rmj
TRANSCRIPT
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Alarming Attrition Rate in Call Centers and BPO Industry
R. Ganapathi, S. Anbu Mala and R. Kanniah
Is Employer Branding an Influencing Factor for Accepting an Offer?
L.Gandhi and K. Senthil Kumar
An Empirical Study: Students Perception on Service Quality Using Malaysian Hedperf
Measurement Scale
K. Ravichandran and S. Arun Kumar
Global Recession and Microfinance Sector: A Study of Five Large MFIs in India
Amrit Lal Ghosh, Ranjit Singh and Anurag Singh
Employee Engagement @ Indian Retail Industry
Pooja Misra and Kokil Bhalotia
Knowledge Transfer by Repatriates for Organizationals Competitive Advantage
B.R. Santosh and Krishnaveni Muttiah
A Study on Evaluation of Intrinsic Value of Selected Public Sector Banks in India
Sunita Sukhija and Suman Ghalawat
Growth of Organized Food Retailing in Punjab: An Exploratory Study
K.C. Mittal, Anupama Prashar and Anmol Soi
Making Teaching Learning Process More Vibrant for Better Results
Neetu Jain
Positive Relationship of Foreign Direct Investment and Economic Growth
Mahesh Chandra Prasad
Pricing of Milk: A Study in Karnataka Milk Federation
M. Jeyarathnam and Geetha M. Rajaram
A Comparative Study on Financial Performance of Pre and Post Introduction of Core Banking in
Indian Bank and the South Indian Bank
N. Sundaram and C.M. Maran
RaiManagement
Journal Vol. 7 Issue 1
ISSN No: 0975-4326
An Initiative of Rai Business School
Price : 75/-
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June 2010 Vol. 7 Issue 1
Editor
Dr. Sheetal Kaul
Rai Business School, Delhi, India
Associate Editors
Prof. Gunjan A. Rana Prof. Lubna A KhanRai Business School, Delhi, India Rai Business School, Delhi, India
Prof. Piyush Ranjan Prof. U S WahieRai Business School, Delhi, India Rai Business School, Delhi, India
Advisory Board
Paul Edelblut Salehuddin AhmedSenior Vice President, Vantage Labs, New Jersey,USA Chief Technical Advisor, IPRCC, Beijing, China
Dr. Mahesh Chandra Dr. Annabel DroussiotisAssociate Professor, Hofstra University, New York, USA Associate Professor, Limassol, Cyprus, USA
Dr. B.K Mohanty Dr. R.K GuptaProfessor, Indian Institute of Management, Lucknow, India Professor, Punjab University, Chandigarh, India
Basab Bordoloi Himanshu ChawlaVice President- HR, Domino Pizza, Noida, UP, India Head Enterprize Partner Sales, Sun Microsystem India Pvt Ltd., Delhi, India
Upender RaiGeneral Manager - HRD, NTPC, Delhi, India
Editorial Board
Dr Abhishek Mishra Dr. Sukumar NandiAssistant Professor, Indian Institute of Management, Ahmedabad, India Professor, Indian Institute of Management, Lucknow, India
Dr Dinesh Kumar Dr. Anita GoyalProfessor, Indian Institute of Management, Bangalore, India Associate Professor, MDI, Gurgaon, India
Prof. Vivek Gupta Dr. Avanish KumarAssociate Professor, Indian Institute of Management, Lucknow, India Associate Professor, MDI, Gurgaon, India
Dr. M.Jayadev Dr. Sabita MahapatraAssociate Professor, Indian Institute of Management, Bangalore, India Assistant Professor, Indian Institute of Management, Indore, India
Dr. Neera Jain Prof. Sanjay DhamijaAssistant Professor, Management Development Institute, Gurgaon, India Professor, International Management Institute, Delhi, India
Prof. Harkirat Singh Prof. Pradip ChakrabortyProfessor, Indian Institute of Foreign Trade, Delhi, India Senior Professor, Fore School of Management, Delhi, India
Dr. Sandeep Anand Dr. P. N PandeyAssistant Professor, Xavier Institute of Management, Bhubaneswar, India Professor, CDAC, Delhi, India\
Dr. Parul Rishi Dr. Ambrish GuptaAssistant Professor, Indian Institute of Forest Management, Bhopal, India Senior Professor, Fore School of Management, Delhi, India
Dr. Biresh K Sahoo Prof. PR Ramanujam
Associate Professor, Xavier Institute of Management, Bhubaneswar, India Director, IGNOU, New Delhi, India
Dr. Manoj Srivastava Prof. Seema UnnikrishanAssistant Professor, Management Development Institute, Gurgaon, India Associate Professor, NITIE, Mumbai, India
Dr. Ranjana AgarwalAssistant Professor, IMT, Ghaziabad, India
[ 1 ]
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[ 2 ] Rai Management Journal
From the Editors Desk
t gives me immense pleasure to presentthe next issue of our management journal.As we complete one eventful year and
enter the second, I would like to express my sincerethanks to all for their support without which, itwould not have been possible to take this journal toan international level.
Rai Management Journal is a scholastic platformto share ideas, nourish and promote the culture ofacademic and industrial research. This biannual
journal invites and attracts best quality papersfrom all parts of the globe and reaches to a wide
variety of readers.
This journal publishes papers that impartknowledge through research on contemporarymanagement issues and the cases in functionalareas of marketing, finance, human resourcemanagement, information technology and generalmanagement.
In this edition I am delighted to bring the blindpeer reviewed research papers contributed byacademicians and professionals from varioussectors. The diversity of topics is nicely blendedand I am sure that the readers will appreciate thesame.
We thank the researchers for contributing papersfor the journal and would request academicians/research scholars to keep on contributing scholarly
papers, thereby helping us in our endeavour toenrich the value of our journal. On the other hand,the authors should not feel disheartened by therejection of their articles rather they should take itas a learning experience and analyze the lacunae intheir paper that led to the rejection, helping themto overcome these shortcomings while writingpapers in the future.
We have taken into consideration the viewpointsand suggestions of our reviewers and have madesincere efforts to incorporate the same. We wouldlike to appreciate the efforts of the editorial board
for working towards the betterment of our Journal.
We hope that our readers would find the blend ofconceptual and application based articles/ casestudies/ research papers valuable enough andintellectually gratifying. We however look forwardto your valuable feedback and constructivesuggestions that would help us in our journeytowards excellence.
Your comments and suggestions are welcome. Youcan reach us at [email protected]
I
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[ 3 ]
Contents
June 2010 Vol. 7 Issue 1
Alarming Attrition Rate in Call Centers and BPO Industry 4 - 24
Is Employer Branding an Influencing Factor for Accepting an Offer? 25 - 35
An Empirical Study: Students Perception on Service Quality Using Malaysian
Hedperf Measurement Scale36 - 54
Global Recession and Microfinance Sector: A Study of Five Large MFIs in India 55 - 67
Employee Engagement @ Indian Retail Industry 68 - 80
Knowledge Transfer by Repatriates for Organizationals Competitive Advantage 81 - 95
A Study on Evaluation of Intrinsic Value of Selected Public Sector Banks in India 96 - 111
Growth of Organized Food Retailing in Punjab: An Exploratory Study 112 - 128
Making Teaching Learning Process More Vibrant for Better Results 129 - 145
Positive Relationship of Foreign Direct Investment and Economic Growth 146 - 159
Pricing of Milk: A Study in Karnataka Milk Federation 160 - 169
A Comparative Study on Financial Performance of Pre and Post Introduction of
Core Banking in Indian Bank and the South Indian Bank170 - 191
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*Lecturer in Commerce, Directorate of Distance Education, Alagappa University, Karaikudi, Tamil Nadu,
India
**Lecturer in Commerce, Sri Krishna Arts & Science College, Coimbatore, Tamil Nadu, India
***Research Scholar, Department of International Business and Commerce, Alagappa University,
Karaikudi, Tamil Nadu, India
[ 4 ] Rai Management Journal
Alarming Attrition Rate in Call Centersand BPO Industry
Introduction
Call Centers and BusinessProcessing Outsourcing (BPOs) arethe new mantras of global businessscenario. They are called sunshineindustries as they provide jobopportunities and generate revenuesin India. Breakthrough
developments in the information
technology, severe globalcompetition, rapid organizational re-structuring, emerging marketeconomies and growing realization ofthe importance of customers haverevolutionized the new businessparadigm.
