360 Degree Appraisal

An appraisal made by top management, immediate superior, peers, subordinates, self and customers is called 360 Degree Appraisal. Here, the performance of the employee or manager is evaluated by six parties, including himself. So, he gets a feedback of his performance from everyone around him. This method is very reliable because evaluation is done by many different parties. These parties are in the best position to evaluate the employee or manager because they are continuously interacting and working with him. This method is mostly used to evaluate the performance of the employees. However, it is also used to evaluate other qualities such as talents, behaviour, values, ethical standards, tempers, loyalty, etc.
360 degree appraisal was first developed by General Electric (GE), USA in 1992. Today it is used by all major organisations. In India, it is used by Crompton Greaves, Wipro, Infosys, Reliance Industries, etc.

Six Parties In 360 Degree Appraisal



The six parties involved in 360 degree appraisal are :-

1. Top Management

The top management normally evaluates the middle level managers. However, in a small organisation, they also evaluate the performance of the lower level managers and senior employees.

2. Immediate Superior

The immediate superior is in a very good position to evaluate the performance of his subordinates. This is because they have direct and accurate information about the work performance of their subordinates.

3. Peers / Co-workers

Peer or colleagues also evaluate each other's performance. They work continuously with each other, and they know each other's performance. Peer evaluation is used mostly in cases where team work is important.

4. Subordinates

The Subordinates can also evaluate the performance of his superior. Now-a-days students are asked to evaluate the performance of their teachers.

5. Self Appraisal

In the self-appraisal, a person evaluates his own performance. He should be honest while evaluating himself. This results in self-development.

6. Customers

Customers can also evaluate the performance of the employees who interacts with them. This evaluation is best because it is objective. It is also given a lot of importance because the customer is the most important person for the business. Organisations use customer appraisals to improve the strengths and remove the weaknesses of their employees.
In addition to these six parties, appraisal can also be done by an Appraisal Panel. This panel consists of 5 to 6 different types of members. Outside Consultants are also used for conducting appraisals. In some cases, Personnel Department also conducts an appraisal of employees and managers.
360 Degree Appraisal is becoming more popular because many parties are available for evaluation. Therefore, there is no "bias" or "halo effect". Hence the evaluation will become more realistic.

ENTREPRENEURSHIP SKILLS

You are welcome to the very first section of the unit on entrepreneurship skills. As you will expect, this section introduces you to :-
1.the concept of entrepreneurship.
2.what we mean by entrepreneurship,
3. who an entrepreneur is,
4.characteristics of an entrepreneur,
5.the difference between an entrepreneur and a business person
6. sources of information for new entrepreneurs.



What is entrepreneurship?

Who is an entrepreneur?

An entrepreneur is a person who develops a new idea and takes the risk of setting up an enterprise to produce a product or service which satisfies customer needs. All entrepreneurs are business persons, but not all business persons are entrepreneurs. Let us now think of why all business persons are not entrepreneurs. Think of a woman who sits by the roadside leading to your home and who has been selling the same type of food, from the same size of saucepan or pot, from the same table top, and may not have been able to change her standard of living to any appreciable extent. Such a woman may be a business person but not an entrepreneur. The entrepreneur, on the other hand is the business person who is not satisfied with his/her performance and therefore always finds ways to improve and grow.

Now let us consider the characteristics or some special qualities and strengths which make an entrepreneur different from a business person. It is important for us to note that a successful entrepreneur possesses the following characteristics.




Initiative

An entrepreneur takes actions that goes beyond job requirements or the demand of the situation

Opportunity seeking

An entrepreneur is quick to see and seize opportunities. He/she does things before he/she is asked to work by people or forced by situation.

Persistence

An entrepreneur is not discouraged by difficulties and problems that come up in the business or his/her personal life. Once she sets a goal she is committed to the goal and will become completely absorbed in it.

Information seeking

An entrepreneur undertakes personal research on how to satisfy customers and solve problems. He/she knows that different people have different capabilities that can be of help to them. He/she seeks relevant information from his/her clients, suppliers, competitors and others. He/she always wants to learn things which will help the business to grow.

