO SECTOR IN INDIA

CALL CENTERS

CALL CENTER IN INDIA

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INDUSTRY PROFILE

10.1 BUSINESS PROCESS OUTSOURCING (BPO):

In today’s era the world has become a global market with

concentrated competition. Organizations have recognized that they

have to focus on their core competencies with respect to the

limitations that they have. They need to expertise comprehensively

on the core competencies and outsource the non-core activities to

other organizations that have expertise in these non-core activities

by using Business Outsourcing Services. Because of the need to

expertise in core competency, Business Outsourcing Services have

become the most sort-after business practice in the world market.

Such Business Outsourcing Services leads to the formulation of the

business or strategic partnerships. Business Outsourcing Services

have become indispensable for every business enterprise today.

Outsourcing in broad terms is a transfer of some business functions

or components of business processes to an outside contractor. To

remain competitive, many companies outsource as a way to reduce

costs, increase efficiency, and refocus critical resources. For

example, many organizations have their own IT departments

catering to their software and other IT enabled services needs; while

others go for IT outsourcing. According to one estimate from IDC,

total global outsourcing services spending are expected to reach US

$ 200 billion by 2004.

Business Process Outsourcing (BPO) can be defined as the transfer

of an organization’s entire non-core but critical business

process/function to an external vendor who uses an IT based service

delivery. This vendor usually has expert skills in concerned

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activities, and the activity is regulated by a legal contract. These

vendors administer and manage the selected process based on

defined and measurable performance criteria. BPO helps an

organization concentrate on its core competencies, improve

efficiency, reduce cost and improve shareholders value.

Broadly speaking, BPO can be associated to various business

sectors. Basically these are divided into Manufacturing and

Services, where the IT sector is just a part of the service sector.

There are different facets of Business Process Outsourcing Services.

These can be typecast into professional services, project

management, outsourcing development units with proficient

resources, and a joint venture with an offshore trader or an owned

subsidiary for offshore outsourcing services. Offshore outsourcing

services have become the best and the most popular practice

because of its lucrative advantages. The beneficiaries are not only

the clients but the service provider’s benefit a lot as well using

Business Process Outsourcing Services.

The main advantages of outsourcing include:

Allows a business to focus on core activities.

Streamlines the business operations.

Gives access to professional capabilities.

Shares the risk.

Peace of mind that the process is in good hands (reliability).

No worries of continually introducing new technologies.

Improves service quality.

Freeze up human resources.

Freeze up cash flow.

Increases the control of business.

Makes the business more flexible to change (i.e. demand).

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While the disadvantages include:

The fear of the service provider ceasing to trade (bankruptcy,

etc.).

Loss over control of the process.

Creation of potential redundancies.

Other companies might also be using the same service

provider. Therefore in some cases, the best interests of the

service provider may be diluted with other users.

Loss of focus of the customer and concentration on the

product (the outsourced process).

The loss of talent generated internally.

Employees may react badly to outsourcing and consequently

their quality of work may suffer.

Despite all this, companies are still outsourcing their non-core

functions, mainly to cash in on the cost saving and better quality

advantages.

10.2 BPO IN INDIA

With all the news about outsourcing in India, it becomes worth

mentioning, the benefits that the country has reaped due to the

various functions which have been outsourced to the country. India

has been one of the favored countries as far as BPO is concerned.

The others include China, Canada etc. BPO in India is getting

popular day by day. BPO in India has been growing 70% a year and

is now worth $1.6 billion, employing 100,000 people. And as

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McKinsey analysts put it , BPOs in India have to grow only 27% till

2008 to deliver $17 billion in revenues and employment of a million

people. Customers across verticals like Insurance, Banking,

Pharmaceuticals, Telecom, Automotive and Airlines seem to be the

early adopters of BPO in India. Now the latest organization joining

them is IBM, which has been making headlines all over the world.

Why is it that majority of the companies in the USA and UK and

other countries are opting for India? The main reasons include:

Highly qualified skill pool giving superior competency.

The human talent of the country is available at extremely

low rates.

Robust communication infrastructure.

A large English speaking workforce.

Appropriate time-zone difference with the west.

The brand equity built by the software services sector.

Improvement in international bandwidth of India’s first

private undersea cable.

Power availability which has improved mainly in the BPO

centered areas like Mumbai, Bangalore, Chennai, Delhi etc.