Outsourcing is the byproduct of this
change. In general, when a company
Call centers and outsourcing have become the main components of globalization and is a result of
unparalleled scientific and technological development throughout the world. Because of the vast
employment opportunities provided by the Call Centres and Business Process Outsourcing (BPO), they are
called the sunshine industries. Today India is the hub of BPO because of the availability of cheap and
qualified workforce, state of the art technology, booming IT and telecommunication sectors and its unique
geographical location. But the alarming rate of employee turnover in the Call Centres and other BPO
sectors has become a stumbling block for the growth of this sector. In India, the average attrition rate in
the BPO sector is approximately 30-35 percent. It is true that this is far less than the prevalent attrition
rate in the US market (around 70 %), but the challenge continues to be greater considering the recent
growth of the industry in the country. Keeping low attrition levels is a major challenge as the demand
outstrips the supply of employees by a big margin. The sample size of 209 employees working in Call
Centres / BPOs, of Coimbatore, have been selected for this study. The objectives of the study are to analyzethe prevailing reasons for increasing attrition rate in BPOs / Call Centers in India, to study the employees
level of satisfaction towards his / her job, work environment, interpersonal relationship and benefits
enjoyed by him / her, to examine employers opinion on the increase in employee attrition rate, to examine
the factors that influence the employees to leave the BPOs / Call centers, to analyze employees perception
towards shift in their jobs and to suggest strategies to control the increasing attrition rate in BPOs / Call
Centre. The major findings of the study are that a majority of employees who have moved from one
company to another company in the field of Call Center / BPO industry belong to the age group of 25-30
years. Lack of safety and more career opportunities elsewhere are the topmost reasons for the employees to
quit their jobs. The main reason why people opt for a job in the Call Centres / BPOs is the compensation
package available. Constructive suggestions including formulation of an effective recruitment and
selection strategy and an integrated performance appraisal and reward system have been highlighted to
reduce the attrition rates with respect to this industry.
Keywords: Globalization, attrition, recruitment and appraisal
Today India is the hub
of BPO because of the
availability of cheap
and qualified workforce,
state of the art
technology, booming ITand telecommunication
sectors and its unique
geographical location.
R. Ganapathi*
S. Anbu Malar**
R. Kanniah***
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[ 5 ]
decides to focus on its core businessand outsource its non-core operations
such as customer care, finance,payment services, human resources,insurance claims etc it is calledbusiness outsourcing.
Of late, BPO has emerged as a popularcompetitive strategy formultinationals in many developingcountries and is creating goodopportunities for the educated,talented, unemployed youth incountries like India and China.Outsourcing broadly refers to the
transfer of an activity or operationand day-to-day management ofbusiness process to an external serviceprovider.
In India, the average attrition rate inthe BPO sector is approximately 30 to35 percent. It is true that this is farless than the prevalent attrition ratein the US market (around 70 %), butthe challenge continues to be greaterconsidering the recent growth of theindustry in the country. The BPOsector is estimated to be somewherearound three decades old. Keeping lowattrition levels is a major challenge asthe demand outstrips the supply ofgood agents by a big margin. Further,the salary growth plan for eachemployee is not well defined. All thisencourages poaching by othercompanies who can offer a highersalary.
Review of Literature
Karthik. D and Rao U. S (2004)identified how companies can addvalue to the existing processes beingoutsourced and be more efficient.Nitin Aggarwal (2005) examined the
key organizational challenge facingthe BPO companies in India. There
was consensus on attrition being theforemost challenge facing the BPOcompanies resulting in more cost ofattrition, recruitment, lostproductivity, training and lostknowledge. Bhaskara Rao V. K (2006)identified how day-by-day BPOindustries are raising all around inIndia. BPO has emerged as a popularcompetitive strategy formultinationals in many developingcountries and are creating goodopportunities for the educated.
Kulkarni P K and Gujarati (2006)examined career opportunities in theBPO industry. They express that BPOindustry offers good money,professional status, job satisfactionand intellectual challenge.Mohammed Ghazi Shahmawaz (2006)specified some occupational stressors;low salary, low time, low normativecommitment, work schedule,relationship etc. in call centres andBPO industries. Adilakhmi P (2006)analyzed segment attrition data,spending time during recruitment,build a value proposition and makeline managers equally responsible.
Abirami Devi and Ranjitham D (2007)identified high attrition rate as thebiggest challenge faced by IT sector.Nayanathara (2007) stated that themulti billion dollar BPO industryracking its brains to solve the crisis, acomplicated one that could prove to bedisastrous in the long run. Brand
building has become the panacea forthe attrition problem. Sanjeev (2008)mentioned that, the daily experienceis of repetitive, intensive and stressfulwork, based upon Taylorist principles,which frequently results in employeeburnout.
In India, the average
attrition rate in the
BPO sector is
approximately 30 to
35 percent.
June 2010 Vol. 7 Issue 1
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The present study is new of its kind inthis region and has revealed a
number of factors which determineand govern the attrition rate invarious BPO centers.
Objectives of the Study
The following are the objectives of thestudy:
1. To review theoretically theproblems of attrition in BPO firmsand Call centres.
2. To analyze the relationshipbetween personal factors andlevel of satisfaction of therespondents.
3. To analyze the correlationbetween job factors andperception of the employees
4. To offer suggestions forminimizing the attrition rate inBPO firms and Call centres.
Research Methodology
In line with the objectives, thisresearch is empirical and descriptivein nature as it is aimed to find out thereasons and the causes for theincreasing attrition rate in CallCentres / BPOs. The sample size forthe study is 209 respondents fromBPO and Call centre employees. The
study was conducted in Coimbatore
district of Tamil Nadu. Coimbatore,an important industrial center, and
seen as tire II city by various IT /BPO Industries. A number ofprestigious IT units have alreadyestablished their foot prints in thecity. Under the initiative of theGovernment of Tamil Nadu, a tidalpark is coming up in the city, which incoming years, promises to make theCoimbatore city, an important IT hubin the country.
The study being empirical in naturewould require immense database and
therefore the analysis is based onprimary as well as secondary datacollected. Questionnaire is used forcollecting data from Call Center /BPO employers and employees.Interview schedules are used as aprimary data tool. The secondary datasources include published books,articles, newspapers, and reports ofthe various consultancy firms,published and unpublished researchwork of various institutions. Inconducting this study, a sample unitwas selected from Coimbatore CallCenters / BPO Industries and theinformation was obtained from 209employees. Statistical tools such asMeasures of Dispersion, StandardDeviation, Co-efficient of Variance,
Arithmetic Mean, Rank Order,Likerts Scaling Technique, Chi-square Test, ContingencyCo-efficient, Factor Analysis andSpecimens RHO and t test were usedin the study. The period of the study
was from January 2009 to July 2009.
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Analysis and Interpretationof the Data
The results of the analysis of thecollected data are presented in table 1
The majority of the respondents i.e.43.54% have joined for good salary37.32% have joined for Bright Career
Prospects, 15.31% have joined becausethey liked the working environment,
2.39% have joined as part time shiftand the rest of respondents i.e. 1.44%have joined for the reasons of makeshift job. Thus, it is inferred thatmajority of the respondents i.e,.43.54% have joined Call Center / BPOIndustry for good salary.
Sl.No. Reasons Number ofRespondents Percentage
1. Good salary 91 43.54
2. Working environment 32 15.31
3. Bright career Prospects 78 37.32
4. Part time job 5 2.39
5. Make shift job 3 1.44
TOTAL 209 100
Table 1: Reasons Stated For Joining A Call Center / BPO Job
Source: Primary Data
Table 2: Gender and Level of Satisfaction Towards Attrition Rate
Gender and Level of Satisfaction Towards Attrition Rate
Source: Primary Data
Factor Calculated 2 Value Table Value Degree of freedom Remarks
Gender 0.477 5.991 2 Not Significant
Sl. No. GENDER LEVEL OF SATISFACTIONTOTAL
LOW MEDIUM HIGH
1. Male27
(58.7)
55
(55.6)
39
(60.9)121
2. Female19
(41.3)
44
(44.4)
25
(39.1)88
TOTAL 46 99 64 209
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The result of the chi square test intable 2 indicates that the calculated
value (0.477) is less than the tablevalue (5.991) at 5 per cent level ofsignificance for 2 degrees of freedom.Hence the null hypothesis is accepted.The association between the gender of
the respondents and their level ofsatisfaction towards attrition rate is
not significant. It can be concludedthat the association between thegender of the respondents and theirlevel of satisfaction towards attritionrate is not significant.
Table 3:Age and Level of Satisfaction Towards Attrition Rate
Source: Primary Data
Sl. No. GENDER LEVEL OF SATISFACTION TOTALLOW MEDIUM HIGH
1. Below 30 years12
(26.1)
47
(47.5)
59
(92.2)118
2. 31 - 40 years29
(63.0)
28
(28.3)
3
(4.7)60
3. Above 40 years5
(10.9)
24
(24.2)
2
(3.1)31
TOTAL 46 99 64 209
Age and Level of Satisfaction Towards Attrition Rate
Factor Calculated 2 Value Table Value Degree of freedom Remarks
Age 67.472 9.488 4 Significant at5% level
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The result of the chi square test intable 3 indicates that the calculated
value (67.472) is greater than thetable value (9.488) at 5 per cent levelof significance for 4 degree of freedom.Hence the null hypothesis is rejected.The association between the age groupof the respondents and their level ofsatisfaction towards attrition rate issignificant. It can, therefore beconcluded that the associationbetween the two is significant.
The result of the chi square test intable 4 indicates that the calculated
value (51.027) is greater than thetable value (9.488) at 5 per cent levelof significance for 4 degree of freedom.Hence, the null hypothesis is rejected.The association between theeducational status of the respondentsand their level of satisfaction towardsattrition rate is significant. It can,therefore, be concluded that theassociation between the two issignificant.