Demand for quality and efficiency

An entrepreneur is always competing with others to do things better, faster, and at less cost he/she strives to achieve excellence.

Risk taking

Are you afraid of uncertainties? Then you cannot be an entrepreneur. Entrepreneurs are not high risk takers. They are also not gamblers; they calculate their risks before taking action. They place themselves in situations involving moderate risk so they are moderate risk takers.

Goal setting

An entrepreneur sets meaningful and challenging goals for him/herself. An entrepreneur does not just dream. Him/she thinks and plans what he/she does. He/she is certain or has hope about the future.

Commitment to work

An entrepreneur will work long hours after into the night just to be able to keep his/her promise to his/her client. He/she does the work together with his/her workers to get a job done. He/she knows how to make people happy to work for him/her due his/her dynamic leadership.

Systematic planning and monitoring

An entrepreneur plans for whatever he/she expects in the business. He/she does not leave things to luck. He/she plans by breaking large tasks down into small once and puts time limits against them. Since and entrepreneur knows what to expect at anytime he/she is able to change plans and strategies to achieve what he/she aims at.

Persuasion and networking

An entrepreneur acts to develop and maintain business contacts by establishing good working relationship. Uses deliberate strategies to influence others.

Independence and self confidence

Most entrepreneurs start business because they like to be their own boss. They are responsible for their own decisions.

THE 6 P's OF MARKETING:

If there is one thing that every business owner must understand it is marketing. The right marketing strategy can bring you success just as the wrong one can lead to failure. The first step in devising a good marketing plan is to understand exactly what marketing is. You might think it is about selling products, but that is not entirely true. While the end result is probably selling products or services, marketing itself has to do more with figuring out what your customers need and finding a way to get it to them. It requires you to carefully evaluate your business to see how you can best provide your product or service to the customer.

In order to have a great marketing plan you have to understand and implement the 6 P’s of marketing. The six P’s are product, place, price, promotion, and people. Those six words are the basis of your marketing plan and to some extent your business as a whole. Here we will explain these six things and how they affect your marketing strategy and business.

Defining The 6 P’s

1. Products - Simply put, a product is anything, good or service, that is needed in the market. All products can be broken down in to three components. The core product is defined as the end benefit for the customer. For example, a person who buys a pair of shoes is buying comfort and foot protection. The next component is the formal products which refers to the actual item and includes it’s physical and psychological aspects. That same person who buys a pair of shoes is buying a brand name because they view it as best. The last component is the augmented product which refers to the entire service or good including any additional support items like a warranty, service, or delivery. As a business owner you must take into consideration all aspects of a product because they each play an important role in whether or not customers choose your product over other products.

2. Place – Place is all about how your customers can get a product. It is incredibly important that business owners think about where their customers are, and how they will get their product to those customers. Positioning your business in the right place so that it is convenient for both your customers and from your manufacture’s standpoint is a great idea. The place also takes into consideration how the product will get to customers, meaning whether you will sell it directly or through a retailer or online.

3. Pricing Strategy - The price at which you sell your product depends on a number of factors. You must set a price that allows you to make a profit while also meeting your competitors’ prices or beating them. It also has to be the right amount to allow you to maintain and increase your customer base. To figure this out, you have to know how much it costs to get your product to a consumer including all costs, not just that of your raw materials. You will also have to do research to find out what your competition charges and what price consumers will pay.

4. Promotion - Promotion is the nuts and bolts of getting your message out to the public. This is mainly done through advertising in the form of radio, newspapers, television, and on line promotions. Getting the right message out to your core customers is a big task. You must try to find a balance between what your competitors are saying and what you need to say to give your product a positive image. There are many rules governing truth in advertising here in Australia, so be certain you comply with all regulations before you launch any promotion campaign.

5. People - You might think that this P refers to customers, but it does not. The most important people in your business are the people who work with and for you. Hiring the right people is one of the most important things you will do for your business. They are the face of your product to the world as well as the hands behind the scene that make sure everything gets done correctly and on time. As a business owner you must work hard to develop your employees and to manage them with dignity so they want to work for you. You also have to figure out what you need done in your business so you can hire the right people to fill each position and task.

