Amita Project

8/3/2019 Amita Project

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A PROJECT REPORT ON

ROLE OF 360-DEGREE FEEDBACK AS A

TOOL FOR PERFORMANCE

MANAGEMENT

A CRITICAL ENQUIRY INTO THE EFFECTIVENESS OF 360-

DEGREE WITH RESPECT TO CAREERNET CONSULTING

SUBMITTED TO

ALL INDIA MANAGEMENT ASSOCIATION

CENTRE FOR MANAGEMENT EDUCATION

MANAGEMENT HOUSE, 14 INSTITUTIONAL AREA,

LODHI ROAD, NEW DELHI-110003

JUNE 2008

By

AMITA ROUT

REGISTRATION NO. 420820560

Guided By

MRS. AMBILY SREEKUMAR

For the partial fulfilment of

Post Graduate Diploma in Management


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CONTENTS

Chapter Page No.

1. INTRODUCTION 1

1.1 Introduction

1.2 360-degree appraisal feedback

1.3 Need of this in the organizations

1.4 Benefits

1.5 Introducing it in an organization

1.6 Uses

1.7 Components

1.8 360-degree performance appraisals

1.9 Pitfalls

1.10 Uses in other organizations

2. RESEARCH METHODOLOGY 11

2.1 Research Design

2.2 Research Design applied

2.3 Methodology for data-collection

2.4 Limitations of the study

3. PROFILE 14

3.1 Company Profile

3.2 Industry Profile

4. ANALYSIS & INTERPRETATION OF DATA 22

4.1 Supervisors

4.2 Subordinates

4.3 Peers

4.4 Customers


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5. CONCLUSION & RECOMMENDATION 59

5.1 Findings & Conclusion

5.2 Recommendations

BIBLIOGRAPHY

ANNEXURE

LIST OF TABLES

Table Number Page Number

4.1.1 23

4.1.2 24

4.1.3 25

4.1.4 26

4.1.5 274.1.6 28

4.1.7 29

4.1.8 30

4.1.9 31

4.1.10 32

4.2.1 33

4.2.2 34

4.2.3 35

4.2.4 36

4.2.5 37

4.2.6 38

4.2.7 39

4.2.8 40

4.2.9 41

4.2.10 42

4.3.1 43

4.3.2 44

4.3.3 45

4.3.4 46

4.3.5 47

4.3.6 48

4.3.7 49

4.3.8 504.3.9 51

4.3.10 52

4.4.1 53

4.4.2 54

4.4.3 55

4.4.4 56

4.4.5 57

4.4.6 58


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LIST OF GRAPHS

Graph Number Page Number

4.1.1 23

4.1.2 24

4.1.3 25

4.1.4 26

4.1.5 27

4.1.6 28

4.1.7 29

4.1.8 30

4.1.9 31

4.1.10 32

4.2.1 33

4.2.2 34

4.2.3 35

4.2.4 36

4.2.5 37

4.2.6 384.2.7 39

4.2.8 40

4.2.9 41

4.2.10 42

4.3.1 43

4.3.2 44

4.3.3 45

4.3.4 46

4.3.5 47

4.3.6 48

4.3.7 49

4.3.8 504.3.9 51

4.3.10 52

4.4.1 53

4.4.2 54

4.4.3 55

4.4.4 56

4.4.5 57

4.4.6 58


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ACKNOWLEDGEMENT

I have had considerable help and support in making this project a reality.

First and Foremost I wish to take this opportunity to express my deep sense of gratitude to

Mrs. Ambily Sreekumar (Faculty Guide & Program Manager - PGDM) for her expert guidance and

support towards the completion of this project.

I sincerely thank Prof. Keirron.G.Reddy (Principal) and our Corporate & Public Relations Department,

who have been constant sources of inspiration for my dissertation.

I must thank the employees of CareerNet Consulting, for their support and valuable contribution in

providing the required data.

Finally it is my duty to thank my parents and all other people who helped me do my Industrial Training

without which this report would not have been possible.


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PREFACE

The performance review system is handled by more than one individual; the uniqueness of this system liesin the fact that it touches every individual within the organization personally and impacts his career notonly within the particular organization but also beyond it. This is also a system which demandscompetencies from every individual member of the organization at the level of his personal self first andforemost an objectivity to view it in the right context, secondly the maturity to introspect andconsequently create an ability to absorb feedback, the courage to speak the truth and a moral commitmentto contribute towards the organizations growth and development.

The performance review system should provide each staff member with a sense of achievement theknowledge and comfort of knowing where he/she stands vis--vis the expectations from him/her and whathe/she should be doing to get closer to the goal. It should also serve to uplift the performance movementwithin the organization to the level of a self driven system where every individual staff member becomeshis own driver.

It is the responsibility of the organization to demonstrate expectations and to ensure that performancemanaged system is managed in . It is critical for the achievement of the organizations objectives, thesystem design, implementation, administration and outcome need to be managed with the utmost level ofempathy, sensitivity, gentleness.

This research deals with the study of performance management and the role of 360-degree feedback in anorganization and how an organization is impacted by it.


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CHAPTER-1

1.1 INTRODUCTION

1.2 360-DEGREE APPRAISAL FEEDBACK

1.3 NEED OF THIS IN THE ORGANIZATIONS

1.4 BENEFITS

1.5 INTRODUCING IT IN AN ORGANIZATION

1.6 USES

1.7 COMPONENTS

1.8 360-DEGREE PERFORMANCE APPRAISALS

1.9 PITFALLS

1.10 USES IN OTHER ORGANIZATIONS


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CHAPTER 1

1.1 INTRODUCTION

Performance appraisal is the process of assessing an employee's performance based on a set of

standards. Performance appraisal may be defined as a structured formal interaction between a

subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-annual),

in which the work performance of the subordinate is examined and discussed, with a view to

identifying weaknesses and strengths as well as opportunities for improvement and skills development.

For any organization to achieve its goals and to sustain its growth in the present competitive world, the

performance of each and every individual employee plays a major role. The performance of the

employees should assess continuously to make their contribution to higher extend. The process of

measurement of the performance of employees at work is termed as performance appraisal.

