Torrington and Hall (1987) define personnel management as being:
“A series of activities which: first enable working people and their employing organizations to agree about the objectives and nature of their working relationship and, secondly, ensures that the agreement is fulfilled”
A 360 degree appraisal is a type of employee performance appraisal in which subordinates, co-workers, and managers all anonymously rate the employee. This information is then incorporated into that person’s performance review.
A 360 degree appraisal is a type of employee performance review, where a staffer’s work for a specific period of time (often a year) is discussed and critiqued. The 360 degree process is different in that it obtains feedback from co-workers and subordinates, instead of just from the direct supervisor. The goal of the process is to better understand how the employee is functioning as part of the team, and to improve the ways team members work together.
While Miller (1987) suggests that HRM relates to:
“…….those decisions and actions which concern the management of employees at all levels in the business and which are related to the implementation of strategies directed towards creating and sustaining competitive advantage”
A major concern of every organization should be to contribute positively towards the achievement of its objective. Organizational effectiveness is often equated with managerial efficiency. A manager can ensure organizational effectiveness only by guaranteeing the full utilization of human resource available through individual employees under his guidance. Hence, it is always required for a manager to monitor and measure the performance of employees.
Moreover, since the organization exists to achieve the goals, the degree of success that individual employees have in reaching this individual goal is important in determining organizational effectiveness. The assessment of how successful employees have been at meeting their individual goal to come a critical part of human resource management. This leads to concept of performance appraisal.
A performance appraisal system functions as definitions of performance.
Performance appraisal is a method of evaluating the behaviour of employees in the work spot, including both qualitative and quantitative aspects of job performance indicates how an individual is fulfilling the job demands and it is always in terms of results. Under performance appraisal not only the performance of an employee but also his potential for development is evaluated.
“Performance Appraisal is a systematic description of an employee’s job relevant strengths and weaknesses”.
In performance appraisal or merit rating refers to all the formal procedures used in working organizations to evaluate the personalities and contributions and potential group members. In appraisal system the employee’s merits like initiatives, dependability, personality etc., are compared with others and ranked to rated. Appraisals might be based on the criteria of employee’s skills, educational
Qualifications, knowledge, abilities to delegate plans, supervise; assume responsibility, exercise leadership, personal qualities, creativity, decision making and interpersonal skills.
An appraisal motivates an employee into increased effort aimed at enhancing the outcome of the assessment. It tells an employee what set of activities or what qualities are considered desirable by the organization.
It is the systematic method of obtaining, analyzing & recording information about an employee that is needed:
For effective management of business.
By the manager to help him improve the jobholders performance and plan his career.
By the jobholder to assist him to evaluate his own performance and develop himself.
In performance planning and review, the Reporting Manager is expected to set targets or tasks for the appraise in the beginning of the year. In the middle of the year, the appraise fills the self-appraisal form, indicating the extent which the target or task has been completed, the difficulties faced and the suggestions for improvement. At the end of the year, there is the annual review and targets/tasks set for the next year. Both in the mid-year review and annual review, the self-appraisal is supplemented by a performance review, discussion, the problems are discussed and the appraiser is given feedback on how he is doing.
The appraisal system is an instrument for improving the work culture by convincing employees that their career growth is linked with the performance of the company.
NEED FOR THE STUDY:
The need of the study of 360 Degrees of performance appraisal is to determine what aspects of performance are required to be evaluated.
To identify those who are performing their assigned task well and those who are not and the reason for such performance.
To provide information about the performance ranks basing on which decisions regarded salary fixation, conformation, promotion, demotion and transfer are taken.
To provide feedback information about the level of achievements and behavior of an employee.
To provide information and counsel the employee.
To compare actual performance with the standards and in out deviations (positive and negative)
To create and maintain satisfactory level of performance.
To prevent grievance and in disciplinary activity.
To facilitate fair and equitable compensation.
To ensure organizational effectiveness.
It guarantees useful information about employees and the nature of their duties.
We can briefly say that performance appraisal systems are necessities to assess performance at regular intervals with consistency to study improvements, deviation and to take corrective actions to bride gaps and improve performance over a period of time.
OBJECTIVES:
The objective is to know how effective is the execution of 360 Degrees of appraisal system in HERITAGE FOODS INDIA Ltd’s., Hyderabad.
The aim of most performance appraisal programming is to encourage the employees to set his own objective for the next time period following the review of his past performance. It enables the management to make effective decisions/ to modify earlier decisions based on the evaluation of the existing plans, information system, job analysis, and internal and external environment factors influencing employee performance.