6. Process - Process takes into account all of the previous P’s to ensure that each customer has a good experience when they do business with you. Your process includes everything that you did to get your product to the consumer including all of the planning and paperwork and marketing that it took to do it. As you look at your process you have to ensure that you have planned for every possible scenario so that you can guarantee success. You also have to have efficient procedures in place that make your business run as effectively as possible. Also make sure you accurately document each step so you can control the quality of your product and services all the way down the line. You must also be able to review your procedures so that you can improve as necessary all the time.

This is just brief overview of the 6 P’s of marketing. Once you have decided to open a business you will need to spend a great deal of time understanding them as they relate to your particular product. Each one plays an important role in the level of success your business can have.

Eight reasons to leave a Job :


1.When the Management is as confused about the role 1year down the lane as they were at the point of hiring.

2.No Process in place.

3.Work-Culture.

4. Skill-set rapidly diminishing due to multiple role-handling,therby loosing focus.

5.Lastly,when you are deprived of being part of important Events/Customer-Meets due to foggy role-clarity.(Management's ON-OFF attitude towards whether attending Events is a part of your role or not).

6. Believing day long sessions and having endless meetings is solution for every problem and by doing that,expecting drastic results. Else start another series of meetings.

7. Di-motivation.

TOP TEN REASONS WHY LARGE COMPANIES FAIL TO KEEP THEIR BEST TALENT.

Whether it’s a high-profile tech company like Google!, or a more established conglomerate like GE or HUL, large companies have a hard time keeping their best and brightest in house.

Large established companies have a tremendous advantage in retaining their top talent.

In our business, we see the good and the bad things that large companies do in relation to talent management. Here’s my Top Ten list of what large companies do to lose their top talent :

1. Big Company Bureaucracy

This is probably the #1 reason we hear after the fact from disenchanted employees. However, it’s usually a reason that masks the real reason. No one likes rules that make no sense. But, when top talent is complaining along these lines, it’s usually a sign that they didn’t feel as if they had a say in these rules. They were simply told to follow along and get with the program. No voice in the process and really talented people say “check please.”

2.Failing to Find a Project for the Talent that Ignites Their Passion

Big companies have many moving parts — by definition. Therefore, they usually don’t have people going around to their best and brightest asking them if they’re enjoying their current projects or if they want to work on something new that they’re really interested in which would help the company. HR people are usually too busy keeping up with other things to get into this. The bosses are also usually tapped out on time and this becomes a “nice to have” rather than “must have” conversation. However, unless you see it as a “must have,” say adios to some of your best people. Top talent isn’t driven by money and power, but by the opportunity to be a part of something huge, that will change the world, and for which they are really passionate. Big companies usually never spend the time to figure this out with those people.

3.Poor Annual Performance Reviews

You would be amazed at how many companies do not do a very effective job at annual performance reviews. Or, if they have them, they are rushed through, with a form quickly filled out and sent off to HR, and back to real work. The impression this leaves with the employee is that my boss — and, therefore, the company — isn’t really interested in my long-term future here. If you’re talented enough, why stay? This one leads into #4….

4.No Discussion around Career Development

Here’s a secret for most bosses: most employees don’t know what they’ll be doing in 5 years. In our experience, about less than 5% of people could tell you if you asked. However, everyone wants to have a discussion with you about their future. Most bosses never engage with their employees about where they want to go in their careers — even the top talent. This represents a huge opportunity for you and your organization if you do bring it up. Our best clients have separate annual discussions with their employees — apart from their annual or bi-annual performance review meetings — to discuss succession planning or career development. If your best people know that you think there’s a path for them going forward, they’ll be more likely to hang around.

5.Shifting Whims/Strategic Priorities

I applaud Google!’s plans to build an incubator or “brickhouse” around their talent, by giving them new exciting projects to work on. The challenge for most organizations is not setting up a strategic priority, like establishing an incubator, but sticking with it a year or two from now. Top talent hates to be “jerked around.” If you commit to a project that they will be heading up, you’ve got to give them enough opportunity to deliver what they’ve promised.

