Post on 07-Apr-2018
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PROJECT ON360 DEGREE APPRAISAL IN
INSURANCE
Submitted by:Ms. KOMAL R WARRIAR
Roll no: 62
Subject: HUMAN RESOURCEMANAGEMENT
6th Semester in
Bachelor of Commerce -Banking and InsuranceDegree Course
2008-2009
KETS
V.G. VAZE COLLEGE OF ARTS,SCIENCE & COMMERCE
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MULUND (E), MUMBAI 400081
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360 DEGREE APPRAISAL IN
INSURANCE.
INTRODUCTION TO PERFORMANCE
APPRAISAL
Performance appraisal, also known as employee
appraisal, is a method by which the job performance of
an employee is evaluated (generally in terms of quality,
quantity, cost and time). Performance appraisal is a part
of career development.
Performance appraisals are regular reviews of employee
performance within organizations
Generally, the aims of a performance appraisal are to:
Give feedback on performance to employees.
Identify employee training needs.
Document criteria used to allocate organizationalrewards.
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Form a basis for personnel decisions: salary
increases, promotions, disciplinary actions, etc.
Provide the opportunity for organizational diagnosisand development.
Facilitate communication between employee and
administrator.
Validate selection techniques and human resource
policies to meet federal Equal Employment
Opportunity requirements.
A common approach to assessing performance is to use
a numerical or scalar rating system whereby managers
are asked to score an individual against a number of
objectives/attributes. In some companies, employees
receive assessments from their manager, peers,
subordinates and customers while also performing a self
assessment. This is known as 360 appraisal.
The most popular methods that are being used as
performance appraisal process are:
Management by objectives
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360 degree appraisal
Behavioral Observation Scale
Behaviorally Anchored Rating Scale
360 DEGREE FEEDBACKS A
POPULAR PERFORMANCE APPRAISAL
The 360 degree feedback method of performance
appraisal is becoming increasingly popular and is
growing in use. Its growing popularity is reflected in a
recent study which found that nearly 90 percent of firms
use 360 degree feedback for their employee appraisal. In
India, large organizations such as Reliance industries,
Infosys, Godrej soaps, Wipro have started using this
system to evaluate the performance of the employees.
A 360 degree feedback is a performance appraisal
process that gathers performance information from
multiple people, including ones subordinates, peers,
supervisors and customers. 360 Degree aims atproviding more accurate and diverse input on an
employees performance by seeking feedback from
various sources.
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360 DEGREE FEEDBACKS
Boss
Peer APPRAISEE customers
Subordinates
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360 DEGREE APPRAISAL IN
INSURANCE
The 360 degree feedback system recognizes that
insurance performance varies across contexts and that
individuals behave differently in different situations. This
system acknowledges the reality that an employees
performance is made up of multiple behaviors. By usingmultiple raters, 360 degree feedback attempts to
capture this variety of behavior and improve the quality
of performance appraisal.
In the typical 360 degree appraisal system, 8 to 12 head
agents of the insurance company evaluate the agents.
These head agents work closely with employees and
have direct contact in assessing the employees
performance.
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FACTORS LINKED TO SUCCESS
Insurance companies who experience success with the
360-degree feedback methods have many
environmental attributes present. Some of these are:
Organizational climate fosters individual growth
Criticisms are seen as opportunities for
improvement
Proper framing of feedback method by
management
Assurance that feedback will be kept confidential
Development of feedback tool based on insurance
goals and values
Feedback tool includes area for comments
Brief workers, evaluators and supervisors about
purpose, uses of data and methods of survey prior
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to distribution of insurance schemes
Train workers in appropriate methods to give and
receive feedback
FACTORS LINKED TO FAILURE
Many insurance organizations have rushed into 360-
degree feedback without laying the foundation for
success. Typicalerrors include:
Feedback tied to merit pay or promotions
Comments traced to individuals causing
resentment between workers
Feedback not linked to organizational goals or
values
Use of the feedback tool as a stand alone without
follow-up
Poor implementation of 360-degree tool negatively
affects motivation
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Excessive number of surveys are required of each
worker with few tangible results provided to
individuals
BENEFITS OF APPRAISAL IN
INSURANCE
Perhaps the most significant benefit of appraisal is that,
in the rush and bustle of daily working life, it offers a
rare chance for a supervisor and subordinate to have
"time out" for a one-on-one discussion of important work
issues that might not otherwise be addressed.
