EMPLOYEES OPINION ON 360-DEGREE FEEDBACK SYSTEM

CHAPTER I INTRODUCTION

1.1 INTRODUCTION

360 Degree

Appraisal is Multi Rater Appraisal and feedback system. Almost every

Fortune 500 Company is using this in some form or the other. In this system the candidate is assessed periodically (once in a year and some times even half yearly) by a number of assessors including his boss, immediate subordinates, colleagues, internal customers and external customers. The assessment is made on a questionnaire specially designed to measure behaviors considered as critical for performance.

The appraisal is done anonymously by others and the assessment is collected by an external agent (consultant) or specially designated internal agent (for example the HRD department). The assessment is consolidated; feedback profiles are prepared and given to the participant after a workshop or directly by his boss or the HRD department in a performance review discussion session. Giving and receiving feedback have been foundational to all Performance Management Systems. Conventionally the boss gave feedback to the subordinate. Now for sometime the limitations of such a simplistic use of feedback has been realized, paving way to the emergence of 360-degree feedback system at workplace relationships. Performance obviously depends on how the peers, customers and subordinates view the individual and what they expect of you. 360 Degree feedback instruments provide the perspectives from all these angles and thus play a critical role in enhancing the effectiveness of Performance management systems. The name 360 Feedback derives from getting input from 'all around', from as many relevant sources as possible; from peers, from managers and from staff. Very importantly, the technique also seeks input from 'customers' whether internal or external to the organization and, finally, from the appraises themselves. By comparing the various results it is possible to let individuals know where their self perceptions differ from those that others have of them. But this must be done in a positive way, for development, or to open 3

the door for a means to address problems. All-round feedback, presented within a framework, gives individuals the opportunity to focus on their strengths, plan for improvement and practice key behaviors.

THE BENEFITS OF 360 DEGREE FEED BACK

TO THE INDIVIDUAL Perception is reality and this process helps individuals to understand how others perceive them. Feed back is essential for learning. Individuals can better manage their own performance and careers.

TO THE ORGANISATION Better career development for employees, Improves customer service by having customers contribution to evaluation. Drives Training and Development Programmes.

STATEMENT OF THE PROBLEM

The 360degree feedback is understood as systematic collection of performance data on an individual or group, derived from a number of stakeholders the stakeholders being the immediate supervisors, team members, customers, peers and self. Corporations like General Electric India (GE), Reliance Industries Ltd. (RIL), Crompton Greaves, Godrej Soaps, Wipro, Infosys, Thermax and Thomas Cook are all using this to know everything about their employees as well managers.

Thus 360 Feedback is a system for assessing individual and team performance against defined competencies. It is also used for appraising individual performance and feeding back the results to those people. It is a powerful tool and, if used well, it will lead to improved performance for both individuals and the organization. Business Week cited executives' belief that 360o feedback boosts self-confidence, helps managers put more balance into their lives and teaches them to become more effective at work and at home". This research paper presents in detail about the employees opinions on 360 degree feedback system.

For Further Details Contact: +91-9962179698 044-26821138 www.lacrosstechnologies.org

1.2 SIGNIFICANCE OF THE STUDY Today, the trend is towards greater transparency and increased participation while evaluating an individuals effectiveness in an organization. 360-degree performance appraisal answers this issue effectively. The researcher makes a study on 360-degree feedback as an effective performance management tool and elucidates the benefits of the system if implemented properly. In many organizations appraisal systems from other organizations have been copied and implemented blindly without any linkage with organizational requirements and its peoples need. But in the 360 degree feedback appraisal is done in a systematic manner , it will contribute to motivation of employees , reveal role of employees, provide scope to express individual views and opinions, recognize talents , placement requirements , training needs and career planning. 360 Degree feedback is widely accepted as an effective performance management tool. But if it is not managed properly then it does more harm than benefits. People tend to have problems with 360 degree feedback. It has no privacy , reliability and effectiveness because of the personal biases and grievances of evaluators that creep into feedback. Another most important reason may be a gap between an organizations objectives and 360 degree. There is no surety that an employee will change after getting a feedback. Since employees evaluating their managers is not taken as a good sign , it negatively impacts shareholders value. 360 Degree feedback becomes inappropriate when: The person receiving feedback is too new to the group or organization. There are not enough respondents who truly understand the full scope of the individuals responsibilities. During a time of major change such as just before or after a merger or acquisition. In an environment where there is high degree of mistrust.

1.3 OBJECTIVES To understand the employees views on 360 Degree feedback system. To understand the employees views on the pre-requisites for an effective 360 degree feedback system. To understand the employees views on the implementation of 360 Degree feedback system. To elicit the employees views on the merits and demerits of the system. To call for suggestions (if any) to improve the system.

1.4 HYPOTHESES There is no significant relationship between age of respondents and their opinion on the measurability of performance. There is no significant relationship between sex of respondents and their opinion on contribution of 360 degree feedback system to leadership development. There is no significant relationship between sex of respondents and their opinion on reliability of 360 degree feedback system. There is no significant relationship between designation of respondents and their opinion on the measurability of performance.

1.5 RESEARCH METHODOLOGY

AIM OF THE STUDY

To understand the employees' opinion on 360 degree feedback system

RESEARCH DESIGN
A research design is the arrangement of conditions for collection and analysis of data in a manner that combine relevance to the research purpose with economy in procedure. - Claire Selltiz & others, Research methods in Social Sciences (1962) The Research design is the specification of methods and procedures for acquiring the information needed. It is a catalogue of the various phases and facts relating to the formulation of a research effort. The current study is done using descriptive design. Descriptive studies aim at portraying accurately the characteristics of a particular group or situation.

FIELD OF STUDY
The present study was carried out at Emmett Technologies at Chennai. The organization formally called Emmett technologies, started its operations in May 2001 and had their formal launch on 27 September 2001. They have also acquired a facility of 15,000 sq .ft in Avadi, Chennai . They work as a competent and creative research and development partner to high technology companies in networking, telecom and e- business; and also work with leading experts in the industrial field. Their main aim is to create and nurture a high caliber team that provides consistent and superior of work and the most effective solutions and services to their customers. 9

Currently, they are working with 3 Clients in the areas of networking: Intelligent Core Optical Network Equipment, NMS, Embedded and E-Business: E-Mail Client Software. Finally it is focused on providing product realization and product lifecycle management services to product development companies and platform vendors. The HR department at Emmett technologies plays a crucial role. One of the unique features of the HR activities is that, it practices 360 degree feedback system in order to review the performance of its employees. This performance management tool was introduced in the year 2002.

UNIVERSE OF STUDY
This study was conducted at Emmett Technologies. The employee strength of the organization was 62. Accordingly all the employees were covered in the study and thus each employee constituted the unit of study. Hence, the census method of selection of units for the study was adopted.

SOURCE OF DATA
Source of data collection refers to the source through which the data are collected. There are mainly two sources through which data can be collected. One is the primary source which is the first hand information obtained directly from the target population / respondents and the other through secondary source where the data for study is collected through published and unpublished source which is not first hand in nature. A data is called a primary source when it is an account by an eyewitness or the first recorder of an event, in written or other form, including micro- form and electronic reproduction. It refers to data, which is obtained through original research, statistical compilations or legal requirements. The data for the study are collected directly through primary source i.e. from the employees themselves. The researcher has made use of primary source of data for her research.

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TOOL OF DATA COLLECTION

Tool of data collection refers to the means through which data are collected from the respondent. The tool, which is used for the study, is through questionnaire method. The questionnaire contains structured questions, which are uniform for all the respondents. This helps the researcher in better analysis of data. COMPONENTS OF THE TOOL The questionnaire consists of 33 questions. The questions which have been created by the researcher have been broadly divided into the following sub- divisions: Socio Demography details. ( 5 Questions) Views in360 degree feedback system Per se. ( 5 Questions) Implementation. ( 5 Questions) Pre requisites. ( 5 Questions) Merits of 360 degree feedback system ( 6 Questions) De merits of 360 degree feedback system. ( 4 Questions) Suggestions. ( 3 Questions)

PRE TESTING
Pre testing of the tool was done on 10 per cent of the total employee strength. Pre testing was done during the month of January 2009.

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ACTUAL COLLECTION OF DATA

Data collection was made during the period of February 2009

ANALYSIS AND INTERPRETATION

Analysis of the study is carried out by using SPSS (Statistical Package for Social Sciences) version 12 and data are represented in the form of simple and cross tables, bar diagrams and pie chart. The statistical tool, chi square test is used for testing hypothesis.

OPERATIONAL DEFINITIONS
360 degree feedback: The 360degree feedback is understood as systematic collection of performance data on an individual or group , derived from a number of stakeholders the stakeholders being the immediate supervisors, team members, customers , peers and self. Performance Management: The use of performance measurement information to effect positive change in organization culture, systems and processes by helping to set agreed upon performance goals, allocating and prioritizing resources, informing managers to either confirm or change current policy or program directions to meet those goals, and sharing results of performance in pursuing those goals. Broadly, a performance management system provides a linkage between an employees contribution and: Organizational results. Recognition and rewards received by the employee. Career development opportunities of the employee.

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1.6 LIMITATIONS OF THE STUDY The following are the perceived limitations of the study. The study restricts itself only to Chennai. As the concept of 360 degree feedback system is relatively new very few companies in India have adopted it. Further this study has been conducted in only one organization.