Performance appraisal has long been regarded as one of the most critical areas of human resource

management. The Human Resource Department relies on evaluation results in determining the

soundness of much developmental decision, which have direct impact on the business surplus.

HISTORY OF PERFORMANCE APPRAISAL

The history of performance appraisal is quite brief. Its roots in the early 20th century can be traced to

Taylor's pioneering Time and Motion studies. But this is not very helpful, for the same, may be said

about almost everything in the field of human resource. Yet in a broader sense, the practice of appraisal

is a very ancient art. In the scale of things historical, it might well lay claim to being the world's second

oldest profession.

There is, says Dulewicz (1989), "A basic human tendency to make judgments about those one is

working with, as well as about oneself." Appraisal, it seems, is both inevitable and universal.

APPROPRIATIVENESS AND BENEFITS OF PERFORMANCE APPRAISAL:

It is sometimes fashionable in the 'modern age' to dismiss traditional processes such as performance

appraisals as being irrelevant or unhelpful. Appraisals - in whatever form helps the management for

decades, for good reasons.


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The performance appraisals can achieve and contribute the following when they are properly managed

like,

performance measurement - transparent, short, medium and long term

clarifying, defining, redefining priorities and objectives

motivation through agreeing helpful aims and targets

motivation though achievement and feedback

training needs and learning desires - assessment and agreement

identification of personal strengths and direction - including unused hidden strengths

career and succession planning - personal and organizational

team roles clarification and team building

organizational training needs assessment and analysis

Appraisee and managers mutual awareness and understanding.

IMPORTANCE OF PERFORMANCE APPRAISAL

Employee knows how he/she is presently doing. It also helps the employee knows if he/she is doing

something wrong (to improve future performance).Its a formal opportunity to speak with the

employee.

1.2 360 DEGREE APPRAISAL FEEDBACK

360-degree feedback is a full circle system of obtaining information from peers, subordinates, and

internal and external customers, about the employee's performance. 360-degree assessment is based on

the assessment of an individual's management styles, competencies and behavior by colleagues

horizontally and vertically by involving his boss, peers and direct reports in the organization.


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FRAME WORK OF 360 DEGREE APPRAISAL

Purpose

[Developmental areas, strength and

weakness,

remuneration/promotions/training and

development decisions.]

What is assessed?

[Work behavior, values, attitudes, skills

and career ambition]

Who assess?

[Peers, subordinates, higher authority,

supervisor, self-appraisal, internal

customers/suppliers]

Who is assessed?

[Staffs, executives, employees]

How it is assessed?

[Score, grade]


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1.3 NEED OF 360-DEGREE FEEDBACK IN ORGANIZATIONS

Business is towards surplus generation. Without surplus no organization can grow. Here the effort to

grow the business and the surplus should come from employee part. The performance of the

employees is at work here matters in business development and organizational development. The

performance of the employees should then align with the strategic decisions that integrate the business

goals in an increasingly competitive environment. It is the responsibility of the Human Resource

Management to integrate the culture of the organization with all available resources to the optimum out

put. The 3600 Appraisal helps the HR Department to have better understanding of the competitive

advantage and disadvantages of the current manpower resources and tune them towards performance

excellence and productivity.

In human resources, 360-degree feedback, also known as 'multi-rater feedback', 'multisource

feedback', or 'multisource assessment', is employee development feedback that comes from all around

the employee. "360" refers to the 360 degrees in a circle. The feedback would come from subordinates,

peers, and managers in the organizational hierarchy, as well as self-assessment, and in some cases

external sources such as customers and suppliers or other interested stakeholders. It may be contrasted

with upward feedback, where managers are given feedback by their direct reports, or a traditional

performance appraisal, where the employees are most often reviewed only by their manager.

The 360 degree appraisal has been used by more than 90% of Fortune 1000 companies, for the past 10

years. It is a boon to the corporate world though it has its drawbacks. The pros definitely outweigh the

cons. While traditional feedback processes have failed miserably, the 360 degree feedback has proved

to be magical. As opposed to the conventional appraisal system, wherein the immediate supervisor

provides the employee with unidirectional comments, the 360 degree relies on a multi-dimensional

feedback.

The 360 degree performance feedback evaluates an employees performance by soliciting information

and opinions about the individuals performance from peers, managers, direct reports as well as internal

How success is measured?

[Evaluate the work, related behavior

after the feedback has been given.]
http://en.wikipedia.org/wiki/Human_resourceshttp://en.wikipedia.org/wiki/Degree_(angle)http://en.wikipedia.org/w/index.php?title=Upward_feedback&action=edit&redlink=1http://en.wikipedia.org/wiki/Performance_appraisalhttp://en.wikipedia.org/wiki/Human_resourceshttp://en.wikipedia.org/wiki/Degree_(angle)http://en.wikipedia.org/w/index.php?title=Upward_feedback&action=edit&redlink=1http://en.wikipedia.org/wiki/Performance_appraisal


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and external customers. Also known as multi-perspective and peer-to-peer feedback, managers,

supervisors and employees have found it to be effective in improving their performance

The results from 360-degree feedback are often used by the person receiving the feedback to plan their

training and development. The results are also used by some organizations for making promotional or

pay decisions, which are sometimes called "360-degree review."

1.4BENEFITS

Individuals get a broader perspective of how they are perceived by others than previously

possible.

Increased awareness and relevance of competencies.

Increased awareness by senior management that they too have development needs.

More reliable feedback to senior managers about their performance.

Gaining acceptance of the principle of multiple stakeholders as a measure of performance.

Encouraging more open feedback.

Reinforcing the desired competencies of the business.

Provided a clearer picture to senior management of individuals real worth (although there

tended to be some halo effect syndromes).

Clarified to employees critical performance aspects.

Opens up feedback and gives people a more rounded view of performance than they had

previously.

Identifying key development areas for the individual, a department and the organization as a

whole.

Identifying strengths that can be used to the best advantage of the business.

A rounded view of the individuals/ teams/ organizations performance and what the strengths

and weaknesses are.

Raised the self-awareness of people managers of how they personally impact upon others

positively and negatively.

Supporting a climate of continuous improvement.

Starting to improve the climate/ morale, as measured through the survey.

