Appraisal Apprehensions

Problem Statement:

Readymaid had tried multiple appraisal management system where the flow of authority was top
to bottom layer and managers enjoyed greater level of involvement in whole process.
In the 360-degree appraisal system, some managers such as Surajit Roy found it insulting to get
a poor feedback from his inferior. The problem here is the level of transparency in the system.
To what extent the feedback should be transparent keeping intact the identity along with a fair
appraisal system.

Situation Analysis:

Readymade, which registered a turnover of Rs. 250 Crore in 1996-97 and gross profit of Rs 35
Crore, had been set up in the early 1960s when canned and processed food technology was
developing in the west. Readymaid Food previous Vice-President (HRD) Sunil Purohit has left
company for lucrative assignment in Muscat. In this tenure Purohit has implemented various
appraisal-mechanisms. In 1970s, trait-based appraisal system was implemented where managers
were assessed on basis of intelligence, integrity, skills etc but this could not drive organizational
growth. Sanjana Singh is the newly appointed Vice President (HRD), at Readymaid Foods. But
as Purohit had to leave on a short notice, and Singh was yet to join the organization, he was
unable to hand over all his responsibilities personally and ensure a smooth transition. Giving this
abrupt beginning, Singh set her priorities straight. In 1970s, trait-based appraisal system was
implemented where managers were assessed on basis of intelligence, integrity, skills etc but this
could not drive organizational growth. The organization has adopted different performance
appraisal systems, e.g. trait theory based approach in 1970’s, Management-by-Objectives (MBO)
method in the 1980’s, SMART method and the Management review. All these methods had their
own successes and failures. However the recently introduced 360-degree appraisal was a
different one where the subordinates have to provide feedback about their bosses, keeping their
identities intact. Though some managers found it quite helpful to increase their performance,
some like Mr. Surajit Roy objected strongly to the negative feedback. Singh felt justified the way
Roy felt about the 360-degree appraisal. According to Singh unless a person knows where the
feedback is coming from there is no reason to accept it.

Singh is now trying to look at the appraisal system with a fresh perspective.

Criteria for Decision Making:

1. Avoid systems that will lead to conflicts in the team.

2. Transparency and the acceptability in the system.

3. The interests of either the manager or the subordinates should be considered on equal priority.

Alternative to be selected:
The Third options seems viable at this moment since only 4 weeks are remaining for the
appraisal and introducing and implementing a new system will be cumbersome and can also lead
to undesirable results. Thepeople that found the 360-degree appraisal system undesirable should
be addressed and accordingly make changes in the system

Course of Action:
Constitute a panel comprising Senior Stakeholders which would objectively evaluate all the pros
and cons of the policy adopted and accordingly make changes in the existing appraisal system.
Ms. Sanjana must invite a meeting of all the departmental heads and she should discuss the
persisting problems in appraisal management. Also, should be discussed the important elements
of each appraisal system that need be adopted so that a desirable mix can be obtained and
implemented.

Submitted by: Saurabh Sawale

Roll No: P40205