Question

Swagata Foods Ltd is a home-grown company in the business of processing and marketing jams, ketchups, and pickles. It enjoyed high brand equity and management is professional. Mr Ravi Upadhyya, CEO, had decided to quit and he was personally involved in the recruitment of his successor Mr Ashwani Raj.



After Mr Ashwani Raj joined the company, he wanted to review the performance appraisal system in the company which was started about 15 years ago. Initially, it was a trait based system wherein superiors rated employees based on their job knowledge, integrity, communication, health/hygiene, loyalty etc. In the last two years, the erstwhile CEO, Mr Ravi Upadhyay, had introduced the 360-degree appraisal system, which essentially involved a manager being appraised by his subordinates, peers, and superiors.



In the new system, subordinates had the opportunity to give feedback freely about their managers’ behaviour. He carried out a pilot study through a questionnaire and was of the opinion that it is essential to heed to the views, concerns, and opinions of subordinates with care and respect. He then designed a subordinate appraisal form and made it an integral part of the management performance appraisal system. The name of the subordinate giving the feedback was kept confidential and only the responses were shown to the managers.



The introduction of this system evoked a lot of hue and cry in the organization. Managers were up in arms, as many of the top performing managers got a negative feedback from their subordinates. They wanted that feedback to be given in a face-to-face discussion.



But Mr Ashwani Raj had his doubts about this system as it questions the very basics of organizational control mechanisms and group dynamics. Therefore, he agreed that performance appraisal system needs to be top down, and not vice-versa. The problem is that the existing system could not be totally scrapped out because it would send a wrong message to the subordinate level employees that their view does not matter to the management. However, continuation of the existing system would create greater conflict. Time was running out and Mr Ashwani Raj had to quickly come to some conclusion because the new appraisal cycle had to start within two weeks.





Attempt any two of the following questions



Q1. What went wrong with the assessment of Mr Ravi Upadhyay regarding implementing 360—degree performance appraisal system?



Q2. Why are the managers up-in-arms? They also give negative feedback to their subordinates. Then, where is the problem?



Q3. What should Mr Ashwani Raj do now? Please advise him.​

Answer 1

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