Focused agenda for development. Forced line managers to discuss development issues.
http://en.wikipedia.org/wiki/Traininghttp://en.wikipedia.org/wiki/Training


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Perception of feedback as more valid and objective, leading to acceptance of results and actions

required.

1.5INTRODUCING 360 FEEDBACK IN AN ORGANIZATION

Before introducing 360 feedback in an organization the planning process must include the step

addressing the benefits and perceived risks of all participants. Recipients of feedback and reviewers

may have concerns about issues like confidentiality of reviews, how the completed reviews will be

used in the organization and what sort of follow up they can expect. Communication and support

provided throughout the project must take this into account if the program is to provide maximum

value for the individuals and the organization using 360 degree feedback.

1.6 USES FOR 360 DEGREE FEEDBACK:

Performance Appraisal

o Recognition of performance

o Providing feedback on individual performance

o Providing a basis for self-evaluation

Assessing Employee Development:

o Diagnosing training and career development needs.

o Providing a basis for promotion, dismissal, job enrichment, job enlargement,

job transfer, probation, etc.

o Monetary and other rewards.

Organizational Climate Study:

o Organizational environment improvement needs

o Changes in the Managerial approaches, leadership, etc

Customer Satisfaction Study

o Employees attitudinal change

o Customer satisfaction improvements


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1.7 360 DEGREE APPRAISAL HAS FOUR INTEGRAL COMPONENTS:

1. Self appraisal

2. Superiors appraisal

3. Subordinates appraisal

4. Peer appraisal.

Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his

achievements, and judge his own performance.

Superiors appraisal forms the traditional part of the 360 degree appraisal where the employees

responsibilities and actual performance is rated by the superior.

Subordinates appraisal gives a chance to judge the employee on the parameters like communication and

motivating abilities, superiors ability to delegate the work, leadership qualities etc. Also known as

internal customers, the correct feedback given by peers can help to find employees abilities to work in

a team, co-operation and sensitivity towards others.

Self assessment is an indispensable part of 360 degree appraisals and therefore 360 degree appraisals

have high employee involvement and also have the strongest impact on behavior and performance. It

provides a "360-degree review" of the employees performance and is considered to be one of the most

credible performance appraisal methods.


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360 degree appraisal is also a powerful developmental tool because when conducted at regular intervals

it helps to keep a track of the changes others perceptions about the employees. A 360 degree appraisal

is generally found more suitable for the managers as it helps to assess their leadership and managing

styles. This technique is being effectively used across the globe for performance appraisals. Some of the

organizations following it are Wipro, Infosys, Reliance Industries etc.

1.8 360 DEGREE PERFORMANCE APPRAISALS

The process in which you evaluate yourself on a set of criteria, your manager evaluates you, as do your

peers and direct reports. You receive a gap analysis between how you perceive yourself and how others

perceive you. Effective 360-degree feedback processes also include develop planning and coaching

sessions.

PREREQUISITES

* Top Management Support.

* Confidence of employees on the appraisal methodology.

* Objectives need to be measurable with performance requirements clearly stated.

* A detailed plan of implementation.

* Collaboration between superior and subordinates.

* Some prior experimentation and positive experiences clear organizational philosophy and

policy objectives.

1.9 PITFALLS OF 360-DEGREE FEEDBACK

A detailed plan of action, which ensure the transparent and clear implementation of appraisal

with employee accountability.
http://appraisals.naukrihub.com/360-degree-performance-appraisal.htmlhttp://appraisals.naukrihub.com/360-degree-performance-appraisal.html


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Effective follow-up is the prime requirement of 360-degree feedback. Failure in follow-up may

cause more harm than good.

The 360-degree feedback is time consuming and cost consuming assessment process. Without

having adequate resource to implement the process, it will end up nowhere and develop

financial burden to organization.

The trust and confidence on the employees who undergo this feedback assessment process is a

determinant factor in its outcome. Many consider this appraisal as tool for downsizing. The process involves a lot of paper work.

There are high chances of subjectivity from the management and employee part in the feed

back assessment.

Many times the confidentiality of the appraisal cannot ensure from the HR department.

Since the assessment is based on qualitative data many times it cannot ensure unambiguous,

clear, specific, and observable and quantifiable formats.

1.10 USES OF 360 DEGREE APPRAISALS IN VARIOUS ORGANIZATIONS

Many organizations have found the 360 degree appraisal to be useful in:

Validating selection processes and development programs.

Identifying training and development needs.

Pinpointing skills and competencies.

Making personnel decisions such as promotions, terminations, salary hike and probationary

status.

Career development.

Employee coaching.

Supervisory training.

Management development.

Style and leadership awareness.

Needs assessment.


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CHAPTER-2

2.1 RESEARCH DESIGN

2.2 RESEARCH DESIGN APPLIED2.3 METHODOLOGY FOR DATA-COLLECTION

2.4 LIMITATIONS OF THE STUDY


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CHAPTER 2

2.1 RESEARCH DESIGN

A planned and structured procedure for collecting and analyzing the information

required for the solution of any specific problem was adopted. It provided for a scientific

research investigation.

This research design helped to get the most accurate result with the help of

informal interviews with the employees who have undergone the 360 degrees

feedback appraisal themselves. Here the interviews were focused on selected questions

for which the responses were noted down.

Also with informal interaction with the Human Resource team of Careernet Consulting,

on selected questions for which the responses were noted down.

2.2 RESEARCH DESIGN APPLIED:

Primary data will be collected through informal interviews through face to face meetings.

This piece of research will be exploratory in nature.

Exploratory research is often relied on secondary research, such as reviewing available

literature from various resources.


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2.3 METHODOLOGY FOR DATA COLLECTION:

Primary data will be collected from middle level managers who have undergone 360

degree feedback themselves, through an informal interview on selected questions.

Data will also be collected through interactions with the Human Resource team of

Careernet Consulting which have designed and implemented the 360 degree feedback .

Exploratory research often relies on secondary data, such as reviewing available literature

from the following sources:

i. Web based materials

ii. Books

iii. Journals

2.4 LIMITATIONS OF THE STUDY

It is understood that the 360 appraisal system is still in preliminary stages. So this

recommendation is also seen as preliminary.

