CALL CENTRE INDUSTRY IN PAKISTAN

ARIF HUSSAIN
SP11-MBA-067

SUPERVISED BY
DR.UMARA NOREEN

SPRING 2014

A PROJECT SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS

OF
MASTERS IN BUSINESS ADMINISTRATION
AT
DEPARTMENT OF MANAGEMENT SCIENCES,
COMSATS INSTITUTE OF INFORMATIONS TECHNOLOGY (ISLAMABAD)

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ACKNOWLEDGEMENT

First of all we are thankful to Almighty ALLAH for giving us much cooperation and
supporting parents who have given us this opportunity to study in COMSATS. I
would like to thanks to my superevisor DR.UMARA NOREEN for giving us the
confidence and opportunity to prove ourselves. Her direction and bearing helped me
in all the time of investigation and composing of this venture.

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TABLE OF CONTENT
ABSTRACT............................................................................................................. 6

CHAPTER 1..........................................................................................7
1.1 INTRODUCTION................................................................................................8
1.2 THE RESOURCE GROUP (TRG)......................................................................9
1.3 PURPOSE OF RESEARCH AND BACKGROUND..........................................10
1.4 OBJECTIVE......................................................................................................12
1.5 RESEARCH QUESTIONS................................................................................12

CHAPTER 2..................................................................................14
2.1 LITERATURE REVIEW....................................................................................15
2.2 HUMAN RESOURCES MANAGEMENT..........................................................15
2.3 HUMAN RESOURCE MANAGEMENT AND SERVICE INDUSTRY...............16
2.4 PERFORMANCE MANAGEMENT...................................................................17
2.5 PERFORMANCE V/S MOTIVATION...............................................................18
2.6 OBJECTIVE OF PERFORMANCE MANAGEMENT........................................19
2.7 THE PERFORMANCE MANAGEMENT CYCLE..............................................20
2.8 PERFORMANCE AGREEMENT.......................................................................21
2.9 PERSONAL DEVELOPMENT PLAN (PDP).....................................................21
2.10 PERFORMANCE (MONITORING)..................................................................22
2.11 PERFORMANCE REVIEW..............................................................................22

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CHAPTER 3..................................................................................24
3.1 UNDERPINNING THEORIES...........................................................................25
3.2 GOAL THEORY ..............................................................................................25
3.3 GOAL SETTING THEORY FROM EMPLOYEE PROSPECTIVE....................25
.

3.4 MANAGEMENT BY OBJECTIVE (MBO)........................................................26

3.5 CONTROL THEORY ......................................................................................28
3.6 SOCIAL COGNITIVE THEORY.......................................................................30
3.7 PURPOSE OF THEORY..................................................................................31

CHAPTER 4..................................................................................34
4.1 RESEARCH METHODOLOGY........................................................................35
4.2 RESEARCH METHODS..................................................................................36
4.3 TRADITIONAL METHOD................................................................................36
4.4 ACTION RESEARCH .....................................................................................36
4.5 DATA COLLECTION METHODS....................................................................36
4.6 QUESTIONNAIRE SCRIPT.............................................................................37
4.7 DATA COLLECTORS.....................................................................................40
4.8 PROCEDURE..................................................................................................40
4.9 MEASURMENT INSTRUMENT......................................................................40
4.10 ANALYTICAL METHODS.............................................................................40
4.11 LIMITATIONS AND DEFICIENCIES OF RESEARCH METHODOLOGY.....41
4.12 DATA ANALYSIS..........................................................................................41
4.13 RESEARCH FINDINGS (VIA QUESSTIONNAIRES)...................................42

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CHAPTER 5...................................................................................47
5.1 ANALYSIS OF COLLECTED DATA...............................................................48
5.2 CONCLUSION.................................................................................................54
5.3 RECOMMENDATION.......................................................................................54
5.4 REFERENCES.................................................................................................55

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ABSTRACT
This study concerning the call centre businesses in pakistan.With the IT boom where
technology is taking element in every characteristic of human life, management are
also found a approach to outsource their business processes to other companies. In
result a new business model established to provide outsourcing services to the
organisations which are intended to outsource part of their business. Despite of this
development BPO companies especially call centre businesses are suffering with
high employee turnover problem while this industry is completely based on providing
solutions to third parties and other businesses. In order to deliver recommended
quality of customer service call centre management investing huge amount of
resources to maximise the outcomes and performance of their employees. The case
of TRG investigated in this research where identified that employees are not fulfilling
the expectations of company. At the same time mostly employees are not intended
to work for longer period of time for TRG and joined company only for social or
financial needs. While TRG management intended to retain its experienced talent
but failed due to inappropriate approaches. This research also investigated the
differences of employees and employer expectation along with the suggested ways
to overcome those differences. Result of this theory suggested some theories and
tools to TRG management.

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CHAPTER 1

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1.1 INTRODUCTION
In recent years, the call centre industry has witnessed a very huge amount of
increase in the amount of the revenue they generate, and the number of employees.
The key reason to this is the major expansions in the telecommunications sector and
the internet. With the increment in the usage of mobile devices, and the cost to make
calls heavily decreased, this allows for a person to make business more timed and
relevant information passed to customers over a call rather than in person. Because
the time and effort required for a personal one on one meeting is far greater than just
placing a direct call. And so rose group that specialized in handling customer calls
and demands. And came to be called Call Centre Agents.
Now being one of the fastest rising industries all over the world, but also holds the
title of being the most stressful industries as well. This job is very stressful, repetitive
and dull. Chow (2005). Talking about this it is also worth mentioning that these call
centers are also located in different countries and often in different time zones. This
all adds to the difficulties faced in this industry.
Individuals have to be self-motivated with high tolerance levels for stress and
undesirable arrogance of the customers. This profession requires people to be able
to adapt swiftly to the given circumstances. They should be able to attend to
customers in an focused manner and solve their problems proficiently and in a wellmannered behavior.
In accordance with the I.C.M.I (Incoming Call Management Institute) in 2008 the
statistics demand for the call centers are growing rapidly and there is a lack of
capable call center agents due to above said reasons. It was assessed that in 2009,
India alone had 20% shortage of trained labor in call centers. In the meantime there
were almost 5 million call center agents around the globe. With over 1 million call
centers around the world in 2008.
Asian counties in particular were the first to take benefit of this developing industry.
Due to the availability of cheap employment. Today where economic conditions of
the world, the developed nations are not noteworthy, and many businesses are
struggling to maintain their effectiveness. Asian countries especially India is still
financing in its IT sector. According to the economic report by Gartner in (2011),
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Indias revenue from outsourcing and IT consulting businesses is estimated to rise

by 9.1% in 2012 i.e. 79.8 billion US dollars. As compared to 73.1 billion US dollars in
2011. On the other hand more people willing to work for BPO industry in urban areas
due high joblessness and greater salaries as compared to commonplace
occupations and ensure healthier chances of development and job progression.
In Pakistan, the call centre industry is comparatively new in comparison to other
Asian countries. The development of call centres is holding up in Pakistan as well.
According to approximations there are almost 40,000 call centres in Pakistan. Most
of these call centres are small scaled local procedures with purpose of marketing for
different cellular corporations in USA, Canada and U.K. These small scale call
centres depend on more upon the skill of the agent than to make sales. Also that
there is no formal pay structure for employees and working environment is not
satisfying either. Only a rare huge corporations exist which have reputable
international standard call centres and provide appropriate training to the new
workers. They also have proper salary packages and offer performance based
reassurances.
For the purpose of this research TRG was chosen because of the gauge of its
operation and work force. In the following section thorough introduction of TRG is
given.