6.Lack of Accountability and/or telling them how to do their Jobs

Although you can’t “jerk around” top talent, it’s a mistake to treat top talent leading a project as “untouchable.” We’re not saying that you need to get into anyone’s business or telling them what to do. However, top talent demands accountability from others and doesn’t mind being held accountable for their projects. Therefore, have regular touch points with your best people as they work through their projects. They’ll appreciate your insights/observations/suggestions — as long as they don’t spillover into preaching.

7.Top Talent likes other Top Talent

What are the rest of the people around your top talent like? Many organizations keep some people on the payroll that rationally shouldn’t be there. You’ll get a litany of rationales explaining why when you ask. “It’s too hard to find a replacement for him/her….” “Now’s not the time….” However, doing exit interviews with the best people leaving big companies you often hear how they were turned off by some of their former “team mates.” If you want to keep your best people, make sure they’re surrounded by other great people.

8.The Missing Vision Thing

This might sound obvious, but is the future of your organization exciting? What strategy are you executing? What is the vision you want this talented person to fulfill? Did they have a say/input into this vision? If the answer is no, there’s work to do — and fast.

9.Lack of Open-Mindedness

The best people want to share their ideas and have them listened to. However, a lot of companies have a vision/strategy which they are trying to execute against — and, often find opposing voices to this strategy as an annoyance and a sign that someone’s not a “team player.” If all the best people are leaving and disagreeing with the strategy, you’re left with a bunch of “yes” people saying the same things to each other. You’ve got to be able to listen to others’ points of view — always incorporating the best parts of these new suggestions.

10.Who’s the Boss?

If a few people have recently quit at your company who report to the same boss, it’s likely not a coincidence. We’ll often get asked to come in and “fix” someone who’s a great sales person, engineer, or is a founder, but who is driving everyone around them “nuts.” We can try, but unfortunately, executive coaching usually only works 33% of the time in these cases. You’re better off trying to find another spot for them in the organization — or, at the very least, not overseeing your high-potential talent that you want to keep.

It’s never a one-way street. Top talent has to assume some responsibility as much as the organization. However, with the scarcity of talent — which will only increase in the next 5 years — Smart Organizations are ones who get out in front of these ten things, rather than wait for their people to come to them, asking to implement this list.

BRAND

The American Marketing Association defines a brand as a "Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers."

CONCEPT : Brand is the personality that identifies a product, service or company (name,
term, sign, symbol, or design, or combination of them) and how it relates to key constituencies: customers, staff, partners, investors etc.
Some people distinguish the psychological aspect, brand associations like thoughts, feelings, perceptions, images, experiences, beliefs, attitudes, and so on that become linked to the brand, of a brand from the experiential aspect.

BRAND AWARENESS : Brand awareness refers to customers' ability to recall and recognize the brand under different conditions and link to the brand name, logo, jingles and so on to certain associations in memory. It consists of both brand recognition and brand recall. It helps the customers to understand to which product or service category the particular brand belongs and what products and services are sold under the brand name. It also ensures that customers know which of their needs are satisfied by the brand through its products (Keller). Brand awareness is of critical importance since customers will not consider your brand if they are not aware of it.

GLOBAL BRAND : A global brand is one which is perceived to reflect the same set of values around the world. Global brands transcend their origins and create strong enduring relationships with consumers across countries and cultures. They are brands sold in international markets. Examples of global brands include Facebook, Apple, Pepsi, McDonald's, Mastercard, Gap, Sony and Nike. These brands are used to sell the same product across multiple markets and could be considered successful to the extent that the associated products are easily recognizable by the diverse set of consumers.

Distribution Channels of Business

How do you sell to your end-users? Do you use a direct sales team? Resellers? A catalog or website?

Distribution channels are the pathways that companies use to sell their products to end-users. Both B2C and B2B companies can sell through a single channel or through multiple channels that may include:

Direct/sales team: One or more sales teams that you employ directly. You may use multiple teams that specialize in different products or customer segments.


Direct/internet: Selling through your own e-commerce website.

Direct/catalog: Selling through your own catalog.

