Employee Perception of Organizational Change in BPO Industry

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A STUDY WITH REFERENCE TO BPO INDUSTRY IN

VISHAKHAPATNAM
By:-
Ashish Kumar
Roll No. 1225108104
MBA A (Final)
Gitam Institute of Management
Gitam University, Visakhapatnam
Employee Perception Towards Organizational Change, By: Ashish Kumar, MBA A (Final), Gitam Institute of Management, Visakhapatnam
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Organizational Change: Today its getting very important that the organization has to
come out the books of management and start thinking in a strategic way to survive and sustain
for a longer period of time.
i.e., the organization need to move beyond the buzzwords into deciding
what actions they need to perform that will help them grow and develop.
There are four levels of organizational change:
Shaping and Anticipating the Future (Level 1)
Defining what Business(es) to be in and their "Core Competencies (Level 2)
Reengineering Processes (Level 3)
Incrementally Improving Processes (Level 4)
Level 1- shaping and anticipating the future: In this level management generates
alternate scenarios of the future, defines opportunities based on these possible futures,
assesses its strengths and weaknesses in these scenarios changes its mission, measurement
system etc.
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Level 2 - Defining what Business(es) to be in and their "Core Competencies: Many

attempts at strategic planning start at this level, either assuming the future will be predictable,
the vision for the future, etc. After a mission has been defined and a SWOT an organization
can then define its measures, goals, strategies, etc.
Level 3 - Reengineering (Structurally Changing) Your Processes: Rather than focus on

modest improvements, reengineering focuses on making major structural changes to everyday
with the goal of substantially improving productivity, efficiency, quality or customer
satisfaction.
Level 4 - Incrementally Changing your Processes: changes are focusing in making many
small changes to existing work processes. Oftentimes organizations put in considerable effort
into getting every employee focused on making these small changes, often with considerable
effect.
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Employee Perception towards Organizational Change: The changes occur in the
organizations are time to time and these changes are necessary to be done. Without which an
organization wont sustain for a longer period of time on long run. Therefore, the changes
done in the organization is greatly effects to the employees and many times these changes
effect the employees to a large extent.
The employees resist to these changes but some how they need to be cope
up with the changes in order to work in the organization. The perception of the organization is
that the organization should consult the employees before carrying out the change.
BPO Industry in India: Business process outsourcing (BPO) is a broad term referring to
outsourcing in all fields. A BPO differentiates itself by either putting in new technology or
applying existing technology in a new way to improve a process.
Business Process Outsourcing (BPO) is the delegation of one or more IT-
intensive business processes to an external provider that in turn owns, administers and
manages the selected process based on defined and measurable performance criteria. Business
Process Outsourcing (BPO) is one of the fastest growing segments of the Information
Technology Enabled Services (ITES) industry.
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Types of Services offered by the BPO Industry: The following are the services offered by
the BPO industry:
Customer Support Services
Technical Support Services
Telemarketing Services
Employee IT Help desk Services
Insurance Processing
Data Entry Services/Data Processing Services
Data Conversion Services
Scanning, OCR with Editing & Indexing Services
Book Keeping and Accounting Services
Form Processing Services
Internet/Online/Web Research
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Recent Changes witnessed by the BPO industry: The following are the recent changes
occurred in the recent days, are as follows:
Down Sizing.
Attrition.
Incentives Cuts.
Salary Cuts.
Rosters.
Cross Training.
Forced Leave.
Attrition rates %
US 42%
Australia 29%
Europe 24%
India 18%
Global Average 24%
*Source-Times News New York (2003)
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This survey is kind of survey which can be classified in two types of research, i.e.:
Descriptive vs. Analytical.
Conclusion Oriented.
The major purpose of the descriptive research is description of the state of affairs
as it exists; usually includes surveys and fact-finding enquiries.
Where as in analytical research, the researcher has to use facts or information

already available and analyze these for critical evaluation.
In Conclusion Oriented, a researcher is free to pick up a problem, redesign the

enquiry and is prepared to conceptualize as he wishes.
Here, in this particular research, we as a researcher described the whole survey with
the help of Questionnaire and the extensive Literature review, which helped us to analyze
and later on, to conclude also. The conclusion is basically derived from the data & findings
of the survey.
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The research technique which weve used in this study can be

classified as:
Survey Technique.
Literature Review Technique.
The Survey Technique is done with the help of Questionnaire, in

which 15 questions were designed and further analysis is being carried out.
Where as in Literature Review Technique, the viable data &