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CHAPTER II REVIEW OF LITERATURE

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2.1 REVIEW OF LITERATURE

INTRODUCTION
Over the last few years, there is increased awareness among the Indian leaders and Managers for enforcing the power of 360 degree feedback. It is used for multiple objectives, be it as a change management tool for leadership development or as a tool for assessing the potentials of participants or sometimes for appraising senior managers. The flattening of hierarchies in modern corporations has also broken down the age old methods of assessing the performance of employees. The trend is towards greater transparency and increased participation while evaluating an individuals effectiveness in an organization. The 360 degree appraisal technique now being applied in most well- known organizations proves to be an open worthwhile system of performance appraisal.

SECTION I
OBJECTIVES OF 360 DEGREE FEEDBACK The following are the objectives of 360 degree feedback: Providing insights into the strong and weak areas of the candidate in terms of the effective performance of roles, activities, styles, qualities and competencies (knowledge, attitudes and skills). Serves as a basis for performance linked pay or performance rewards. Serves as a basis for career planning and development. Serves as a basis for leadership development. Serves a basis for Team and Culture building. Providing plans for internal customer satisfaction. Aligning individual and group goals with organizational vision, values and goals.

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TEN REASONS FOR USING 360 DEGREE FEEDBACKS: The ten rational facts for initiating 360 degree feedback in the organization. The reasons outlined are: Defining Corporate Competencies through 360 degree feedback. Increases the focus on customer service. Supports team initiatives. Creates a high involvement workforce. Decreases hierarchies. Promotes streamlining. Detects barriers to success. Assesses the development needs. Avoids Discrimination threshold. Easy to implement.

USING 360 DEGREE FEEDBACK EFFECTIVELY SOME GUIDELINES: BEGIN WITH DEVELOPMENT: It is advisable to introduce 360 degree feedback as an internal tool for personal development and growth if the company has no intervention. 360 degree feedback addresses the very basic change management process and can be very frightening to a lot of people to think that they will be rated by subordinates and co workers. Most companies have at least a one-year program in place before linking it to performance reviews. LINK WITH COMPANY GOAL: No program as unorthodox as 360 degree must be taken lightly. It must be finally linked to a significant business reason that is plain to everyone. Is the purpose of introducing 360 degree to change the culture or is it enhancing the performance management system.

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TRAIN EVERYONE: Trust is critical to accuracy of data and one way to ensure this is through training. Do executives view this as a constructive or destructive process? It is a human nature to rush to the negative feedback. Training is required to focus on the positives because that is where the real leverage in improving performance is. FOLLOW UP: The feedback report should be finally go into action plan for improvement. Superior and the Human Resources professional can help interpret the report so that the employee does not come up with a wrong action plan. The action plan, as in the case of several contemporary companies, must eventually be tied to results as well as to the rewards and punishments of the organization. The focus is on the individual accountability for bringing about the desired culture change.

SECTION - II
ADVANTAGES OF THE 360 DEGREE FEEDBACK: The 360 degree feedback appraisal systems have certain advantages. These advantages are not substitutes for those of traditional appraisals but in addition to them: It adds objectivity and supplements the traditional appraisal system. It provides normally more acceptable feedback to employee. It helps to focus on internal customer satisfaction. It is a good tool for enhancing customer service and quality of inputs and service to internal customers. It provides for the candidate to get multiple inputs to improve his role, performance, styles & ideas and enhances the acceptability of the individual. 17

It is more participative and enhances the quality of HR decisions. (HRM review April 2008)

SOME COMPANIES THAT USE 360 DEGREE FEEDBACK:

Companies like Wipro and Motorola have been employing it for identifying their employees area of development and have been using it as an effective tool for leadership development. Wipro has adopted competency route to leadership development with focus on people. Motorola has developed a performance led leadership development model called Totality of Motorola Leadership (TOML). At Motorola it was done by pre-defining competencies and providing customized (individual) developmental planning based on 360 Degree feedback to enhance organizational performance. All three companies mentioned above have made 360 degree feedback an integral part of their employee development programs. Johnson and Johnson introduced model of leadership called Standard of leadership based on 360 degree feedback in 1996 to ensure business success and market leadership. It was introduced at the top- level. Philips believed that 360 degree feedback should be used only as a development tool and not a substitute for performance management system. Philips also used the full circle feedback for identifying top- potential category employees. It developed leadership competency model focusing on six competencies including determination for high quality results for better methods, high performance expectation, focus on the market, self and people development and developing commitment. The leadership model has been linked with organizational values and goals. At NIIT, 360 degree feedback is referred to as Individual Effectiveness Feedback (IEF) which is Web Enabled. The Person concerned gets the feedback through an auto generated card based on the inputs from self, peers, team members and supervisors. At NIIT, an individuals effectiveness is measured in five dimensions via, ownership, shared goals, values , contribution to high performing team and communication.

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SECTION III
LIMITATIONS OF TRADITIONAL APPRAISAL (HRM review March 2008) Performance appraisal has long been regarded as one of the most critical yet troubling area of human resource management. Most of the appraisal systems are designed to evaluate past performance and stress less on future requirements such as employees career aspirations, potential latent skills identification, and career planning training and development requirements to take up higher assignments. In many organizations, appraisal systems from other organizations have been copied and implemented blindly without any linkage with organizational requirements and its peoples need. Moreover no serious attempts are made in implementation leading to delays and haphazard reports, thereby diluting system effectiveness making it as mere annual ritual. Awareness of the system needs, familiarity, appraiser appraise meets, review session and counseling are mostly absent proving it to be a sheer drudgery of paper work. THE 360 TERROR Competency-based performance management, in fact, is the backbone of most of the alternative approaches. Competencies, associated with the "how" of an employee's style, are "a set of personal traits or habits that are related to superior job performance," says Michael Schwalberg, a Scarsdale, New York- based clinical psychologist and co-author of Leverage Competencies, published last year by the Financial Executives Research Foundation.. In contrast, the far-narrower "skill" elements describe what an employee can do: negotiate a contract or prepare a budget, for instance. Particularly in vogue these days is the "360," through which employees are evaluated by their direct manager, their own direct reports, departmental peers, and others within the organization as well as customers and suppliers, perhaps. A William M. Mercer study

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indicates that last year, 26 percent of companies used such "multirater performance management," up from 11 percent in 1995, and that another 20 percent are considering it. "You can be the best salesperson in the world, but if you're alienating your internal or external customers, you're not our best employee," says Kathy Baum, HR director for Glacier Hills Retirement Community, in Ann Arbor, Michigan. She became familiar with the 360 a few years ago as HR manager at the National Center for Manufacturing Sciences (NCMS), a nonprofit Ann Arbor research-and-development organization. To identify and evaluate employee behavioral competencies, the NCMS included a 360 element in its evaluation process in 1995. Supervisors selected reviewers for their subordinates, although they allowed the subjects to suggest some changes to the list. Reviewers then rated employees on a one-to-five scale in various categories, and results were presented to subjects in a graphic format.

SECTION IV
HUMAN RESOURCES ROLE ON 360 DEGREE FEEDBACK: HRs vision for the 360 degree feedback process can lead the way to achieving needed organizational change. HR is shaped by the business goals, the corporate culture, the competitive position , and the workforce demographics of each organization it servesIn the 90s , HR has grappled with many key business challenges: aligning HR practices with business goals, using HR practices to better connect with a customer base, establishing effective partnerships while maintaining a distinct corporate culture. HR should strive to create and communicate a shared vision of the goals of the 360 degree feedback process, and should support the process with its technical expertise and resources. In addition, HR will play a key role in developing organization wide development plans based on the training and other identified needs of employees. The plan may well include HRs playing a role in monitoring and reporting progress or improvements in achieving the companys overall goal or strategy.

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HUMAN RESOURCES PERSPECTIVE ON 360 DEGREE FEEDBACK: The following are the various perspectives on 360 degree feedback: FINANCIAL PERSPECTIVE CUSTOMER PERSPECTIVE LEARNING PERSPECTIVE

FINANCIAL PERSPECTIVE: Are sufficient resources available to insure a high integrity 360 degree feedback process? Because the success of the 360 degree feedback is so dependent upon its being conducted in an atmosphere of trust and fairness, sufficient resources need to be allocated to insure this will occur. First, outside expertise will probably be needed to assess organizational readiness and assist in preparation of the detailed plan needed to implement the process. It is crucial that sufficient resources be allocated in this planning stage, as changing direction or altering the plan during the implementation of the process could easily raise the fairness issue and undermine trust in the integrity of the process. Secondly, questionnaires may need to be sent to an outside agency to insure the confidentiality of the process, although this would be an additional expense. Outside agencies can also aggregate the data and compile individual and organization wide reports while insuring the confidentiality of all the participants. Finally, the 360 degree feedback process is used to identify employees skill gaps and development needs and to prepare individual and organization wide development plans. In an atmosphere of trust, where people truly believe that the data will not be held against them but will rather be used to help them, they will naturally expect feedback on their

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improvement. This means that they will expect not only follow- up training and assistance, but future feedback on their performance. Have funds been budgeted for follow up activities, such as staff training? Follow-up is crucial to the success of 360 degree feedback. In organizations that failed to deliver in terms of follow-up training and other development assistance, employees were reluctant to go through the process again. Both formal and informal will be needed, and funds should be budgeted to cover training and other materials expense. CUSTOMER PERSPECTIVE: What will be the level of customer involvement and representation in the 360degree feedback process? Incorporating customer feedback in the evaluation process emphasizes the importance of client expectations in determining company focus. 360 degree feedback can be used to support a corporate strategy of shifting the focus of the company from meeting the internal needs of the department or functional unit to meeting the needs of the customer. In this way, customer involvement can be used to enhance strategic alignment. LEARNING PERSPECTIVE: How will individual development needs identified in the process be addressed? Whether examining a mechanical or an organizational system, it is important to understand that the system includes at least three components: Data Evaluation Action

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A system in which data and evaluation did not influence action would not be a feedback system. The 360 degree feedback process encompasses the creation and execution of employee development plans. Failure to follow up appropriately can turn the entire process into one which does more damage than good , as companies have found when they go to repeat the process a year later. If no action was taken to help employees learn the skills they needed to close those identified gaps, employees are likely to rebel when asked to repeat the process of having everyone evaluate those same skill sets.