1.2 THE RESOURCE GROUP LIMITED (TRG)

The resource group limited was founded and incorporated in Pakistan in 2002. The
resource group limited as a public limited company. The resource group limited is
primarily to provide off-shore services to US based clients by taking advantage of the
labour arbitrage in Pakistan.The Resource Group limited company sole mission
back then was to be the premier investor in companies that stand benefit from
enhanced profitability through the off-shore repositioning of their staff. In November
2002 for the aforementioned purpose, The Resource Group International
Limited,subsidiary is a wholly owned in Bermuda was acquired by The Resource
Group Pakistan Limited, which is engaged in the acquisition and investment of call
centre companies and enhanced their margins by pairing up with low cost offshore
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service delivery centres located in Asia and Africa.The Resource Group limited
changed his strategy in 2005 and it was reflected in the new vision statement which
is aspired to be the global leader in providing Business Process Outsourcing(BPO)
services and its mission was to grow through investment of other BPO companies.
The Resource Groups limited mission also included theorganic growth in addition
to growing through acquisitions or investment. Through The Resource Group
International Limited, the imporatant activity of The Resource Group limited in
pakistan is to acquire and maintain the business of telephone answering services,
call centres and other Business Process Outsourcing companies in North America,
Europe and Africa. The differents strategies are adopted to improve the profitability
and cash flows by a combination of cost rationalization, offshore migration of labour
and operational efficiencies. The Resource Groups strategy at inception was to
enter the industry and use Pakistans competitive advantage in the form of cheaper
labour to establish economies of scale. The Resource Groups limited after 9/11 The
Resource Groups limited core strategy was to acquire the US business service
companies with a large client base and relocate their operations to Pakistan at a
50% lower cost.
This study based on five chapters with detailed investigation by management
practices at The Resource Groups and appropriate practices adopted by other call
centres to overcome this situation. The first Chapter is based on the introduction and
the second one based on the literature review and next one explain the appropriate
theories and techniques on performance management. The fourth Chapter is explain
the research methodology (in general) and also cover the adopter methods for
conducting research. And the Last one chapter,means chapter number 4 will base
and the findings,interpretation and identified literature. And also cover this chapter
includes recommendation.

1.3 THE PURPOSE OF RESEARCH AND BACKGROUND

Developed countries to developing countries such as india and pakistan the
outsourcing of call centres is increasingly becoming a dominant trend. Because is
simply the cost. In this industry this had led to growth spurt in new job opportunities
in this industry. The Resource Group limited company is the largest company in

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pakistan and also listed in KSE 100 index which is leading stock exchange of the
country.
The basic reasons for selecting these industries are that it is one of the few
industries in pakistan which are enjoying stable growth and previously there was no
trend of such industry in country.
It is not an easy job of the call centre agent job in pakistan because there was no
concept of call centre agent few years back. And the other problem is that the
difference of culture and traditions along with language,as agent have to speak in
English which is not their naitve language and also the timing difference. The
Resource Group limited major clients are located in USA and other neighbouring
countries. The timing difference has earned title of Grave Yard Shift such jobs. The
TRG selected of employees very carefully. So selected employees are given training
in all aspects of the job such as English pronounciation,handling quires and on job
training and refresher courses as well. The TRG provide rigorous training to new
entrants but still there is a high turnover of employees.
This fact was confirmed by senior members of human resources department. This
research explaind that the 50% average of new entrant drop out the job during the
training period. The basically reason as lack of self confidence and ability to handle
quires not to point out the timing difference.
As result The Resources Group limited has to use up sizeable resources on
recruitment, training and preservation of employees. This also has unfavourable
result on quality of services. Due to some reasons the TRG is not capable to
cooperation its standards about selecting of new employees.
Throughout the research it was experimental that TRG limited company had high
employee Turnover ratio. The 50% average of the new employees did not make it
pass the trial period and also left the job or were comforted of their duties due to
weak performance in training period. The majority of them just left the job still before
they were place on live calls because they were not capable to grip the stresses
such working in late night hours and loss of attention.

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1.4 OBJECTIVES OF STUDY

The key objective of this study is that to evaluate the management practices in
business process outsourcing(BPO) Industry and how a lot they supply towards
employee development in command to attain the key objective the major reason for
selecting TRG limited company for this research is just the level of its operations and
huge number of employees it has. TRG is Business Processes Outsourcing (BPO)
and offering services in Capital, Consultation, Technology and Outsourcing to the
substantial reality of Organisations. The Resource Group limited company is
functioning at 27 locations in 7 countries with 6000 employees. The concerns about
employee maintenance and quality are shared by the entire BPO industry thats why
complete industry is aggressive to create quality of customer services which are
necessary by their foreign contractors.
In this study focus on the study of performance management and its contribution in
employee retention. This mean of this research is examine the human resource
management practices adopted by TRG limited company in light of accessible
academic literature on order to create a common perceptive about the issues this
industry is in front of in terms of Human Resource. This research will facilitate toward
decision of above mentioned issues.

1.5 RESEARCH QUESTIONS

In this study the main questions are pointed down to:
1. The first one to investigate the effectiveness of human resources processes at
The Resource Group(TRG).
2. The second one to re-evaluate the approaches to employment and retention of
employee at TRG.
3. The next one to evaluate the impact of high labour turnover with particular
reference to employee performance.
4. The last one to categorize suitable ways of getting better employee performance
at TRG.
These questions are examin in perspective of both employee and employers
perspectives. Because both of them the employees and employers have changed
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objectives but they have to be in synchronization for both are to advantages from
them. Because TRG is operating on a huge size and providing services to different
organisations in worldwide. Consequently TRG has to have efficient instrument or
process for short listing probable employees. Simultaneously employees should
have brains of security in terms of tenure of job, economic payback and social
settlement.
When we recall employees perspective we have to understand that one of major
appeal for new employees are scenario of better pay along with intellect of journey
associated with unusual and new working environment.
During the time of job pointed is. I have pointed that large number of fresh graduates
feel affection for working in call centre and in other hand we can say that fresh
graduates favour to earn a lot of money to work with in call centre. They take no
notice of the problems associated with this kind of job such as working long hours
and unfavourable job timings as point.
The employers perspective TRG has to keep the wanted level of services and
infrastructure. TRG has to use up large amount of resources on process of training
and development in sequence to maintain quality of services. The major problem for
TRG is not capable to hold their new and experienced employees. TRG has
documented the meaning of human resources and has developed an suitable
infrastructure to deal with above mentioned problems.

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CHAPTER 2

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2.1 LITERATURE REVIEW

Performance management is a very important process of Human Resource
Management (HRM) which offers the foundation for getting better and developing
performance. Performance Management is too delivery the general mind of reward
system. To do this research, researcher have selected an industry which mainly
needy on delivering service by their employees. The fundamental theory for call
centres management is that they provide high levels of customer fulfilment, at the
other end usefulness in a cost helpful style. They deliver the probability to build up
brand messages on a discussion basis and probable agree to associations to be
prepared and maintained, making the customer sense respected (White, 1998: 23).
Through the strong trust that in such type of industry HRM is in performance a
important role concerning create quality services from their employees and sustain
the level of customers happiness. This element of study meant to analyse the
obtainable literature about performance management. In the light of these literatures
researcher similar to make superior understanding regarding performance
managements objectives, quality characteristics and following theories.

2.2 HUMAN RESOURCE MANAGEMNET

The major theory of human resource management is that th organization must adopt
particular human resource policies and practices which suit its requirements. These
requirements and practices must be changed from other organisations and they
must take on option strategies in order to attain their goals Dyer(1984) Schuler and
Jackson (1984). The organization whose human resource policies are in agreement
with their business objectives must do better. Schuler and Jackson (1988), Huselied
(1993), Arthur (1994). According to Deepak James etl (2005) have recommended
that result point out that the impact of these human resources systems on output is
influenced by industry capital strength, growth, and separation.
Robbins,T.R, University Park, PA simulation conference (2006) discover that coming
rate insecurity creates significant planning challenges for managers attempting to
make happy fixed performance targets, mainly one-sided performance measures.
We as well recover that abandonment rate has a main impact on call center
performance.

