For some cameras, when in panorama mode, you will have to hold the button while you move the camera, the camera will shoot several frames. In others, you only push once to start and then once to end. Other cameras are even smarter, and you just push to start, the camera figures out when to end. Regardless....you have to move the camera, as all the camera is capable of doing is "stitching" separate photos together. The panorama mode doesn't miraculously convert your lens into a fisheye lens...
BTW, I've yet to find a decent panorama feature in a camera that doesn't really require a tripod for even barely acceptable results...YMMV...