SECTION V Case Studies

(I) THE PROS AND CONS OF 360 DEGREE FEEDBACK : MAKING IT WORK In this article, the author has outlined the need for the 360 degree feedback in business and the positive and negative implications of its usage. The article begins with the current scenario in using performance appraisal systems well supported by research data. The author also highlights the trend towards upward appraisal, multi rater feedback, full circle feedback and peer review. Further, the author outlines some individual specific behaviors as an outcome of having undergone 360 degree feedback. Choosing the best candidates for assessment. More importance given to bosss rating as it is assumed to be linked to promotions and salary. Feeling of hatred on receiving critical feedback with people the individual has not worked with. Further the author points out some of the advantages of 360 degree feedback such as : Multi rater feedback has the potential to promote team cohesiveness. Employees want to meet the expectations of their peers as well as their bosses when they know that their peers will be rating them.

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Lessening of discrimination and bias because responsibility for feedback involves more people.

However, looking of some of the negative implications, the author has pointed the following: Feedback seen as an opportunity for criticism. Conflicting opinions: who decides who is right? Choosing friends to provide feedback. How valuable the process is? Survey fatigue How accurate and reliable the feedback is? How truthful the feedback is?

(II) THE ACCEPTABILITY OF 360 DEGREE APPRAISALS: A CUSTOMER SUPPLIER RELATIONSHIP PERSPECTIVE This article argues that acceptability is a key issue relevant to the success of 360 degree appraisal processes. The author present conceptual arguments to show how a customer supplier relationship perspective provides a useful means of depicting possible a useful means of depicting possible 360 degree linkages . The author tries to sensitize HR practitioners to some of the key issues of potentiality affecting acceptability, while at the same time outline a framework for researchers seeking to investigate acceptability phenomena. Waldman and Bowen present a typology of 360 degree feedback based on different customers suppliers relationships in which the suppliers are the participants themselves and raters could be: External customers. Internal customers of other work groups. Co- workers within a work group and Subordinates.

A number of sources mentioned above states that 360 degree feedback is more objective than feedback from ones superior alone, as in the traditional annual performance review, 24

but claims regarding objectivity is not strictly accurate. If the objective behind this is to ensure objectivity and accuracy of assessments, then it should be realized that these systems do not provide that benefit. They increase the amount of feedback, but the feedback is still subjective. At the same time it is realized that having a number of people agree in their opinions is more powerful than one persons opinion alone. When people share their same opinion, then it is concluded that they are probably that much closer to the truth, while at the same time acknowledging that truth is, at least in part, dependent upon perspective. (III) 360 DEGREE FEEDBACK THE WIPRO EXPERIENCE THE WIPRO IMPERATIVE Wipro as a company was growing at a phenomenal rate over the years. Beginning with a small factory in Amalner, in Jalgaon District of Maharashtra, it diversified into engineering, information technology, and health care systems. There was a crying need for leaders at all levels. The corporate directive of selecting people for leadership positions from within, whenever possible, accentuated this need. The imperative was to develop leaders and one way to doing this was by providing clear and continuous feedback. Earlier, feedback was restricted to the appraisal feedback given by the manager. The 360 degree feedback was an opportunity to make the feedback more rounded, by adding feedback from juniors and peers. The 360 degree feedback was not a solution looking for a problem, but an answer to a key organizational imperative. THE NEXT STEPS The following steps were taken to introduce the process The purpose of the 360 degree feedback was clearly defined. It was a tool to develop from within. The next step was to arrive at what constituted leadership qualities. After a lot of study and research, focus group discussions and interactions, with top management and consultants, seven qualities were arrived at. These were called the Wipros 25

Leaders Qualities and the 360 degree feedback tool was called the Wipros Leaders Qualities Survey. It has now become widely known as the WLQ Survey. It was important to describe the qualities in the form of observable behaviors. Each quality was described in the terms of 6-7 observable behaviors. A scale had to be selected for measuring the behavior. Initially, it was rated as strength or a weakness on a 5- point scale. Later on this was converted to frequency scale depicting whether the leader almost exhibits these behaviors or almost never exhibits these behaviors. For the qualitative comments, there were three questions being asked. They focused on what strengths, weaknesses the leader possessed and how the respondent could help the leader. This generated a number of answers, but they were not necessarily action oriented. These questions were later changed to what the leader should continue, start and stop doing. The respondents were then decided upon. They subordinates is not used) The format of the report was decided next. The report would show for each quality what the weighted average of responses for a particular group (managers, peers, juniors and self) is. It would also show how the leader has fared with respect to other leaders of his/her grade (Top management, senior management etc.) in terms of how he/she compares with the average and the best in class. The output was largely graphical to provide user-friendly in formation. In the first year the implementation was restricted to top management. Its coverage was extended to other senior managers in the next year. Each year the scope was increased till it reached a large proportion of middle- managers last year. (In all , over 500 mangers received their 360 degree feedback last year , which means processing around 12000 forms) It was decided to out source the entire processing to a third party to maintain the confidentiality of the process. Confidentiality, like justice, must not only exist but also be perceived to exist. would be the managers (or managers in case of dual reporting), peers and juniors( in Wipro the word

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It was decided that the co-ordination should be done at the corporate level, so that there is a distance between the process and business unit human resources.

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ISSUES AND THEIR RESOLUTION Should it be a development tool alone or part of the appraisal process?

Very advocate that it should be used as development tool alone, and not to be shared with the supervisor. But in Wipro, it was decided that it should be part of the appraisal. A key element of the appraisal system is development of the employee. At Wipro, it is believed that the supervisor and the employee are partners in the development of the employee with clear responsibilities assigned to both. The WLQ Survey therefore needs to be shared with supervisor so that he/she can enable the development and also commit the necessary resources. Should peers be kept confidential or not?

While peers have no fear of being victimized, there is a fear that this might come in way of daily interactions. The greater fear is that, realizing this; many peers would not be honest enough with the feedback. Hence, it was decided to keep it confidential. Do some people use this for political ends?

In a way , this becomes the reverse of the CR (Confidential report) because the junior feedback is anonymous and the supervisors supervisor does read his/her comments. There is temptation for some of the reports to use this as a tool to get even with their bosses or in some cases, compensate for their own adequacy. That is the reason why the mathematical distribution of the rating. It helps understand if one respondent has taken an extreme stand, either positive or negative.

CONCLUSION
One of the major considerations for organizations which have gone for 360 degree feedback , has been strategic integration and alignment of performance management with business goals in the increasingly competitive environment It has helped to create 28

a mechanism for integrating inputs, creating an appropriate work culture, and under bidding the companys leadership assessment and development programme. Although it would be desirable to have a 360 degree feedback system in the entire organization, the experience in India shows that it has so far been largely introduced at the top and in few cases at the middle levels in progressive companies.

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2.2 COMPANY PROFILE Emmett has been active in catering to the outsourcing needs of publishers and other organizations since 1992. Over the years, we have adopted a seamless partnership approach. The client organizations are always comfortable in dealing with Emmett and work as true partners; often with the feeling that this is a virtual extension of their own operations. It is our strong belief that this integration is the cornerstone of the success of any outsourcing relationship. Emmett started with only 10 professionals and today has grown to a very substantive size of 500. This growth has been made possible by robust systems and processes that lead to reliable output. We have expertise in workflow management, and in developing processes that lead to desired quality levels and achieve the lowest cost of production. Clients have often come back and told us that Emmetts reliability has led to the growth of their organization. Emmett provides Document Management, e-Publishing and Data Conversion solutions using optimal process engineering, cost-effective and flexible conversion systems. Today, Emmett is a major full-service digital content provider from India and is able to deliver digital content with 99.995% accuracy and 100% application based integrity. We have the ability to learn and scale in very short order. Large multi-million page contracts have been executed on time after achieving steep ramp-up requirements. The internal systems ensure that clients get a real time status check of their projects. Emmett has always been a profitable and growth oriented organization, leading to its longevity and prides itself as an organization that clients have learnt to trust. QUALITY Our long-standing experience in catering to international publishers has led to the development of quality systems that deliver robust and reliable output routinely. The 30

systems ensure that each and every employee is committed to meeting and exceeding client objectives. We have achieved noteworthy landmarks in quality with our world-class system conforming to ISO 9001-2000 standards. Every single batch of data must be certified as per the required customer standard, prior to delivery to a client. Emmett has established an impeccable record and is known for ensuring that no defective data ever reaches the client. Emmetts Quality personnel work independently of the production team. They report directly to their respective group head, thereby enabling freedom from production pressures. Our Quality Systems include: Intermediate Audit and Final Audit. Intermediate Audit Intermediate Audit at Emmett is done to ensure the quality of the data while in production and hence to ensure the correctness during each successive stage of production. Final Audit Quality Verification is done through Audit of Final Deliverable Data. It is done to ensure the quality of the data as per the commitment to customers. We select the data samples to check the data structurally and ensure that no defective data ever reaches client. We can deliver digital content in any format including: XML SGML HTML PDF ASCII Palm e-Book 31