Table 4: Educational Status and Level of Satisfaction Towards Attrition Rate
Source: Primary Data
Sl. No. GENDER LEVEL OF SATISFACTIONTOTAL
LOW MEDIUM HIGH
1. Graduates14
(30.4)
63
(63.6)
28
(43.8)105
2. Post Graduates13
(28.3)
23
(23.2)
36
(56.3)72
3. Diploma
19
(41.3)
13
(13.1) 0 32
TOTAL 46 99 64 209
Educational Status and Level of Satisfaction Towards Attrition Rate
Factor Calculated2 Value Table Value
Degree offreedom Remarks
EducationalQualification
51.027 9.488 4 Significant at5% level
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[ 10 ] Rai Management Journal
The result of the chi-square test intable 5 indicates that the calculatedvalue (51.315) is greater than thetable value (9.488) at 5 per cent levelof significance for 4 degree of freedom.Hence the null hypothesis is rejected.
The association between the MonthlyIncome of the respondents and theirlevel of satisfaction towards attritionrate is significant. It can, therefore, beconcluded that the associationbetween the two is significant.
Table 5: Monthly Income and Level of Satisfaction Towards Attrition Rate
Source: Primary Data
Sl. No. GENDER LEVEL OF SATISFACTION TOTALLOW MEDIUM HIGH
1. BelowRs.10000
5
(10.9)
11
(11.1)
35
(54.7)51
2. Rs.10001 to20000
36
(78.3)
67
(67.7)
18
(28.1)121
3. AboveRs.20000
5
(10.9)
21
(21.2)
11
(17.2)37
TOTAL 46 99 64 209
Educational Status and Level of Satisfaction Towards Attrition Rate
Factor Calculated2 Value Table Value
Degree offreedom Remarks
Monthly Income 51.315 9.488 4 Significant at5% level
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[ 11 ]June 2010 Vol. 7 Issue 1
From table 6 it is clear that themajority of the respondents i.e. 38.28have attributed Good Command overEnglish as the most important jobrequirement in Call Centres / BPOs.
The second place goes to MarketingSkills / Responding Skills. Then the3rd rank has been assigned tolistening skills and 4th rank to
Analytical Skills / Understanding
Skills. 5th and 6th ranks have beengiven to Phone Etiquette andKnowledge of consumer / Customerbehavior respectively. And the lastplace has gone to computer Literacy.
Thus, it is inferred that the majority ofthe respondents rank have chosenGood Command over English as themost important job requirement in thefield of Call Centers / BPO industry.
Source: Primary Data
Table 6: Educational Status and Level of Satisfaction Towards Attrition Rate
Sl.No. Particulars
VeryHigh High
Neutral Low
VeryLow Total Mean Rank
1 Good Commandover English
80
(38.28)
118
(56.46)
10
(4.78)
1
(0.48)- 904 4.33 1
2 Marketing Skills /Responding Skills
24
(11.48)
118
(56.46)
59
(28.23)
8
(3.83)- 825 3.95 2
3 Listening Skills51
(24.40)
99
(47.37)
54
(25.84)
5
(2.39)- 823 3.94 3
4Analytical Skills /
Understandingskills
38
(18.18)
112
(53.59)
51
(24.40)
8
(3.83)- 807 3.86 4
5 Phone Etiquette43
(20.58)
102
(48.80)
59
(28.23)
5
(2.3)- 810 3.87 5
6Knowledge of
consumer /customer behavior
32
(15.31)
97
(46.41)
72
(34.45)
5
(2.39)
3
(1.44)777 3.72 6
7 Computer Literacy11
(5.26)
126
(60.29)
54
(25.84)
10
(4.78)
8
(3.83)749 3.56 7
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[ 12 ] Rai Management Journal
From table 7 it is clear that themajority of the surveyed respondentshave perceived that their personalinterests have an important effect onthe quality of their job. Freedom todecide and suggest has been rankedthe second and the belief that they arecapable to do more challenging jobhas been assigned the 3rd place in the
perception of the respondents. Andthe rest of the respondents haveperceived that they are overburdenedin their job. Thus, it is observed thatthe majority of the respondents haveperceived that their personalinterests have an important effect onthe quality of their job in the CallCenters / BPO industry.
Table 7: Employees Level of Satisfaction Towards Job, Working Environmentand Working Culture in General
Sl.No. Particulars
HighlySatisfied
Satisfied
Neutral
Dissatisfied
HighlyDissatisfied Total Mean Rank
1 Job60
(28.71)
55
(26.32)
44
(21.05)
40
(19.14)
10
(4.78)742 3.55 1
2Working
Environment
32
(15.31)
57
(27.27)
72
(34.45)
25
(11.96)
23
(11.00)677 3.23 2
3
WorkingCulture in
theOrganizatio
n
27
(12.92)
25
(11.96)
52
(24.88)
60
(28.71)
45
(21.53) 556 2.66 3
Source: Primary Data
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From table 8 it is clear that themajority of the surveyed respondentshave perceived that their personalinterests have an important effect onthe quality of their job. Freedom todecide and suggest has been rankedthe second and the belief that they arecapable to do more challenging job hasbeen assigned the 3rd place in the
perception of the respondents. And therest of the respondents have perceivedthat they are overburdened in their
job. Thus, it is observed that themajority of the respondents haveperceived that their personal interestshave an important effect on thequality of their job in the Call Centers/ BPO industry.
June 2010 Vol. 7 Issue 1
Table 8: Employees Level of Perception Towards the Job
Sl.No. Particulars VeryHigh High Neutral Low VeryLow Total Mean Rank
1
Personal interesthas an important
effect on thequality of the job
51
(24.40)
99
(47.37)
54
(25.83)
5
(2.39)- 823 3.93 1
2 Freedom to decideand suggest
43
(20.57)
102
(48.80)
59
(28.23)
5
(2.39)- 810 3.88 2
3Capable to do
more challengingjob
37
(17.70)
113
(54.07)
51
(24.40)
8
(3.83)- 806 3.86 3
4 Overburdened inthe job
24
(11.48)
118
(56.46)
59
(28.23)
8
(3.83)- 785 3.76 4
Source: Primary Data
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[ 14 ] Rai Management Journal
Table 9 deals with the respondentsperception about their superiors.Majority of the surveyed respondentsi.e. 19.15 % perceive their superiors tobe egoistic. 15.79% of the respondentsfeel that the superiors behave morelike a boss than a leader. While 11%of the respondents think that their
superiors are biased, 8.13% opine thattheir superiors treat them fairly.Only 3.83% of the respondentsperceive their superiors to be effectivemanagers. Thus, it is found that themajority of the respondents view theirsuperiors to have ego problem.
Table 9: Employees Level of Perception Towards Superior SubordinateRelationship
Table 10: Srearmans Rank Order Correlation Co-Efficient (Rho)
Correlation between Employees relationship with superior and colleagues
Sl.No.
Level ofPerception Strongly
AgreeAgree Neutral
Disagree
Strongly
Disagree
Total Mean Rank
1 Superior has selfego problem
40
(19.15)
42
(20.09)
42
20.09)
52
(24.88)
33
(15.79)631 3.02 1
2Superior is morea BOSS than a
leader
33
(15.79)
38
(18.18)
52
(24.88)
38
(18.18)
48
(22.97)597 2.86 2
3 Superior is biased 23(11.00)
23(11.00)
73(34.93)
45(21.53)
45(21.53)
561 2.65 3
4 Superior treatsfairly
17
(8.13)
15
(7.18)
33
(15.79)
96
(45.93)
48
(22.97)484 2.31 4
5 Superior is aneffective manager
8
(3.83)
10
(4.78)
40
(19.14)
79
(37.80)
72
(34.45)430 2.06 5
Source: Primary Data
Source: Calculated from Primary Data
R R2 CalculatedValue of tTable Value of
tLevel of
Significance
0.50 0.25 1 2.776 5 per cent
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In table 10 the calculated correlationvalue R is 0.50 and R2 is 0.25. The
calculated value of t is 1 at 5 percentlevel of significance which is greaterthan the table value of 2.776, thus the
hypothesis framed is accepted. Thus itis calculated that the relationship
with the superior and colleagues is animportant factor resulting in quitingthe Call Center / BPO jobs.
June 2010 Vol. 7 Issue 1
Table 11: Level of Satisfaction Towards Benefits Provided by Employer
Source: Primary Data
Sl.No.
Level ofSatisfaction
HighlySatisfied
Satisfied
Neutral
Dissatisfied
HighlyDissatisfied Total Mean Rank
1Number of
days ofvacation
54
(25.83)
29
(13.88)
52
(24.88)
46
(22.01)
28
(13.40) 662 3.17 1
2 Sick leavepolicy
40
(19.14)
38
(18.18)
48
(22.97)
45
(21.53)
38
(18.18)624 2.99 2
3Leavetravel
allowances
44
(21.05)
29
(13.88)
44
(21.05)
50
(23.92)
42
(20.09)610 2.92 3
4 Paid leavepolicy
40
(19.14)
21
(10.05)
46
(22.01)
65
(31.10)
37
(17.70)
589 2.81 4
5 Health carebenefits
28
(13.40)
42
(20.09)
46
(22.01)
48
(22.97)
45
(21.53)587 2.79 5
6 Insurancebenefits
19
(9.09)
44
(21.05)
40
(19.14)
60
(28.71)
46
(22.01)557 2.66 6
7ProvidentFund andGratuity
19
(9.09)
44
(21.05)
40
(19.14)
60
(28.71)
46
(22.01)557 2.66 7
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[ 16 ] Rai Management Journal
From table 11 it is clear that themajority of the respondents i.e.