Validity and Reliability of the data obtained depends on the responses from the employees.

The 360 degree appraisal mechanism can have an adverse effect on the motivation and the

performance of the employees.

Effective follow-up is the prime requirement of 360-degree feedback. Failure in follow-up

may cause more harm than good.

This survey is purely based on the opinion of the employees and staffs, which may be biased

after the time of the study.

Some of the respondents might not have revealed their actual opinion.

Time and resource constraints.


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CHAPTER-3

3.1 COMPANYS PROFILE

3.2 INDUSTRY PROFILE

3.2.1 DIVISION OF THE COSULTING INDUSTRY

3.2.2 ORIGIN OF HR CONSULTANCY

3.2.3 CORE FIELDS FOR HR CONSULTANCIES

3.2.4 MAJOR PLAYERS IN THE MARKET

3.2.5 WHEN ARE CONSULTANCIES NEEDED?

3.2.6 CRITICISM

3.2.7 FUTURE VIEW FOR HR COSULTANCY


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CHAPTER 3

3.1 COMPANY PROFILE

Established in 1999, CareerNet is the leading provider of Talent Acquisition and RecruitmentProcess Outsourcing solutions to the Technology, Knowledge Services, Banking and Financial

Services sectors in India. The leadership team has several decades of collective experience

working for global services and consulting firms and is alumni of premier educational

institutions in India.

CareerNet aims to provide fast, simple and cost-effective solutions for our clients, through

strategic advice and solutions in the areas of Recruitment Process Outsourcing, Talent

Acquisition Strategy and Planning, Compensation Advisory, University Recruitment,

Leadership Acquisition, Talent Branding, Role Design, Performance Management Systems,Outplacement and Exit Management.

WHAT MAKES IT DIFFERENT?

Network of high quality professionals

At CareerNet, we proactively build and maintain enduring relationships with high quality

professionals through the lifecycle of their careers. We carefully nurture these relationships

with the support of our world-class technology platform and provide personalized attention toeach applicant; advising them on their career paths and helping them navigate through the

recruitment process, enriching the overall relationship.

Innovation in Talent Acquisition

At CareerNet, we have always believed in creating newer business models and delivery

mechanisms that create enhanced value for our clients and candidates. Some of our pioneering

initiatives are redefining the way talent acquisition and management that is done in India.

High quality technology-enabled experience

Investments in a scalable and robust recruitment technology platform has made CareerNet a

highly effective partner for our clients as well as a highly efficient operation. Users of the

platform operate out of multiple regions to deliver consistent and high quality real time

services to customers and candidates alike and contribute to their success.


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Broad spectrum of customized solutions

CareerNet has a breadth of solutions which are aimed at bringing together the best minds andthe best organizations together. These talent acquisition solutions are custom-built to address

the specific situation and span across the spectrum from university talent to occupants of the

boardroom. Our Recruitment Process Outsourcing solutions are fully customized to the needs

to our clients

Risk-reward based services partnership

CareerNet works on a risk-reward based partnership with our clients. We determine the balance

between service levels and pricing, and incorporate this into our engagement models which aresupported by robust service management processes.

EXPERTISE: -

CareerNet's expertise lies in our deep understanding of our client's businesses, as well as our

appreciation for the significant challenges that our clients face in various functional areas.

Our teams are organized by industry sectors and functional areas of expertise which

enhances our ability to provide our clients with highly impact talent acquisition solutions.

INTEGRATED APPROACH: -

CareerNet's account teams consistently manage service delivery, through an integrated client

service interface, which enables the fulfillment of each client's diverse requirements.

CORPORATE ROLE:

With many global players increasing their footprint in India and with many Indian companies

growing strongly within India and outside, the demand for professionals in corporate roles has

been on a steady rise. These corporate roles are key to effective communication within the

organization and to the outside world, to managing employee motivation and development, to

managing relationships with key stakeholders and the media, to leading the social

responsibility initiatives and many others.

These professionals are not only trusted advisors to executive managements and boards but are

also subject matter experts in their respective functions who bring a wealth of knowledge,

experience and leadership to these corporations. The professionals in these corporate roles are

also responsible for adopting and communicating the global philosophy and practices of the


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company by adding a local flavour to these, which becomes an interesting challenge in a

country like India given its diversity.

Some of the important corporate role functions in an organization are:

Corporate Planning and Strategy.

Corporate Development.

Company Secretarial.

Corporate Communications.

Corporate Social Responsibility.

Special Initiatives.

Risk, Audit and Compliance.

Government and Regulatory.

Having worked with many large corporations, CareerNet's team of human resource consultants

and outplacement consultants understand the need and importance of these key corporate

functions and the talent acquisition needs for each of its clients. Further, CareerNet's

consultancy expertise in the Indian business context makes it an ideal partner for the

recruitment of people for these roles, which require strong knowledge of the local environment

and practices.

3.2 Industry profile

Consulting is a great introduction to the world of business. Consultants can experience intense

workloads and hours, however it can be rewarding in many ways. It can offer the opportunity for travel,

work variety, high salaries, and bonuses. In addition, consulting firms are typically located in urban

locations such as New York City, Boston, San Francisco, etc, which are often desirable places for

recent graduates and business professionals.

As a business service, consulting remains highly cyclical and linked to overall economic conditions.

The consulting industry shrank during the 2001-2003 period, but had been experiencing slowly

increasing growth since. In 2004, revenues were up 3% over the previous year, yielding a market size

of just under $125 billion. Currently, there are three main types of consulting firms. First, there is large,

diversified organization. The management consultancy industry shows a very fragmented picture with

various segments and player groups. This is a business that does consulting for other businesses.


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Professionals wanting to become more engaged in business decisions rather than making

recommendations tend to leave consulting. The consulting industry can be greatly affected by the

economy. Consultants may experience extreme highs and lows in the amount of projects in their

workload. Temporary or permanent layoffs may occur when the project load is light.

3.2.1 The Consulting Industry can be divided into the following areas:

Management Consulting: Focus is on how a company or organization works to achieve its stated

goals. This can include working on strategy, operations, and information technology.