 Open e-Book Microsoft Reader Adobe Acrobat e-Book Reader Images (such as, Tiff, JPG) Our conversion solutions deliver data that is: Logically and Uniformly Structured Consistent with the Integrity of the Original Content Enriched with Functionality and Intelligence Converted at Minimal Cost Of the Highest Quality, Reliability and On or Before Time The following is the overview of the document management solutions of some of the projects (on going as well as executed), which describes our capabilities and expertise in providing multiple solutions for electronic conversion and content management services Archival Finding Aids Legal Records Public Utility Early English Medieval Books

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CHAPTER- III ANALYSIS

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DATA ANALYSIS AND INTERPRETATION The data collected are analyzed and interpreted to arrive at significant findings. The area for which the analysis was done is as follows: Socio- Demographic details of the respondents. ( Table No. 1.1 1.4) The respondents views on 360 degree feedback system per se. ( Table No. 1.5 1.9) The respondents views on the implementation process of 360 degree feedback system. ( Table No.1.10 1.14) The respondents views on the pre- requisites needed for 360 degree feedback system. ( Table No. 1.15 1.18) Respondents perception on the merits of 360 degree feedback system. ( Table No.1.19 1.24) The respondents opinion on the demerits of 360 degree feedback system. ( Table No. 1.25 1.28) Comparison between the age of the respondents and their opinion on the measurability of performance areas. Comparison between the gender of the respondents and their opinion on contribution of 360 degree feedback system to leadership development. Comparison between the gender of the respondents and their opinion on reliability of 360 degree feedback system.

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Section I
Socio Demographic Profile

Table No: 1.1 Respondents by Age The Age is the length of the time that one has existed. Age (In years) 20 25 25 30 30 35 Total Frequency (n) 26 26 10 62 Per cent (%) 41.9 41.9 16.2 100.0

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It is apparent that a great majority of the respondents (84 per cent) belong to the age group of 20-30 years, and the rest of the respondents fall within the age group of 30-35 years. Thus, we can infer that IT sector attracts young working population and retain the same. Hence, having young working population is an advantage to the company to bring in new concepts and impart the same easily. Thus, we understand that the sample is relatively young. The mean age is 26.78 years. Diagram No: 1.1 (a) Pie diagram showing the distribution of Respondents by Age

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16% 42%

42%

20 25

25 30

30 35

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Table No: 1.2 Respondents by Sex

The above table gives the sex- wise distribution of the respondents.

Gender

Frequency (n)

Per cent (%) 85.5 14.5 100.0

Male Female Total

53 9 62

From the above table it is clear that the majority of the respondents (85.5 per cent) are males. Though the IT sector is an equal opportunity employer, the distribution reveals that most of the respondents are males.

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Table No: 1.3 Respondents by Designation Designation refers to the distinguishing name or title given to identify a particular position in the organization. This also enables to understand the various positions in an organization chart. In some cases the designation automatically spells out the duties and responsibilities of a person.

Designation

Frequency (n)

Per cent (%) 45.2 43.5 8.1 3.2 100.0

Software engineer Senior software engineer Project leader Project manager Total

28 27 5 2 62

39

All the respondents were professionally qualified. Their designations range from Software Engineers, Senior Software Engineers, and Project Leaders to Project Managers. A great majority of the respondents (88.7 per cent) belong to the designation of Software Engineers and Senior Software Engineers, while rest of them fall under two Other positions. Generally the respondents with longer years of experience are designated as project leaders and project managers. Thus from the above table it can inferred that the majority of the respondents are Software Engineers and Senior Software Engineers. Table No: 1. 4 Respondents by years of Experience The work experience contributes to the accumulation of knowledge or skill that results from direct participation in events or activities over a given number of years.

Work Experience (in years) 1-3 3-5 5-7 7 -9 Total

Frequency (n) 26 29 5 2 62

Per cent (%) 41.9 46.8 8.1 3.2 100.0

40

The above table indicates the distribution of respondents based on the years of experience in their respective organizations. A great majority of the respondents (88.7 per cent) have less than 5 years of experience. Only 2 respondents have more than 7 years of experience. Hence from the above table it can be inferred that the mean years of experience is 3 years. The years of experience ranges from less than a year to 9 years.

Section II
Respondents views on 360 degree feedback system
Table No: 1.5 Distribution of respondents by their views on the statement, 360 degree feedback is better than traditional appraisal system 360 degree feedback is emerging as an important HR tool globally. According to Quorum Psychologists International, 30 per cent of the organizations are currently using it in the UK and a number of companies are planning to use it in the future. In India, too, awareness about this tool is increasing and some progressive companies are using it largely for developmental purposes. (Radha R Sharma, 2008: pp 4)

41

Response

Frequency (n)

Per cent (%) 37.1 59.7 1.6 1.6 100.0

Strongly agree Agree Strongly disagree Disagree Total

23 37 1 1 62

The above table indicates that a very great majority (96.8 per cent) of the respondents have agreed to the statement that 360 degree feedback system is better than traditional appraisal system. Hence from the table it can be inferred that the advantage of 360 degree feedback over traditional systems is that it collects more information about an employees performance and his/her development areas, enabling one to give the most beneficial feedback. Table No: 1.6 Distribution of respondents by their views on the statement 360 degree feedback has the ability to solve the problems at root cause 360 degree feedback system helps in the identification of the problem. It facilitates the organizational context for finding a solution to the problem. Finally it enables a detailed plan of implementation and follow-up.

42

Response

Frequency (n)

Per cent (%) 54.8 43.5 1.6 100.0

Strongly agree Agree Disagree Total

34 27 1 62

A very great majority (98.3 per cent) of the respondents have opined that 360 degree feedback system has the ability to solve the problems at root cause. Only one respondent has disagreed to the statement. Thus it can be inferred from the above table that problem clarification through 360 degree feedback helps to achieve or lead to action or a change.

Table No: 1.7 43

Distribution of respondents by their views on the statement, 360 degree feedback system motivates people in giving honest and objective feedback 360 degree feedback system creates trust among the people regarding the honest and objective feedback. It enables the employees to believe that the 360 degree feedback system introduced by the organization is intended to facilitate their development. This process enhances their interest towards the tool.

Response

Frequency (n)

Per cent (%) 24.2 41.9 19.4 14.5 100.0

Strongly agree Agree Strongly disagree Disagree Total

15 26 12 9 62

44

Nearly two third of the respondents (66.1 per cent) have agreed that 360 degree feedback system helps people in giving honest and objective feedback, while the others (33.9 per cent) are not for the statement. Hence from the above table it can be interpreted that the respondents are convinced about the value addition made by the tool to the organization. But given the fact that a sizeable proportion of the respondents (33.9 per cent) opine that 360 degree feedback does not give honest and objective feedback gives adequate scope for introspection. Diagram No :1.7 (a) Pie diagram showing for the statement, 360 degree feedback system motivates people in giving honest and objective feedback

1 5%

24%

19%

42%

S trong ly agree gree S trongly dis agree is agree A D

45

46

Table No: 1.8 Distribution of respondents by their views on the statement, 360 degree feedback system can be accomplished only when everyone in the division performs. The involvement and contribution of each member may vary across the organizational structure and especially while cascading down the structure the contribution level reduces to the minimum. But every percentage of contribution is important. Hence it is important to know the respondents views on the need to have all the persons concerned participate in the assessment.

Response

Frequency (n)

Per cent (%) 8.1 17.7 24.2 50.0 100.0

Strongly agree Agree Strongly disagree Disagree Total

5 11 15 31 62

47

This particular question is aimed to find out the emphasis on contribution of each member of the organization towards the 360 degree feedback, set up for the task/ project. With great majority of the respondents (74.2 per cent) disagreeing with the same is a clear indication that 360 degree feedback does not depend on co-operative effort. Thus from the above table it can be inferred that majority of the respondents have opined that 360 degree feedback system does not lead to co- operative effort. Diagram No :1.8(a)

Bar diagram showing for the statement, 360 degree feedback system can be accomplished only when everyone in the division performs.

48

50 45 40 35 30 Percentage 25 20 15 10 5 0 Strongly agree Agree Strongly disagree Response Disagree 8.1% 17.7% 24.2 % 50 %

Table No: 1.9 Distribution of respondents by their views on the statement, 360 degree feedback system helps in overall development of an individual The 360 degree feedback process provides an opportunity for the employee and performance manager to discuss development goals and jointly create a plan for achieving 49

those goals. Development plans should contribute to organizational goals and the professional growth of the employee.

Response

Frequency (n)

Per cent (%) 59.7 32.3 4.8 3.2 100.0

Strongly agree Agree Strongly disagree Disagree Total

37 20 3 2 62

It is inferred from the table that a very great majority (92 per cent) of the respondents are confident that 360 degree feedback system ensures development of the individual, while the others (8 per cent) disagree to the same. 50

This gives evidence that the company has a comprehensive performance management System that helps to build the career of the employee.

