1.

Chapter One: Introduction

1.1 Background of the study
Among other divisions in a service provider organization, customer service division is one of the
most critical and valuable division to achieve organizational goals. Customer Service Division
(CSD) can be defined as the back bone and most important division of any service provider
company that will highly affect the efficiency of that organization. Effectiveness and efficiency of
service provider companies can be measured based on customer handling and satisfaction. Even
Performance analysis of employees who work on such kind of companies can be measured by their
activities of handling customers and the knowledge, skill, abilities, and attitudes of employees.
Most of the time the company set some criteria to evaluate employees and almost all criterias are
related with customer satisfaction. And for all criterias they set a target that must be achieved by
any employee in that company. So everyday all employees can be evaluated based on the criterion
related with the target parameters that must be achieved by every staff. Here the company gives
high degree of evaluation criteria for departments that have direct contact with customers, among
those departments that directly face customers; Front office department is the main and work as a
bridge between the customer and the company.
Front office departments in service provider organizations play the main role to give quality
service for their customers. And those departments also can have different sections that will take
different actions in their position. The sections therefore are more close to customers and services
that customers needs.
In any service provider companies customer need support about the service given by that company
and after subscribe any service they may need some support; even before subscription the
customers may want to know detail information about the offer they will subscribe. To get that
information they directly go to front office departments. During this time if the company didnt set
a responsible person to serve that customer it will be difficult for that company to go far with
customers!!!!

After subscribe the service customers may face different kind of difficulties on that service. During
this time they need some support from that company and for this reason they will go to their
nearest branches or they will call to the companies contact center. At this time the contact center
employees will support them by themselves orally and if the problem is not fixed they will create a
Trouble Ticket and send it to TT section. So the TT section staffs will try to fix the problem in their
section and if the problem still not solved they will transfer it to operation and maintenance
section. So problem then will fix there.
The research will be try to identify the major factors affecting the effectiveness of Trouble Ticket
handling process at Ethio Telecom, through identifying the variables include dalliance of
processing time; degree of customer satisfaction, organizational culture, working environment.

1.2 Statement of the problem

Customers are the most valuable asset in any kind of service provider organizations which
engaged in profit making or non-profit. A successful and highly productive business can be
achieved by giving quality service to customers and make the given by the company. To do that
Ethio telecom has given a category for all customers and customer complaints can be solved based
on the priority given for them. Not all customers are equal; specially the trouble ticket handling
process. So when customer face difficulties in the service brought from ethiotelecom they must
call to 994 for registering the problem they face and after that they will serve based on their
priority and if the problem is not fixed during the date which is set for all customer type; they will
come for complaint about the service with the ticket number taken from advisors during the
registration day. Ethiotelecom have three main customer categories based on their importance and
priority. Which are: - CRITICAL; MAJOR; NORMAL. So now we are going to mention about
critical customers. Highest share of the company income is from these organizations. But these
originations didnt get the service as they want to get. One of the reasons for not getting quality
service here we focus on the data service because the company gets its revenue from this service
and the problem is mostly seen on this service category. Plus from both the customer and company
side the data service is highly influenced both economically and socially. They will affect
economically because of the sated date which is put for critical customer in data service is 24 up to
2

48 hours and because this both companies will lose high amount of money. For example let us see
our banks!! If there is no work for two days how much business transactions will be failed and
how much money will they lose. And during this time ethiotelecom will also lose high amount of
money. Therefore the trouble ticket handling process for critical customers is not fair and even this
problem will directly affect the countries economical activities. Because when we compared to
other countries the problem handling process for normal customers even is better than the day
ethiotelecom set for critical customers. So in our research we will try to identify the gaps of
trouble ticket handling process for critical customers.
This research will try to describe the trouble ticket handling process in ethiotelecom for critical
customers and how companies affect because of the dalliance the service given by our telecom
operator (ethiotelecom) plus how ethiotelecom also lose large amount of money because of this
slow handling process. To do that we will try to communicate all critical customers of the
company and how they are affected on their day to day activities and will recommend some
solutions to overcome those problems. Secondly, this study will draw some recommendations and
indicate directions for further research.