Drop in telecom rates by a good 85% in the last 3 years,

which is further going to reduce.

Faster adoption of well- defined business processes leads

to higher productivity gains without compromising on

quality.

Highly qualified skill pool giving superior competency.

Business risk mitigation.

Economy of scale.

Factor cost advantage.

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Of the many services that these BPOs provide, some are:

IT-services.

Software development.

Back-office operations.

Call centers; and

Other IT enabled services.

10.3 CALL CENTERS:

Call center is one of the services that a BPO can provide to its

clients. A call center can be described as a functional area within an

organization or an outsourced, separate facility that exists solely to

answer inbound or place outbound telephone calls. Usually this

refers to a sophisticated voice operations center that provides a full

range of high-volume inbound or outbound call-handling services,

including customer support, operator services, directory assistance,

multilingual customer support, credit services, card services,

inbound and outbound telemarketing, interactive voice response and

web-based services.

How do these work? The process is very simple. Organizations have

to identify their non-core functions and then find a vendor who will

be willing to provide these services to it , at affordable rates.

Organizations looking for Call Center Outsource services can

outsource their IVR and voice broadcasting projects at their

affordable Call Center Outsource services. These Call Center

usually provide many services to their clients. Some of these are:

Outbound Call Center Campaigns.

Inbound Call Center IVR programs.

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Voice Broadcasting projects.

Campaign Development and Design.

Implementation.

Hosting.

Custom Reporting.

Text-To-Speech Conversion.

IVR Software and Database Integration.

Professional Voice Recordings.

Quality Transcription Services.

Maintenance.

Inbound and Outbound tele-sales and tele-marketing.

Customer servicing and many others.

10.4 CALL CENTERS IN INDIA:

Having a Call Center in India is the norm for several global

companies today. In order to meet the growing international demand

for cost-effective, customer-oriented call centers, many

organizations worldwide are outsourcing these services by setting

up call centers in India. The country has been the preferred location

due to the following intrinsic strengths which make it a major

success as an outsource destination for call center work:

A booming IT industry, with IT strength recognized all over

the world.

The largest English-speaking population after the USA.

A vast workforce of educated, English-speaking, tech savvy

personnel: A boon in a high growth industry faced with a

shortage of skilled workers.

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Cost-effective manpower: In a call center operation,

manpower typically accounts for 55%o 60% of the total cost.

In India, manpower is available at a fraction of the cost

overseas. However, some people get deterred by the fact that

cost savings are not seen immediately. Initial investment in

infrastructure and training can be expensive and make one

believe that the promise of cost reduction is false. However,

there will be savings and the fact that several global giants

continue to set up call centers in India is proof of this.

The Government of India has recognized the potential of IT-

enabled services and has taken positive steps by providing

numerous incentives.

The presence of most international technology vendors and

solutions has enabled creation of most advanced set-ups in

this technology- intensive segment.

India’s call center industry accounts for a quarter of all software

and services exports from the country, according to industry

association Nasscom, and Indian call centers employ 1,74,000

professionals. Daimler-Chrysler, British Telecom, Barclays bank,

HSBC, Honeywell, Aventis, and several others have come to

India while the old timers of GE, British Airways, Citigroup,

Amex, and others have been around for a decade. The latest in

this list is the IBM Corporation, which has joined the bandwagon

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despite the backslash for the call centers from the US

Government.

These services that these companies usually avail from the

Indian call centers include:

The service Helpdesk services and remote troubleshooting of

IT-related queries from clients in the US.

Transaction processing.

Accounting services.

Remote Network Management.

Service Bureau and Entrepreneur systems.

End-to-end processing services with linkage to the parent

company. The entire processing would be carried out in the

facility in India, with a cost quality and service advantage to

the parent organization.

And many others.

Hence, considering the growth and employment prospects that this

industry provides, it becomes one of the major contributors to the

national growth. It has been estimated that this industry alone

would provide employment to 7-10 million people by the end of

2010, which has been the major reason of selecting this industry.

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SPANCO

In 1995, Spanco went into business through the manufacture and

supply of EPABX and analogue radio products, but has since

evolved into a comprehensive networking and system integration

company. In doing so, Spanco today caters to the critical

networking needs of Indian utilities, carriers and its prestigious

Defense sector.

