Academic journal article ASBM Journal of Management

BPO Employees in India: A Discriminant Analysis Approach

Academic journal article ASBM Journal of Management

BPO Employees in India: A Discriminant Analysis Approach

Article excerpt

(ProQuest: ... denotes formula omitted.)

Introduction

The dynamism of BPO industry has come of age. Despite all the permutations and combinations, Indian BPO industry has achieved a tremendous growth during the last few years. Seeing the pace of growth of this component of service sector, a joint study conducted by NASSCOM and McKinsey (2002) had estimated that revenue from BPO is expected to touch $17 billion and provide employment to 1.1 million people in India by the year 2008 (http://www.blonnet.com/2002/ 08/28/stories/2002082800451700.htm). The driving forces that account for this growth of BPOs in India are emphasis on quality service, skilled sets and workers, cost effectiveness, English speaking manpower etc. Notwith- standing the fact that BPO firms have witnessed a phenomenal growth in a short span of time, it connotes a relatively hollow form of life. No doubt the superior façade of work in the sector and the vibrant ambience of workplace - with sweeping glass and concrete buildings, battery of jazzy computers, the company of smart and trendy peers - was able to draw educated and fun loving youngsters from urban middle class, who are fascinated with western ways of living and modern work environments. But the problem of retention of employees due to relatively less job satisfaction started occupying a prominent place in organisations' decision making arena. Most of the people, who jump at the BPO job quickly due to its attraction, gradually realise the toll it takes on their health and social life and, therefore, they tend to give it up after a few months, due to non-compliance of expectations, which is bound to occur due to the nature of work. Having joined initially for the sake of fun, they later on encounter cultural shock, when they have to address the challenges of their real life, which is much more than the lure of money. This forced them to give a second thought to their decisions. The severe impact of BPO on each and every aspect relating to employees, their working conditions and relationship between employers and employees has forced people to term it as "the coal mines of the 21st century" (http: // www.blonnet.com/2002/08/28/ stories/2002082800451700.htm).

The emergence and exponential growth of this component of service sector has made it indispensable to understand the mood and profile of the persons working over there because the consistent growth of this sector depends upon the satisfaction of employees working there. That is why, effort has been made here to explore and delineate the interrelationship of job satisfaction variable of BPO employees with their psychographic and demographic variables. The aim of this study is to know the factors which differentiate between more and less satisfied employees working in BPO organisations in India.

Review of Literature

Many studies at national and international level have been conducted to find out the impact of these growing organizations on working environment especially on employees. Ruyter et al (2001) made an attempt to develop a picture of working of call centres by studying the antecedents and consequences of role stress in it. They found that in case of call centres, role stress is an antecedent of job satisfaction which in turn is antecedent of job performance and turnover intention. They pointed out that modem technology and new ways of working as employed in "new industries" like call centres - have highlighted psychosomatic factors, such as stress and harassment, as well as physical health problems such as musculo- skeletal disorders, eye problems due to prolonged VDU use, hearing damage from continuous use of headsets, and voice loss. It was also reinforced by a survey carried out by IDS (Income Data Services) (2000), which reported staff turnover across all call centres around 20 per cent. They found intensity of the call centre environment as the most commonly identified cause for staff turnover (http://proquest. …

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