Hence, one of the indicators in enhancing and improving the services industry is customer
satisfaction. Like other organizations engaged in the service sector Ethio Telecom is one of those
services providing organization which depend on the degree of customer satisfaction. As we
discussed above there are numerous factors has its own impact on customer satisfaction which
may hinder the organization to utilize full capacity of the companies resources including the
asignining of the right person for the right position to give quality service for customers and
making them satisfied.
Therefore, it is indispensable to generate relevant evidence through a detail study to highlight
solution for improving quality of service.

1.3 Research Questions

The above statement guide the researcher to builds up research questions regarding the
determinant factors which affect the trouble ticket handling process of Ethio telecom for critical
customers and how this will affect the day to day activities of those companies, the study tried to
answer the following main research questions:

What are the major factors that influence the TT handling process in Ethio telecom?

What is the effect of those factors on TT handling process in the study area?

Which valid solutions can be suggested to increase customer satisfaction because of the TT
handling process in Ethio telecom?

1.4 Objective of the Study

General objective of the study
The overall general objective of this research is to investigate the determinants factors affecting TT
handling process in Ethio telecom for the companys critical customers in Addis Ababa city
branches. It will also highlight how independent variables will affect the TT handling process for
critical customers either positive or negative.

Specific Objective of the Study

The aim and key specific objectives of this research are as follows:

To determine the major factors influencing the TT handling process for critical customers
in Ethio telecom.

To investigate the effect of each factors on the TT handling process for all companies in the
study area.

To establish valid conclusions and recommendations with the identification of impacts,

both positive and negative factors on the TT handling process which helps for the
concerned bodies to improve the quality of services.

To provide and indicating directions for further research.

1.5 Hypothesis
The hypothesis assumes that employee performance is affected by and dependent on multiple
factors including leadership, organizational culture, working environment, motivation and training.
This study aims to figure out the effect of above-mentioned variables on the performance of
employee in which it based on and adopted from the literature (Le Tran, 2002) as depicted in
figure 1below.

Fig. 1 Conceptual Framework ( adopted from Le Tran, 2002

Significance of the study

The study will focuses on the implication of performance appraisal system of the company on
employees performance. So this research will indicate the exact aspects of the system on
employees performance, and it will provide insights for the improvement of the system. The result
of the study will help the company to re-examine the system, and to take appropriate action.
5

This research also will be helpful for other organization to reconsider their performance appraisal
system and to understand the implication of the system on employees performance.
In addition to this, the research will serve as a reference for researchers who are interesting to
conduct a research on the topic.

1.5. Scope and limitation of the study

1.5.1. Scope of the study
This research study is limited to the SINTEC ETHIOPIA PLC (Bole Subsite around Gerj
Menratyel). The researcher will also focus only on the implication of performance appraisal
system on employees performance of the named company. Therefore the scope of this research is
only delimited to the SINTEC ETHIOPIA PLC.

1.5.2. Limitation of the study

It is very difficult and beyond the scope of this paper to investigate the implication of all factors
that affect employees performance. The researcher will not consider those factors in this research.
The limitation will be directly related with time, budget and availability of resources for not
consider those factors.

1.6. Time frame and budget estimation

1.6.1. Work schedule
No.

Activities

Due Date

1.
2.
3.
4.
5.

Thesis proposal ( Chapter)

Literature review (chapter 2)
Methodology (chapter 3) and data collection instruments
Proposal Defense
Data collection, Analysis, Results, Interpretation and

December 7, 2015
December 31, 2015
January 29, 2016
February 15-20, 2016
March 31, 2016

6.
7.
8.
9.
10.

Discussion
Summary, Conclusion and Recommendations
Final Write up
Submission of final draft
Defense Period
Grade submission to the Registrar office

April 15, 2016

April 28, 2016
May 13, 2016
June 6-18, 2016
June 20, 2016

1.6.2. Budget estimation

S.No
1.
2.
3.
4.

Unit Price
Birr
Cent

Description
Duplication paper
Pen
Flash Disk
Internet Fee

120
3
150
Over all
Sub Total

00
00
00

Total Cost
Birr

Cent

120
30
150
500
800

00
00
00

500
300
150
700
1850
3547

00
00
00
00
00
00

00
00

Miscellanies Expense
5.
6.
7.
8.

Transport Cost
Photocopy and printing of reference and first draft
Final report printing and binding
Other expenses
Sub total Cost
Total Cost

1.7. Organization of the study

The final report of this research will encompass a total of five chapters.
The first chapter of the research will include detail introduction of the research topic. The next
chapter of this research will be conceptual and theoretical aspects of extensive literature review on
the study area. The third chapter of the research will discuss about the methodology of the
research. The researcher may change same procedure of the research design through process due to
the nature of the topic. And the fourth chapter of the research will include the presentation,
analyses and interpretation of the data. The final chapter will be conclusions of the research based
on the finding, and valuable recommendation will be forwarded.

2. Review Literature
Organizations are undergoing a transformation for coping against the changing needs of the
environment and excelling in the business by building up their adaptive capabilities for managing
change proactively. Sustainability of business organization is depends on talent, skill, knowledge
and experience of employees and on their performance (Armsstrong Michael, 2009).
The main objective of the performance appraisal system was to exercise control over the activities
of the employees through disciplinary actions and management of rewards and promotions. The
8

supervisors were expected to rate their employees on certain traits ranging between a scale of
unsatisfactory to outstanding performance and these ratings were susceptible to various errors like
central tendency, bias, halo effect, etc (Armsstrong Michael, 2009).

2.1. Performance appraisal

The functions of HRM have become far more complicated as today the major focus of strategic
HRM practices is on the management of talent by implementing such performance appraisal
system which enhance the competencies of the employees (Agarwal Ankita , 2011).
Performance appraisals entail setting performance targets, reviewing the achievement of targets,
and devising ways to enable employees to meet targets. The systems establish clear expectations
on what an employee is expected to do, set the guidelines on what constitutes successful job
performance, and strive to identify barriers to effective performance (Agarwal Ankita , 2011).
Performance appraisals were mostly carried out annually for measuring the degree of
accomplishment of an individual and were implemented on a top down basis in which the
supervisors had a major role to play in judging the performance of an employee without soliciting
active involvement of the employee (Agarwal Ankita , 2011).
The performance appraisals were organized in a bureaucratic manner and suffered from
unnecessary delays in decisions and corruption. Performance appraisals were mostly narrowly
focused and functioned in isolation without bearing any linkage with the overall organizational
vision or goals. The side effects of the performance appraisal system was it generated skepticism
amongst the managers and the employees on any new initiative of the HR (Agarwal Ankita ,
2011).

2.2. Performance management system

The performance appraisal tends to be more formal and structured. Although most performance
appraisal systems allow customization of key performance areas or what constitutes performance
based on the employee, the system nevertheless remains rigid with laid down procedures and
rating parameters binding on all employees equally. Performance appraisal is usually standardized
based on the employee's designation, or at best on the employees job description rather than on
the employees actual work exigencies (Agarwal Ankita , 2011)
9

2.3. Employees performance and performance appraisal system

Performance is the accomplishment of a given task measured against preset known standards of
accuracy, completeness, cost, and speed. Employees performance is the contribution of employees
for the achievement of organization objective. Performance appraisal is a management tool that
managers can manage employees performance with specified set of rules. It is a means of getting
results by understanding and managing performance within an agreed framework of planned goals,
standards and competency requirements. Employees expected to perform acceptable level of the
standard and managers follow up, and evaluate the performance of employees to attain the stated
objective of an organization (Armsstrong Michael, 2009).

3. Research Design and Methodology

This research is qualitative research design because the researcher only wants to describe the
implication of performance appraisal system on employees performance. The researcher believes
that this kind of research design are provides plentiful data about the research topic, and supportive
to meet the research objective. As stated above in the scope of the study, the research will be
conducted in SINTEC ETHIOPIA PLC.

10

The researcher will use probability random sampling technique to select the sample from the
population. The data will be collected through questionnaire and interview, and different analytical
tools are undertaken in this research.