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The majority experts have the same opinion that there are five major functions that
all managers do such as planning, organising, staffing, leading and controlling. In
these total five functions characterize the management process. At the present time
human resource management is considerably attached with approximately every
management process. Efficient human resource management is significant for
strategy for two reasons. The first one, the persons in a company are a resource like
whichever other, and the determinants of how efficiently that resource operates can
be pretentious by strategic change. The second one, at what time strategic changes
are introduced they have to be implemented by people, and struggle to change can
apply a influential constraint on victory. Performance management is a very
important process of Human Resource Management (HRM) which provide the
institution for getting better and developing performance. In the before time 1900s
personnel people first took above selecting and firing from supervisors, ran the
payroll and administrated help plans. It was a job continuously largely of ensuring
that actions were followed. In such area the technology as trying and interviewing
begun to emerge, the human resources department began to participate an
extended role in employee hiring, training and promotion. Deepak K data,James P
and Patrick M wright (feb 2005).

2.3 HUMAN RESOURCE MANAGEMENT AND SERVICE INDUSTRY

The Employee actions is mainly important in service firms similar to banks and retail
establishments. If a client is confronted beside a salesperson, which is unfeeling or
not ready to talk about the pros and cons of the altered products, the whole firms
other efforts will have been exhausted. Service organisations have to sell but their
good service, and that bring them individually needy on their employees attitude,
inspiration and Human Resource management.

Thus, Human Resource acting a vital role in service provider companies. It has been
well-known that there are relatively few employees who need the character, maturity,
social skills and open-mindedness for common contact that customer service jobs
need and that the first step in ignoring this difficulty is viewing and selection. A latest
study of service providing companies illustrates the Human Resource service
connection. The researchers establish that progressive Human Resource practices

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for

example

facilitating

employees

profession

improvement,

developing

orientation,training and socialisation programs for fresh employees, and eliminating

situation on the job that occupy mission performance come into view to improve
employees customer service with the on the whole quality of that service from the
customers viewpoint. The thinking behind this idea is most likely best add up by
Fred Smith, the chairman and creator of Federal Express, whose viewpoint is
people-service-profit. In simple words, utilize progressive Human Resource
practices to put up employee promise and confidence; employees will then offer
outstanding customer service, which in sequence will make profits.
The subsequent outline of performance management and linked practices is
prepared by reviewing experts view, books and study substance. On the scholars
point of view and experts, performance management is as follows.

2.4 PERFORMANCE MANAGEMENT

Performance management is a systematic process for developing and sustaining the
performance of business. Performance Management depend on individual and group
development which leads to on the whole developments. Performance management
is the arrangement of corporate strategies, designed objectives and competency
needs along with performance and jointly determined work plan. As Weiss and
Hartle (1997) said, performance management is:
A process for establishing a shared understanding about what is to be achieved and
how it is to be achieved, and an approach to managing people that increases the
probability of achieving success.
Performance management encourage individuals to support organisations core
values by aligning their objectives with organisations objectives. Performance
management is concerned with facilitate expectations to be underlined, well
recognised and agreed by job tasks and functions (which are expected to do),
expertise (which are expected to have) and performance (which are expected to be).
Performance Management also encourage individuals to recognize their personal
objectives and increase their abilities.
Performance management (as a terminology) is rarely taken as similar to
performance appraisal but there are important dissimilarities between both terms.
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Performance appraisal is all about official evaluation and scoring of individuals.

Performance appraisal has been disgraced as it has been in forced at bureaucratic
structure, mainly operated by HR rather than by line managers. As Armstrong and
Murlis (1998) declared, performance appraisal mostly worsens into a dishonest
annual ritual. In comparison with performance appraisal, performance management
is a broad, constant and more likely management terminology which focused on
collective prospect, encourage the management to act as instructor rather than
judiciary.

2.5 PERFORMANCE V/S MOTIVATION

On the surface, it may appear that motivation and performance is the same thing.
However, while managers and employees may often confuse them, they are distinct
aspects of behaviour. Performance always involves the evaluation of an individuals
behaviour on the job. Motivation, on the other hand, is only one of several factors
that influence performance. For instance, an engineers performance is reflected in
the quality of his designs, the number of patents he obtained and the customers
satisfaction with the new product innovation that reflects his work. While we would
expect a highly motivated engineer to produce excellent products that satisfy the
needs of customers, it would also be true that its performance could be affected by
many other factors besides motivation level. Additional factors affecting its
performance would include:
1) Abilities and skills
2) Personality character
3) Difficulty of the design task
4) Extent of job resource available
5) Working condition
6) Work attitudes such as organisational commitment and job involvement.
Based on the argument above, it should also be clear that low motivation does not
necessarily cause low performance. An employee may have skills and abilities in
such abundance that his high performance is assured in spite of his motivation level.
Managers who always assume that poor performance is a result of low motivation
risk taking the wrong step to correct performance problems in the workplace. For
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instance, they may overlook the pivotal role of training and development, better
equipment and technology or excessive centralisation of decision making as primary
causes of performance problem.

2.6 OBJECTIVE OF PERFORMANCE MANAGEMENT

Performance management is adopted due to increase the capability of individuals in
order to achieve the certain level of expectation. At the other end it is also helpful for
getting individuals prospective as well. The basic objective of performance
management is to provide the platform for individuals growth and intensification. It is
also making sure that support, assistance and supervision has to available for
individuals who need to grow and develop along with organisation.
Performance Management objective

Respondents

to

the

e-rewards

survey
Align individual and organizational objectives

64%

Improve organizational performance

63%

Improve individual performance

46%

Provide the basis for personal development

37%

Develop a performance culture

32%

Inform contribution/performance pay decisions 21%

The above chart highlights the reviews from a survey conducted by e-rewards, which
shows high percentage of respondent agreed that performance management aligns
individual and organisational objectives. According to the above figures its also
proven that performance management is fruitful performance development for both,
individuals and organisations. At the other end few responded as performance
management provides the basis of personal development and also helps to maintain
the atmosphere of development within organisations. A distinctive point of view from
a respondent of that survey regarding performance managements objectives was
(e-reward survey, 2005): To support culture change by creating a performance
culture and reinforcing the values of the organization with an emphasis on the

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importance of these in getting a balance between what is delivered and how it is

delivered.

2.7 THE PERFORMANCE MANAGEMENT CYCLE

According the given definitions, performance management is alignment of
organisations goals and employees output. Despite of all debates like performance
management is only a reward system or recognition of employees towards their
performance, systematic approach of performance management is carried out of
different elements. Performance management is based on constant self-renew
sequence, as described in figure 1

PLAN

PERFORMANCE
AGREEMENT

PERSONAL
DEVELOPMENT
PLANNING

PERFORMANCE
REVIEW

PERFORMANCE

MONITOR

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REVIEW

2.8 PERFORMANCE AGREEMENT

Performance agreement builds for development in performance management cycle
and in other words this process can be named as role definition.

In this step

organisation needs to define the job description along with competence requirement,
expectation from employee and performance standards. The main focus of this
designed job description is to achieve the set target and overall objective of
organisation. Performance agreement can be modified from performance review and
it is a continued process which is directly related to performance review and personal
development planning as well. In this step most important and critical process is
defining

role

according

to

the

objective.

While

defining

job

description;

organisations/managers have to focused on expected outcomes, what employee

should know, what employee able to do and how employee is expected to behave
towards their task and how employee expected to maintain the companys core
values. Job description has to be modified according to the performance review and
maintain the decorum of continuation. Another essential factor for performance
agreement and even for overall performance management are objectives, objectives
are the defined expectation of organisation which has be achieved. Objectives could
be different in types like on-going roles, targets, tasks, projects and behavioural
expectations.