Section III
Implementation of 360 Degree feedback System
Table No: 1.10 Distribution of respondents by their views on the statement, Performance areas measured under 360 degree feedback system are clearly measurable A quantitative or qualitative characterization of performance, performance measurement is a process of assessing progress towards achieving pre determined goals, including information on the efficiency with which resources are transformed into goods and services. Response Frequency (n) Strongly agree Agree Strongly disagree Disagree Total 19 13 13 17 62 Per cent (%) 30.6 21.0 21.0 27.4 100.0

51

A little more than half of the respondents (51.6 per cent) have agreed that performance areas are measurable easily under 360 degree feedback system. Thus, we can infer that there is a mixed response as regards the clear measurability of performance areas of a 360 degree feedback system. Table No: 1.11 Distribution of respondents by their views on the statement, Top management is successful in creating positive frame of mind amongst employees with regard to 360 degree feedback system. According to Tom Sullivan, a leading author, The process of preparing for 360 degree assessment is a development journey in itself. All the members of the organization should be involved. Overt support from top management is necessary for the success of this approach, as without it the approach will remain only on paper. This involvement of Top management is sure to install positive reinforcement among employees. (Radha R Sharma, 2008: pp 13) Response Frequency (n) Strongly agree Agree Strongly disagree Total 30 31 1 62 Per cent (%) 48.4 50.0 1.6 100.0

52

A very great majority of the respondents (98.4 per cent) agree to the fact that top management instills in them a positive frame of mind with reference to 360 degree feedback system. The disagreement to the above statement by some of the respondents could be due to lesser interaction with the top management. Thus, from the above table it can be inferred that the organization has taken necessary steps in instilling a positive frame of mind with reference to 360 degree system to its employees. Table No: 1.12 Distribution of respondents by their views on the statement, 360 degree feedback system is easy to understand 360 degree feedback system becomes an important tool in the hands of the HR practitioner. The term 360 degree feedback is taken from geometry to mean all around. This is to be contrasted with a traditional feedback system that believes in feedback from the superior, or somebody higher up in the reporting chain, ie. only in a straight line. Feedback on the other hand is mere data or information relevant to the actions of an individual- but given without judgment.

Response

Frequency (n)

Per cent (%) 45.2 48.4

Strongly agree Agree

28 30 53

Strongly disagree Disagree Total

1 3 62

1.6 4.8 100.0

A very great majority of the respondent (93.6 per cent) have opined that they have clearly understood the concept, while the others (6.4 per cent) do not feel so. Hence from the above table it can be inferred that the organization has taken necessary steps to make the concept easily understandable to the employees. Table No: 1.13 Distribution of respondents by their views on the statement, Principles and policies of the organization are aligned with 360 degree feedback One of the major considerations for organizations which have gone for 360 degree feedback has been strategic integration and alignment of performance management with business goals in the increasingly competitive environment. It has helped to create a mechanism for integrating inputs, creating an appropriate work culture, and under-bidding the companys leadership assessment and development programme.

54

Response

Frequency (n)

Per cent (%) 46.8 45.2 8.1 100.0

Strongly agree Agree Disagree Total

29 28 5 62

A very great majority of the respondents (92 per cent)

have agreed to the statement

Principles and policies of the organization are aligned with 360 degree feedback. Five respondents of the total census have disagreed to the statement. Thus, from the table it can be inferred that 360 degree feedback system creates mechanisms for integrating multiple constituencies and inputs and facilitates the development of an appropriate culture for competitive advantage and enables organizational transformation. Table No: 1.14 Distribution of respondents by their views on the statement, Induction on the system to newly recruited is given The most significant aspect of the introduction of the 360 degree feedback system is assessing the readiness of both the organization and individual. The foremost consideration for an organization in deciding for 360 degree feedback is whether its objective is to use it as feedback or appraisal. Hence organization makes necessary arrangements to give induction on the system to newly recruited employees.

55

Response

Frequency (n)

Per cent (%) 51.6 38.7 3.2 6.5 100.0

Strongly agree Agree Strongly disagree Disagree Total

32 24 2 4 62

A great majority of the respondents (90.3 per cent)

believe that the induction on the

system is given to the new employees. In the organization where the study was conducted 360 degree feedback system is introduced as part of the induction on: Performance appraisal and succession planning, Team development, Organizational development with strategic goals. Consequently, induction on 360 degree feedback would have been as part of induction on Performance appraisal and succession planning. The HR department will have to take 56

seriously of the fact that 6 respondents have expressed about the inadequacy of the induction.

Section IV
Pre Requisites of 360 Degree Feedback System
Table No: 1.15 Distribution of respondents by their view on the statement, Proper communication about the 360 degree feedback objectives to each employee To execute strategy in knowledge based organization, those with the knowledge should understand what the strategy is. Those at the top have to formulate the strategy, but then they have to educate every person in the workforce about what the strategy is. For this the organization has to be educated so one has to put together comprehensive programme to communicate, communicate and communicate to the organization whats important. Best practice companies have found ways to use the complete spectrum of communication techniques.

Response

Frequency (n)

Per cent (%) 50.0 50.0 100.0

Strongly agree Agree Total

31 31 62

All the respondents agreeing to the fact that communication of the 360 degree feedback objectives is mandatory indicates about the strong communication pattern practiced in the organization.

57

Thus, from the above table it can be interpreted that the organization is successful in communicating the 360 degree feedback objectives to its employees. Table No: 1.16

Distribution of respondents by their views on the statement, 360 degree feedback system works best where environment is open and participatory Seeking feedback is inherent to human nature. Learning from it, however, is an acquired skill. The most successful managers and leaders have looked for cues of their effectiveness by constantly seeking feedback. They have learnt to improve by watching their reflection an act that calls for a high level of self- integrity and a strong desire to excel. Hence it facilitates transparent environment.

Response

Frequency (n)

Per cent (%) 41.9 58.1 100.0

Strongly agree Agree Total

26 36 62

All the respondents have agreed to the above statement. 58

Hence from the above table it can be inferred that the 360 degree feedback system enables to give best results where the environment is open and participatory.

Table No: 1.17

Distribution of respondents by their views on the statement. 360 assessment forms should contain only those items that are capable of being assessed 360 degree assessment form contains those items which are capable of being assessed. The parameters for the review should be aligned to the performance management system of the organization.

Response

Frequency (n)

Per cent (%) 46.8 53.2 100.0

Strongly disagree Disagree Total

29 33 62

All the respondents have disagreed to the above statement. From the above table it can be inferred that all the respondents are not satisfied with the factors on the basis of which the assessment is carried on. 59

Hence from the above table it can be interpreted that the organization has to take necessary steps in redesigning the parameters for the performance review.

60

Table No: 1.18 Distribution of respondents by their views on the statement, 360 degree feedback system should prevail over conventional appraisal system In the traditional supervisor- employee appraisal, one person is responsible for reviewing the performance of employees in his/her department, even though he/she may not be in a position to effectively judge an employee if he/she does not spend much time directly dealing with that employee. This method entails high elements of subjectivity. 360 degree Feedback is an extension of this method and incorporates upward, downward and lateral feedback.

Response

Frequency (n)

Per cent (%) 46.8 53.2 100.0

Strongly agree Agree Total

29 33 62

All the respondents have agreed to the above statement.

61

From the above it can be inferred that all the respondents of the organization prefer 360 degree feedback system as a performance management tool over conventional appraisal system.

62

Diagram No: 1.18.1 (a)

Multiple bar diagram showing the distribution on Pre requisites of 360 Degree Feedback System

70 60 50 percentage 40 30 20 10 0 P ro p er O p en & P artic ip ato 360 d egree assessment revalenc e o f 360 ry P C o mmunic atio n Enviro nment fo rm d egree feed b ack o ver co nventio nal ap p raisal system S tro ngly Agree Agree S tro ngly DisagreeDisagree
50% 50% 41.9 58.1 % % 46.8 53.2 % % 46.8 53.2 % %

63

Section V
Merits of 360 Degree Feedback System
Table No: 1.19 Distribution of respondents by their views on the statement, Developing strategies through 360 degree feedback leads to accomplishment of organizational goals. 360 degree feedback is linked with strategy. Each of these foundations is the building blocks of an organizations strategy. Finally these determine what competencies and technology is needed. All these set in place, the organization works towards the goal.

Response

Frequency (n)

Per cent (%) 24.2 30.6 25.8 19.4 100.0

Strongly agree Agree Strongly disagree Disagree Total

15 19 16 12 62

64

Thus the table portrays that less than three- fifth of the respondents agree to the fact that strategies through 360 degree feedback lead to accomplishment of organizational goals. Thus most of the respondents have opine that developing strategies through 360 degree feedback leads to accomplishment of organizational goals.

65

Table No: 1.20 Distribution of respondents by their views on the statement, 360 degree feedback system facilitates leadership development The focus of 360 degree feedback is on leadership related aspects and the individuals attitude to learn new things ie, engaging opportunities, seeking opportunities, creating a context of learning , openness to criticism and soliciting feedback and using it.

Response

Frequency (n)

Per cent (%) 37.1 32.3 30.6 100.0

Strongly agree Agree Disagree Total

23 20 19 62

More than two third of the respondents (69.4 per cent) think that 360 degree feedback system enables leadership development. Thus, from the above table it can be interpreted that most of the respondents have utilized the feedback for their leadership development. However, given the fact that almost onethird of the respondents do not feel so, needs to be addressed by the HR department. That is why leadership development is key to effective organizational functioning.