What is Spanco's compelling proposition for its customers?

Strong management focus making this the core business unit of the company

Turnkey expertise , resulting in the capability of the company to

deliver products and services for end-to end system integration

solutions.

Deep cutting-edge technology insight , making Spanco a

solution provider with latest and state of art technology abreast

with the industry.

Project management capability , thanks to an integrated 4P

approach: people, process, platform and partnership, which mean

that Spanco is capable of delivering the projects with speed and

competence.

Continued presence , which highlights Spanco's strong project

implementation supported by sustained post sale service.

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A presence among the top 10 system integrators in the

country , which means Spanco, enjoys high visibility in the

market place as a systems Integrator of repute.

Structured market penetration translating into a diversified

and brand-enhancing customer base , which means that Spanco

possesses a confidence-enhancing referral base for prospective

customers .

Strong Focus on People Development, giving rise to a technically

competent human resources with a high degree of commitment and

motivation.

VISION

To attain a position of leadership in providing technically

competent solutions, leading to enhanced business competence for

clients, through a team of competent and motivated human resource

for overall profitability and satisfied shareholders

VALUES

Honesty, Integrity, Excellence, Trust

Honesty - With their partners, customers and employees

Integrity - Following the highest ethical standards

Following all legal compliances

Excellence - Doing each job right and continuously improving how

they work

Developing the right

Pursuing and leveraging new technologies

Trust - Meeting their commitments to the customers

Reliability in the performance and business practices

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RESPONDEZ

Respondez is the global contact center and Business Process

Outsourcing (BPO) brand of the corporate group Spanco

Telesystems and Solutions Ltd. A world-class outsourcing

solutions company, they are headquartered in Mumbai, with

locations across India, United States, United Kingdom and New

Zealand. The organization is publicly-traded on the stock

exchange in Mumbai,(BSE Symbol: Spanco)

The services offered are primarily Voice-based Inbound and

Outbound services along with Non-Voice BPO and KPO services.

Respondez's highly qualified and trained professionals are based

in the process transition and client servicing offices in the US,

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UK, and New Zealand, with two offshore delivery centers located

in Mumbai, India.

Their ethos is to work as a Business Partner, to seed, nurture and

develop a long term association rather than working purely as a

service delivery vendor.

The Financial Security and stability of a profitable publicly-

traded company that has shown consistent growth.

Senior personnel who have a range of experience acquired in

different country settings and a deep cultural understanding.

Significant Experience and proven track record of managing

customer-centric activities across verticals.

Robust Infrastructure and state-of-the-art Technology

Environment Strong Process Driven Environment to ensure

On-time, Accurate and Consistent Delivery.

Highest quality telecom-related processes and adherence to

international standards for contact center processes.

Customer-centric continuous improvement philosophy of

Six-Sigma for effectively and efficiently meeting and

exceeding customers' requirements consistently.

Recruiting, training, motivating and retaining the best talent

across functional areas. Their approach is to invest in

people. High Flexibility to accommodate changes and

fluctuations in business requirements

Several first-time customers of Respondez are now repeat clients

due to their processes that deliver quality on time and within cost.

This expertise is part of Respondez's service backbone. A typical

process flow after the Contractual sign-off:

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Quality Assurance and Compliance for Sustained Operational

Excellence

The mission of the Quality Assurance (QA) team is to enhance and

extend current quality practices to client process. The QA team

accomplishes the highest service delivery standards by:

Effectively Maintaining the Quality Management System

Benchmarking for Continuous Improvement

Ongoing Training and Development

Quality calibration sessions are held to evaluate

performance against SLA ( Service Level Accuracy)

Regulatory Compliance is ensured as applicable

Their clients can monitor agents on a real time basis, and closely

track the interaction experience being delivered to their

customers. The methodologies used for monitoring are:

Call Recording

Monitoring through live barge-ins

Capture the "Voice of the Customer"

People represent the key growth drivers in the business.