Strategy Consulting: Focus is on identifying the direction, goals, and growth of a company or

organization within a specific industry. It helps an enterprise to formulate strategies appropriate to its

business and implement them. Examples - McKinsey & Co., BCG etc.

Information Technology (IT) Consulting: Focus is on using technology to help an organization

become more efficient and achieve its goals.

Industry Specific Consulting: Focus is on a specific industry and can include strategy, management,

IT, scientific or technical consulting.

Finance Consultants: Help an enterprise to prepare proper budget and to make proper use of available

resources.

Legal Consultants: Help an enterprise to analyze the legal environment of its business, and help

formulate and implement Legal strategies related to its business.

Examples Many leading Law firms who provide these services.

Among these HR consulting industry is one of the fast growing industries. The service sector

contributes to more than 50% of India's economy. Human resources are one of the most central

strategic assets in the consultancy industry, ensuring competitive advantage and organizational success.

Due to this important issue, access to HR-related information is relatively restricted.

3.2.2 Roots of origin of HR consultancy


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Communication: Including surveying employee attitudes, satisfaction, engagement, and other

employee behaviors, retirement, outsourcing.

Services may also include legal counseling, global initiatives, investments consulting, and the

implementation of HR technologies to facilitate human capital management. The HR consulting

industry also employs more actuaries than any other in order to assist in their services. HR consultancy

services are focused towards enhancing the performance of the companies.

3.2.4 Major players in the market:

HR consultancies vary in their ranges of services and sizes, with many consultants and academicians

breaking off to form their own practices. A 2007 Workforce Management study identifies the top fiverevenue producing HR consultancies as following-

HR consultancies Contribution

Mercer $2.4 billion

Deloitte $1.6 billion

Watson Wyatt $1.4 billion

Aon $1.3 billion

PricewaterhouseCoopers $1.6 billion

Other major players include Towers Perrin, Hewitt Associates, Hay Group and Buck Consultants.

Recruitment Firms in India

Larger companies are also outsourcing HR tasks, but they more typically go with specialty firms. Themost commonly outsourced function is employee assistance, and outplacement services.

ABC International Placement Services

Times International Inc Bhardwaj & Company Chartered Accountants

International Manpower Resources Pvt. Ltd.

Total Strategic Solutions India Pvt. Ltd.

Designing Solutions, Gurgaon

Esource Global HR

BRAINSTORM PLACEMENTS

Suven Consultants

M-Power HR Solution


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Cindy Placements & consultancy

Smart Serve H.R. Consultant

Horizon hr Solution Pvt. Ltd.

M.K.CONSULTANT

JOBKOMPASSE

3.2.5 When does a company need help of consultancies?

a) Many times, when a company is considering making an acquisition, they will bring in a

consulting company to help evaluate all aspects of the deal, including the proper price to offer,

the projected changes that the new owner would make in the new business, etc.

b)There are many consultancies who do things as specialized as corporate name changes, new

logos, etc.

3.2.6 Criticism

Management consultants are often criticized for overuse of buzzwords, reliance on management fads

and a failure to develop executable plans that can be followed through. A number of highly critical

books about management consulting argue that the mismatch between management consulting advice

and the ability of business executives to actually create the change suggested results in substantial

damages to existing businesses.

3.2.7 Future View for HR Consultancy


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The HR function has gone through, and is still going through, a transition from being an administrative

overhead, a non-profitable department, to a strategic business partner.

Consulting in HR is no more a want but it's a need based want that drives the performance further. The

sun of HR Consulting is now in full light... The game begins NOW!!

CHAPTER-4

ANALYSIS &

INTERPRETATION OF

DATA

4.1 SUPERVISORS

4.2 SUBORDINATES


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4.3 PEERS

4.4 CUSTOMERS


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CHAPTER 4

Analysis & Interpretation of Data

4.1 Supervisors:

Table 4.1.1

Table showing satisfaction with the appraisal method

Graph4.1.1

Graph showing satisfaction with the appraisal method

Inference:

Out of 10 respondents, 20% are highly satisfied, 50% are satisfied, 20% are neutral and the rest 10%

are dissatisfied with the current Appraisal System.

Satisfaction with appraisal method Number of respondents

Highly satisfied 2

Satisfied 5

Neutral 2

Dissatisfied 1

Highly dissatisfied 0

Total 10


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Table 4.1.2

Table showing effectiveness of appraisal method

Graph 4.1.2

Graph showing effectiveness of appraisal method

Inference:

As depicted in the Chart, 20% of the respondents found the Appraisal Method to be highly effective,

for 40% of the Supervisors it was effective, 30% were neutral towards it and rest of the 10% found it tobe ineffective.

Effectiveness of appraisal method Number of respondents

Highly effective 2

Effective 4

Neutral 3

Ineffective 1

Highly ineffective 0

Total 10


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Table 4.1.3

Table showing Impact of negative feedback on the future performance

Graph 4.1.3

Graph showing Impact of negative feedback on the future performance

Inference:

As visible in the Graph, 20% of the Respondents disagree that there would be any impact of negative

feedback, 40% neither agree nor disagree, 10% agree and 30% strongly agree that there would be an

impact of the negative feedback on the future performance.

Negative feedback on future

performance

Number of respondents

Strongly Disagree 0

Disagree 2

Neither 4

Agree 1

Strongly Agree 3

Total 10


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Table 4.1.4

Table showing the Degree of Communication Gap between the Appraisers and the Appraisees

Degree of Communication Gap Number of Respondents

Very High 0

High 3

Low 5

Very Low 2

Total 10

Graph 4.1.4

Graph showing the Degree of Communication Gap between the Appraisers and the Appraisees

Inference:

Among the respondents 30% have responded that there exists high communication gap, 50% have

responded that there exists low degree of communication gap, and 20% have responded that there

exists very low degree of communication gap.


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Table 4.1.5

Table showing the Interest of employees in employing this Appraisal Method

Interest of the employees Number of Respondents

Yes 6

No 4

Total 10

Graph 4.1.5

Graph showing the Interest of employees in employing this Appraisal Method

Inference:

As visible in the Chart, 60% of the Supervisors are interested in employing the 360-degree feedback

method in the organization, whereas 40% are against it.