information supporting Organizational Change is being collected through
various sources in which Internet is common.
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The Universe of all these collected samples are Gitam University, which includes
students as well as faculty members.
As the Universe consist of more than 2,62,000 population, Ive gone for Random
Sampling technique in which Stratified Sampling is carried out.
The Stratified Sampling helped us to divide the non homogeneous group in

several other sub populations that are individually more homogeneous than the total
population.
The sub population consist of following Employees:
HSBC
Sutherland (Connexa)
Precistat
Acclaris
IBM Daksh
Others (Nipuna Satyam, Genpact, TCS, ITC, etc.)
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The Data is collected through a quite popular method called as Questionnaires
which is being adopted by many private individuals, research workers, private and public
organizations. The questionnaire consists of a number of questions printed or typed in a
definite order on form or set of forms.
Questionnaire:
1. In which age group do you fall?

a. 18 25 b. 26 35 c. 36 45 d. 45 and above
2. What is your sex?
a. Male b. Female
3. Which company you are working?
a. HSBC b. Sutherland c. Precistat d. Acclaris e. IBM Daksh
f. Others ______________.
4. Do you like changes in your organization?
a. Yes b. No
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5. When these changes take place?

a. When company doesnt have money to mobilize there funds.
b. Due to Recession.
c. To adapt a new technology.
d. All of the above.
e. If others, specify______________________.
6. Do you think that the changes takes place is more employee oriented or organization oriented?
a. Employee oriented b. Organization Oriented
7. When an employee doesnt except organizational change?
a. He is unhappy b. He is unsatisfied
c. The changes are going to be down sized. d. Others, _____________
8. If the organizational change is not supported by the employees then does the management tried
to negotiate with his employees?
a. Yes b. No c. Some times d. Cant say
9. Do you think the recession is the main reason for many industries to change their way of
working?
a. Yes b. No c. Some times d. Cant say
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10. Tell me what are the changes opted by your company.

a. Down Sizing b. Attrition c. Incentives Cuts d. Salary Cuts
e. Rosters f. Cross Training g. Others, ___________________.
11. The Barack Obama said, weve to decrease the outsourcing. Comment
__________________________________________________________.
12. Is there any change which helped to sustain in the company?
_________________________________________________________.
13. Does an employee have to do face all the difficulties and problems due to the respective
changes?
a. Yes b. No
14. The better organization is, who ______________________.
a. Forces the employee to go with the change.
b. Convinces the employee, without telling the reason.
c. Tell the reason that why they need a change.
15. Does government should intervene between the employee and employer, so as to maintain
good relations with respect to the change?
a. Yes b. No
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The total Samples collected are 100 which are as follows with there supporting
graph of Analysis.
Classification of Samples with respect to Age:
Age Group % Response

18 - 25 44 44
26 - 35 36 36
36 - 45 15 15
> 45 5 5
Total 100 100
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Gender % Response
Male 45 45
Female 55 55
Total 100 100
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Company % Response
HSBC 42 42
Sutherland 20 20
Precistat 15 15
Acclaris 8 8
IBM Daksh 10 10
Others 5 5
Total 100 100
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The Interpretation & Analysis is the major part of any kind of Survey report.
Which has to be carried out to draw the further conclusion. The conclusion plays a important
role in research. Here the interpretation is done by converting all collected in the tabular form
with their respective percentages and analysis is done through a simple technique, i.e. we
have used the Graphs & Charts (like bar graphs, column graphs, pie charts, etc.) to analyze
the data.
While doing interpretation the precautionary measures taken are:
The data should be appropriate, trustworthy and adequate for drawing analysis &
inferences.
The data should reflect good homogeneity.
The proper analysis has been done through statistical methods.
The researcher should be prepared to find the way from the errors.
All the above precautionary measures helped us to interpret the data in the tabular
form with a great ease.
The data is interpreted in tabular form & analysis is done with respect to the
questions and comparison of some of the data is also helped in analysis.
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So the data in tabular form with their analysis are as follows:
Support Changes % Response

Yes 56 56
No 44 44
Total 100 100
Here the Pie Chart itself shows the number

of employees opted for yes are more than No
(i.e. 56% & 44% ).
As the above Pie Chart clearly shows that more that 50 percent has opted for the yes. Thats true that
many people love to see the changes in an organization. But the changes which comes in a positive
form.
For example, the employees going out of the job wont say yes for this question. And the
employees who have been imposed with the lot of work which lead to the overloading of the work.
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Reasons for Changes % Response

No Money to utilize 18 18
Due to recession 20 20
To Adabt 15 15
All of the above 35 35
Others 12 12
Total 100 100
Here the Line Graph shows that the

employees have opted for all the above
options (i.e. 35 percent).
The above Line Graph clearly shows that most of the people have opted for the All the above, which
indirectly means the all the options.
From the past one year many changes occurred due to the many reasons in which Recession
one of the common reason for all which lead to other small reasons.
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Change Support % Response

