Artfoods, founded in 1972 by Aditya Singh, has faced challenges regarding its appraisal system, particularly the decision to maintain or modify the existing 360-degree appraisal process. Over the years, various appraisal systems were implemented, but issues such as negative peer reviews and communication barriers have emerged, complicating the effectiveness of the current model. Research indicates that while the 360-degree appraisal can influence personal and leadership development positively, there is a need for tailored feedback that focuses on individual strengths rather than just identifying weaknesses.

1. APPRAISAL SYSTEM
HRs’ DILEMMA –ARTFOODS

2. COMPANY PROFILE
• Home grown company established in 1972 by Aditya
Singh.
• He was working at Dole Food Company in Canada
which was into sea-food packaging.
• Artfood’s product portfolio include jams, ketchups
and tinned food.
• Processed food industry was not matured in India at
that time as customers preferred fresh food.
• Concentrated on ketchups and jams.

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

4. APPRAISAL SYSTEM: PAST TO PRESENT
• Ashish Asthana left the organisation in a jiffy.
• Arti Atre took over the position of VP-HRD.
APPRASIAL SYSTEMS
• 1972: Trait based system
 Intelligence, integrity, communication skills,
personality.
• 1985: Result based performance appraisal
 Key result areas (KRA)
 Key task areas (KTA)
PLOT

5. APPRAISAL SYSTEM: PAST TO PRESENT

6. APPRAISAL SYSTEM: PAST TO PRESENT
ADVANTAGES DISADVANTAGES
Shift in the result orientation of
people.
Joint – goal setting sessions failed
Managers adopted paradigms which
were more focused and directive.
Newcomers discovered direction in
their activities and aided learning and
adjusting to culture of the
organisation more easier
Employees were hesitant to play
equal role in negotiation with their
bosses.
Training given to write Specific,
Measurable, Achievable, Realistic and
Time-bound (SMART) goals.
MBO system did not find any buyers
among line managers.
Result based performance appraisal

7. APPRAISAL SYSTEM: PAST TO PRESENT

8. APPRAISAL SYSTEM: PAST TO PRESENT
• 1991: Managerial review
― The performance review
― The self review
― The career development review
― The feedback session
• 1996: 360-Degree appraisal

9. APPRAISAL SYSTEM: PAST TO PRESENT

10. APPRAISAL SYSTEM: PAST TO PRESENT
ADVANTAGES DISADVANTAGES
Free communication between
managers and sub-ordinates
Few became suspicious about
of peers because of comments
they received.
Acceptance for need to
change
The data generated remained
anonymous.
A manager who got a review
that subordinates are not
being involved started
weekend departmental
meeting
360-Degree Review

11. Present Problems
• Top performer got negative review. He demanded
for face to face discussion with the reviewer.
• Organisations are becoming flatter to reduce
barriers, facilitate communication and realising
full human potential.
• Arti don’t want to be judged as the shadow of
Asthana.
• She thinks that the employee should know from
where the feedback is coming from so that
he/she can do the needful.

12. What research says….
• Insights from research conducted by IIM-A, on
360-degree appraisal.
52%
48%
Influence on leadership development
Has helped in leadership development

13. What research says….
• Insights from research conducted by IIM-A, on
360-degree appraisal.
Positive
impact on
personal life
100%
Effect on personal life

14. What research says….
• Insights from research conducted by IIM-A, on
360-degree appraisal.
70%
30%
Effect on professional life
Positive impact on professional life
No impact on professional life

15. CONTRIBUTION
• Focus primarily on discovering strengths rather
than use the process to uncover deficiencies.
• Tailor the results to each individual and to his
or her position. Everyone doesn’t need to be
good at the same things.
• Present each person’s results in a way that
enables them to digest them constructively
and use the data to create a personal plan of
development.

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