66

Table No: 1.21 Distribution of respondents by their views on the statement, 360 degree feedback system facilitates employee empowerment 360 degree feedback system enables employee empowerment by improving perception of the individual about oneself by understanding how others perceive him/her. It also helps an individual manage ones performance better. Thus it facilitates learning process for the employee.

Response

Frequency (n)

Per cent (%) 4.8 8.1 38.7 48.4 100.0

Strongly agree Agree Strongly disagree Disagree Total

3 5 24 30 62

A great majority of the respondents have (87.1 per cent) have disagreed to the statement that 360 degree feedback facilitates employee empowerment Their response clearly depicts that the tool has not facilitated employee empowerment only. Less than 10 respondents have opined that 360 degree feedback system facilitates employee empowerment. Hence from the above table it can be inferred that even though 360 degree feedback system had facilitated leadership development it has not enabled employee empowerment. Table No: 1.22

67

Distribution of respondents by their views on the statement, 360 degree feedback helps in defining Key Result Areas of an individual (KRA) Key Result Areas are tasks given at the individual level to be completed within the given time frame work based on which his/her performance is measured. Hence, having a well defined KRA is a must for the employee to perform his/her best.

Response

Frequency (n)

Per cent (%) 24.2 37.1 8.1 30.6 100.0

Strongly agree Agree Strongly disagree Disagree Total

15 23 5 19 62

68

Employees are given KRAs to perform based on the strategies laid out for the particular year. Nearly three -fifth of the respondents (61.3 per cent) agree to the statement that 360 degree feedback helps them in defining their KRAs while the others (38.7 per cent) disagree to the above statement. Thus from the above table it can be inferred that 360 degree feedback system has an impact on defining the Key result Areas for the individual.

Table No: 1.23 Distribution of respondents by their views on the statement, 360 degree feedback is an effective tool for measuring performance of an individual In the best practices for implementation of 360 degree feedback, it is suggested to clearly establish and communicate the individual behaviors that will drive the outcomes and results of the metrics that have been established. This helps to develop standardized approaches for assessing performance on each objective at each performance level.

Response

Frequency (n)

Per cent (%) 38.7 37.1 24.2 100.0

Strongly agree Agree Disagree Total

24 23 15 62

69

A little more than three- fourth of the respondents (75.8 per cent) agree to the fact that 360 degree feedback frame work helps in setting up an effective tool for measuring performance. Thus from the above table it can be inferred that the company had been successful in implementing the right system to assess the performance of the employees.

Table No: 1.24 Distribution of respondents by their views on the statement, 360 degree feedback system is used for the development of core competencies of an individual 360 degree feedback enables the organization to develop competency models detailing the requirement of various types of competencies, knowledge, skills and attitudes required for successful and superior performance. 360 degree feedback system will focus on the employees competencies and will enable them to enhance these.

Response

Frequency (n)

Per cent (%) 33.9 40.3 1.6 24.2 100.0

Strongly agree Agree Strongly disagree Disagree Total 70

21 25 1 15 62

Nearly three - fourth of the respondents (74.2 per cent) have agreed that 360 degree feedback is used to develop the core competencies of the individual. However, a sizeable proportion of them do not opine so. Thus from the table it can be inferred that the organization is using 360 degree feedback as a means to meet the challenges and competencies of the individual. increasing competition by developing the core

Section - VI
Demerits of 360 Degree Feedback System
Table No:1.25 Distribution of respondents by their views on the statement, 360 degree feedback outcome is not directly linked with compensation The table below illustrates about the respondents views on the statement 360 degree feedback outcome is not directly linked with compensation.

71

Response

Frequency (n)

Per cent (%) 3.2 3.2 37.1 56.5 100.0

Strongly agree Agree Strongly disagree Disagree Total

2 2 23 35 62

A very great majority of the respondents (93.6 per cent) opine that the feedback or the outcome is directly linked to the compensation of the employees. Thus from the table it can be interpreted that the outcome / feedback of the performance management system followed by the organization is directly linked with the compensation of the individual. Table No: 1.26 Distribution of respondents by their views on the statement, Reliability of the feedback is Questionable The table below illustrates the respondents views on the reliability of the feedback.

Response

Frequency (n) 72

Per cent (%)

Strongly agree Agree Strongly disagree Disagree Total

21 21 8 12 62

33.9 33.9 12.9 19.4 100.0

One of the common concerns of organizations regarding 360 degree feedback is the reliability of the feedback. More than two third of the population have expressed their concern saying that the reliability of the feedback is questionable. Hence from the table it can be inferred that there is less trust among the employees in the organization about the reliability of the feedback. This issue will have to be addressed by the HR department to assure that the tool constitutes to be relevant to the respondents.

Table No: 1.27 Distribution of respondents by their views on the statement, Responses from 360 degree feedback tend to be biased The table below illustrates the respondents views on 360 degree feedback system being biased.

73

Response

Frequency (n)

Per cent (%) 11.3 19.4 29.0 40.3 100.0

Strongly agree Agree Strongly disagree Disagree Total

7 12 18 25 62

A little more than two third of the respondents (69.3 per cent) have opined that the outcome/ feedback received through 360 degree feedback system are not biased. But at the same time a sizeable proportion of the respondents (30.7 per cent) have not agreed to the statement. Hence from the above table it can be inferred that only two third of the respondents have a positive frame of mind towards the tool as regards its objectivity.

Table No : 1.28 Distribution of respondents by their views on the statement , Feedback is seen as an opportunity for criticism The table below illustrates the respondents views on 360 degree feedback system being seen as an opportunity for criticism. 74

Response

Frequency (n)

Per cent (%) 4.8 4.8 33.9 56.5 100.0

Strongly agree Agree Strongly disagree Disagree Total

3 3 21 35 62

Great majority of the respondents (80.4 per cent) have disagreed to the above mentioned statement. Only 6 respondents have opined that 360 degree feedback is seen as an opportunity for criticism. Hence from the above table it can be interpreted that the respondents of the organization do not see the feedback as an opportunity for criticism.

Diagram No: 1.28.1 (a)

Percentage bar diagram showing the distribution on Demerits of 360 Degree Feedback System

75

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

19.4% 56.5% 12.9 % 33.9 % 37.1% 33.9 %

40.3%

56.5%

Percentage

29% 33.9%
4.8%

19.4% 11.3%

ff3.2 3.2% Not directly linked with compensation

4.8%

Reliability Biased responses oppourtunity for Questionable criticism

Strongly agree Agree

Strongly disagree Disagree

76

Section VII
Cross tabs
Table No: 1.29 Distribution of respondents by their age and their opinion on the measurability of performance areas Performance areas measured under 360 Age of the Respondents ( in years) 20- 25 Agree 14 (53.8 % ) 26 & above 18 (50 % ) Total 32 (51.3 %) * Figure in parentheses represents percentages. Chi Square Value = 0.26 Degree of Freedom =1 Not Significant at 0.05 level degree feedback system are clearly measurable Disagree 12 (46.2 %) 18 (50 %) 30 (48.4 %) 26 (100 % ) 36 (100 % ) 62 (100%) Total

77

The above table has been drawn to understand the relationship between the two variables i.e. the age of the respondents and the respondents opinion on the measurability of the performance areas. For the purpose of easy analysis, the age categories have been re organized as 20 -25 years on the one hand and 26 years and above on the other. From the above table we understand that more respondents in the age group of 20-25 years (53.8 per cent) have affirmed the measurability of the performance areas compared to their counterparts in the 26 and above age group (50 per cent).On the whole we find an equitable distribution of responses as regards measurability of performance area across different age groups of respondents. At the same time, to understand the statistical significance of the said distribution chi square test has been applied. Accordingly the null hypothesis is There is no relationship between age of respondents and their opinion on the measurability of performance. The results of the chi square test indicate that the said distribution is statistically not significant. This is because the calculated value is 0.24 for one degree of freedom at 0.05 level of significance as against the table value of 3.841. Hence we accept the null hypothesis. Thus, more respondents in the lesser age group agree to measurability of performance areas. However this is not statistically significant.

78

Table No: 1.30 Distribution of respondents by their sex and their opinion on contribution of 360 degree feedback system to leadership development.

360 Degree feedback system facilitates Sex of the Respondents leadership development Yes No Total

Male

36 (67.9 % )

17 (32.1 % ) 2 (22.2 % ) 19 (30.65 %)

53 ( 100 % ) 9 ( 100 % ) 62 (100 %)

Female

7 (77.8 % )

Total

43 (69.35 %)

79

* Figure in parentheses represents percentages. Chi Square Value = .035 (With Yates correction) Degree of Freedom = 1 The above table has been drawn to understand the relationship between the two variables i.e. sex of the respondents and their opinion on contribution of 360 degree feedback system to leadership development For the purpose of easy analysis, the response categories for respondents opinion on feedback have been re- organized as yes on one hand and No on the other. From the above table we understand that larger proportions of the respondents (77.8 per cent) in the female category have opined that 360 degree feedback system facilitates development compared to the male respondents (67.9 per cent). At the same time to understand the statistical significance of the said distribution chi- square has been applied. Accordingly the null hypothesis is There is no relationship between sex of respondents and their opinion on contribution of 360 degree feedback system to leadership development. The results of the chi square test along with Yates correction indicate that the said distribution is statistically not significant. This is because the calculated value is .035 for Not Significant at 0.05 level

80

one degree of freedom at 0.05 level of significance as against the table value of 3.841. Hence we accept the null hypotheses. Thus we understand that more respondents opine that 360 degree feedback facilitates leadership development. However there is no relationship between sex of the respondents and their opinion on the contribution of 360 degree feedback to leadership development.