To enhance customer value, Respondez's Human Potential

Management team harnesses member competencies with its

'CARE' approach:

C = Career planning

A = Ample opportunities

R = Rapid growth and development

E = Employee centric

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Respondez motivates its people via:

Outstanding work environment blending formal and informal

components

Excellent growth opportunities for horizontal and vertical

development

Family-feeling between members

Ongoing appraisal and attractive reward and recognition

programs

Grievance cell

Job rotation and leadership development at all levels

Valuable employee benefits

Key Employee Ratios

Team leader: agent 1:12

Shift-in-charge: team leader 1:5

Shift-in-charge: agent 1:60

Service delivery leader: agent 1:120

Trainer: agent 1:60

QA monitor: agent 1:20

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Training

Respondez's consistent quality derives from proactive training that

spans knowledge, attitude and these skills:

Cultural

Conversational

Selling & Marketing

Listening

Telephone etiquette

Process training

Accent neutralization

North America and UK orientation training

Product training

Objection handling

Time management

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SPARSH

The Company - Sparsh is the Domestic Subsidiary Intelenet Global Services (P) Ltd.

Sparsh is dedicated towards adding value and substance to its client

business through offering superlative and completely customized

services. It provide state of the art solutions to Vertical Industries

to meet their voice and BPO needs, operating 4500 seats on 24 x 7

basis, scalable upto 20,000 seats by 2009.

With a dedicated and strong work force of 3500 employees, Spanco

provides qualitative solutions in the areas of telecom and call center

services.

Motivated professionals who aim to achieve excellence through

dedicated teamwork attend to every contact with zeal. They take

pride in their ability to deliver efficient services at affordable price.

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Sparsh is the domestic subsidiary of Intelenet Global Services (P)

Ltd.

The services are individually designed and customized for each

client organization. With the right combination of people,

processes, knowledge sharing and technology they provide cutting

edge outsourcing solutions, thereby ensuring significant cost

savings in the long term.

The Transaction processing solution ensures that our client 's

manpower is free to contribute towards their core business. Sparsh

has the capability to streamline and enhance mission-critical

operations and has customized solutions for different industry

verticals

With the Web enabled service, they can help to improve customer

service satisfaction and increase online sales. It offer full sales and

customer support utilizing online chat, email, and telephone web

integration tailored to any company's needs.

Sparsh can integrate your Internet communications into its 24-hour

call center to provide, among other things, online customer service

and ordering assistance using voice or text communications. This

service is designed to give the online customers the immediate

attention they want, and to reward you with increased website.

The services can provide any company with a consistent means of

handling the customer and prospect web requests. Whether they are

visiting your site to request information for technical support, or to

place an order, Sparsh can design a program that will make a visit

to your website a positive experience for everyone.

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Just a few of the Back Office services Sparsh provide for any company are:

Information requests

Technical support

Product orders

Refund requests

Return merchandise

On-line help desk

Web Call Back

SMS Collaboration

Sparsh’s strengths:

Strategic Locations

Specialization spread over a Decade

In-house Technology Support

Unmatched Quality Standards

Multi Language Support

Various ways of Communication like E-mail/ Fax/ On-line Chat

help besides ‘VOICE’

A well trained and focused work force

State-of-the-art infrastructure facility on a large scale

ISO and KPMG Certified

A well balanced management team

Centralized services offering call routing

Organizational focus on thorough customer satisfaction

Extremely competitive pricing

Optimum service levels and Customized Solutions

Lowest Attrition rate

High Database security

Only Domestic Call Centre providing transport facility to

Customer Service Agents

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INBOUND CALL MANAGEMENT

Sparsh focus on building a relationship that lasts by using a

personalized approach that provides the value addition necessary to

maintain and grow your client base. All incoming calls are received

and addressed with an appropriate project greeting. Using the

Automatic Call Distribution (ACD), the call is then transferred to

the Customer Service Associate. Optimum usage of technology

enables them to monitor every stage of interaction between the

Customer Service .

Their CSRs' receive in-depth training in the customer’s products,

services, culture and business objectives they take that knowledge

and translate it into a first-class frontline customer representation.

This service is enhanced by our CRM (Customer Relationship

Management) application.

Inbound callers typically call toll-free numbers to request product

or service information; place orders for advertised products or

obtain assistance with a previous order or purchase. They can

provide toll-free numbers for their clients or use previously

established numbers.

