360 degree appraisal in insurance

8/6/2019 360 Degree Appraisal in Insurance

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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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360 degree appraisal in insurance

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