25.83% are satisfied with the numberof days of vacation available in thisfield. The next compensation factorgiving them satisfaction is theemployee sick leave policy followed byleave travel allowances paid to them.The next two factors giving themsatisfaction are paid leave facility and
health care benefits. Provident Fundand Gratuity and Insurance benefits
are the last compensation factors thatmake the employees happy. Thus, it isfound that the majority of therespondents rank the number of daysof vacation provided to them in thefield of Call Centre / BPO Industry asthe first compensation factor thatsatisfies them.
Table 12: Level of Satisfaction Towards Reward and Recognition ProgrammesPracticed in Call Center / BPO Firms
Sl.
No Rewards
Level of satisfaction
Total Mean RankHighlySatisfied Satisfied Neutral Dissatisfied HighlyDissatisfied
1 Incentivesand Awards
94
(44.98)
29
(13.88)
50
(23.92)
21
(10.05)
15
(7.17)793 3.79 1
2 Organization Awards
21
(10.05)
64
(30.62)
51
(24.40)
67
(32.06)
6
(2.87)654 3.13 2
3
Outing forDe-
stressingand TeamBuilding
19
(9.09)
70
(33.49)
35
(16.75)
59
(28.23)
26
(12.44)624 2.99 3
4Free
MedicalAdvice
11
(5.26)
48
(22.97)
51
(24.40)
86
(41.15)
13
(6.22)585 2.80 4
5 Family Day11
(5.26)
27
(12.92)
75
(35.89)
80
(38.27)
16
(7.66)564 2.69 5
6Club
Membership
5
(2.39)
35
(16.75)
88
(42.11)
51
(24.40)
30
(14.35)561 2.68 6
7Fully paidoverseas
trip
19
(9.09)
43
(20.57)
32
(15.31)
67
(32.06)
48
(22.97)
545 2.60 7
8 Freebies3
(1.44)
38
(18.18)
64
(30.62)
77
(36.84)
27
(12.92)540 2.58 8
Source: Primary Data
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[ 17 ]
From table 12 it is clear that themajority of the respondents have
expressed highest level of satisfactiontowards incentives and awards. Theyhave assigned the second place toorganization awards, third place toouting for de-stressing and teambuilding and fourth place to freemedical advice. Celebration of family
day enjoys the fifth place and clubmembership the sixth place. Fully
paid overseas trips and freebies enjoythe last two positions. Thus, it is foundthat the majority of the respondentshave expressed highest level ofsatisfaction towards incentives andawards given in the Call Centre / BPOfirms.
June 2010 Vol. 7 Issue 1
Table 13: Employees Level of Satisfaction Towards Fringe Benefits in CallCenter / BPO Industry
Sl.No
FringeBenefits
Level of satisfactionTotal Mean RankHighly
Satisfied
Satisfie
d
Neutra
l
Dissati
sfied
Highly
Dissatisfied
1Food
facilities Canteen
27
(12.92)
126
(60.28)
54
(25.84)
2
(0.96)- 805 3.85 1
2Transportat
ionAllowances
8
(3.83)
102
(48.82)
59
(28.23)
40
(19.14)- 705 3.37 2
3 Sick leavepolicy
3
(1.44)
64
(30.62)
64
(30.62)
72
(34.45)
6
(2.87)613 2.93 3
4Mediclaim,
LIC etc.
10
(4.78)
46
(22.01)
46
(22.01)
86
(41.15)
21
(10.05) 565 2.70 4
5Any health
careallowance
3
(1.44)
40
(19.14)
72
(34.45)
88
(42.10)
6
(2.87)573 2.69 5
6 Retirementprogramme
13
(6.22)
24
(11.48)
67
(32.06)
75
(35.89)
30
(14.35)542 2.59 6
7 Any paidleave policy
8
(3.83)
35
(16.75)
56
(26.79)
80
(38.28)
30
(14.35)538 2.57 7
8 Visioncoverage3
(1.44)
43
(20.57)
48
(22.97)
88
(42.10)
27
(12.02)534 2.55 8
Source: Primary Data
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[ 18 ] Rai Management Journal
From table 13 it is clear that themajority of the surveyed respondents
have expressed highest level ofsatisfaction about the food facilitiesoffered in the Call Centres / BPOindustry which is followed bytransportation allowances. The thirdand fourth places go to sick leavepolicy and mediclaim, LIC etcrespectively. The fifth most satisfying
factor is health care allowances,followed by retirement programme.
The last two items are paid leavepolicy and employee vision coverage.It is, thus seen that the majority ofthe surveyed respondents, haveexpressed highest level of satisfactionabout the food facilities offered in theCall Centres / BPO industry.
Table 14: Level of Satisfaction Towards Employee Development Programmes
Sl.No
Development
Programmes
Level of satisfactionTotal Mean RankHighly
SatisfiedSatisfie
dNeutra
lDissatisfied
HighlyDissatisfied
1
Highereducationand skill
development
opportunity
18
(15.65)
58
(50.43)
32
(27.83)
7
(6.07)- 432 3.76 1
2Job in the
field ofinterest
16
(13.91)
68
(59.13)
24
(20.87)
2
(1.74)
2
(1.74)430 3.74 2
3 Good salary12
(10.43)
62
(53.11)
40
(34.78)
2
(1.74)
- 432 3.76 3
4 Betteropportunity
9
(7.82)
59
(51.30)
39
(33.91)
5
(2.56)
6
(5.22)410 3.57 4
5 Careercounseling
6
(5.22)
63
(54.78)
39
(33.93)
4
(3.48)
3
(2.61)410 3.57 5
6Foreign
assignments providing
2
(1.74)
61
(53.14)
44
(38.26)
7
(6.07)
2
(1.74)402 3.50 6
7
Assessmenttechniqueprovided by
thisorganizatio
n
6
(5.22)
43
(37.39)
57
(49.57)
9
(7.82)- 391 3.40 7
Source: Primary Data
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[ 19 ]
From table 14 it is clear that amongthe respondents, best choice of the
development opportunities that areprovided in the Call Centres / BPO, itis the facility for higher education andskill development which is followed bythe opportunity to work in the field oftheir choice. The third place goes togood salary and the fourth place tocareer counseling and better
opportunity. Foreign assignmentsoccupy the fifth place which is
followed by assessment technique.Thus, it is found that the respondentsbest choice of the developmentopportunities that are provided in theCall Centers / BPO is the facility forhigher education and skilldevelopment.
From table 15 it is clear that themajority of the respondents haveexpressed highest level of satisfactiontowards the on-the-job trainingprovided to them in this industry. Thesecond and third positions go tocommunication training and team
building games respectively. Thus, itis seen that the majority of therespondents have expressed highestlevel of satisfaction towards the on-the-job training provided to them inthe Call centers / BPO industry.
June 2010 Vol. 7 Issue 1
Source: Primary Data
Table 15: Level of Satisfaction Towards Training Programmes
Sl.No
Training
Programmes
Level of satisfaction
Total Mean RankHighlySatisfied
Satisfied
Neutral
Dissatisfied
HighlyDissatisfied
1 On the jobtraining
29
(13.88)
108
(51.67)
72
(34.45)- - 793 3.79 1
2Communica
tiontraining
24
(11.48)
91
(43.54)
67
(32.06)
24
(11.53)
3
(1.48)764 3.66 2
3
Teambuildinggames
session
21
(10.05)
75
(35.89)
59
(28.23)
38
(18.18)
16
(7.65)
674 3.22 3
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[ 20 ] Rai Management Journal
Table 16: Influences of Various Factors on Increasing Employee Attrition Rate
Sl.No Factors
Level of satisfaction
Total Mean RankVeryHigh High Neutral Low Very Low
1
Lack ofcareer
opportunities
84
(40.19)
90
(43.06)
10
(4.78)
22
(10.52)
3
(1.28)857 4.10 1
2 Healthissues
30
(14.35)
99
(47.37)
75
(35.89)
5
(2.39)- 781 3.74 2
3
No propercommunica
tionchannels
establishedin the
company
26
(12.55)
102
(48.80)
59
(28.23)
11
(5.26)
11
(5.26)748 3.58 3
4Poor
promotionpolicies
53
(25.36)
70
(33.49)
36
(17.22)
17
(8.13)
33
(15.79)720 3.44 4
5
Inadequatecompensati
on andbenefits
72
(34.44)
41
(19.61)
28
(13.39)
36
(17.22)
32
(15.31) 712 3.40 5
6 Poor salary21
(10.05)
54
(25.84)
113
(53.07)
16
(7.65)
5
(2.39)697 3.33 6
7
Unnecessary inferenceof superior
in theemployees
work
48
(22.97)
60
(28.71)
24
(11.48)
21
(10.05)
21
(10.05)650 3.11 7
Source: Primary Data
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[ 21 ]
From table 16 it is clear that themajority of the surveyed respondents
rank the Lack of Career Opportunitiesas the first main factor influencing theincreasing Employees Attrition Rate.The second and third place goes tohealth issues and impropercommunication channels establishedin the company. Poor PromotionPolicies and inadequate compensationand benefits have been assigned thefourth and fifth places. The sixth placegoes to poor salary and the seventhplace to unnecessary interference ofsuperior in the employees working.
Thus, it is seen that the majority ofthe respondents feel that the lack ofcareer opportunities is the first mainfactor influencing the increasedemployees attrition rate in the CallCentre / BPO firms.