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Sparsh provides inbound call center services for both the Business

to Business and Business to Consumer markets which are provided

24 hours a day, 7 days a week, 365 days a year, completely

uninterrupted. Partial list of the services offered are as follows: -

Customer care

Order processing and fulfillment through satisfactory services

Pre Sales Help Line

Supporting Mail Order Business

Surveys

Technical Support

Post Sales Service

Contests & Promotions

OUTBOUND CALL MANAGEMENT

Sparsh combines the capability and expertise in order to provide

you with the right solution, taking into consideration the industry,

proposition, timing and target market. Sparsh engages in the full

process of project planning and set up, ensuring a full

understanding of your requirement giving you the full benefit of

their many years of experience within the call center industry.

Do you need to increase your customer base? Would you like to

increase your sales?

Sparsh can help you achieve your goals. It provides both Business-

to-Consumer and Business-to-Business outbound tele-services.

These services include lead generation through customer awareness,

lead qualification, customer account management, outbound

customer service and survey programs. Sparsh have a much focused

list of service offerings primarily specializing in outbound

solutions, including:

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Lead Generation / Qualification / Management / Conversion

Events & Seminar Population Management

Product / Service Promotion

Tele Research

Debt Collection

Up-Selling & Cross-Selling Campaigns

Customer Satisfaction Surveys

Customer Loyalty Programs

Database Cleaning & Validation

Invitational, Welcome & Thank You Calling

Market Research

Internet Response Follow-up / Confirmation

SMS Confirmatory Calls

Third Party Verification

Contests & Affinity Programs

INDUSTRY SEGMENT SPANCO TELESYSTEMS PVT

LTD CATERS:

Insurance

Banking

Telecom

Travel and Tourism

Retail

Food and Beverages

Consumer Durables

Healthcare

MEDIA/ Satellite Channel

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APPRAISAL AT SPANCO TELESYSTEM PVT LTD.

Spanco has 2 divisions of its company.

Domestic call center known as Spanco Sparsh and

International call center known as Respondez. It mainly

caters to the customer in UK and USA.

Activity carried out is of sales, customer service, technical

process, and 3 r d party collection.

The organizational structure is vertical hierarchy with informal

work conditions.

Project Leader

Team Leader

Senior Trainer

Trainer

Senior Service Customer Agent

Customer Service Agent

The various divisions in HR department are attendance,

recruitment. Training and development, remuneration and

compensation. It also has a separate HR Accounts department

to look after the remuneration, compensation and tax aspects.

The attendance is marked after swiping of the ID card

whenever you enter and exit. If there is more than 4 absentees

then there is a reduction in the incentives and salary of Rs.250.

The appraisal is held every six months.

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The appraisers are the head of the HR department and the

persons who are well-versed with the technicality of the job.

The main purpose of the appraisal programme is to motivate

people to work and to attain better results. Also it is done to

increase the work efficiency. It is also done to know whether

the candidate who is working is suitable for the work or he

needs to be replaced by some one more efficient.

The pre-appraisal forms are not provided to the employees but

are informed about the appraisal nearly 4 months in advance so

that they can improve on the aspects in which they are lacking

behind.

There are certain parameters on which the performance is

measured, few are listed below:

Attendance

Service level

Key parameters tracked and benchmarked against Service Level

Agreements are :( inbound)

Conversion Ratio (for Inbound Sales)

Average Speed of Answer

Average Handling Time (includes Talk time and Wrap-up

time)

Abandon Rate

Key parameters tracked and benchmarked against Service Level

Agreements are: (outbound)

Sales Per Hour

Contacts Per Hour

Conversions

List Penetration

Talk Time

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There are separate appraisal processes for employees at

different level as their work is different and requires qualified

person for the appraisal process.

The performance interviews are held in special rooms. The

candidate is called on a specific day. He is informed about the

evaluation that has been made. Several questions based on his

performance are asked, the candidate is made to open up and

give his view about the appraisal process and he is marked

according to the performance during the interview. The

appraisers are trained so that they would do a good job of

appraising a right candidate. They are provided with the

correct data with all the relevant information regarding the

candidate and his work then by observing his performance

record the appraisers is asked to evaluate or rate the appraisee.

The standard performance level is 85% of successful calls

resolved i.e. more than 85% of the problems must be solved

and the caller must be satisfied with the solution provided by

the employee.

The appraisees are evaluated strictly on their performance and

the quality service they provide to the customers. The main

crux of call centers is to provide quality service at minimum

cost and in minimum time.