Employee 38 38
Organization 62 62
Total 100 100
Here the Pie Chart shows that the

employees have changes are mostly
oriented to the organization (i.e. 62
percent).
The above Pie Chart clearly shows that more than 50 percent of employees have said that changes
occurred in the organization are mainly oriented towards the organization.
The changes which took place in recent days are done with respect to save the organization
from getting the organization get collapsed.
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Management Negotiation % Response

Yes 55 55
No 30 24
Sometimes 10 10
Can't Say 5 5
Total 100 100
Here the Line Graph shows that

employees most of the employees said
yes (i.e. 55 percent).
The above Line Graph clearly shows that more than 50 percent of the employees said that the
organization come down to the employees to negotiate with the employees, so that employees can
except the changes.
Negotiation is one of the key factor for any management, so that they can convince the
employees to work with the organization.
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Changes Opted % Response
Down Sizing 30 30
Attrition 12 12
Incentives Cuts 10 10
Salary Cuts 20 20
Rosters 8 8
Cross Training 15 15
Others 5 5
Total 100 100
Here the Line Graph shows that

employees Downsizing is more often
opted by the companies (i.e. 30%).
The above Line Graph clearly shows that more companies are opting for the downsizing.
Because, the downsizing is the easiest method to reduce the operating cost. But the
downsizing effects the employees very much, because they have been asked to leave the job, which is
the basic need provider to any employee.
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Govt. intervention % Response

Yes 75 48
No 25 32
Total 100 100
Here the Pie Chart shows that whether

the govt. should come in between to
solve the conflict (i.e. 75%)
The above Pie Chart clearly shows that the govt. should intervene in between to avoid the massive
conflict like last year we had seen a massive strike by the employees of Jet Airways.
And if the govt. has certain kind of policies due to which companies can carry out the changes
but those changes should be beneficial for both organizations as well as employees.
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The major findings are as follows:

More than 40 percent of employees working in BPO belongs to the age group of
18 25.
More than 50 percent of employees working in BPO are females.
Half of the respondents supports changes.
Recession is the major cause of the changes occurred in the organization.
Changes done inorder to support the organization and its survival.
More than half of the respondents agreed that management is negotiating with the
employees so as to except the changes.
Down Sizing of work force is the major change.
A large number of employees (75 percent) agreed for Government Intervention.
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After the whole study, following are the suggestions;

The changes has to be brought in such a manner that every one can except it.
Companies should follow the cross training policies, which will help the
companies to sustain and survive in the future.
The government should develop the policy which will be beneficial to both
organization and employees.
Down Sizing and Attrition should be stopped by the companies.
Organizations should follow the policy of transparency with their employees.
Organizations should tell the reason for the changes in organization to the
employees before implementing it.
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The study on Employee Perception towards Organizational Change is

completed successfully. The inferences which I can draw is that the changes has to
be made from time to time in order to meet the competition in the market.
But that doesnt mean that the organization should follow any changes
without having any policy plan. The organization should a play a role model and
win the trust of employee by maintaining the transparency level with the
employees.
And even the recession is playing a major key role in recent changes took
place in the organization. Recession has created a problem but the removing the
employees is not a good decision. The organization should apply some other policy
and methods.
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1

A STUDY WITH REFERENCE TO BPO INDUSTRY IN

Level 2 - Defining what Business(es) to be in and their "Core Competencies: Many

Level 3 - Reengineering (Structurally Changing) Your Processes: Rather than focus on

Where as in analytical research, the researcher has to use facts or information

In Conclusion Oriented, a researcher is free to pick up a problem, redesign the

The research technique which weve used in this study can be

The Survey Technique is done with the help of Questionnaire, in

Where as in Literature Review Technique, the viable data &

The Stratified Sampling helped us to divide the non homogeneous group in

1. In which age group do you fall?

5. When these changes take place?

10. Tell me what are the changes opted by your company.

Age Group % Response

So the data in tabular form with their analysis are as follows:

Support Changes % Response

Here the Pie Chart itself shows the number

Reasons for Changes % Response

Here the Line Graph shows that the

Change Support % Response

Here the Pie Chart shows that the

Management Negotiation % Response

Here the Line Graph shows that

Here the Line Graph shows that

Govt. intervention % Response

Here the Pie Chart shows that whether

The major findings are as follows:

After the whole study, following are the suggestions;

The study on Employee Perception towards Organizational Change is

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