FINDINGS
1. Majority of the respondents i.e.43.54% have joined Call centre /BPO for good salary package.
2. The association between thegender of the respondents andtheir level of satisfaction towardsattrition rate is not significant.
3. The association between the agegroup of the respondents and theirlevel of satisfaction towardsattrition rate is significant.
4. The association between theeducational status of therespondents and their level ofsatisfaction towards attrition rateis significant.
5. The association between theMonthly Income of the
respondents and their level ofsatisfaction towards attrition rateis significant.
6. Majority of the respondents i.e.38.28% have attributed GoodCommand over English as themost important job requirement inCall Centres / BPOs.
7. Majority of the surveyedrespondents have expressedhighest level of satisfaction with
their job followed by high level ofsatisfaction with the workingenvironment.
8. Majority of the surveyedrespondents have perceived thattheir personal interests have animportant effect on the quality oftheir job.
9. Majority of the surveyedrespondents i.e. 19.15 % perceivetheir superiors to be egoistic.
10. Majority of the respondents i.e.25.83% are satisfied with thenumber of days of vacationavailable in this field.
11. Majority of the respondents haveexpressed highest level ofsatisfaction towards incentivesand awards.
12. Majority of the respondents
surveyed have expressed highestlevel of satisfaction about the foodfacilities offered in the CallCentres / BPO industry.
13. Among the respondents best
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[ 22 ] Rai Management Journal
choice of the developmentopportunities that are provided in
the Call Centres / BPO, it is thefacility for higher education andskill development.
14. Majority of the respondents haveexpressed highest level ofsatisfaction towards the on-the-
job training provided to them inthis industry.
15. Majority of the surveyedrespondents rank, Lack of CareerOpportunities as the first main
factor influencing the increasingEmployees Attrition Rate.
SUGGESTIONS
1. The age at which employees jointhe Call Centers / BPO industrieshas a positive effect on theaverage tenure of employees in anorganization. Employees taken inat a comparatively lower age havea higher propensity to leave the
job. It, therefore, requires aneffective recruitment andselection strategy. Then, thereshould be an integratedperformance appraisal andreward system which shouldinclude proper recognition andreward devices and counselingand feed back arrangements toeffectively curtail the increasingattrition rate in the Call Centers /BPO industry.
2. A very good command overEnglish language is the main skillrequired. Freshers have toundergo intense training to makethem suitable for the job.
3. Most BPO firms will have to lookto add value to the customers
processes thereby climbing up thevalue chain.
4. A detailed analysis of strengths,weaknesses, opportunities andthreats are required beforeentering value added segments.
5. It is not enough to just scaletechnology solutions, rather skill,efficiency and domain expertisemust become an integral part of acompanys strategy, and
organizational functions andprocesses must be adapted tocomplement the IT up gradation.
6. To reduce location risks firmsmust establish business centersin different locations in thecountry.
7. World-class certification is arequirement to prove a firmscredibility which will help toretain the existing employees.
8. Customers must take anintegrated approach to BusinessProcess Outsourcing and seek re-engineered processes from theiroutsourcing firms. BPO mustreduce complexity and increasevelocity.
9. Call centers can curb attrition byoffering a better workingcondition in the work place.
10. Employers should concentrate onleadership and brand building aspeople prefer to be associatedwith a brand. Respect should becreated for the job.
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[ 23 ]
The growth of
ITES and BPO
companies is
enormous; they
provide substantial
employmentopportunities.
Though the attrition
rate is not very high
in India as
compared to US,
even if one employee
leaves the
organization, it
causes substantial
loss to the company.
11. Job rotation and part-timetraining programme should be
offered to make the employeesskilled in the particular work.
12. Jobs of executives should berotated from voice to non-voice. Asignificant amount of valueaddition must be introduced andincluded.
CONCLUSION
Call centre is the latest buzzword on
the Indian business scenario. Its eco-nomic rationale is well established butpeople off late have started question-ing its human implications. Thegrowth of ITES and BPO companies isenormous; they provide substantialemployment opportunities. Thoughthe attrition rate is not very high inIndia as compared to US, even if oneemployee leaves the organization, itcauses substantial loss to the companyas discussed earlier. This means, thecompany needs to solve this problemby adopting a suitable strategy toreduce attrition rate in future.
Human Resource practices play a vitalrole in the organization. The mainfunction of the HR is to find the rightperson, for the right job at the righttime. But, it is very difficult to find theperson who can stay with theorganization for a long time especiallyin ITES and BPO companies. There isa need to identify the people with a
mind-set who would stick with theorganization for a long period. Theymust adopt the best HR practiceswhich help to identify the right
persons and also help to retain themin the organization.
They must provide better welfarefacilities like housing, transport,medical, insurance, recreation,canteen, etc. to meet their needs.Since many organizations providethese benefits, they must focus on thespecific needs or desires of theemployees and try to satisfy them asmuch as possible. Diversification interms of age, experience, qualification,family background, culture etc, bringsmore innovativeness to the
organization. The company couldprovide employment to the categorieslike physically challenged people,youngsters from rural areas,housewives, etc.
BPO is likely to continue under allkinds of circumstances. Thecompanies around the world havebecome habitual in moving their BPOwork to India. The future of BPOindustry appears to be bright andshining. BPO has been in greatdemand in India because of low costsand educated workforce. The BPOCompanys reward and recognitionprogrammes have become the trend-setters in setting new ways andschemes to retain the employees. Inthis background, the supply of jobs ishigher than the demand and thusattrition is rampant, as people look forhigher pay packages, better lifestyleand convenient work timings. As such,the BPO companies are expected to
continuously innovate their rewardand recognition programs to keeptheir professionals on their rolls andto attract prospective employees.
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[ 24 ] Rai Management Journal
References
Abirami Devi K and Ranjitham D,Attrition Rate way to control, MBA Review
Vol. VI, Issues II, February 2007.
Adilakshmi P, Employee Attrition Critical
Issues HRD Times, Vol.11, No.7,
September 2006, pp.11-13.
Ananthan K, IT Destination Nest
Accenture BPO in Emerging Markets: Boom
Time, June 2006.
Babu P. Ramesh (2004), Cyber coolies in
BPO insecurities and Vulnerabilities of Non
standard Work, Economic and Political
Weekly, January, p. 492.
Baskara Rao. V. K Growth of BPO and
Call Centers in India, HRD Times, April
2006, Vol. 8, No.4, pp.14-15.
Catriona M. Wallace (2000), The
Sacrificial HR Strategy in Call Centers,
International Journal of Service Industry
Management, 2000, Vol. 11, No. 2, pp. 174-
185.
Gopala Krishna Chitta, BPO: Driving
Shift in Business Module, Prajnan, Vol.
XXXIII, No. 3, 2004-05.
Karthik. D and Rao U. S, (2004),
Strategies for entering high value added
BPO services, IBAT Journal of
Management, Vol. 1, No. 1, January 2004,
pp. 157 168.
Kipins. D (1976) The power holders
(Chicago: University of Chicago Press,
1976)
Kothari C. R, Research Methodology,
Wishua Prakashan, New Delhi, 2008.
Kulakarni P. K and Gujarati, Career
opportunities in BPO, MBA Review Vol. V,
No. VIII, August 2006.
Mohammed Ghazi Shahnawaz
Occupational stress in call centers Myth orReality, Abhigyam, Vol. XXIV, No.3,
October December 2006, pp. 30-38.
NASSCOMS featured article, Can BPOs
handle the challenge? August 06, 2002.
NASSCOM, ITES-BPO forum, Super Nine-
Indian, ITES Destinations, August 06,
2002.
NASSCOM finding, Attrition in IndianBPO Industry, September 2004.
NASSCOM, Shades of Ancient Rome in
Call Centers, 2006.
Nayanathara (2007), Indian BPO
industry, Chille Breeze, July 2007.
Nitin Aggarwal (2005), Making the right
call Managing Attrition in BPO
companies, Indian Management, December
2005, Vol.44, Issue. 12, pp. 40-42.
Prasad Unawane, Call Center in India -
Call Center Industry in India, January 23,
2008.
Raman R. The BPO Revolution; Strategies
to control high rate of attrition Udyog
Pragati, Oct-Dec.2004, Vol.28, No.4.
Sanjeev (2008), Stress, Human Issues in
Call Centers and BPO industry, January
2008.
Scalem M and Adarsh Ravichandranathan,
Managing attrition in the BPO industry;
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Dec. 2005.
Tripathi P. C, Personnel Management and
Industrial Relations, Sultan Chand &Sons, New Delhi.
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Zigon J (1994), Making performance
appraisal work for teams Training, June
1994, pp. 58-63.
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[ 25 ]
Is Employer Branding an InfluencingFactor for Accepting an Offer?
L. Gandhi*
K. Senthil Kumar**
Introduction
Employer branding is defined as theimage of the organization as a greatplace to work in the minds of currentemployees and key stakeholders in theexternal market (active and passivecandidates, clients, customers andother key stakeholders). Employerbranding is an effective tool for anyemployee. The study is conducted toknow how far the employees considerthe employer branding as a factor foraccepting employment and otherwise.The term simply signifies the image ofthe organization in the minds of theemployees. The opinion of theemployees, its stakeholders and thecustomers towards the organization is
what is observed in this particularstudy. Some of the views of the expertsin this regard are as follows:
According to Goutam Sinha, CEO,TVS Infotech, employees who arein the industry for 3-4 years,brand is the first priority, forthose who have spent 5 years inany industry the job role isimportant and for those with 10years behind them the job rolebecomes the critical factor.