Table No: 1.31 Distribution of respondents by their sex and their opinion on reliability of 360 degree feedback system.

81

Reliability of 360 degree feedback system Sex of the Respondents Yes is questionable No Total

Male

37 (69.8 % )

16 ( 30.2 % ) 4 (44.4 %) 20 (32.26 % )

53 (100 % ) 9 (100 %) 62 (100 %)

Female

5 (55.6 % )

Total

42 (67.74 %)

* Figure in parentheses represents percentages. Chi Square Value = 0.197 (With Yates correction) Degree of Freedom =1 Not Significant at 0.05 level

82

The above table has been drawn to understand the relationship between the two variables i.e. sex of the respondents and their opinion on the reliability of 360 degree feedback system. For the purpose of easy analysis, the response categories have been re organized as yes on one hand and No on the other. From the above table we understand that more than two- third of the male respondents (69.8 per cent) have affirmed to the reliability of 360 degree feedback system. Compared to a little more than half (55.6 per cent) of the female respondents have opine to the statement. At the same time, to understand the statistical significance of the said distribution chi square test has been applied. Accordingly the null hypotheses are There is no significant relationship between sex of respondents and their opinion on reliability of 360 degree feedback system. The results of chi square test along with Yates correction indicate that the said distribution is statistically not significant. This is because the calculated value is 0.197 for one degree of freedom at 0.05 level of significance as against the table value of 3.841. Hence we accept the null hypotheses. Thus we understand that more male respondents opine that reliability of the feedback is questionable. However there is no relationship between sex of the respondents and their opinion on the reliability of the feedback.

83

Table No: 1.32 Distribution of respondents by their designation and their opinion on the measurability of performance areas

Designation of the Respondents

Performance areas measured under 360 degree feedback system are clearly Measurable Agree Disagree 15 (53.6 %) 15 (44.1 %) 30 (48.38 %) 28 (100 %) 34 (100 %) 62 (100 %) Total

Software Engineers

13 (46.4 %)

Project Leaders/ Managers

19 (55.9 % )

Total

32 (51.62 %)

84

* Figure in parentheses represents percentages. Chi Square Value = 0.53 Degree of Freedom =1 The above table indicates the distribution of responses by their designation and their opinion on the measurability of performance areas. More than half of the respondents (55.9 per cent) who are in the cadre of project leaders / project members and less than half of the respondents (46.4 per cent) who are in the cadre of soft engineers have affirmed to the measurability of performance areas . However, this distribution is not statistically significant. Thus, based on chi- square results, the null hypotheses that, There is no significant relationship between designation of respondents and their opinion on the measurability of performance is accepted. Thus we understand that more than half of the respondents (55.9 per cent) who are in the cadre of project leaders/ project managers have opine to the measurability of the performance areas. However there is no relationship between designation of the respondents and their opinion on measurability of performance areas. Not Significant at 0.05 level

85

CHAPTER - IV FINDINGS, SUGGESTIONS & CONCLUSIONS

86

87

4.1 FINDINGS
It was found that great majority of the respondents (84 per cent), belong to the age group of 20-30 years, and the rest of the respondents fall within the age group of 3035 years. Thus, we understand that the sample is relatively young It was found clear that the majority of the respondents (85.5 per cent) are male. Though the IT sector is an equal opportunity employer the sample distribution revealed that most of the respondents are male. It was observed that all the respondents were professionally qualified. Their designations ranged from Software Engineers, Senior Software Engineers, and Project Leaders to Project Managers. A great majority of the respondents (88.7 per cent) belong to the designation of Software Engineers and Senior Software Engineers. Thus it was inferred that the majority of the respondents are Software Engineers and Senior Software Engineers. It was observed from the table that a great majority of the respondents (88.7 per cent) have less 5 years of experience. Hence it was inferred from the table that the mean years of experience is 3 years. It was observed that a very great majority (96.8 per cent) of the respondents have agreed to the statement that 360 degree feedback system is better than traditional appraisal system. Thus it was interpreted that the advantage of 360 degree feedback over traditional systems is that it collects more information about an employees performance and his/her development areas, enabling one to give the most beneficial feedback. It was found that a very great majority (98.3 per cent) of the respondents have opined that 360 degree feedback system has the ability to solve the problems at root cause. 88

Only one respondent has disagreed to the statement. Thus it was inferred that problem clarification through 360 degree feedback helps to achieve or lead to action or a change. Nearly two third of the respondents (66.1 per cent) have agreed that 360 degree feedback system helps people in giving honest and objective feedback, while the others (33.9 per cent) are not for the statement. Hence it was inferred that the respondents are convinced about the value addition made by the tool to the organization. Great majority of the respondents (74.2 per cent) have feedback system does not lead to co- operative effort. A very great majority (92 per cent) of the respondents were confident that 360 degree feedback system ensures development of the individual, while the others (8 per cent) disagree to the same. This gives clear interpretation that the company has a comprehensive performance management system that helps to build the career of the employee. A little more than half of the respondents (51.6 per cent) have agreed that performance areas are measurable easily under 360 degree feedback system. Thus, it was inferred that there is a mixed response as regards the clear measurability of performance areas of a 360 degree feedback system. It was found that a very great majority of the respondents (98.4 per cent) agree to the fact that top management instills in them a positive frame of mind with reference to 360 degree feedback system Thus, it was inferred that the organization has taken necessary steps in instilling a positive frame of mind with reference to 360 degree system to its employees. opined that 360 degree

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A very great majority of the respondent (93.6 per cent) had opined that they have clearly understood the concept, while the others (6.4 per cent) do not feel so. Hence it was inferred that the organization has taken necessary steps to make the concept easily understandable by the employees.

It was observed from the table that a very great majority of the respondents (92 per cent) have agreed to the statement Principles and policies of the organization are aligned with 360 degree feedback.5 respondents of the total census have disagreed to the statement.

It was found that a great majority of the respondents (90.3 per cent) believed that the induction on the system is given to the new employees.

It was observed from the study that the organization was successful in communicating 360 degree feedback objectives to its employees.

All the respondents have agreed to the statement, 360 degree feedback system works best where environment is open and participatory. Thus it was found that the 360 degree feedback system enables to give best results where the environment is open and participatory

From the study it was observed that all the respondents are not satisfied with the factors on the basis of which the assessment is carried on. Hence it was interpreted that the organization has to take necessary steps in redesigning the parameters for the performance review.

It was observed that all the respondents of the organization prefer 360 degree feedback system as a performance management tool over conventional appraisal system.

It was found that less than three- fifth of the respondents agreed to the fact that strategies through 360 degree feedback leads to accomplishment of organizational 90

goals. Thus most of the respondents have opined that developing strategies through 360 degree feedback leads to accomplishment of organizational goals. More than two third of the respondents (69.4 per cent) think that 360 degree feedback system enables leadership development. Thus, it was observed that only 69.4 per cent of the respondents have utilized the feedback for their leadership development. A Great majority of the respondents have (87.1 per cent) have disagreed to the statement, 360 degree feedback system facilitates employee empowerment Hence it was found that even though 360 degree feedback system had facilitated leadership development but it has not enabled employee empowerment. Nearly three -fifth of the respondents (61.3 per cent) agreed to the statement that 360 degree feedback helped them in defining their KRAs while the others (38.7 per cent) of the respondents disagreed to the above statement. Thus it was found that 360 degree feedback system has an impact on defining the Key result Areas for the individual. A little more than three- fourth of the respondents (75.8 per cent) agreed to the fact that 360 degree feedback frame work helps in setting up an effective tool for measuring performance. Thus it was observed that the company had been successful in implementing the right system to assess the performance of the employees. It was found for the study that nearly three - fourth of the respondents (74.2 per cent) have agreed that 360 degree feedback is used to develop the core competencies of the individual. It was observed that a very great majority of the respondents (93.6 per cent) agreed that the feedback or the outcome is directly linked to the compensation of the employees. More than two third of the population have expressed their concern saying that the reliability of the feedback is questionable. Hence from the study it can be found that 91

there is less trust among the employees in the organization about the reliability of the feedback Almost two third of the respondents (69.3 per cent) have opined that the outcome/ feedback received through 360 degree feedback system are not biased. But at the same time 30.7 per cent of the respondents have not agreed to the statement. Thus it was found that only two third of the respondents have a positive frame of mind towards the tool. Great majority of the respondents (80.4 per cent) have opined that they dont see the feedback as an opportunity for criticism.

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4.2 SUGGESTIONS
The following are the various suggestions that are recommended by the researcher... Ensuring skill requirements among participants and managers to handle the process will facilitate employee empowerment. It will also enable in motivating key decision makers and participants. The process involves a lot of paper work and monitoring of the return of the completed questionnaire by the due date, hence the parameters designed for the performance review should be clear, specific, observable, and quantifiable. The parameters or the questions should be ideally be based on competencies. Participation in 360 degree feedback may be voluntary to start with, but when confidence is gained, it could be extended to other levels as well, so that the reliability of the feedback is maintained. The tool will lose its integrity if it is used for downsizing, promotion or termination. Hence the system should be an unbiased one.

General guidelines for Human Resources department

The following were the various guidelines to the organization: With regard to setting objectives at unit/ project level considering the bottom up approach with the following process could be considered: 1. Identify the action / behaviors that employees could affect. 2. Assess the impact of those actions and behaviors on the business. 3. Establish objectives according to desired impacts from desired actions / behaviors.