The objectives is to identify the common goals of the organization, define each individuals major areas of responsibility in terms results expected of him, review the individual performance progress in a job and his potential for future improvement. It aims at providing data to managers with whom they may judge future job assignments and compensation.
To establish an objective basis from the different levels of performance and to identify executives with potential to grow in the organization.
To counsel the employees appropriately regarding their strengths and weaknesses and asses in developing them to realize they are full potential in line with the company’s objectives and goals. Always emphas
ize that the role of a manager is to offer constructive support and not condemn. Give the employees many opportunities to ask guidance to air grievances and discuss anxieties
SCOPE:
In the present study an attempt has been made to know the actual implementation of performance appraisal techniques in general and some other aspects such as awareness of the workers, effectiveness of the performance appraisal system in particular.
Human resource projections are valid on appraisals. By improving job skills, the employees have lot of scope for development and prepare themselves for higher responsibilities.
A through analysis of the performance appraisal system will help the management to know the short comings, if any. It also help the company in knowing whether the performance appraisal techniques are used to full extent or not, there by the researcher can understand the effective implement of the performance appraisal system.
METHODOLOGY & DATABASE:
The research methodology is a systematic way to solve the problem and it is an important component of the study without which researcher may not be able to obtain the facts and figures from the employees.
SOURCE OF DATA:
The study is based on primary as well as secondary data collected from different sources:
A). Primary Data:
The primary data is collected with the help of questionnaires, which consists of twenty questions each. The questionnaires are chosen because of its simplicity and liability. Researcher can expect straight answers to the questions. The respondents are informed about the significant of the study and requested to give their fair opinions.
B). Secondary Data:
Secondary data is collected through the documents provided by the personnel department. The documents include personnel manuals, books, reports, journal, etc.
Statistical tools used
Percentage method:
Percentage method is used in making comparison between two or more series of data. This is used to describe relationship.
Percentage of respondents = No of respondents x 100
Total respondents
The method of study followed in this project (in brief):
Sample size : 100
Data collection method : Primary and Secondary.
Duration of study : 45 days.
Analysis : Through percentage method.
SAMPLING PROCESS:
A). Sample Unit:
The executives and employed at HERITAGE FOODS INDIA Ltd’s., Hyderabad constitute ‘universe’ of the present study. A part of it is taken as sample unit for the resent study. It includes JGMS, AGMS, manager and other employees of HERITAGE FOODS INDIA Ltd’s.Hyderabad.
B). Sample Size:
The sample size consists of 100 respondents employed in HERITAGE FOODS INDIA Ltd’s, Hyderabad. Of these 30 are executives, 20 are senior executives and the remaining 50 are employees.
PERIOD OF THE STUDY:
Since so many years HERITAGE FOODS INDIA Ltd’s.Hyderabad has been following the same procedure of appraisals for their executives and employees and for the study of my project last one-year data(45 days study) has collected on performance appraisals.
LIMITATIONS OF PERFORMANCE APPRAISAL
In this case the superior appraises the person on certain positive qualities only. The negative traits are not considered. Such an appraisal will not give a true picture about the employee. And in some cases employees who do not deserve promotions may get it.
In this case only the negative qualities of the employee are considered and based on this appraisal is done. This again will not help the organization because such appraisal may not present a true picture about the employee.
In this case the superior gives an appraisal by giving central values. This prevents a really talented employee from getting promotions he deserves and some employees who do not deserve anything may get promotion.
Some bosses are lenient in grading their employees while some are very strict. Employee who really deserves promotions may lose the opportunity due to strict bosses while those who may not deserve may get benefits due to lenient boss.
In this case the employee is judged positively or negatively by the boss depending upon the past performance. Therefore although the employee may have improved performance, he may still not get the benefit.
Many bosses do not wish to spoil their relations with their subordinates. Therefore when they appraise the employee they may end up giving higher grades which are not required. This is an injustice to really deserving employees.
Sometimes a very strict appraisal may affect the goodwill between senior and junior. Similarly when different departments in the same company use different methods of appraisal it becomes very difficult to compare employees.
PLAN OF THE STUDY CHAPTERIZATIONS:
To shed light on introduction on subject background of study
The profile of the company
Present frame work regarding research design of the study
Explore performance appraisal process in HERITAGE FOODS INDIA Ltd’s.., Hyderabad
Exam in data, analysis and interpretation
Highlight summary of findings and conclusions
Offer suggestions and recommendations