According to Sasken, People firstpolicy is given primaryimportance. According to Fedexpeople - service - profit is the corepolicy which communicates to usthe order of the preference inframing policies.
Bill Marriott of Marriott Hotels,
believes that one should "take careof the associates, and they'll takegood care of the guests, and the
*Lecturer, Guruvayurappan Institute of Management, Coimbatore, Tamil Nadu, India
**Research Scholar, Department of Commerce, Periyar University, Salem, Tamil Nadu, India
Employer branding
is defined as the
image of the
organization as a
great place to work
in the minds of
current employees
and key stakeholders
in the external
market
June 2010 Vol. 7 Issue 1
Employer branding simply signifies the image of the organization in the minds of the employees. This
study observes the opinion of the employees, its stakeholders and the customers towards the organization
and also evaluates the parameters which are being considered by the employees to accept a job offer. The
various factors that the employees take into account include employment package, environment, brand
image and personal factors. The study also focuses on the influence of branding and non branding factors
on the employees. The importance of employer branding is significantly increasing, since the talent
enriched workforces expectations in terms of reputation and image of the company as well as the package
are steadily increasing in recent days. In todays era the emphasis is on policies that are employer friendly
and strategies that can retain them. Employer branding is the process of creating an identity andmanaging the companys image in its role as an employer.
Keywords:Branding, stakeholders and company image
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An organizationmust adopt a
concerted and focused
approach to building
and maintaining its
reputation as a Best
Workplace and
constantly work
towards reinforcingthis branding
through continuous
exercises.
[ 26 ] Rai Management Journal
guests will come back." Thereforeit is believed that if the company
takes care of people, people willtake care of the company.
D K Srivastava, Vice President,HR at HCL Comnet says, It issaid that an unsatisfied customertells ten people about hisexperience while an unsatisfiedemployee tells a hundred.Employer branding reflects thework culture in an organization.Therefore, it is of muchsignificance. Through right
branding, the company canrecruit the best talent andreinforce its positioning amongstits employees. Srivastava evensaid that we expect to see moreinnovation within organizationsto improve our corporate image.Training programmes,motivational classes, employeecareer plans have become acommon phenomenon now a days.What organizations would beaiming towards is not employeesatisfaction but employeedelight! He further said, Ibelieve that the most credibleforms of communication are notthe ads, literature and websites,but the behaviour of ones ownemployees and accounts of theirown work experience.
Commenting on the changingscenario, Arun Tadanki, the chiefexecutive officer of
Monsterindia.com, says, Tillrecently, employment ads werejust showing the job description ofthe vacancy. The focus in the lasttwo-three years has shifted and islargely driven by the IT & ITESemployers, to create a powerful
image for the organization as adream place to work.
Pramode Sadarjoshi, Director,Human Resources, CognizantTechnology Solutions, points outthat employer branding is not aneasy task as it is a long-termprocess. It takes tremendouseffort and a strategic blend oflogic and intuition in the brand-building exercise. The companyhas to have superior leadership,operational excellence, customerfocus and most importantly
people-orientation in a genuineway, for the branding exercise tobe successful.
R Shekar, Senior Vice Presidentand Head HR, Corporate Strategyand Business Excellence ofPolaris Software says, Anorganization must adopt aconcerted and focused approach tobuilding and maintaining itsreputation as a Best Workplaceand constantly work towardsreinforcing this branding throughcontinuous exercises.
The above citations indicate theefforts taken by the organizations tobuild their brands in the changingscenario. The study is undertakenwith a view to evaluate theparameters that are more significantto accept the employment. Theparameters which are beingconsidered to accept an offer by the
employees are employment package,culture & environment, brand image,management performance, personalfactors, economical environment,financial requirements etc. The studyfocuses on the influential nature ofbranding factors such as package
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[ 27 ]
image Vs non branding factors such asgeographical convenience and limited
job opportunities etc.
Literature review
Simon Barrow, Chairman, People inBusiness, is the pioneer in employerbranding researchers. According tohim, bringing the best brand to peopleat work has mentioned theimperatives of employer branding onthe following four parameters:
I. Employment package
II. Management performance
III. Brand Image
IV. Culture & Environnent
Personal factors are some of the otherfactors that influence employees to
accept an offer.
According to Indranil Banerjee,Manager, West Bengal ElectricityDistribution co. ltd., Kolkata theemployer branding tools is:
i. internal benchmarks
ii. current management practices
iii. great place to work
iv. competitors branding strategies
v. contribution in literature forums
The literature facilitates employerbranding and its importance. Thestudy concentrates more on theinfluential nature of employer
The employer branding factors are stated below
(Source: www.sitehr.com)
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There are thirteenvariables to evaluate
influence of
employer branding
like Vision and size
of the company,
leadership, package,
management
performance,transparency in the
system are used in
the questionnaire for
assessment.
branding with reference to acceptingthe offer.
Objectives:
(i) The study is made to assess theinfluence of employer brand as akey factor for an employee toselect his employer.
(ii) The study is also extended toknow the other factors whichinfluence the employee to acceptan offer.
Hypothesis:
Null Hypothesis: H0: The influence ofboth the branding factors and non-branding factors are equal 1=2
Alternative Hypothesis H1: TheInfluence of the branding factors aregreater than the non branding factorsi.e. 1 is greater than 2
Alternative Hypothesis H2: TheInfluence of the non branding factorsare greater than the branding factors2 is greater than 1
Research Methodology
A questionnaire was prepared toassess the factors which influence anemployee to accept the offer. Thebranding and non-branding factors
were sourced from the referencesmentioned above. There are thirteenvariables to evaluate influence ofemployer branding like Vision andsize of the company, leadership,package, management performance,
transparency in the system are usedin the questionnaire for assessment.
There are thirteen non brandingvariables like personal factors,economical constraints, challengingcapacity of the individual, nature ofthe job, geographical inconvenience,etc. which are used in thequestionnaire for assessment. A pilotsurvey was conducted to refine thepattern of questions and variables.The variables were scaled from 1 to 5,strongly disagree to strongly agree asper the Likerts scale. Therespondents are the employees
belonging to corporate at Salem city.
Sampling characteristics
The research is based on theconvenience sampling method, due totime constraints the respondentswere selected at random. The samplesize is restricted to 30 only .Therespondents are the employees ofvarious organizations in the Salemcity.
Research Tools
Half of the questions were used toevaluate branding factors and theremaining were focused on the nonbranding factors.
Z test for equality of 2 sample meanswere tested. Sample mean 1represents branding factors and
sample mean 2 represents the nonbranding factors. [Questionnaire isannexed]
Mean and variance are also used astools to interpret the data.
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...branding factors
are influencing more
when compared to
non-branding factors
with respect toaccepting an offer by
an individual.
Results & Interpretations
The Maximum possible scores for
branding as well as non brandingsfactors are 65. The actual of maximumscores are 61 and 54 respectively andthe means are 46.43 and 43.17respectively. It implies that brandingfactors are influencing more when
compared to non-branding factors
with respect to accepting an offer byan individual. The minimum scoresare 35 & 29 for branding and non-branding factors respectively. Itimplies that the branding factors aregiven more importance.
Branding factor Non Branding factor
Mean 46.43333333 Mean 43.16667
Standard Error 1.124117363 Standard Error 0.966191
Median 46 Median 43
Mode 45 Mode 48StandardDeviation 6.157044372
StandardDeviation 5.292046
Sample Variance 37.9091954 Sample Variance 28.00575
Kurtosis 0.003879083 Kurtosis 0.312779
Skewness 0.311096696 Skewness -0.41561
Range 26 Range 25
Minimum 35 Minimum 29
Maximum 61 Maximum 54
Sum 1393 Sum 1295
Count 30 Count 30
Table 1: Represents the descriptive statistics of branding and non brandingfactors
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Among the branding factors thefollowing factors are given priority bythe employees
(Based on the mean values which aremore than 3.5)
i. Vision of the company
ii. The company being forefront in
the industryiii. Policies & Procedures
iv. CSR activities
v. Welfare schemes, Transparency &
Career advancement
The Top managements vision,leadership and its ethicalpractices are more valued followedby the ethical & HR practiceswithin the organization.
Size of the organization andmanagement performance are
given less priority while acceptingan offer.
The expectations of the employeeswith regard to size of theorganization and the companybeing forefront in the industry are
Table 2: Branding variables
Sl.No. Variables Mean Variance
1. Policies & Procedures 3.7 0.562069
2. Vision of the company 3.933333 0.409195
3. Executives inspiration 3.466667 0.878161
4. Reputation 3.8 0.993103
5. Concerned towards employees 3.3 0.906897
6. CSR activities 3.633333 0.929885
7. Employee referrals 3.533333 0.947126
8. Management Performance 3.433333 0.874713
9. Being forefront in the industry 3.733333 1.305747
10 Welfare schemes 3.566667 0.805747
11 Size of the organization 3.2 1.062069
12 Transparency 3.566667 0.874713
13 Career advancement 3.566667 0.598851
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varying widely which implies someof the employees give less
importance to these factors.