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Publish 360 degree feedback system related games and puzzles in the employees newsletter to engage employees and create excitement about the process.

Constant interaction and active involvement of those in the top management would lead to benefits of 360 degree feedbacks system to cascade down to every individual.

Identify employees who will affect 360 degree feedback system outcomes. Include only the employees who have significant impact on each measurement. Cascading eligibility through the organization allows for a controlled approach to design, implementation and communication.

Use standards parameters or factors for feedback program design to the actions to business results. In turn, this will help each employee affected by the feedback understand how his/her behaviors and actions influence business.

The organizations should consult the employees in deciding the indicators which determine reward either short term / long term.

Deciding on the type of reward system should be customized to the individual needs of the employees.

A periodic review of the existing system is very crucial for the system to success and for the employees to regain interest in the organizations capabilities.

We need to involve more employees in the design of the 360 degree feedback system. This involvement would definitely help the employees to meet their targets.

We need to make sure that employees understand the downside as well as the upside of the 360 degree feedback system. Without proper understanding the system implemented will be of no use

Goals for the future:

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It should be aligned with the business philosophy and mission of the company. It should be competitive. It should reward the performance. It should not be used as an opportunity for criticism.

For further research:

Since this research has been undertaken only for one organization, there is still further scope for doing a comparative analysis of 360 degree feedback system and performance management system between various organizations. This research focuses mainly on the opinions of the IT executives on the various aspects of 360 degree feedback system. A study on similar lines could be undertaken in both the manufacturing and service sector industries.

CONCLUDING REMARKS
The success of 360 degree feedback system would, to a large extent, depend on the readiness of the organizations for this initiative. Further, success would depend on the effectiveness of the steps that have been adopted by the organization. Finally, people in the organization have to play a major role in making the 360 degree feedback process effective. Though an attempt has been made to understand the various aspects of 360 degree feedback system in Emmett Technologies which is an IT industry, there is still scope for more research in this area of study.

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4.3 CONCLUSIONS
It was concluded that the respondents in the age group of 20 25 years (53.8 percent have affirmed to the measurability of the performance areas compared to the counterparts in the 26 and above age group (50 per cent). On the whole we find an equitable distribution of responses as regards measurability of performance areas across different age groups of respondents. The relationship is not statistically significant. Thus, the null hypotheses, There is no significant relationship between age of respondents and their opinion on the measurability of performance is accepted. Three fourth of the respondents in the female category (77.8 per cent) have affirmed that 360 degree feedback system facilitates development while more than one fourth of them have not agreed to it. In the male category more than two third of the respondents (67.9 per cent) have chosen that 360 degree feedback system facilitates leadership development, while one third have disagreed to it. The relationship is statistically in significant. Thus, the null hypothesis is accepted, which means that there is no relationship between gender of respondents and their opinion on contribution of 360 degree feedback system to leadership development. Nearly three- fifth of the male respondents (69.8 per cent ) strongly believe that the reliability of 360 degree feedback system is questionable , but at the same time 44.4 per cent of the female respondents have opined that reliability of 360 degree feedback system is not questionable. The relationship is statistically in significant. Thus the null hypotheses stands accepted which implies that, There is no significant association between gender of respondents and their opinion on reliability of 360 degree feedback system.

It was concluded that more than half of the respondents (55.9 per cent) who are in the cadre of project leaders / project members and less than half of the respondents 96

(46.4 per cent ) who are in the cadre of soft engineers have affirmed to the measurability of performance areas However, this distribution is not statistically significant. Thus, based on chi- square results, the null hypotheses that, There is no significant relationship between designation of respondents and their opinion on the measurability of performance is accepted.

Discussion
In an IT industry, which is ridden by high levels of competition and career growth, it is important to get an understanding of performance and the tool used for reviewing the performance of the individual in the organization. 360 Degree feedback is widely accepted as an effective performance management tool. But if it is not managed properly then it does more harm than benefits. People tend to have problems with 360 degree feedback. It has no privacy, reliability and effectiveness because of the personal biases and grievances of evaluators that creep into feedback. Another most important reason may be a gap between an organizations objectives and 360 degree. In order to achieve global standards of performance the employees need to be constantly reviewed and monitored. This study aims to understand the employees opinion on 360 degree feedback system.

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BIBLIOGRAPHY

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References
Book Material
Mamoria C B & Gankar S V 2004 Personnel Management Mumbai : Himalaya Publishing House

Sharma, R Radha 2002

360 degree feedback system, Competency Mapping and Assessment centers. New Delhi: Tata McGraw Hill Publishing Company Limited, India.

Non Book Material

Dr. Anil Mehta Performance Appraisal 360 degree Technique, HRM Review, March 2008 pp 48 -51 Radha R Sharma Utilizing 360 degree feedback innovatively, HRM Review, April 2008 pp 61 to 63 Rao T V TV RAO Learning Systems Pvt. Ltd

Websites
www.360degreefeedback.com www.hrfolks.com 99

QUESTIONNAIRE

SOCIO DEMOGRAPHY

1. AGE : a) 20 25 b) 25 30 c) 30 35

2. GENDER: a) b) male female

3. EDUCATIONAL QUALIFICATION a) Professional b) Post Graduate c) Graduate d) Technical Graduate

4. DESIGNATION OR POSITION HELD:

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5. WORK EXPERIENCE: a) 1 - 3 years b) 3 - 5 years c) 5 - 7 years d) 7 - 9 years

VIEWS ON 360 DEGREE FEEDBACK SYSTEMS PER SE

1) 360 degree feedback better than Traditional Appraisal system. a) Strongly Agree b) Agree c) Strongly Disagree d) Disagree

2) 360 degree feedback has the ability to solve problems at root cause. a) Strongly Agree b) Agree c) Strongly Disagree d) Disagree

3) Application of 360 degree feedback motivates people to give honest and objective feedback. a) Strongly Agree b) Agree c) Strongly Disagree d) Disagree

4) The 360 degree feedback can be accomplished only when everyone in the division performs. a) Strongly Agree b) Agree c) Strongly Disagree d) Disagree

5) This kind of Appraisal system helps in overall development of an individual. a) Strongly Agree b) Agree c) Strongly Disagree d) Disagree 101

IMPLEMENTATION

1) The performance areas measured under360 degree feedbacks are clearly measurable. a) Strongly Agree b) Agree c) Strongly Disagree d) Disagree

2) The Top management is successful in creating a positive frame of mind amongst employees with regard to 360 degree feedback. a) Strongly Agree b) Agree c) Strongly Disagree d) Disagree

3) The 360 degree feedback system is easy to understand. a) Strongly Agree b) Agree c) Strongly Disagree d) Disagree

4) The principles and policies of the organization are aligned with the 360 degree feedback system. a) Strongly Agree b) Agree c) Strongly Disagree d) Disagree

5) Induction on the system to newly recruited employees is given. a) Strongly Agree b) Agree c) Strongly Disagree d) Disagree

PRE REQUISITES

1) The best sources of 360 degree feedback are. a) Peers b) Customers c) Subordinates d) Supervisors e) All of these.

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2) There should be proper communication about the 360 degree feedback objectives to each employee. a) Strongly Agree b) Agree c) Strongly Disagree d) Disagree 3) 360 degree feedback works best in organizations where the environment is open and participatory. a) Strongly Agree b) Agree c) Strongly Disagree d) Disagree

4) 360 degree assessment form should contain only those items that are capable of being assessed. a) Strongly Agree b) Agree c) Strongly Disagree d) Disagree

5) 360 degree feedback system should prevail over conventional appraisal system.. a) Strongly Agree b) Agree c) Strongly Disagree d) Disagree

MERITS OF 360 DEGREE FEEDBACK SYSTEM

1) Developing strategies through 360 degree feedback leads to accomplishment of organizational goals. a) Strongly Agree b) Agree c) Strongly Disagree d) Disagree

2) 360 degree feedback facilitates leadership development a) Strongly Agree b) Agree c) Strongly Disagree d) Disagree

3) 360 degree feedback facilitates employee empowerment a) Strongly Agree b) Agree c) Strongly Disagree d) Disagree 103

4) 360 degree feedback helps in defining the key result area of performance for an individual. a) Strongly Agree b) Agree c) Strongly Disagree d) Disagree

5) 360 degree feedback is an effective tool for measuring performance of an individual. a) Strongly Agree b) Agree c) Strongly Disagree d) Disagree

6) 360 degree feedback is used for the development of core competencies of an individual. a) Strongly Agree b) Agree c) Strongly Disagree d) Disagree

DEMERITS OF 360 DEGREE FEEDBACK SYSTEM

1) The outcome of 360 degree feedback is not directly linked with compensation. a) Strongly Agree b) Agree c) Strongly Disagree d) Disagree

2) 360 degree feedback suffers when the reliability of feedback is questionable. a) Strongly Agree b) Agree c) Strongly Disagree d) Disagree

3) Responses from the 360 degree feedback tend to be biased. a) Strongly Agree b) Agree c) Strongly Disagree d) Disagree

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4) Feedback is seen as an opportunity for criticism. a) Strongly Agree b) Agree c) Strongly Disagree d) Disagree

SUGGESTIONS 1) What are the most common concerns about using 360 degree feedback in your organization?

2) What are the most common misconceptions about using 360 degree feedback?

3) What Follow- Up development activities should be planned?

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