Wholesaler/distributor: A company that buys products in bulk from many manufacturers and then re-sells smaller volumes to resellers or retailers.
Value-added reseller (VAR): A VAR works with end-users to provide custom solutions that may include multiple products and services from different manufacturers.

Consultant: A consultant develops relationships with companies and provides either specific or very broad services; they may recommend a manufacturer’s product or simply purchase it to deliver a solution for the customer.

Dealer: A company or person who buys inventory from either a manufacturer or distributor, then re-sells to an end-user.

Retail: Retailers sell directly to end-users via a physical store, website or catalog.

Sales agent/manufacturer’s rep: You can outsource your sales function to a company that sells different manufacturers’ products to a group of similar customers in a specific territory.



Here are three distribution examples:

DIRECT TO END USERS SELL THROUGH A DEALER NETWORK SELL THROUGH A VAR (VALUE-ADDED RESELLER)
You have a sales team that sells directly to Fortune 100 companies. You have a second product line for small businesses. Instead of using your sales team, you sell this line directly to end-users through your website and marketing campaigns. You have two markets and two distribution channels. You sell a product through a geographical network of dealers who sell to end-users in their areas. The dealers may service the product as well. Your dealers are essentially your customers, and you have a strong program to train and support them with marketing campaigns and materials. You sell a product to a company who bundles it with services or other products and re-sells it. That company is called a Value Added Reseller (VAR) because it adds value to your product. A VAR may work with an end-user to determine the right products and configurations, then implement a system that includes your product.
To create a good distribution program, focus on the needs of your end-users.

If they need personalized service, you can utilize a local dealer network or reseller program to provide that service.
If your users prefer to buy online, you can create an e-commerce website and fulfillment system and sell direct; you can also sell to another online retailer or a distributor to offer your product on their own sites.
You can build your own specialized sales team to prospect and close deals directly with customers.
Wholesalers, resellers, retailers, consultants and agents already have resources and relationships to quickly bring your product to market. If you sell through these groups instead of (or in addition to) selling direct, treat the entire channel as a group of customers – and they are, since they’re buying your product and re-selling it. Understand their needs and deliver strong marketing programs; you’ll maximize everyone’s revenue in the process.



Before you begin

You can evaluate a new distribution channel or improve your channel marketing / management at any time. It’s especially important to think about distribution when you’re going after a new customer segment, releasing a new product, or looking for ways to aggressively grow your business.

Evaluate how your end-users need to buy

Your distribution strategy should deliver the information and service your prospects need. For each customer segment, consider

How and where they prefer to buy
Whether they need personalized education and training
Whether they need additional products or services to be used alongside yours
Whether your product needs to be customized or installed
Whether your product needs to be serviced
Match end-user needs to a distribution strategy

If your end-users need a great deal of information and service, your company can deliver it directly through a sales force. You can also build a channel of qualified resellers, consultants or resellers. The size of the market and your price will probably dictate which scenario is best.
If the buying process is fairly straightforward, you can sell direct via a website/catalog or perhaps through a wholesale/retail structure. You may also use an inbound telemarketing group or a field sales team.
If you need complete control over your product’s delivery and service, adding a channel probably isn’t right for you.
Identify natural partners

If you want to grow beyond the direct model, look for companies that have relationships with your end-users. If consultants, wholesalers or retailers already reach your customer base, they’re natural partners.

Build your distribution channel

If you’re setting up a distribution channel with one or more partners, treat it as a sales process:

Approach the potential channel partner and “sell” the value of the partnership
Establish goals, service requirements and reporting requirements
Deliver inventory (if necessary) and sales/support materials
Train the partner
Run promotions and programs to support the partner and help them increase sales
Minimize pricing conflicts

If you use multiple channels, carefully map out the price for each step in your channel and include a fair profit for each type of partner. Then compare the price that the end-user will pay; if a customer can buy from one channel at a lower price than another, your partners will rightfully have concerns. Pricing conflict is common but it can jeopardize your entire strategy, so do your best to map out the price at each step and develop the best solution possible.

Drive revenue through the channel

Service your channel partners as you’d service your best customers and work with them to drive revenue. For example, provide them with marketing funds or materials to promote your products; run campaigns to generate leads and forward them to your partners.