Almost universally, where performance appraisal is
conducted properly, both supervisors and subordinates
have reported the experience as beneficial and positive.
Appraisal offers a valuable opportunity to focus on work
activities and goals, to identify and correct existingproblems, and to encourage better future performance.
Thus the performance of the whole organization is
enhanced.
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For many employees, an "official" appraisal interview
may be the only time they get to have exclusive,
uninterrupted access to their supervisor. Said one
employee of a large organization after his first formal
performance appraisal, "In twenty years of work, that's
the first time anyone has ever bothered to sit down and
tell me how I'm doing." The value of this intense and
purposeful interaction between a supervisors and
subordinate should not be underestimated.
MOTIVATION AND SATISFACTION
Performance appraisal can have a profound effect on
levels of employee motivation and satisfaction - for
better as well as for worse.
Performance appraisal provides employees with
recognition for their work efforts. The power of social
recognition as an incentive has been long noted. In fact,
there is evidence that human beings will even prefer
negative recognition in preference to no recognition at
all.
If nothing else, the existence of an appraisal program
indicates to an employee that the organization is
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genuinely interested in their individual performance and
development. This alone can have a positive influence
on the individual's sense of worth, commitment and
belonging.
The strength and prevalence of this natural human
desire for individual recognition should not be
overlooked. Absenteeism and turnover rates in some
organizations might be greatly reduced if more attention
were paid to it. Regular performance appraisal, at least,
is a good start.
TRAINING AND DEVELOPMENT
Performance appraisal offers an excellent opportunity -
perhaps the best that will ever occur - for a supervisor
and subordinate to recognize and agree upon individual
training and development needs.
During the discussion of an employee's work
performance, the presence or absence of work skills can
become very obvious - even to those who habitually
reject the idea of training for them!
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Performance appraisal can make the need for training
more pressing and relevant by linking it clearly to
performance outcomes and future career aspirations.
From the point of view of the organization as a whole,
consolidated appraisal data can form a picture of the
overall demand for training. This data may be analyzed
by variables such as sex, department, etc. In this
respect, performance appraisal can provide a regular
and efficient training needs audit for the entire
organization.
RECRUITMENT AND INDUCTION
Appraisal data can be used to monitor the success of the
organization's recruitment and induction practices. For
example, how well are the employees performing who
were hired in the past two years?
Appraisal data can also be used to monitor the
effectiveness of changes in recruitment strategies. By
following the yearly data related to new SCHEMES (and
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given sufficient numbers on which to base the analysis)
it is possible to assess whether the general quality of the
workforce is improving, staying steady, or declining.
EMPLOYEE EVALUATION
Though often understated or even denied, evaluation is
a legitimate and major objective of performance
appraisal.
But the need to evaluate (i.e., to judge) is also an
ongoing source of tension, since evaluative and
developmental priorities appear to frequently clash. Yet
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at its most basic level, performance appraisal is the
process of examining and evaluating the performance of
an individual.
Though organizations have a clear right - some would
say a duty - to conduct such evaluations of performance,
many still recoil from the idea. To them, the explicit
process of judgment can be dehumanizing and
demoralizing and a source of anxiety and distress to
employees.
It is been said by some that appraisal cannot serve the
needs of evaluation and development at the same time;
it must be one or the other.
But there may be an acceptable middle ground, where
the need to evaluate employees objectively, and the
need to encourage and develop them, can be balanced.
CONCLUSION
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The popularity of 360-degree feedback is undeniable.
Yet, the perceived benefits will help the personal
development of workers only in the right organizational
climate. When this method is utilized in the wrong
environment, the results can be detrimental. With close
consideration and evaluation of the environment, the
decision to employ this tool, or another, should be made
carefully. Especially in the insurance sector where
customer satisfaction plays a very vital role in building
up the reputation of insurance business.
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FINDINGS AND SUGGESTIONS
This assignment helped to acquaint one with how
performance appraisal helps the growth of any
business organization.
It also suggests how beneficial can 360 degree
performance appraisal is for an insurance
organization.
BIBLIOGRAPHY
Human resource management in banking and
insurance published by Vipul Prakashan
WEBLIOGRAPHY
Google search engine
Wikipedia encyclopedia
Yahoo search engine
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