2.9 PERSONAL DEVELOPMENT PLAN (PDP)

The step which is providing the appropriate platform for employees to perform their
duties in performance management cycle is personal development plan. It is very
essential for employees behaviour to have interest in task and working scenario.
With the continuation of performance agreement personal development planning
build more interest and attractions for employees to perform their duties. Personal
development planning includes the learning/training of employees to perform the
designed task and job description. Personal development plan may consist of
training, coaching, mentoring, project work, job enlargement and job enrichment.
Development planning is concern with enhancing the skills and capabilities of
employees to achieve their targets and objectives. Development plan therefore plays
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vital role in successful complete ion of continuous development process and this
process required from every employee to learn more and perform their duties in a
better way.

2.10 PERFORMANCE (MONITORING)

After defining performance agreement and performance development plan, next step
in performance management cycle is performance means taking action on designed
scheme of performance agreement and development plan. Monitoring performance
is not decisive but critical step due to analysis of performance. This step of
performance management is consists of evaluation and rating of performance and
the rating may include methodological observation of performance with the help of
target setting and completion of tasks. There are few possible arguments for rating
performance like monitoring performance can provide the better understanding of
expected performance and actual outcome. This step is also playing a vital role
regarding recognition of employee who work for organisation and given exceptional
performance or employees who under performed. Monitoring performance is
essential for rating employees and reward them accordingly, in simple words its also
leads to performance appraisal. Monitoring of performance also deliver the clear
understanding to the employees about their behaviour and performance.

2.11 PERFORMANCE REVIEW

Even though performance management cycle repeats its steps but it is essential to
have formal review with the passage of time. Review process has to define by time
limit like quarterly, twice or once in a year. There are five elements which need to be
considered in review meeting, these elements are performance agreement,
performance meeting pints and measurements, critical evaluation and feedback,
appropriate support for employee regarding performance and review meeting in
appropriate manner. This step also leads to the planning of performance agreement
and turns the performance management cycle into same continuous loop. The exact
responsibility of performance management is to make sure that what needs to be
done by employees to get the function of the task, to achieve the designed
objectives, to pull out their best outcome, talent and capabilities by developing their
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owned designed learning style in order to reach the agreed level of performance with
their employer. At the other hand, this process also facilitates mangers to develop
their skills to lead and guide their teams and individuals.
In the result of IRS survey, Wolff (2008) stated that 44 % respondent agreed that
the most common practice has traditionally been to have one annual review. But
twice yearly reviews are becoming more common (39 per cent of the IRS
respondents). Organisation may face difficulties in reviewing performance and
managers should have appropriate criteria for these formal review. Organisation/
managers should maintain balance between

Outcomes in context to the targets.

The intensity of abilities and knowledge used in order to perform duties.

Attitude towards performing duties as it influences performance.

The level of understanding and respective attitude towards organisations core

competencies.

Everyday usefulness.

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CHAPTER 3

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3.1 UNDERPINNING THEORIES

Performance management itself is a comprehensive management tool which
encourages management to maintain the right direction and maximum utilisation of
their resources. Despite of above statement, there are multiple supporting tools and
theories which aids performance management to implement and retain its process.
There are few theories considered to adopt, implement and retain the processes or
performance management. Buchner (2007) identified the goal theory; control theory
and social cognitive theory are supporting performance management.

3.2 GOAL THEORY

Experts in management and organisational behaviour acknowledge the significance
of goals in challenging employee behaviour towards organisational goals. The
behavioural framework for a work-based theory of goal setting was articulated by
Edwin Locke, who describes the relationship between employees goals and work
performance. Goals are defined as those end states which reduce the intensity of
needs and motives. His theory proposes that clearly specified, difficult goals result in
greater performance improvement than easy goals stated in general terms. It is now
widely accepted that the goal setting system is creating following effects in the
organisation.
1) Increase work motivation.
2) Increase employees job performance.
3) Reduce the stress of conflicting or confusing work expectations for
employees.
4) Improve the accuracy and validity of performance evaluation work.

3.3 GOAL SETTING THEORY FROM EMPLOYEE PROSPECTIVE

.

Consider the effect of an economisation drive to reduce costs in an insurance

company by 10%. The manager is told that this is his goal for the next year and he
will be eligible for an 8% bonus if it is achiever. He decides to organise an employee
task force to develop the office plan for achieving the goal. He seeks employee input
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into sub-goal specification (participative goal-setting process). During his contact

with subordinates, he explains his incentive plan and establishes goals that have the
properties of clarity, difficulty and limited number. The process yields high
commitment and acceptance of the goal because of reward specification and goal
properties (high intention and behavioural effort). The mutual acceptance of the goal
by the manager and his employees increases the probability that the goal will be
achieved and the outcome of the job satisfaction, task performance and motivation
will occur.
The example and model in the table 1.1 both imply that goal feedback is highly
important element for sustaining the focus of effort towards goal in question.
Organisations must carefully incorporate well-timed formal and informal feedback
that keeps managers and employees appraised of their progress towards the
specific goal. Feedback itself is a highly important intrinsic reward for many
employees. Erosion in the valued outcomes shown in the model can occur without
well-timed and meaningful feedback.

3.4 MANAGEMENT BY OBJECTIVE (MBO)

Management by objective (MBO) is simply an organisational application of goal
setting theory. Peter Drucker coined the term and he has been a leading proponent
of the organisational process for several decades. He advocates MBO as a process
which develops self control in managers since these individuals control the process
that leads to worthwhile organisational and individual outcomes. Drucker pinpoints
the importance of employee involvement in the goal-setting process when he
concludes that MBO discussion and involvement of employees in goal-setting cause
them to work harder and perform better. The MBO cycle shows in figure 3 are an
organisational elaboration of figure 2. The practical concern of firms and employees
are embodies in the theory of goal-setting. The result is MBO cycle which rests on
several assumptions.
1) Employees perform better when they know what is expected from them and
how they contribute to the effectiveness of the organisation.
2) Most employees prefer self determination at work.
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3) Employees can be motivated further by well timed formal and informal

feedback about their work methods and results.
4) Employees prefer intrinsic and extrinsic rewards that are consistent with their
performance level.
Firms may use more than seven steps noted in the MBO cycle shows in figure 3.
The seven steps are common elements in the most programmes however. The
seven generic MBO steps are briefly explained below.
1) Analyse the mix of people, jobs, work methods and external demands. The
key element here is blending people, work design and technology to meet the
constraints in the organisations environment. This is a strategic activity
usually conducted by the top management.
2) Plan goals, strategy, communication and training. This is the production of an
MBO blueprint; which deals organisational goals and how they will cascade
down the chain of command. The blue print should also ensure proper training
for those covered by the system.
3) Define the employees job in terms of content, authority and responsibility.
From the organisational standpoint this must be done to avoid duplication of
effort and resources. From the employee prospective, this step clarifies job
duties so that employees can see how their goals interlock up the chain of
command.
4) Articulate goal difficulty, clarity, number and feedback. Here the employee
initiates the superior-subordinate dialogue on goals by developing a set of
goals for the next time period. Subordinates and superiors must be thoroughly
trained in the proper specification of goals.
5) Reach mutual agreement about goals, work methods, measurement and time
frame. This step sets down the MBO rules which govern the behaviour of
employees as they strive for goal achievement. This step also formalises the
role of the superior in the MBO cycle.
6) Make informal review of goal achievement, methods and possible revision of
goals. The MBO cycle must be flexible so that it can be adjusted to meet
unanticipated events. For instance, poor economic conditions may force the
downward revision of sales goals.

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7) Make formal review of goals achieved and rewards to be granted. This step
completes the cyclical MBO process. It represents the firms formal
acknowledgment of employees success in achieving their goals. To close the
learning loop, it is necessary to indicate clearly to employees what their
rewards are going to be. This step helps ensure that employees will involve
themselves in the next MBO cycle in which they hopefully set even more
ambitious goals.