Every employee considers thevision of the company as an
important factor for employment.
Amongst the non-branding factors thefollowing factors are given priority bythe employees
(Based on the mean values which aremore than 3.5)
i. Personal factors & Jobopportunities
ii. Interest in facing challenges
iii. Economical constraints
iv. Interest towards the industry
v. Nature of the job
Table 3: Non Branding Variables
Sl.No. Variables Mean Variance
1. Geographical Convenience 3.033333 1.205747
2. Interest towards the Industry 3.633333 0.722989
3. Uncertainty 3.166667 0.833333
4. Nature of Job 3.466667 0.671264
5. Traditional Profession 2.6 1.558621
6. Challenges in getting job 3.433333 1.633333
7. Intuition 3.233333 1.012644
8. Interest in facing challenges 3.766667 0.805747
9. Work experience in the previousorganization 3.266667 1.167816
10 Economical constraints 3.733333 1.305747
11 Job opportunities 3.966667 1.205747
12 Pink slips 1.9 0.093103
13 Personal factors 3.966667 0.929885
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Personal factors and theavailability of jobs are the leading
factors to accept an offer.
The employees have notconsidered the downtrend as afactor for accepting an offer.
The employees do not show muchinterest to continue with theirfamily vocation as they are moreinterested in facing challenging
jobs.
The expectations of the employees
with regard to challenges ingetting job is varying widelywhich implies some of theemployees feel that getting into anorganization is not a difficult task.
Most of the employees feel thedown trend has less significancewhile accepting an offer.
Influence of branding andnon branding factors
The study is carried on to find theinfluencing nature of the factorsbetween the branding factors andnon- branding factors for an employeein accepting an offer. Z test is a moresuitable tool to assess the equality oftwo means. The sample mean forbranding factors and sample mean fornon branding factors have been testedfor equality
Null Hypothesis: H0 : The influence
of both the branding factors and non-branding factors are equal 1=2
Alternative Hypothesis H1 : TheInfluence of the branding factors aregreater than the non branding factorsi.e. 1 is greater than 2
Alternative Hypothesis H2 : TheInfluence of the non branding factorsare greater than the branding factors2 is greater than 1
z-Test: Two Sample forMeans
Branding factors Non Branding factors
Mean 46.43333333 43.1666667
Known Variance 37.91 28
Observations 30 30
Hypothesized MeanDifference 0
z 2.203889382
P(Z
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The critical value for one tailed test is1.644.The calculated Z value is 2.203
and therefore null hypothesis isrejected and H1 is accepted. i.e. theinfluence of the branding factors isgreater than the non branding factors.The branding factors are influencingmore even in the current scenario ofrecession and downtrend in theeconomy.
Limitations and futureresearch
The study is conducted in the Salemcity only due to geographicalconvenience. The size of therespondents is limited to 30 only. Afew factors are considered to test thehypothesis mentioned above and thestudy is restricted to a few companies.
From the study it is understood thatthere is mismatch between theinternal identity and the externalimage which may lead todissatisfaction among the employeesand can be tested further.
The data can also be used to clusterthe variables. The factor analysis isalso possible for understanding theassociation of the variables in a betterway.
Conclusion
D K Srivastava, vice president- HR at
HCL Comnet has rightly said that asatisfied employee would certainlyperform better if he is taken care bythe organization.
A survey taken by CNBC TV 18 statesthat the preference of employees to get
in to BPO jobs which are not branded,is also declining. The importance ofemployer branding is significantlyincreasing, since the talent enrichedworkforces expectations in terms ofreputation and image of the companyas well as the package are steadilyincreasing in recent days. Thecorporates have understood thecurrent scenario and therefore theemphasis has been shifted towardspolicies that are employee friendly andstrategies that can retain them. The
measures taken by the corporate are toretain and to attract the deserving HRasset; reputation and image of theorganization in the market and itsinternal and external status are alsoconsidered the need of the hour.
The hypothesis testing in the studyreveals that the branding factors doinfluence an employee to accept anoffer.
References
Graeme Martin, Phillip Beaumont, Rosalind
Doig and Judy Pate, Branding: A New
Performance Discourse for HR? Employer
Branding-ICFAI Publications
Tapomoy Deb Building Employer Branding
for competitive advantage-HRM Review,
April 2007, ICFAI Publications
Indranil Banerjee Designing Employer
Branding strategic Initiative -HRM Review,October 2007
The employer brand: Bringing the best brand
to people at work. Simon Barrow and
Richard Mosley
www.sitehr.com
The importance of
employer branding is
significantlyincreasing, since the
talent enriched
workforces
expectations in
terms of reputation
and image of the
company as well as
the package are
steadily increasing in
recent days.
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[ 34 ] Rai Management Journal
www.cipd.co.uk
www.wikiepidea.com
Annexure
The questionnaire has been designedto assess the factors that would inducea candidate to accept the particular
job. We appreciate and thank you forsparing your valuable time to fill thequestionnaire. The data is collectedpurely for research work and would be
kept confidentially.
Name :
Age :
Sex :
Name of the Organization :
Designation :
Years of experience :
S.No Particulars StronglyDisagree Disagree Neutral AgreeStronglyagree
1The policies & procedures ofthe organization appeal tome.
2The companys vision is adriving force for acceptingthe offer
3Top level executives were amotivational factor foraccepting the offer
4I accepted the offer due tothe reputation of theorganization
5The organization is moreconcerned towardsemployees.
6I was attracted by thecontributions made by theorganization to the society
7The references that I hadwith the employees mademe accept the offer
8I have accepted the offerdue to economicalconstraints
9I have accepted the offerdue to limited jobopportunities
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S.No Particulars StronglyDisagree Disagree Neutral AgreeStronglyagree
10I have accepted the offer insuch a period when most ofthe organizations issue pinkslips
11 I have accepted the offer onpersonal grounds
12 The size of the organizationattracted me very much
13The appraisal system in theorganization is moretransparent.
14 I have better scope in mycareer advancement
15I have opted thisorganization because ofgeographical convenience
16 I like to work in thisparticular Industry
17 I have opted because ofuncertainity.
18 The nature of job impressedme to accept.
19 Forefathers in my family arein the same profession.
20 I feel getting job else where
is difficult.21 My intuitions directed me toaccept the offer
22I like to face challenges,which provoked me to acceptthe job.
23
I have accepted the offer dueto the companysachievement and awardsreceived by the company inthe yester years.
24 My company is in theforefront in the industry
25 I am attracted by thewelfare schemes offered bythe organization.
26The working atmospherewas not conducive in theprevious organization
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In today's world of
global competition,
rendering quality service
is a key for survival and
success and many experts
concur that the most
powerful competitive
trend currently shaping
marketing and business
strategy is service quality
(Zeithaml et al, 1996).
[ 36 ] Rai Management Journal
An Empirical Study: StudentsPerception on Service Quality Using
Malaysian Hedperf Measurement Scale
The purpose of this paper is to empirically measure the service quality level using the new industry specific
scale called HEdPERF (Higher education performance-Measurement Scale) among engineering
colleges/Institutions which are offering professional courses in Tiruchirappalli, Tamilnadu, India. In this
study, Purposive Non-Probability sampling techniques were adopted with a sample size of 106 respondents
who were administered using structured questionnaire. Statistical tools namely Univariate analysis,
Multiple regression analysis and Factor analysis were used for this study. From the study findings using
multiple regression analysis, attributes namely standardized syllabus and structure, quality programs,students feedback for progressive measures, empathetic administrative staffs to solve students problem
and fair and equal treatment are the dominant variables which strongly predicts the overall service
quality. Also, from the study findings using factor analysis, it is inferred that a HEdPERF scale is not
factor loaded as per the proposed original four dimensions, instead we got a loading of eleven [1]
factors/Dimensions. Hence, professional engineering institutions should concentrate their efforts on the
extracted dimensions[1] perceived to be important rather than focusing their energy on a number of
different attributes, which they feel are important determinants of service quality.
Keywords:Service quality, Professional Engineering colleges, Higher education, Performance -HEdPERF
*Assistant Professor, College of Business Administration, King Saud University, Saudi Arabia
**Assistant Professor, Saranathan College of Engineering, Trichy, Tamilnadu, India
Introduction
Service industries are playing anincreasingly important role in theoverall economy of many nations. Intoday's world of global competition,rendering quality service is a key forsurvival and success and manyexperts concur that the mostpowerful competitive trend currentlyshaping marketing and businessstrategy is service quality (Zeithaml
et al, 1996). Since 1980s service
quality has been linked withincreased profitability and it is seenas providing an importantcompetitive advantage by generatingrepeat sales, positive word-of-mouthfeedback, customer loyalty, andcompetitive product differentiation.
As Zeithaml and Bitner (1996, p. 76)point out," the issue of highestpriority today involvesunderstanding the impact of servicequality on profit and other financial
outcomes of the organization".
K. Ravichandran*
S. Arun Kumar**
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Although
researchers have
devoted a great deal
of attention toservice quality there
are still some
unresolved issues
that need to be
addressed and the
most controversial
one refers to the
measurement
instrument...
