APPRAISAL SYSTEMHRs’ DILEMMA –ARTFOODS

COMPANY PROFILE

• Home grown company established in 1972 by AdityaSingh.

• He was working at Dole Food Company in Canada which was into sea-food packaging.

• Artfood’s product portfolio include jams, ketchups and tinned food.

• Processed food industry was not matured in India at that time as customers preferred fresh food.

• Concentrated on ketchups and jams.

ISSUE

• Wheather to continue with the current 360 degree appraisal system or to incorporate changes to stay ahead of time.

APPRAISAL SYSTEM: PAST TO PRESENT

• Ashish Asthana left the organisation in a jiffy.• Arti Atre took over the position of VP-HRD.

APPRASIAL SYSTEMS• 1972: Trait based system

Intelligence, integrity, communication skills, personality.

• 1985: Result based performance appraisal Key result areas (KRA) Key task areas (KTA)

PLOT

APPRAISAL SYSTEM: PAST TO PRESENT

APPRAISAL SYSTEM: PAST TO PRESENT

ADVANTAGES DISADVANTAGES

Shift in the result orientation of people.

Joint – goal setting sessions failed

Managers adopted paradigms which were more focused and directive. Newcomers discovered direction in their activities and aided learning and adjusting to culture of the organisation more easier

Employees were hesitant to play equal role in negotiation with their bosses.

Training given to write Specific, Measurable, Achievable, Realistic and Time-bound (SMART) goals.

MBO system did not find any buyers among line managers.

Result based performance appraisal

APPRAISAL SYSTEM: PAST TO PRESENT

APPRAISAL SYSTEM: PAST TO PRESENT

• 1991: Managerial review― The performance review― The self review― The career development review― The feedback session

• 1996: 360-Degree appraisal

APPRAISAL SYSTEM: PAST TO PRESENT

APPRAISAL SYSTEM: PAST TO PRESENT

ADVANTAGES DISADVANTAGES

Free communication between managers and sub-ordinates

Few became suspicious about of peers because of comments they received.

Acceptance for need to change

The data generated remained anonymous.

A manager who got a review that subordinates are not being involved started weekend departmental meeting

360-Degree Review

Present Problems• Top performer got negative review. He demanded

for face to face discussion with the reviewer.

• Organisations are becoming flatter to reduce barriers, facilitate communication and realising full human potential.

• Arti don’t want to be judged as the shadow of Asthana.

• She thinks that the employee should know from where the feedback is coming from so that he/she can do the needful.

What research says….

• Insights from research conducted by IIM-A, on 360-degree appraisal.

52%

48%

Influence on leadership development

Has helped in leadership development

What research says….

• Insights from research conducted by IIM-A, on 360-degree appraisal.

Positive impact on

personal life100%

Effect on personal life

What research says….

• Insights from research conducted by IIM-A, on 360-degree appraisal.

70%

30%

Effect on professional life

Positive impact on professional life

No impact on professional life

CONTRIBUTION

• Focus primarily on discovering strengths rather than use the process to uncover deficiencies.

• Tailor the results to each individual and to his or her position. Everyone doesn’t need to be good at the same things.

• Present each person’s results in a way that enables them to digest them constructively and use the data to create a personal plan of development.

CONRIBUTION

• Include a mini-employee survey that shows managers the impact of their behaviour on their subordinates.