3.5 CONTROL THEORY

Control theory mainly focuses on the behaviour of managers and their subordinates
towards overall requirement and objective of work. In other word this theory is based
on systematic tuning and maintenance of employees behaviour. In order to make
correction and keep employees in right direction, the most important factor is to keep
them aware about their behaviour and what could be the ways to get on to the right
track (if they are wrong). At the other hand it is quite difficult to manage people
without taking them in confidence. Control theory has three main and simple steps
which manage employees behaviour and provide them chances to focus on required
behaviour (according to the organisation standard and requirement).

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Behaviour
Feedback
(recognition of
discrepancy)
Employees
behaviour
(what are they
doing?)

Figure 4)

Required
Behaviour

1) What are
expected to do?
2) Corrective
actions

Control Theory

(Cited from Armstrong M. (2008)

Strategic Human Resource Management)

Three steps of control theory are clearly defined in figure 4. The brief analysis of
employees current behaviour is covered in first step. Experts name this step as
employee behaviour, in which management has to identify the current behaviour of
employees like what are they doing, approach towards their targets and regular
objectives and how they perform their duties and task. This step is very basic but
most important because management has to inform and understand about its
employees behaviour. In the case of large organisation, it is not easy task to get
information and complete understanding of every individuals behaviour. For that
purpose management categorise individuals into groups or departments. There are
multiple ways to get this information about employees like monitor them, formal and
informal meetings, internal surveys, customers feedback, and department/company
performance report. Second step which stated as feedback which highlights the
discrepancy between current behaviour and expected behaviour of employee. This is
very crucial part of this theory because management has to inform employees
regarding their behaviour and this can effect in both manner like positive and
negative also. Employees can also react against their feedback from management
and this might became difficult situation to handle for management. In order to
reduce the chances of negative reaction, managers have to be well prepared and
well informed about ethics, employees personality and alternative ways of feedback.
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Management has to deliver the message of organisation regarding employees

behaviour, corrective actions and expected behaviour from employees in this step.
This step is mainly focused on what employees are expected to do and what are the
corrective actions to perform the expected behaviour. From the employee
prospective its hard to digest their discrepancies between current and expected
behaviour but this is the only way for self progression and admire management from
their behaviour and attitude. Third and last step of this theory is based on the
outcome of initial two steps. This step which stated as behaviour in figure 4
management has to describe and impose the required behaviour of employees.
Management have multiple ways to highlight and establish the required behaviour to
the employees like operating procedures, responsibilities, sales targets, coaching
and counselling.
This is very common and realistic approach for organisations to maintain the
behaviour of their employees. This is also effective for employees personal
development and at the other hand organisation usually spends large amount of
resources on training and development of their employees.

3.6 SOCIAL COGNITIVE THEORY

In late 1800s there was a theory which deals in educating people behaviour and had
a strong historical background named Social Learning Theory. Albert Bandura, who
completed his Ph.D. in 1952 modify that theory and transform a theory named Social
cognitive theory. The Social Cognitive Theory (SCT) classifies employees
performance/outcome as triadic, self-motivated, and joint relations of individual
things, behaviour and surroundings. According to this theory, an employees
performance is exceptionally determined by the stated factors as purpose of this
theory (described below). Despite the fact that social cognitive theory encourage the
behaviourist impression that employees reaction consequences results/leads
employees performance, it challenges that employees performance is mostly
synchronized antecedent all the way through cognitive processes. Therefore,
reaction consequences of employees performances are used to form outlook of
objectives. Basically its a challenge to design the objectives and planned

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expectations which allow employees to forecast their performance for future and
described tenure. Social cognitive theory based on employee minds ability to
encourage and construct the realism, appropriate action towards objectives and
performance according to the organisations standards and expectations.

3.7 PURPOSE OF THEORY

To recognize and forecast individual employee and team performance.
To recognize and implement techniques in which performance can be tailored or
transformed.
Often used in involvement designed at behaviour improvement, pathology, and
strength encouragement.
Social cognitive theory is basically based on the notion of self efficiency. This theory
recommends that believe of employee in term of performing their duties creates
significant results. Encouragement and appreciation of employee self belief is
providing strength to fulfil the needs of and expectations of organisation.
There are three basic determinants of social cognitive theory which are correlated
with each other. Scholars categorised these determinants and correlate with
employee, organisation and overall performance. Brief description of these
determinants is described below.

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Personal
Determinants

Behavioural
Determinants
Figure: 5)

Environmental
Determinants

Social Cognitive Theory (SCT)

1. PERSONAL DETERMINANT
Personal determinant is specifically related with employee and its self efficiency.
According to social cognitive theory, this determinant is encourage management to
recognise the internal skills and abilities of an employee and following characteristics
which needs to be consider before making any decision in regards of job description
and employees targets.

Self control demonstrates the employee attitude towards their objectives. Its
also called human ability to self correction as well exploration of ways to meet
their targets.

Observational learning concern with human nature which adopts and learns
what they see.

Reinforcement is also positive factor in a sense like an employees behaviour

can provide the lesson for others.

Self efficacy means employees self belief in order to do a job/duty.

Emotional coping responses are approaches of an employee to handle

emotional situations. Nowadays human resource managers also having stress
management processes in organisation.

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2. BEHAVIOURAL DETERMINANT
Behavioural determinant is classification of employees behavioural capacity and
capability towards work objectives. Experts describe this factor in following manner.

Behavioural capability is individuals understanding and ability to execute a

specified action; its also supports mastery knowledge in the course of skills
training.

Expectations are about preventative effect of actions; expected positive result

of wholesome performance.

Expectancies as behavioural factor are the value that an employee places on

a specified result, inducements.

3. ENVIRONMENTAL DETERMINANT
Environmental factors are external factors those encourage employees in shape of
new opportunities and social support. According to Social cognitive theory,
environmental factors can also be identified as situational factors which carry
observation and sensitivity of surroundings, and encourage beneficial grounds for
employees.

Above practices and theories are the supportive actions and suggested theories
which aid the process of performance management. In order to get knowledge and
understanding several literatures have been reviewed like in this research. Vigorous
interpretation and correlation with the case study of TRG will be discussed in Data
Analysis chapter.

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CHAPTER 4

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4.1 RESEARCH METHODOLOGY

If we look at our daily life, we can easily identify the results of different research are
everywhere around us. Mark Saunders (2007) stated when listening to the radio,
watching the television or reading a daily newspaper it is difficult to avoid the term
research. The results of research are all around us. For example television
programmes specially documentaries based on research, newspaper reports, market
indexes, box office collection, political decisions even policy making are almost
based on research. Despite of all discussions, research is being an essential part of
business studies. It is also proven that research is the process which provides
individuals/organisations to knowledge of current situations, circumstances and
critical evaluation of opinions and understandings with the help of better
demonstration tools like figures, graphs charts and reports.
As a student of master in business administration, being a researcher also asked to
conduct a research and selected a company of service industry and aimed to carry
out the vigorous, meaningful and action research. Researcher have taken case of
TRG regarding its current situation on employee retention and lost of its talented &
experienced human resource. Research associate intended to have a qualitative
type research because researcher admitted and shown the strong belief that this
research is more concerned about the social lives of individuals and groups. As a
case study, this piece of work already drawn the current picture of TRG and this
research is more concerned with explanation and interpretation of current human
resource practices. Another factor which encourages researcher to have a qualitative
research is association with selected company and close involvement with
management practices implemented at TRG.
This part of write-up will briefly demonstrate nature & design of research, required
data for research, data collection method, samples for research, data analysis
procedure, targeted population for data, time schedule for research and way of
presentation for research. In order to explain the adopted research methodology
researcher categorically divided all procedures as follows.

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4.2 RESEARCH METHODS

This research carried out a case study of call centre management and intended to
highlight the current circumstances and would like to summarise a theoretical
solution (if needed). Research associates questionnaires to identify the current
situation, at the other hand researcher already have the basic understanding and
knowledge regarding TRGs human resource management practices. This design of
research is most commonly used and most reasonable for this research. This design
was implemented using the cross-sectional investigation technique.

