employee perception towards organization change

A STUDY WITH REFERENCE TO BPO INDUSTRY IN VISHAKHAPATNAM

By:- Ashish KumarRoll No. 1225108104MBA – A (Final)Gitam Institute of ManagementGitam University, Visakhapatnam

1

Employee Perception Towards Organizational Change, By: Ashish Kumar, MBA – A (Final), Gitam Institute of Management, Visakhapatnam


Organizational Change: Today it’s 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.

2

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 it’s 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.


3


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 won’t 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.

4


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

5

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)


6

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.


7

The research technique which we’ve 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.


8

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, I’ve 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.)


9

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


10

5. When these changes take place?a. When company doesn’t 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 doesn’t 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. Can’t say9. 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. Can’t say


11

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, we’ve 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. No14. 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


12

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 % Response18 - 25 44 4426 - 35 36 3636 - 45 15 15

> 45 5 5Total 100 100


13

Gender % Response

Male 45 45

Female 55 55

Total 100 100


14

Company % Response

HSBC 42 42

Sutherland 20 20

Precistat 15 15

Acclaris 8 8

IBM Daksh 10 10

Others 5 5

Total 100 100


15

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.


16

17


Support Changes % ResponseYes 56 56No 44 44

Total 100 100

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

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. That’s 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 won’t 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.

18


Reasons for Changes % ResponseNo Money to utilize 18 18

Due to recession 20 20To Adabt 15 15

All of the above 35 35Others 12 12Total 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.

19


Change Support % ResponseEmployee 38 38

Organization 62 62Total 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.

20

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.

Management Negotiation % ResponseYes 55 55No 30 24

Sometimes 10 10Can't Say 5 5

Total 100 100


21

Changes Opted % ResponseDown Sizing 30 30

Attrition 12 12Incentives Cuts 10 10

Salary Cuts 20 20Rosters 8 8

Cross Training 15 15Others 5 5Total 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.


22

Govt. intervention % ResponseYes 75 48No 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.


23

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.


24

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.


25

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 doesn’t 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.


26


employee perception towards organization change

Business

level management

recent changes

future level

small changes

types of services

bpo industry

services ites industry

reengineering processes