Appraisal Apprehensions

Situation Analysis
Sanjana Singh, The Vice-President (HRD), at Readymaid Foods-a home grown company in
the business of manufacturing and marketing jams, ketchups and a range of canned food, with
high brand equity. She is a management graduate from Xavier Labour Relation Institute,
Jamshedpur with 15 years of hardcore human resource development (HRD) experience and
joined Readymaid just six months back.
Readymaid Food previous Vice-President (HRD) Sunil Purohit has left
company for lucrative assignment in Muscat. In this tenure Purohit has implemented various
appraisal mechanism. In 1970s, trait-based appraisal system was implemented where
managers were assessed on basis of intelligence, integrity, skills etc but this could not drive
organisational growth. In 1980s, Management by Objective (MBO) was introduced with idea
of switching to task based results with appraisal interviews, counselling and feedback among
appraiser and appraised, but managers were unable to articulate intangible areas of results and
easy goals setting led to delusive results. This appraisal method had quite a bit of successful
stint among the managers and newcomers with direction driven toward organisation goal.
Time bound (SMART) system of goal setting was incorporated. In 1991, holistic approach to
performance appraisal system was introduced in form of Managerial Review, under which an
individual career plan profile was drawn. In 1997, a new tool of 360-degree appraisal was
incorporated where each person gave feedback about boss on which was presented on
anonymous basis to senior managers. This system faced success as well as concerns like
Mr.Surajit Roy objected strongly against the negative feedback.
Sanjana Singh’s personal perception favours a hierarchical order of
functioning, where a system of communication and accountability should be followed in all
organizations and from a more personal point of view, wanted to implement something new
which differentiates her from her predecessor.

Objective
The objective before Sanjana Singh is to provide the organization with a performance
appraisal system that will be fair, acceptable to most of the people in the organization and
also transparent. Most importantly, it should be in the best interests of the organization.

Problem Identification
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. The
360-degree approach has changed the dynamics of system where bottom layer got
opportunity to provide feedback on top level managers. This has led to unstable situation.
There is also a demand for transparency in the system. The question is what should be the
level of transparency such that a fair appraisal can be ascertained. Sanjana Singh’s ambition
to stand apart from her predecessor will also play an important role.
Decision Making Criteria
 Not to compromise on the interests of either the manager or the subordinates.
 Prevent any friction between the managers and subordinates.
 Infuse more transparency in the performance judgment of boss.
 Create an acceptable system

Generating Alternatives
1. To revert back to MBO appraisal system.
2. In 360-degree approach of appraisal, introduce transparency by disclosing the name of
subordinated in their feedback.
3. In 360- degree approach of appraisal, introduce questionnaire-based feedback
mechanism to incorporated minute details of subordinated feedback and never
disclose the name. Involve in meeting with subordinate and senior managers in
discussion towards to ways to simplify the whole process.
4. Design a totally new appraisal mechanism.

Evaluation of Alternatives:
1. Reverting to MBO approach will again prove detrimental as it was already proved to
be not suitable. It will place an unnecessary burden on the employees.
2. Not feasible, the condition of anonymity is paramount in any appraisal mechanism.
Moreover, name disclosure would increase friction between workers.
3. The operational decisions are always at the top management. It can decide whatever it
wants to do with the appraisal data obtained. But giving the subordinates some sort of
say in the form of feedback motivates them to feel empowered and they start to feel
that they belong to the organization. Also, transparency can be brought. But it will be
unwise to reveal the names as it will prevent the employee from giving negative
feedback about his boss in fear of repercussions. Even knowing exact reason of
concern through questionnaire mechanism will help senior managers to access the
issue properly.
4. From the historical information we have seen that the improvements in the
performance appraisal system have always been incremental and making a sudden
departure from the established norm will invite disaster.

Alternative Selected
The third option seems more viable and easier to implement with minute changes. It is a
status –quo approach. The 360-degree appraisal system should be kept, as many found it
useful. The fraction of people that found it undesirable is a minority. She should speak to
them and address their concerns by making small modifications in the whole feedback
process.

Implementation Plan:
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. And in doing so, she must keep at bay her personal opinions
about inherent hierarchy in organizations.

Contingency plan
If the above suggestion fails to bridge the gap in appraisal system, Singh should come up
with new appraisal system where hierarchy should be preferred in some sort. Then there
should be some organizational restructuring in order to facilitate increased performance.

Submitted By:
Prashant kumar
(P40193)