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Table 4.1.6

Table showing Happiness with the fairness and confidentiality of the Appraisal System

Graph 4.1.6

Graph showing Happiness with the fairness and confidentiality of the Appraisal System

Inference:

As seen, 20% of the respondents are very happy with the fairness and the confidentiality of the

Appraisal System. 50% are happy, 10% are neutral whereas 20% are unhappy with its fairness and

confidentiality.

Happiness with the Appraisal

System

Number of respondents

Very Happy 2

Happy 5

Neutral 1

Unhappy 2

Very Unhappy 0

Total 10


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Table 4.1.7

Table showing the Main Use of the feedback collected

Graph 4.1.7

Graph showing the Main Use of the feedback collected

Inference:

As it can be seen in the graph, 10% of the respondents felt that the feedback from the appraisal was

used for Compensation calculation, other 10% felt it was for Training & Development, another 10%

felt it was for the appraisees personal development. 30% of the respondents felt it was just for the sake

of giving them feedback on their performance and the rest of the 40% felt that it was for all thesereasons.

Main Use of the feedback collected Number of respondents

Compensation 1

Training & Development 1

Personal Development 1

Feedback 3

All of the above 4

Total 10


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Table 4.1.8

Table showing the Reasons behind the Appraisals Failure

Reason for Appraisal Failure Number of Respondents

Manager not taking the Appraisal seriously 2

Manager not prepared 1

Employees not receiving feedback 2

Management practices 5

Total 10

Graph 4.1.8

Graph showing the Reasons behind the Appraisals Failure

Inference:

Among the respondents,

20% felt that managers

not being serious about

the appraisal, was the

main reason behind itsfailure. 10% of them felt

that the failure occurred

as the managers were

not prepared for the

appraisal, 20% felt it was because employees were not receiving the feedback whereas rest 50%

blamed the management practices for the failure.


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Table 4.1.9

Table showing Constructive Feedback offered by the Supervisors

Graph 4.1.9

Graph showing Constructive Feedback offered by the Supervisors

Inference:

As it can be seen in the Chart, 10% of the Supervisors felt that they rarely gave a constructive feedback,

20% of them felt they gave it sometimes, 40% said that they used often give a constructive feedback

and rest 30% said that they always gave a constructive feedback.

Offering Constructive Feedback Number of respondents

Never 0

Rarely 1

Sometimes 2

Often 4

Always 3

Total 10


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Table 4.1.10

Table showing Instrumentalism of the feedback in enhancing Appraisees knowledge and

expertise

Graph 4.1.10

Graph showing Instrumentalism of the feedback in enhancing Appraisees knowledge and

expertise

Inference:

Out of 10 respodents, 20% felt that the feedback was rarely instrumental in enhancing the appraiseesknowledge and expertise, 30% felt it happened sometimes, 40% felt that it happened often and the rest

10% felt it happened always.

Instrumentalism of the feedback Number of respondents

Never 0

Rarely 1

Sometimes 2

Often 4

Always 3

Total 10


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4.2 Subordinates:

Table 4.2.1


Graph 4.2.1


Inference:




Highly satisfied 2

Satisfied 4

Neutral 3

Dissatisfied 1


Total 10


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Table 4.2.2


Graph 4.2.2


Inference:


for 50% of the Subordinates it was effective, 30% were neutral towards it and rest of the 10% found itto be ineffective.


Highly effective 1

Effective 5

Neutral 3

Ineffective 1


Total 10


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Table 4.2.3


Graph 4.2.3


Inference:

As visible in the Graph, 10% of the respondents strongly disagree that there would be any impact of

negative feedback, 10% disagree, 20% neither agree nor disagree, 40% agree and 20% strongly agree

that there would be an impact of the negative feedback on the future performance.

Negative feedback on future performance Number of respondents

Strongly Disagree 1

Disagree 1

Neither 2

Agree 4

Strongly Agree 2

Total 10


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Table 4.2.4



Very High 1

High 2

Low 4

Very Low 3

Total 10

Graph 4.2.4

Graph showing the Degree of Communication Gap between the Appraisers and the Appraisees

Inference:

Among the respondents, 10% felt

that the degree of communication

was very high, 20% have

responded that there exists a high

communication gap, 40% have

responded that there exists low degree of communication gap, and 30% have responded that there

exists very low degree of communication gap.


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Table 4.2.5



Yes 6

No 4

Total 10

Graph 4.2.5


Inference:

As visible in the Chart, 60% of the Supervisors are interested in employing the 360-degree feedback



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Table 4.2.6


Graph 4.2.6


Inference:


Appraisal System. 50% are happy, 10% are neutral, 10% are unhappy and rest of the 10% are very

unhappy with its fairness and confidentiality.

Happiness with the Appraisal System Number of respondents

Very Happy 2

Happy 5

Neutral 1

Unhappy 1

Very Unhappy 1

Total 10


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Table 4.2.7


Graph 4.2.7


Inference:




of giving them feedback on their performance and the rest of the 20% felt that it was for all these

reasons.


Compensation 1



Feedback 1

All of the above 2

Total 10


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Table 4.2.8







Total 10

Graph 4.2.8


Inference:

Among the respondents, 20% felt that managers not being serious about the appraisal was the main

reason behind its failure. 30% of them felt that the failure occurred as the managers were not preparedfor the appraisal, 40% felt it was because employees were not receiving the feedback whereas rest 10%



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Table 4.2.9

Table showing Instances of Feedback being influenced

Graph 4.2.9

Graph showing Instances of Feedback being influenced

Inference:

As it can be seen in the Chart, 40% of the subordinates felt that there were never any instances of the

feedback being influenced, 20% of them felt that it rarely happened, 20% of them felt it sometimes,

10% said that it was often whereas the rest 10% said that they always saw instances of the feedback

being influenced.

Feedback being influenced Number of respondents

Never 4

Rarely 2

Sometimes 2

Often 1

Always 1

Total 10


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Table 4.2.10

Table showing If the feedback has improved the Organizations Performance

Graph 4.2.10

Graph showing If the feedback has improved the Organizations Performance

Inference:

As visible in the Graph, 10% of them felt that it rarely happened that the feedback had helped in

improving the organizations performance, 40% of them felt it sometimes, 30% said that it was often

whereas the rest 20% said that they always saw instances wherein the feedback has improved theorganizations performance.

Feedback Number of respondents

Never 0

Rarely 1

Sometimes 4

Often 3

Always 2

Total 10


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4.3 Peers

Table 4.3.1


Graph 4.3.1


Inference:




Highly satisfied 3

Satisfied 5

Neutral 1

Dissatisfied 1


Total 10


53/78


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Table 4.3.2

Table showing Effectiveness of appraisal method

Graph 4.3.2

Graph showing Effectiveness of appraisal method

Inference:


for 60% of the peers it was effective, 10% were neutral towards it and rest of the 10% found it to beineffective.


Highly effective 2

Effective 6

Neutral 1

Ineffective 1


Total 10


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Table 4.3.3


Graph 4.3.3


Inference:

As visible in the Graph, 10% of the respondents strongly disagree that there would be any impact of

negative feedback, 10% disagree, 20% neither agree nor disagree, 40% agree and 20% strongly agree

that there would be an impact of the negative feedback on the future performance.

Negative feedback on future performance Number of respondents

Strongly Disagree 1

Disagree 1

Neither 2

Agree 4

Strongly Agree 2

Total 10


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Table 4.3.4



Very High 1

High 2

Low 4

Very Low 3

Total 10

Graph 4.3.4

Graph showing the Degree of Communication Gap between the Appraisers and the

Appraisees

Inference:

Among the respondents, 10% felt that the degree of communication gap was very high, 20% have

responded that there exists a high communication gap, 40% have responded that there exists low degree

of communication gap, and 30% have responded that there exists very low degree of communication

gap.


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Table 4.3.5



Yes 7

No 3

Total 10

Graph 4.3.5


Inference:

As visible in the Chart, 70% of the subordinates are interested in employing the 360-degree feedback



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Table 4.3.6


Graph 4.3.6


Inference:


Appraisal System. 50% are happy, 30% are neutral and the rest 10% are unhappy with its fairness and

confidentiality.

Happiness with the Appraisal System Number of respondents

Very Happy 1

Happy 5

Neutral 3

Unhappy 1

Very Unhappy 0

Total 10


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Table 4.3.7


Graph 4.3.7


Inference:




of giving them feedback on their performance and the rest of the 40% felt that it was for all thesereasons.


Compensation 1



Feedback 3

All of the above 4

Total 10


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Table 4.3.8







Total 10

Graph 4.3.8


Inference:

Among the respondents, 40% felt that managers not being serious about the appraisal was the main

reason behind its failure. 30% of them felt that the failure occurred as the managers were not prepared

for the appraisal, 20% felt it was because employees were not receiving the feedback whereas rest 10%



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Table 4.3.9

Table showing Instances of Feedback being influenced by each other

Graph 4.3.9

Graph showing Instances of Feedback being influenced by each other

Inference:

As it can be seen in the Chart, 20% of the peers felt that there were never any instances of the feedback

being influenced by each other, 30% of them felt that it rarely happened, 40% of them felt it sometimes

whereas the rest 10% said that they often saw instances of the feedback being influenced by each other.

Feedback being influenced Number of respondents

Never 2

Rarely 3

Sometimes 4

Often 1

Always 0

Total 10


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Table 4.3.10

Table showing Negative Impact on the Relationship

Graph 4.3.10

Graph showing Negative Impact on the Relationship

Inference:

As visible in the Graph, 30% of the respondents strongly disagree that there would be any negative

impact of the feedback on their relationship, 40% disagree, 20% neither agree nor disagree and 10%

agree that there would be a negative impact of the feedback on their relationship.

Negative Impact on the future performance Number of respondents

Strongly Disagree 3

Disagree 4

Neither 2

Agree 1

Strongly Agree 0

Total 10


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4.4Customers:

Table 4.4.1


Graph 4.4.1


Inference:


for 40% of the customers it was effective, 30% were neutral towards it and rest of the 10% found it tobe ineffective.


Highly effective 2

Effective 4

Neutral 3

Ineffective 1


Total 10


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Table 4.4.2

Table showing effectiveness of organizational performance

Graph 4.4.2

Graph showing effectiveness of organizational performance

Inference:

As visible in the Graph, 10% of the respondents found that the Appraisal Method was highly effective

for the organizational performance, for 60% of the customers it was effective, 20% were neutral

towards it and rest of the 10% found it to be ineffective for the organizational performance.

Effectiveness of organizational performance Number of respondents

Highly effective 1

Effective 6

Neutral 2

Ineffective 1


Total 10


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Table 4.4.3


Graph 4.4.3


Inference:

Out of 10 respondents, 70% are satisfied, 20% are neutral and the rest 10% are dissatisfied with the

current Appraisal System.


Highly satisfied 0

Satisfied 7

Neutral 2

Dissatisfied 1


Total 10


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Table 4.4.4

Table showing contribution of the appraisal method in employees performance improvement

Graph 4.4.4

Graph showing contribution of the appraisal method in employees performance

improvement

Inference:

As it can be seen in the Chart, 10% of the customers felt that it rarely happened that the appraisal

contributed in to employees performance improvement, 30% of them felt it to be sometimes, 40% felt

it to happen often whereas the rest 20% said that they always saw instances of the feedback

contributing to the employees performance improvement.

Contribution of the appraisal method Number of respondents

Never 0

Rarely 1

Sometimes 3

Often 4

Always 2

Total 10


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Table 4.4.5

Table showing influence of the appraisal method on the Services provided by the Appraisees

Graph 4.4.5

Graph showing influence of the appraisal method on the Services provided by the Appraisees

Inference:

Influence of the appraisal method Number of respondents

Never 0

Rarely 0Sometimes 3

Often 6

Always 1


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As depicted in the Graph, 30% of the customers felt that appraisal sometimes influenced the services

being provided , 60% felt it to happen often whereas the rest 10% said that they always saw instances

of the feedback influencing the services provided by the appraisees.