4.3 TRADITIONAL METHOD

Experts define experimental/traditional method of research as a research where
researcher

aggressively

persuades

something

to

monitor/examine

the

consequences and results. Mostly scientific experiments use this method of research
due to its nature. This method could be useful for this research but due to one
limitation that researcher cannot test the behavioural change by using this method.

4.4 ACTION RESEARCH

Action research is identified as a process of finding solution of problems by action, in
other words action research is learning by doing.

This method of research is

commonly used by businesses and association even by professional researchers.

For this research most suitable method is this due to its characteristics and the most
attractive character of this method is ability to progression and further continuation of
case studies or surveys. The only negative point experts highlighted in relation of this
method is need of ground rules.

4.5 DATA COLLECTION METHODS

For the completion of this research data would be collected from secondary sources.
Secondary data include information available at business and educational sources,
commercial marketing research firms, and computerized databases. In order to
explore past investigations regarding performance management and employee
retention processes in call centre management, an economical and quick source of
background information, relevant material have been investigated. Emphasis of
36 | P a g e

strong background knowledge like secondary data, which is basic foundation of this
research because analysis of available secondary data specially past researches
from experts in the field of management is an essential step in the problem definition
process and primary data should not be collected until the available secondary data
have been fully analyzed. Gather employees opinion by using questionnaire as
primary data provided a platform to conduct a health and meaningful debate related
theme of research. Script of questionnaire is described below.

4.6 QUESTIONNAIRE SCRIPT

Asalam-0-Alykum!

I am Arif Hussain and currently i am student of MBA (Masters in Business

Administration) at COMSATS institute of information technology. As part of my
degree requirement I am conducting research on human resource management
practices at TRG.
Aim of my research is to highlight the importance of performance management in
Human resource. I would like to ask you some question regarding prevailing
management practices in Human resource department at TRG.
I assure you that the data obtained from this study will only be used for education
purposes and all of you details and opinions will be kept confidential. At no point of
time these would be provided to your employer or any other authorities.
The questioners is below is very simple and you are only required to highlight/circle
your answer. If you have any problem with font size or language of the questioner or
are confused about any question please ask me and I will clarify it.

I appreciate your help in this regard.

1. How long have you worked for TRG?

A) Less than 6 months
B) Less than 1 year.
C) Less than 3 years.
D) Less than 5 years.
E) More than 5 Years.

37 | P a g e

2. What is the main reason for joining TRG?

A) You like socialising (talking) with other people.
B) For carrier progression in BPO (call centre) industry.
C) For a new/different experience.
D) Just to fulfil financial needs.
E) To earn respect in society.

3. To what extent you agree that your personal development plan is related to
your current job at TRG?
A) Strongly agree.
B) Agree.
C) Average.
D) Disagree.
E) Strongly disagree.

4. What do you think performance management is?

A) Review meeting.
B) Target setting.
C) Feedback on performance.
D) Performance appraisal.
E) Talent spotting.
F) Have no Idea

5. What best summarises performance management in TRG?

A) Review meeting.
B) Target setting.
C) Feedback on performance.
D) Performance appraisal.
E) Talent spotting.
F) Have no idea

6. Who is getting benefit from performance management at TRG?

38 | P a g e

A) Employees.
B) Line managers.
C) Human resource department.
D) Employer (TRG).
E) No one.
7. To what extent do you agree that objective setting procedures are appropriate
at TRG?
A) Strongly agree.
B) Agree.
C) Average.
D) Disagree.
E) Strongly disagree.

8. Are you satisfied with your role and do you think it contributing towards
achieving objectives of TRG?
A) Yes.
B) No.

9. To what extent your role is aligned with that of TRG?

A) Strongly agree.
B) Agree.
C) Average.
D) Disagree.
E) Strongly disagree.

10. What are the factors which may encourage you to work for longer period at
TRG?
A) Salary increment.
B) Additional benefits and perks.
C) Extension in responsibilities and more control.
D) Job rotation.
E) Promotion.
F) More holidays.

39 | P a g e

Data collection was designed in a manner as to ensure its validity and relevance.
The tasks were evenly categorised in a time frame and aimed to ensure that the
research was carried out in a manner as defined in the research design. The
methodology of collection is further explained which is as follows.

4.7 DATA COLLECTORS

The research data collection was primarily my responsibility but I have used
associated resources from TRG. They in person conducted all parts of the research
and documented the observations carefully. The collectors were fully equipped with
all relevant knowledge and skills to handle the research. Whole process was closely
monitored and documented due to provide the assurance of relevancy and reality.

4.8 PROCEDURE
The primary data was the surveys conducted from employees (call centre agents).
For this purpose invitations along with questionnaires were sent to 30 call centre
agents in which 16 responded with their opinions. Secondary data was collected
from

scholars

articles,

books,

surveys

results

(conducted

by

other

organisations/institutions) internet based sources.

4.9 MEASURMENT INSTRUMENT

Main target of primary data source were team leaders and senior managers for
interviews to get appropriate information regarding human resource practices and
current situation at TRG. Semi structure interviews with specific information oriented
questions and targeted to the research objectives were taken placed. To make a
complete co-relation of knowledge, researcher selected call centre agents for
questionnaire survey. With the help of this questionnaire identification of the gap
between expectations and outcomes of TRG and its employees is been clearly
identified. In this research data was qualitative in nature and questionnaires were
designed containing close ended questions only.

4.10 ANALYTICAL METHODS

The statistical methods provided mathematical reasoning to the observed
information. For the presentation and analysis of collected, statistical technique like
charts has been used. This technique was implemented using data analysis software
40 | P a g e

such as MS Excel. Question by question analysis was done with the observations
documented in the conclusion portion of the report.

4.11

LIMITATIONS

AND

DEFICIENCIES

OF

RESEARCH

METHODOLOGY
Concern of the third party associates are undertaken due to the sensitivity of
organisational ethics. Before taking any information, assurance has been given to all
associates that this information is only being used for this particular research and
name and other details would be kept anonymous. It is also agreed on reality
grounds that the selected method of research can interrupt the targeted population,
and also needed a special care and close involvement while collecting data.
Research associates decided to keep all the names and designation anonymous to
avoid any complicated situation.

4.12 DATA ANALYSIS

In this chapter, interpretation among observation and findings which are confined in
the result of questionnaire with established theories and HR practices regarding
performance management (secondary data) are described. In simple words, under
the considerations of academic and significant study the precise qualitative findings,
produced from primary data, in this coursework shall be considered as it is
companionable with adopted research style.
As recommended in advance, adopted approach for this research is deductive
qualitative analysis. Strauss (1987) highlighted deduction analysis is used in
qualitative research where the researcher aims to test a preliminary theory or a
hypothesis, based on a preliminary theory, which is already in the knowledge of the
researcher (Nigel cited in computer analysis and qualitative research 1998 p177).
The progress and definition of introductory theory can be supported by the mixture of
deliberated theories in the past, reviews and investigation or on delicate or
specialized experiences (Gilgun, 2005). Afterwards researcher used these
progressed and identified theories to design its primary concept and unambiguous
set of ideas which proved it-self as a primary framework for this research.
41 | P a g e

Exploration of primary data were conducted according to the principles identified by

this conceptual framework, its also helpful to maintain the direction of research
towards it aims and objectives.
This direction helped in obtaining the right and appropriate set of data from primary
resources of this research therefore neglect the chances of inappropriate

and

immeasurable amount of data which can distract the focus, ability of conducting
research and data collection process.
It is important to point out that the researcher clarifies the idea and focal point of the
research to the targeted population (source of primary data) to obtain purposeful
analysis. At that point where researcher had to describe general ideas regarding aim
and objective of research to the interviewee, researchers used his awareness from
past learning experiences but forcefully tried not to explain in detailed because that
may caused complicity of information or manipulate interviewees response.

4.13 RESEARCH FINDINGS (VIA QUESSTIONNAIRES)

Targeted population for questionnaires were 30 in which 16 responded. According to
the closed choice questionnaire (see figure 6) where 7 agents in result of question
number 1 marked that they are working for less than 1 year for TRG while 2 for less
than 6 months, 4 for less than 3 years, 2 for less than 5 years and only 1 for more
than

years

respectively.

1. Period of working for TRG

8
6
4
2
0

Period of working for TRG

Less than 6
Months

Figure: 6)

Less than 1
Year

Less than 3
Years

Less than 5
Years

More than 5
Years

Working periods for TRG

In the result of next question no 2, researcher came to know that around 45% of
samples joined TRG for fulfil their financial needs. At the other hand 30% suggest

42 | P a g e

that they have joined TRG for their social needs while 15% for carrier and rest of
10% for gaining new experience and respect.
Question number 3 appeared with the understanding of call centre agents regarding
relation of personal development plan with their job at TRG. Result identified that
(see figure 7) more than 30% agents disagreed to have any relation, at the other
hand 50% answered as average and only 15% agreed to have that positive relation.
3. PDP is related with current job at TRG

Strongly Disagree
Disagree
Average
Agree

Figure: 7)

Relation of employees PDP with current role

Employees understanding of performance management is realised by question

number 4 where 45% sample suggested performance management as performance
management, 25% as talent spotting and rest of 30% agreed role of performance
management as performance review meetings, target setting and feedback on
performance. At the other hand these employees identified role of performance
management at TRG in comparatively different manner. Role of performance
management in the result of these questionnaires stated where 35% identified as
feedback on performance, 25% as setting targets, 20% as review meetings, 15% as
talent spotting and only 5% agreed with performance appraisal. In figure 8 blue/dark
colours showing the understanding of employees as performance management while
red/light shows the actual situation of performance management at TRG.

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50
45
40
35
30
25
20
15
10
5
0

Performance management (in

general)
Performance management (at
TRG)
Review
meeting

Figure: 8)

Target setting Feedback on Performance

performance appraisal

Talent
spotting

Performance management according to employees and performance

management at TRG

With the help question number 6 researchers intended to highlight the real picture of
performance management and who is getting benefited from performance
management at TRG. In result of this question samples suggested that 45% agreed
TRG, 20% agreed Human resource department, 10% agreed department managers
and 5% agreed that employees getting benefit from performance management.

7. Objective setting procedure is working accurately at TRG

Strongly Disagree
Disagree
Average
Agree

Figure: 9)

Employee suggestion regarding objective setting at TRG

At the other hand 10% strongly disagree that role defining and objective setting
methods are appropriately implemented or working at TRG, while 45% disagreed
with this existence. Only 20% agreed that these processes are implemented and
working significantly at TRG. See the figure 9 for comprehensive understanding. Its
44 | P a g e

also identified by this questionnaire that more than 50% employees are not satisfied
with their roles objective at TRG; question number 8 was specifically designed to
identify employees opinion regarding their role at TRG.
It is also tried to identified that business objectives of TRG has relation with
objectives of employees and statically presentation showed the reply of employees
regarding this in figure 10. The employee reaction were recorded as 10% strongly
disagree that employees role objectives are aligned for TRG business goals, while
45% disagreed with this existence. Only 20% agreed that relation and alignment has
presented and working significantly at TRG.

9. Employee's role objective are aligned with business goals

Strongly Disagree
Disagree
Average
Agree

Figure: 10)

Employee's role objectives are aligned with business

goals

This questionnaire also designed to identified the significant approaches to retain

employees at TRG where 35% employees mark job rotation, 25% mark salary
increment, 20% mark benefits and compensation, 15% mark promotion while 5%
mark job enlargement as encouraging factor for employee retention. Figure 11 visibly
illustrate the findings in result of this question.

45 | P a g e

10.Encouraging factor for retaining employees

40
30
20
10
0
Salary increment.

Figure: 11)

Benefits and
compensation.

Job enlargement.

Job rotation.

Promotion.

Illustration of encouraging factor for employee retention

The above are the findings stated in result of interviews and questionnaires. While
expert suggested that data mining regarding management practices in service
industry is difficult because they have realised a conflict between management
statement and management approaches. Hutchinson S. Et al (2006) stated that one
difficulty of undertaken research in the service sector has been a lack of
performance data. It is hard to gain access to the sort of data typically used such as
output per person employed or unit labour costs. In service industry, management
meant to be focused on delivering quality services but in the case of call centre
management usually targeted to providing solution with minimum use of resources.
Next part of this coursework is based on correlation and interpretation of past
researches, expert opinions, appropriate theories & techniques (secondary data)
with current research findings and management practices implemented at TRG
(primary data).

46 | P a g e

CHAPTER 5

47 | P a g e

5.1 ANALYSIS OF COLLECTED DATA

Since mid-1990s, call centre have forcefully offered and encouraged the white-collar
employment

worldwide.

(Datamonitor,

1998).

Researches

identified

that

management at call centre not only keened to look at quantity of calls; they put more
measurement tools to maintain the quality of calls. Another research revealed where
researcher aimed to investigate key management responsibilities of managers and
key performance indicators (KPIs) used in call centre, researchers (Robinson, G and
Morley, C 2006 cited in call centre management: responsibilities and performance)
investigated that call centres are primarily used by organisations as a means of
reducing cost, with customer service delivery a secondary consideration. Call centre
management, however, declared customer service as their main management
responsibility. The same case identified in this research (with the help of data
findings) where mostly managers and team leaders stated that performance
management is practiced for target setting and review meetings at TRG, however
there was no significant indication for quality customer services as result of those
practices. At the other hand this research also concluded that 30% managers and
team leaders are not satisfied with the expectation of their company, there must be
some mystification over the strategic intention of TRG. Research also realised that
intention of increase customer satisfaction and reduction of operational cost were on
the same level. In a different research conducted by (Wallace, 2000) identified the
conflicting goals of competence and provision at the level of management and call
centre agents. This is also revealed in this research that most of the call centre
agents joined TRG with in one year (see figure 1), at the other hand main purpose of
joining call centre is to fulfil their financial and social needs.
Strategic Human Resource Management (SHRM) is a name of refined and
specialised HRM practices for making relationship of strategy all the way through
working needs, to job design and HR management. At the other end SHRM is also
recognised approach for maintain connection between HR management practices
and market determinants which establishes organisational standard of performance.
Past researches highlighted few approaches and theories designed or significant for
service industry especially in call centre management. As Buchner (2007) identified
the goal theory; control theory and social cognitive theory are supporting HR in

48 | P a g e

significant manner. In the case of TRG, research revealed that practices of

performance management are not used or implemented appropriately. Primary data
identified that employee turnover is high due to misbalanced approaches of
management at TRG. TRG is neglecting the cognitive behaviour and abilities of their
agents/employees, but in light of real facts call centre usually have large number of
employees as call centre agents in comparison with other technical and
administrative staff on board. In survey report information revealed that a large
number of employees are working as operator and agents who are making or
receiving calls than the other staff. Taylor and Bain (1999) revealed that
operators/agents made up 71.3% of staff, other clerical workers 11.6% and
professional/technical grades 4% of the workforce. Supervisory grades accounted for
only 8.8% staff and managers 4.3%. the high ratio of call centre agents against
management indicates the constrictions on career progression and encouragement
chances which are generally acknowledged distress within the call centre industry.
With the connection of facts above this research also identified a high employee
turnover rate, at the other hand TRGs HR management is often determined to
recruit and hire new employees even its also revealed that management always
aware about the more than 50 per cent newly hired workforce which will not be able
to start work and leave the company without giving any output/result.
Bain (1999) identified that many centres experiences high level of labour turnover,
which employers attribute in large part to the intrinsic pressure of the job, and to flat
structures which curtail promotion opportunities. Another truth revealed by Bains
journal stated that according to one HR manager, when a newly established call
centre advertised for staff, 230 employees from a neighbouring centre keen to
escape notoriously poor working conditions and attracted by better pay, applied for
job.
Research identified two dimensions of SHRM as work design for call centres; first
one is work carefulness and second is performance monitoring. Due the need of
customer satisfaction and quality services, call centre agent is the main point of
contact who communicates with customers and every action of call centre agent
reflects and creates initial and strong impact at the mind of customer. The initial lack
of planning which observed thorough this research is setting of role objectives for call

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centre agents. These objectives specifically determine the service level needed from
agent and also build the relationship with appropriate level of carefulness at every
level like employees roles & responsibilities and way of interaction with customer in
efficient and suitable manner (Parker 1998). At the other hand SHRM is also defies
strategies for monitoring performance. More than average call centre researches are
based on the implemented coercive employment systems implemented in call
centres. In result of those researches distinction between customer service level and
customer satisfaction level identified. Hardly few researches highlighted the factor of
stress which may rise through close or inappropriate monitoring practices in call
centres. This research highlighted that review of performance is not placed
according to the need of organisation.