Service quality has since emerged as apervasive strategic force and a key
strategic issue on management'sagenda (Bowers, 1997). It is nosurprise that practitioners andacademics alike are keen on accuratelymeasuring service quality in order tobetter understand its essentialantecedents & consequences andultimately establish methods forimproving quality to achievecompetitive advantage and buildcustomer loyalty (Bitner, 1993). Thepressures driving successfulorganizations toward top quality
services make the measurement ofservice quality and its subsequentmanagement of utmost importance(Webster, 1989). However, theproblem inherent in theimplementation of such a strategy hasbeen compounded by the elusivenature of the service quality construct,rendering it extremely difficult todefine and measure (Parasuramanetal., 1985; Carman, 1990;BoltonandDrew, 1991b).
Although researchers have devoted agreat deal of attention to servicequality there are still some unresolvedissues that need to be addressed andthe most controversial one refers tothe measurement instrument(Babakus and Boiler, 1992; Buttle,1996; Robinson, 1999). An attempt todefine the evaluation standardindependent of any particular servicecontext has stimulated the setting upof several methodologies. In the last
decade, the emergence of diverseinstruments of measurement such asSERVQUAL (Parasuraman et al.,1988), SERVPERF (Cronin and
Taylor, 1992) and evaluatedperformance (EP) (Teas, 1993a) has
contributed enormously to thedevelopment in the study of servicequality. SERVQUAL operationalisesservice quality by comparing theperceptions of the service receivedwith expectations, while SERVPERFmaintains only the perceptions ofservice quality. On the other hand, EPscale measures the gap betweenperceived performance and the idealamount of a feature rather than thecustomer's expectations. Diversestudies using these scales have
demonstrated the existence ofdifficulties resulting from theconceptual or theoretical component asmuch as from the empirical component(Carman, 1990; Babakus and Boiler,1992; Boulding et al, 1993; Quester etal, 1995).
Nevertheless, many authors concurthat customer' assessments ofcontinuously provided services maydepend solely on performance, therebysuggesting that performance-basedmeasures explain more of the variancein an overall measure of servicequality (Oliver, 1989; Bolton andDrew, 1991a, b; Cronin and Taylor,1992; Boulding et al, 1993; Quester etal., 1995). These findings areconsistent with other research thathave compared these methods in thescope of service activities, thusconfirming that SERVPERF(performance-only) results in morereliable estimations, greater
convergent and discriminant validity,greater explained variance, andconsequently less bias than theSERVQUAL and EP scales (Cronin
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Whilst its impact inthe service quality
domain is
undeniable,
SERVPERF being
a generic measure of
service quality may
not be a totally
adequate instrumentby which to assess
the perceived quality
in as unique a sector
as higher education.
[ 38 ] Rai Management Journal
and Taylor, 1992; Parasuraman et al,1994a; Quester et al, 1995; Llusar and
Zornoza, 2000). Whilst its impact inthe service quality domain isundeniable, SERVPERF being ageneric measure of service qualitymay not be a totally adequateinstrument by which to assess theperceived quality in as unique a sectoras higher education.
Firdaus (2004), on the other hand,proposed HEdPERF conceptual framework (Higher EducationPerformance), a new and more
comprehensive performance-basedmeasuring scale that attempts tocapture the authentic determinants ofservice quality within the highereducation sector in Malaysia. The 41-item instrument has been empiricallytested for unidimensionality,reliability and validity using bothexploratory and confirmatory factoranalysis. Therefore, the primary issueaddressed by this paper is aboutapplication of Malaysian HEdPERFservice quality measurement scale ina different cultural and demographicarea like India, hence an empiricalstudy got attempted in a singleindustry like higher education sectorin Trichirappalli, Tamilnadu, India.The goal is to assess the relativestrengths and weaknesses of theinstrument in order to determinewhether instrument has the superiormeasurement capability in terms ofreliability, validity, and explainedvariance of service quality.
Research Objectives:
To understand the Socio-demographic and rational profile
of students from professionalengineering institutions in
Tiruchirappalli, Tamilnadu,India.
Aims to evaluate the applicationof Malaysian HEdPERF (Firduas,2004) measurement scale formeasuring service qualityperception among students ofprofessional engineeringinstitutions in Tiruchirappalli,Tamilnadu, India.
To identify the important
underlying perceived servicequality dimensions amongstudents of professionalengineering institutions inTiruchirappalli, Tamilnadu,India.
To identify the dominantvariables, which is a strongerpredictor of service quality?
Review of Literature:
Many researchers (Parasuraman etal, 1985; Carman, 1990; Bolton andDrew, 1991b) concur that servicequality is an elusive concept and thereis considerable debate about how bestto conceptualize this phenomenon.Hence, they concomitantly come to anagreement that a comprehensivedefinition of service quality isnotoriously difficult to produce. Lewisand Booms (1983, p. 100) were
perhaps the first to define servicequality as a "measure of how well theservice level delivered matches thecustomer's expectations". Thereafter,there seems to be a broad consensusthat service quality is an attitude of
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...most researchers
acknowledge that
customers have
expectations and
these serve as
standards or
reference points to
evaluate the
performance of an
organization.
overall judgment about servicesuperiority, although the exact nature
of this attitude is still hazy. Somesuggest that it stems from acomparison of performanceperceptions with expectations(Parasuraman et al, 1988), whileothers argue that it is derived from acomparison of performance with idealstandards (Teas, 1993a) or fromperceptions of performance alone(Cronin and Taylor, 1992).
In terms of measurementmethodologies, a review of literature
provides plenty of service qualityevaluation scales. Some stem from therealization of conceptual modelsproduced to understand the evaluationprocess (Parasuraman et al, 1985) andothers come from empirical analysisand experimentation on differentservice sectors (Cronin and Taylor,1992; Franceschini and Rossetto,1997b; Parasuraman et al, 1988). Themost widely used methods applied tomeasure perceived quality can becharacterized as primarilyquantitative multi-attributemeasurements. Within the attribute-based methods, a great number ofvariants exist and among thesevariants, the SERVQUAL andSERVPERF instruments haveattracted the greatest attention.
Generally, most researchersacknowledge that customers haveexpectations and these serve asstandards or reference points to
evaluate the performance of anorganization. However, the unresolvedissues of expectations as adeterminant of perceived servicequality have resulted in twoconflicting measurement paradigms:
the disconfirmation paradigm(SERVQUAL) which compares the
perceptions of the service receivedwith expectations and the perceptionparadigm (SERVPERF) whichmaintains only the perceptions ofservice quality. These instrumentsshare the same concept of perceivedquality. The main difference betweenthese scales lies in the formulationadopted for their calculation and moreconcretely, the utilization ofexpectations and the type ofexpectations that should be used.
Most research studies do not supportthe five-factor structure ofSERVQUAL posited by Parasuramanet al. (1988), and administeringexpectation items is also consideredunnecessary (Carman, 1990;Parasuraman etal, 1991a; Babakusand Boiler, 1992). Cronin and Taylor(1992) were particularly vociferous intheir critiques, thus developing theirown performance-based measure,dubbed SERVPERF. In fact, theSERVPERF scale is the unweightedperception components ofSERVQUAL, which consists of 22perception items thus excluding anyconsideration of expectations. In theirempirical work in four industries,Cronin and Taylor (1992) found thatunweighted SERVPERF measure(performance-only) performs betterthan any other measure of servicequality, and that it has greaterpredictive power (ability to provide anaccurate service quality score) than
SERVQUAL. They argue that currentperformance best reflects a customer'sperception of service quality and thatexpectations are not part of thisconcept.
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Llusar andZornoza (2000)
confirmed that
SERVPERF
results in more
reliable estimations,
greater convergent
and discriminant
validity, greaterexplained variance,
and consequently less
bias than the EP
scale.
Likewise, Boulding et al. (1993) rejectthe value of an expectations-based
SERVQUAL, and concur that servicequality is only influenced byperceptions.
Quester et al. (1995) performedsimilar analysis to Cronin and Taylorin the Australian advertisingindustry, and their empirical testsshow that SERVPERF performs best,while SERVQUAL performs worst,although the differences are small. Atea (1993a) on the other hand,discusses the conceptual and
operational difficulties of using the"expectations minus performance"approach, with a particular emphasison expectations. His empirical testsubsequently produces twoalternatives of perceive servicequality measures namely EP andNormed quality (NQ). He concludesthat the EP instrument, whichmeasures the gap between perceivedperformance and the ideal amount ofa feature rather than the customer'sexpectations, outperforms bothSERVQUAL and NQ.
A review of service quality literaturebrings forward diverse arguments inrelation to the advantages anddisadvantages in the use of theseinstruments. In general, thearguments make reference to aspectsrelated to the characteristics of thesescales notably their reliability andvalidity. Recently, Llusar and Zornoza(2000) confirmed that SERVPERF
results in more reliable estimations,greater convergent and discriminantvalidity, greater explained variance,and consequently less bias than theEP scale. These results are consistent
with earlier research that hadcompared these methods in the scope
of service activities (Cronin andTaylor, 1992; Parasuraman et al,1994a). In fact, the marketingliterature appears to offerconsiderable support for thesuperiority of simple performance-based measures of service quality(Mazis et al, 1975; Churchill andSurprenant, 1982; Carman, 1990;Bolton and Drew, 1991a, b; Bouldinget al, 1993; Teas, 1993a; Quester et al,1995).
Description - ConceptualFramework of HEdPERFScale: