Continuous Appraisal- A Comprehensive Study Of Cab Aggregators

Posted in Marketing & Strategy Articles, Total Reads: 750 , Published on 02 April 2016
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Many amongst us feel that advent of cab service firms are creating fortunes for thousands of cab drivers in India but the reality is not this simple, life of rental cab drivers is certainly not a piece of a cake rather their life is a process of riding on randomness to deliver certainty to their customers. Apart from the risk to their lives on dangerously crowded roads there are numerous cases of theft and murders committed against these cab drivers but this is not all there are other challenges that these poor drivers have to face which is the ‘continuous appraisal’ process.

Image: pixabay


HR practices for rental cab services firms are still evolving but some of the findings conducted on cab users from across India revealed a strange phenomenon regarding the appraisal system of these firms. It is a prevalent practice among cab services firms that whenever a customer completes his ride he is forced to rate his experience and these continuous ratings are then summed up and are fed into the appraisal scores of these cab drivers, these ratings decide percent incentives and maximum rides allowed to these drivers; even their jobs depend heavily on these ratings.


So, one can easily conclude that these ratings are the most important part of appraisal process for these drivers and it has to be very robust and reliable but the study conducted on 67 cab service users revealed otherwise. A study was conducted on 67 users from across India and the results are startling;

Parameters in Questionnaire

Representing Variable

If I do not have any bad experience I give random ratings

A

When I get satisfactory ride experience I rate the driver as 4 or 5

B

I can clearly differentiate on the basis of ride experience when to give 3 rating and when to give 4 rating

C

I understand that my ratings will affect the driver's salary and job prospects

D

Sometimes I threaten cab driver in the name of giving bad rating

E

I feel that opening car door and putting my luggage in boot is also a duty of cab drivers

F

If cab driver doesn't open door for me or doesn't lift my luggage then I will give him less than full rating

G

I would like to receive a guideline in my taxi app regarding how to rate the drivers

H

If my ride is satisfactory then I would not like to give any rating

I

I would like to give bad rating and complain only when I get very bad ride experience

J




From the findings above it is clear that Cab aggregators are putting a very dangerous if not wrong input in the form of consumer rating in their performance management system, If these cab aggregators want to use these ratings diligently then they must adopt external training initiatives for their customers. The customers must be made aware of the end usage of the ratings they give and as indicated by the survey if customers are offered some incentive for their time in putting in well-thought ratings then these ratings will reflect the true score of experience and will have reduced randomness content in them. These findings are a matter of strategic decision making for the cab aggregator firms as streamlining appraisal process is not only important for these firms but will also help these firms in improving driver morale by being just and fair to them.


Some of the recommendations to cab aggregators are given as under:

1. Invest in awareness programs for customers. Make the aware about end usage of these ratings.

2. Incentivize customers for their well thought and accurate ratings.

3. Issue a rating guideline to customers so that they can differentiate between rating scores.

4. Drop the rating system and solely go by negative indicators such as complaints filed after cab rides etc.


This article has been authored by Raj Kiran Saraswat from XLRI



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