There are few approaches of reviewing

performance is suggested in result of secondary data study. Next part of this chapter
would be divided into two categories. One part designed to identify the suggested
theories as solution for current circumstances at TRG. Second part consists of tools
and approaches to implement and get maximum utilisation of these theories.
It is a proven that call-centre management is often face chain of pressure obtaining
in the result of clash between accomplishment of effectiveness and provision a
customer service level on the basis of quality. Past researches recommended
implementation and integration of high commitment management (HCM) techniques
in call centres is an inconsistent management practice of 'low discretion, high
commitment' (LDHC). Houlihan M. 2002 identified in result of case studies of 4 call
centres working in UK, which verify the LDHC model but recommend that it works in
a diversity of appearance. In that research, researcher anticipated typology of LDHC
practices by characterising the findings in respect to the joint proportions of HCM
point of references and job design planning and execution. This research identified a
gap between the relation of employees personal development plan and company
objective. The factors of high commitment management are also identified here
which are forcefully imposing high commitment on agents/employees. The point of
conflict with the journal named Human Resource Management Journal is there
ending where point where Houlihan M. (2002, p.132) stated that technique of HCM
can be a substitute for maintaining the level of employee commitment within
organisation rather than the manifestation of commitment. Despite of all high
commitment management which is also known as high performance work system
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(HPWS) in American terminology is widely used in organisation to have maximum

commitment and work relation from employees.
In order to implement performance management cycle with the management
practices at TRG, management has to review its planning process and then relates
objectives of employees to the expected outcomes of overall business. As discussed
earlier, to implant performance management cycle significantly management needs
to consider employees abilities and expertise on the desk. Alignment of employees
role with employees personal development plan may create significant affects on
employees performance. This research identified that there are some practices of
goal theory are implemented at TRG but inappropriate provision of theory is not
allowing company to achieve meaningful results.
It is also essential for management at TRG to review the practices of control theory,
this research also resulted that control theory can generate significant results
according to the scenario. As briefly described in early chapters, control theory
establishes a platform to review performance and giving control to the management
to take the appropriate action regarding performance management. The most
important and suggested theory as a solution for TRG is social cognitive theory. This
research highlighted the employee prospective which shows the uncertainty and lake
of confidence in performing duties as TRG. Expert identified and also proven by
experiments that management has to establish a strong relation with their employees
to conduct a confidence and also recognise their abilities towards work.
The essence of social cognitive theory generates confidence in employees and
encourages them to pull out their abilities in regard of performing duties. Defining
role and handing over responsibilities is the most curtail part of job at management,
in which social cognitive theory facilitates management to plan according to the
employees behaviour and expertise. Social cognitive theory was basically designed
to improve and tailor performance according to the business needs. It also helps to
identify and implement the techniques in which performance can be tailored or
transformed. Another tool which can be helpful and suggested in result of this
research is performance metrics. To analysis and review of performance it is
necessary to have systematic approach. Performance metrics is use to establish
employee performance assessment.
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High achievement,but
behaviours, attitudes
and approach needs to
improve

performance

Positive approach

Not meeting

but poor level of

requirement

Figure 1

High all-round

achievement

Performance metrics (Cited from Armstrong M. (2008) Strategic

Human Resource Management)

Functionality of call centre has been shifted from simple inquiry handling to
customer relationship management (Frenkel, 1996) at the other hand its also a
question weather employee who is not motivated or stressed out from working
environment are able to have approachable and appropriate communication with
customer?
Form of monitoring

Percentage of call centres

Politeness towards customer

84.6

Length of calls

76.9

Adherence to set procedures

73.1

Call taping/review

69.2

Adherence to script/form of words

65.4

Content of calls

65.4

Satisfaction measures

57.7

Quality audit

53.8

Time between calls

48.1

Table 2: Utilisation of monitoring measures

Enterprise Report, n=55).

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(Source: Survey 2, Scottish

This research is intended to have overview of monitoring performance at the call

centres regarding its need and provision in the management practices at call
centres. Its revealed that monitoring of performance is another decisive factor for
employee performance. Research highlighted the fact that appropriate monitoring
tools and approaches need to adopt by TRG for maintaining the level of quality
customer service.
In order to find the meaningful and appropriate measure for monitoring performance
of call centre agent, the above table 2 has highlighted to monitoring measures along
with its utilisation. Survey resulted that around 85% management agreed to measure
the level of politeness of call centre agent while they communicate with customer. Its
also resulted that positive and polite behaviour of agents generates positive impact
on customer psychology. Satisfaction measures and content of calls resulted as
average percentage in term of monitoring measures while these practices also
encourage customers. Despite of all psychological factors there are several quality
oriented factors which are commonly used in regard of monitoring measure at call
centres (see table 2).
Key performance indicators (KPIs) plays vital role in measuring and managing
performance. Despite of that confusion regarding management approach of quality
customers service and cost efficiency, KPI has to implement in term of measuring
and managing performance at TRG. Experts designed a performance measuring tool
in which customer put their feedback in regard of agent/employee performance.
According to a call centre managers forum Net Promoter Score (NPS) suggested
as best KPI for managing performance in call centres industry (cited from website,
http://www.callcentres.com.au/ accessed on 22/11/11). NPS is a basic metric that
holds businesses/departments and workforce responsible for how they behave with
their clientele. NPS achieved remarkable recognition due to its straightforwardness
and its connection to advantageous development. NPS is understandable and
acceptable for every level of employee, its also realised that organisations delighted
to implement this technological advancement for customer-centric transformation
and enhanced performance.

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5.2 CONCLUSION
With the IT boom where technology is taking part in every aspect of human life,
management are also found a way to outsource their business processes to other
companies. In result a new business model established to provide outsourcing
services to the organisations which are intended to outsource part of their business.
Despite of this development BPO companies especially call centre businesses are
suffering with high employee turnover problem while this industry is completely
based on providing solutions to third parties and other businesses. In order to deliver
recommended quality of customer service call centre management investing huge
amount of resources to maximise the outcomes and performance of their employees.
The case of TRG investigated in this research where identified that employees are
not fulfilling the expectations of company. At the same time mostly employees are
not intended to work for longer period of time for TRG and joined company only for
social or financial needs. While TRG management intended to retain its experienced
talent but failed due to inappropriate approaches.
This research also investigated the differences of employees and employer
expectation along with the suggested ways to overcome those differences. Result of
this theory suggested some theories and tools to TRG management, like adaptation
of social cognitive theory, new KPIs, identification and implementation of
performance measuring techniques, and most important proper plantation of
performance management practices within management.

5.3 RECOMMENDATION
Recommendation for management is refine the process of employee selection, as
stated in this research that management used various techniques to hire call centre
agents like offer competitive packages. This course of action is sufficient and heartily
accepted by agents/employees but this will leads to employee turnover after their
needs fulfilment. Company invest huge amount of resources on newly hired
employees but suggested course of action is chose those people which are willing to
work for company for longer period of time.

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5.4 REFERENCES:
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