Employee Perceptions of Performance Appraisal System in Foreign MNC BPOs Operating in India - An Empirical Study

This paper is based on an empirical study of five foreign MNC BPO firms operating in India, ranked among the top 100 by the International Association of Outsourcing Professionals (IAOP) for the year 2009. The data was collected using both qualitative and quantitative methods from seven HR executives of these five BPOs and 163 employees constituting 1% of the population under study. The present study finds that, on an average, the level of satisfaction among the respondents towards the performance appraisal system is at 69.94 per cent. Regression analysis, using a significance level of 5 per cent, shows that the variables of the objectivity in the appraisals, the accuracy of the previous appraisals and viewing appraisals as a motivating tool are significantly influencing the satisfaction of the respondents towards the performance appraisal system and all the other variables have emerged as the insignificant variables.