Table 4.4.6

Table showing Opinion if 360-degree method is the best tool to improve Performance Services

Standards

Graph 4.4.6

Graph showing Opinion if 360-degree method is the best tool to improve Performance

Services Standards

Opinion Number of respondents

Strongly disagree 0

Disagree 1

Neutral 2

Agree 7

Strongly Agree 0


69/78

Inference:

As visible in the Graph, 10% of the respondents disagree that the 360-degree method is the best tool to

improve the Performance Services Standards, 20% neither agree nor disagree and the rest 70% agree

with it.

CHAPTER-5

5.1 FINDINGS & CONCLUSION

5.2 RECOMMENDATIONS


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Conclusion:

The 360-degree performance appraisal method is perceived to be used by management to help theorganization in many ways such as supervisory skills improvement and communication improvement.

The success of the appraisal depends on the transparency and clear objectives of its need and its clear

cut intimation to the employees even at the bottom level of the organization

In a 360-degree appraisal, there is vital feedback given to the supervisor by the subordinate. The

subordinate can point at certain skills that the supervisor needs to improve upon.

The 360 appraisal can also help individuals recognize strengths and weaknesses of their co-workers. It

also has the potential to improve the employees performance.

360-degree feedback is an effective method which can become an important tool in designing a

Performance Management System since it takes into account a rounded view of the major stakeholders,

connected to the role.

360-degree feedback has phenomenal potential in identifying the various competencies and training

needs and developing into leaders. Today, employees take greater responsibility for managing their

own performance and 360-degree feedback is more like a guide or road map, that will help employees

make personal development plans which is wholeheartedly supported by the management/organization.The impetus is on the individual to make optimum use of the feedback.

From the study we can also infer that 360-degree feedback is mainly used to identify weaknesses in

performance and for developing their skills and competencies.


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But we cannot say that by introducing 360-degree feedback is the panacea to all ills plaguing the

previous appraisal system. Instead we need to look at 360-degree feedback holistically so as to gain

maximum value by administering it.

5.2 RECOMMENDATIONS

The management should try to create awareness about performance appraisal techniques.

Appropriate Delivery of Feedback and imparting healthy climate is very much essential.

Management shall make sure that the employees and their managers understand how to create

S.M.A.R.T. goals - Specific, Measurable, Attainable, Realistic and Timely.

All the employees shall work together without any personal grievances.

Appraiser shall be trained properly and consistent efforts shall be made to improve the

performance appraisal method. Manager involvement to avoid and reduce biases among the employees can also improve

performance appraisal method.

Company should develop better reward system for good and peak performers.


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BIBLIOGRAPHY

Books

1. 360 Degree feedback and performance management system Volume I by T.V. Rao and Raju Rao, T.V. Rao Learning Systems Pvt. Ltd., Excel books, New

Delhi, 2002.

2. 360 Degree feedback and performance management system Volume II byT.V. Rao, Gopal Mahapatra, Raju Rao, Nandini Chawla. T.V. Rao LearningSystems Pvt. Ltd., Excel books, New Delhi, 2003.

3. 360 Degree feedback A Management tool by Peter Ward. Jaico Books,Prakash Books India (P) Ltd. 2004.

4. 360 Degree feedback, Competency Mapping and Assessment Centers byRadha R Sharma. Tata Mcgraw-Hill publications, 2001.

5. Performance Management System by Michael Armstrong. Kogan PagePublishers, 2 edition, 2000.

Webliography

1. http://www.performance-appraisal.com/home.html

2. www.citehr.com
http://www.performance-appraisal.com/home.htmlhttp://www.citehr.com/http://www.performance-appraisal.com/home.htmlhttp://www.citehr.com/


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3. www.hrvillage.com

4. www.hrguide.com

5. www.360degree.com

ANNEXURE - QUESTIONNAIRE FOR DATA-COLLECTION

Questionnaire for Supervisors:

1. Are you satisfied with the 360 degree performance appraisal method?

(a) Highly satisfied (b) Satisfied (c) Neutral (d) Dissatisfied (e) Highly dissatisfied

2. State the effectiveness of this appraisal method.

(a) Highly effective (b) Effective (c) Neutral (d) Ineffective (e) Highly ineffective

3. If there is a negative feedback, do you feel that it is likely to impact future performance?

(a) Strongly disagree (b) Disagree (c) Neither (d) Agree (e) Strongly agree

4. Degree of communication gap between the appraisers and the appraisees.

(a) Very high (b) High (c) Low (d) Very Low

5. Are the employees interested in implementing this appraisal method?

(a) Yes (b) No
http://www.hrvillage.com/http://www.hrguide.com/http://www.hrvillage.com/http://www.hrguide.com/


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6. Are you happy with the fairness and confidentiality of the appraisal system?

(a) Very happy (b) Happy (c) Neutral (d) Unhappy (e) Very unhappy

7. Main use of the feedback collected:

(a) Compensation (b) T&D (c) Personal Development (d) Feedback (e) All of the above

8. Why do the appraisals fail?

(a) Manager not taking appraisal seriously (b) Manager not prepared

(c) Employees not receiving feedback (d) Management practices

9. Do you offer constructive feedback when appropriate?

(a) Never (b) Rarely (c) Sometimes (d) Often (e) Always

10. Is the feedback instrumental in enhancing the appraisees knowledge and expertise in an

effective manner?


Questionnaire for Subordinates:










(a) Yes (b) No


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(a) Compensation (b) T&D (c) personal Development (d) Feedback (e) All of the above


(a) Manager not taking appraisal seriously

(b) Manager not prepared

(c) Employees not receiving feedback

(d) Management practices

9. Have there been instances where your feedback has been influenced?


10. Do you feel that your feedback has improved the organizations performance level?


Questionnaire for Peers:











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(a) Yes (b) No




(a) Compensation (b) T&D (c) personal Development (d) Feedback (e) All of the above


(a) Manager not taking appraisal seriously

(b) Manager not prepared

(c) Employees not receiving feedback

(d) Management practices

9. Is your feedback influenced by each other?


10. Is there any negative impact of the feedback on their relationship?


Questionnaire for Customers:



2. How effective is the organizations performance?


3. Satisfaction with the fairness of this appraisal method:


4. Does your feedback contribute to employees performance improvement?



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5. Does your feedback influence the services being provided by the appraisees?


6. Do you feel that 360 degree performance appraisal is the best tool to improve

performance

service standards in the organization?


Documents

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