Problem faced by the company during appraisal is that there is

a chance of biased appraisal which is against the principles of

appraisal. It might be due to personal contact of the appraisee

with the appraiser, the halo effect, the horn effect; some

candidate may find it difficult to open up, all these results in

problems for the appraiser and the company to carry out the

performance appraisal process.

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By performance appraisal there is a chance of higher pay which

is the biggest motivator in the call center industry. There is

high possibility that the employees would be more interested

and keen to perform better once they get good rating in the

appraisal process and there is a hike in their remuneration.

After the appraisal process is fully done with it becomes clear

where the appraisee is lacking behind and that area is

considered for his training. Similarly, each employee’s training

needs are assessed and a training and development program is

arranged.

The raters in Spanco limited are the project leaders and the

team leaders also the employees are rated by their own

colleague as they would know much in detail about the

appraisee’s work.

The follow up procedure is carried out in such a way that it

does not interrupt the ongoing process. The records are kept

with the HR department and the concerned person keeps a track

on the appraisee performance after the appraisal process and

marks it down if there is any change in the working pattern.

The appraisal process in Spanco is both individual and group

appraisal.

Also the appraisal process is open and is strictly based on the

performance of the individual to avoid any grievance on the

part of the appraisee and fellow employees.

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ANNEXURE I

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PROPOSED IDEAL FORM OF PERFORMANCE APPRAISAL

FOR CALL CENTER

Based on the interaction with industry experts and information

gathered from primary sources the appraisal form has been

designed. The main criteria, on which performance would be

assessed, include:

Actual sales made, in numbers. The records should be

daily, weekly and monthly.

Effective time taken to service customer complaints.

Effectiveness and efficiency in handling customer

grievances.

Leadership skills.

Team working abilities.

Cheerfulness while at work.

General behavior towards colleagues, subordinates and

superiors.

Adherence to the rules and codes of the company.

Based on these basic criteria, the performance appraisal form has

been designed. It has been attached as annexure.

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QUESTIONAIRE:

1. Corporate profile of the company?

2. How is the organizational structure?

3. How is the structure of personnel and HR department?

4. How frequently do appraisals take place?

5. Are the appraiser trained for doing the appraisals?

6. What are the main purposes of these appraisals?

7. Is pre-appraisal form given to the employees?

8. On what criteria is the performance measured?

9. Are there separate appraisal processes for employees at various levels?

10. How is the performance appraisal interview held? How do the appraisers prepare for the appraisal interviews?

11. What are the standard performance levels & key performance areas?

12. How are the appraisees evaluated?

13. What are the problems faced?

14. How are the employees motivated to perform better?

15. How is the need for training assessed?

16. Who are the raters in case of CRE appraisals?

17. How do you follow up?

18. A copy of the performance appraisal form.

19. Is it done individually or it is group appraisal?

20. How does the performance management system work in your organization?

95


21. Is it open or secret?

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ANNEXURE II

97


IDEAL PERFORMANCE APPRAISAL FORM FOR CALL CENTER:

Employee

Name:______________________________________________

_

Job

Function:___________________________________________

Review

Date:

________________________________________________

Quality of work

Work is performed neatly

and is accurate. Work is

consistent, thorough and

complete.

observations

Outstanding.

Exceeds expectations.

Meets expectations.

Improvement needed.

Unacceptable.

Not applicable.

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Quality of work

Amount of work

performance on a daily

basis as necessary for the

job function.

observations

Outstanding.


Meets expectations.

Improvement needed.

Unacceptable.

Not applicable.

Job knowledge

Understands the job

requirement & has specific

content knowledge where

appropriate.

observations

Outstanding.


Meets expectations.

Improvement needed.

Unacceptable.

Not applicable.

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1. Performance: Exceptional= Work & attitude far exceed

standards.

2. Performance: Satisfactory= Work & attitude meet a certain

set of standards.

3. Performance: Needs improvement= Work & attitude are

below standards.

The job duties have to be taken from the job description of the

position, and then rated as per the scale given above. Space is

provided for comments.

1. Job

1:_______________________________________________

2. Job

2:________________________________________________

3. Job

3:________________________________________________

4. Job

4:________________________________________________

5. Job

5:________________________________________________

6. Job

6:________________________________________________

7. Job

7:________________________________________________

100

Documents

Performance Apprisal