THE WIPRO WAY

FACTS OF THE CASE

Few years ago 850 top and middle level management

of Wipro Ltd were assessed with 11000 responses from people they interacted with A 10 page report laden with graphs was prepared The report commented on the ways of improvement of employee, his performance level and other related factors along with leadership & teamwork abilities Wipro tied up with Saville & Holdsworth, a leading people consulting firm to adopt latest appraisal technology

 This tie up was made so that selection, promotions,

compensations and training & development works are all put on workable matrix This will also help employee to know how he is viewed by himself as well as his team members and superiors to whom he reports In 70s company used MBO to appraise people but now has shifted to 360 degree feedback system Appraisal using 360 degree feedback in Wipro takes almost a month to get completed

 Not all employees get appraised Only 850 employees got the Wipro leaders quality

survey done This method is adopted to retain best of talentCorporate Executive Vice-President(HR) Some of the brightest people do leave Wipro not because they are dissatisfied with company but because they find better opportunities elsewhere Many people make a comeback and are accepted back if everything had gone off fine at the time of their exit interview

 Another interesting feature that emerges from the

appraisals is the succession plan wherein about 3 good people are prepared to take over when the person heading the team suddenly decides to leave This type of appraisal also weeds out those who are unfit for the job Apart from identifying the top 30% employees Wipro also identifies bottom 30% employees who require development inputs If those employees show no sign of improvement for 2 consecutive years they are asked to leave the organization

PERFORMANCE APPRAISAL OF ONLY LIMITED EMPLOYEES BEING DONE USING 360 FEEDBACK MECHANISM AS A TOOL

ISSUE In Detail
In late 70s Wipro used MBO as a tool for performance

appraisal , but currently they are using 360 feedback for performance appraisal. The main problem with this technique was that not all employees were assessed using this technique, in fact only 850 employees were assessed. This was done to retain to the best talent. The whole process took about one month.

360 FEEDBACK
In this approach feedback is given by each person with

whom the person interacts and not only to whom he reports . This process is very time consuming and expensive. There must be at least 10-15 respondents and to avoid baisedness large no. of respondents should be taken.

SUPERVISOR INTERNAL CUSTOMER EXTERNAL CUSTOMER

ME

ME

PEERS

DIRECT REPORTS OTHERS

SKIP LEVEL REPRTS

SOLUTION
Wipro should not just consider only a limited number

of employees for appraisal from top & middle level but performance appraisal of all the employees should be done The appraisal was done with a purpose to retain the best talent but even this particular purpose was not fulfilled as many bright employees still left the company Instead of getting the 360 feedback done through consultancy firm the company can conduct in-house appraisal saving extra cost being spent and the appraisal then can be conducted for larger number of employees at the same cost

GROWING ATTRITION RATE AMONG THE BEST EMPLOYEES

ATTRITION RATE

Attrition Rate is the measure of the number of

employees leaving the organization over a period of time. In general, many unskilled positions have a higher attrition rate. A high attrition rate represents a higher cost of doing business for the company. Recruiting, Interviewing, and Hiring takes a certain amount of time and usually requires the services of higher skilled and higher paid employees. Once hired, there are additional costs which can run into lakhs of rupees. A high attrition rate can prove to be financially draining for the company.

Attrition in WIPRO
Some of the best and the brightest of employees do

actually leave Wipro. According to the Corporate Executive Vice President of the company, people leave their organization not because they are dissatisfied but because they see better opportunities elsewhere and would like to venture out on their own. He also adds that, they take those employees back who had left their organization and had returned, if everything had gone okay at the exit interview stage.

SOLUTION
Since the employees are leaving the organization due

to lack of opportunities then the management should focus on creating more opportunities within the organization. Skill-Development may be another solution for controlling the employee turnover. Frequent promotions and handsome incentives can also motivate the employees to put in the best of their abilities. Regular Employee-Engagement programmes can also be conducted to make the employees feel that they are an essential part of the organization.