3.1. Sample size

The company has a total of 151 employees, and 91 of them are permanent employees. The
researcher will categories the total population (91) based on employees position (department
directors and subordinates), and take 50% sample based on the proportion of each stratum. The
classification and numbers of sample truly represent the total population and will help to get
adequate data.
This sample includes both the department director (supervisors) and other members of each
department (subordinates) who will take part in filing the questionnaire.
However, Human resource director will be included in the 50% sample, but they will be treated
separately and they are subjected to an extended personal interview regarding the issue.

3.2. Sampling techniques

To conduct this research the researcher will use proportionate stratified sampling technique to
select samples from the total population, and distribute questionnaire and conduct interview to
collect the required information from the samples determined.
The researcher will classify the total population based on their position in terms of department
directors (supervisors) and other members of the department (subordinates). The position of
employees is very supportive to collect relevant and accurate data about the application of the
system
However, to respond precisely about the implication of performance appraisal system an employee
should become permanent employees in the organization. The reason behind this criterion is the
system conducted annually and permanent employees have more experience about performance
appraisal system of the company. The criteria will help researcher to get adequate date about the
system. To determine this, researcher will collect data from HR department of SINTEC
ETHIOPIA PLC regarding to employees contract status.
11

Accordingly, 6 department director (supervisors) and 40 other members of the department

(subordinates) who fulfill the above stated requirement will be selected. The HR director will take
interview separately. Department directors and HR director are very familiar with the performance
appraisal system of the company and they will give adequate information about the system.

Sampling technique modeling

3.3. Method of Data Collection

To collecting adequate data about the topic from the defined sample, the researcher will use
questionnaire and interview. Documents about performance appraisal system of the company will
be used as secondary sources.
Primary data will be collected through the use of personal interview and questionnaires. In the
personal interview part structured interview will be used. Interview data will be collected from the
HR directors. Questionnaires (includes both closed-ended and open-ended) will also be distributed
to department director (supervisors) and other department member of employees (subordinates)

12

excluding HR directors. The secondary data will be gathered from relevant documents related with
the topic.
In order to check the validity of questionnaires, the researcher will be distributing sample
questionnaire for few selected respondent from both categories before distributing the final.
3.4. Data Analysis Method
The researcher will apply qualitative analysis technique due to the nature of the data to be
collected and use simple quantitative analysis techniques. The data from interview will be
analyzed through descriptive analysis. Data from questionnaires will be analyzed through both
descriptive and statistical analysis and using tables, and simple percentages.

4. Bibliography
1. Armstrong Michael, (2010), Human Resource Management Practice, Replika Press Pvt Ltd
India.
2. Taylor Stephen,( 2008), Human Resource Management, 7th edition, Matev Croms Artes
Graficas, Spain
3. Aguinis, Herman, (2009), Performance Management, 2nd Edition, Dorling Kindersley Pvt. Ltd
India.
13

4. Carter Earl M A And Frank,( 2005), Improving Employee Performance Through Workplace
Coaching, in Great Britain.
5. DelPo Amy, (2007), The performance handbook legal and practical rules for manager, 2nd
edition, consolidated Printers, inc.
6. Pulakos Elaine, (2004), Performance Management, United States of America.
7. Dick Grote, (2002), The Performance Appraisal Question And Answer Book, United States of
America.
8. Jones Pam, (2000), Performance Management, Management Pocketbooks Ltd.
9. Kirkpatrick Donald L,(2006), Improving Employee Performance Through Appraisal And
Coaching, 2nd edition, United States of America.
9. 10. Stone, R.J. (2008). Human Resource Management (6th edition). John
Wiley & Sons, Australia.
10. John Bratton and Jeffrey Gold , (2000) second edition ,Human Resource
ManagementTheory and practice, Lawrence Erlbaum Associates, Mahwah,
New Jersey 07430
11.

http://www.saylor.org/books

12.

Salleh, F., Yaakub, N., &Dzulkifli, Z. (2011). The influence of skill levels

on job performance of public service employees.Journal of Business and

Management Review, 1(1), 31-40.
13.

Boxall, P., & Purcell, J. 2003, Strategy and human resource management.

New York:Palgrave Macmillan.

14. Le Tran,( 2002) FACTORS AFFECTING EMPLOYEE PERFORMANCEEVIDENCE

FROM PETROVIETNAM ENGINEERING CONSULTANCY J.S.C

14