360 Degree Performance Appraisals

Appraisals Home 360-Degree-Performance-Appraisals

360 degree feedback, also known as'multi-rater feedback', is the most comprehensive appraisal where the feedback about the employees performance comes from all the sources that come in contact with the employee on his job. 360 degree respondents for an employee can be his/her peers, managers (i.e. superior), subordinates, team members, customers, suppliers/ vendors anyone who comes into contact with the employee and can provide valuable insights and information or feedback regarding the "on-the-job" performance of the employee. 360 1. 2. 3. 4. degree appraisal has Self Superiors Subordinates Peer four integral components: appraisal appraisal appraisal appraisal.

Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his

achievements, and judge his own performance. Superiors appraisal forms the traditional part of the 360 degree performance appraisal where the employees responsibilities and actual performance is rated by the superior. Subordinates appraisal gives a chance to judge the employee on the parameters like communication and motivating abilities, superiors ability to delegate the work, leadership qualities etc. Also known as internal customers, the correct feedback given by peers can help to find employees abilities to work in a team, co-operation and sensitivity towards others.

Self assessment is an indispensable part of 360 degree appraisals and therefore 360 degree Performance appraisal have high employee involvement and also have the strongest impact on behavior and performance. It provides a "360-degree review" of the employees performance and is considered to be one of the most credible performance appraisal methods. 360 degree performance appraisal is also a powerful developmental tool because when conducted at regular intervals (say yearly) it helps to keep a track of the changes others perceptions about the employees. A 360 degree appraisal is generally found more suitable for the managers as it helps to assess their leadership and managing styles. This technique is being effectively used across the globe for performance appraisals. Some of the organizations following it are Wipro, Infosys, and Reliance Industries etc

360 Degree Performance Appraisal

JUNE 18, 2009 FARHAAN PANAGAR 22 COMMENTS

The meaning of the word appraisal is to fix a price or value for something. This is used in finance in terms such as project appraisal or financial appraisal where a value is attached to a project. Similarly performance appraisal is a process in which one values the employee contribution and worth to the organisation. Employees across the entire organisation are appraised of their performance. This could be done annually, twice a year, periodically depending the need of the organisation. Performance appraisal is a systematic and orderly evaluation of performance of employees at work by their superiors or others who are familiar with the techniques of performance appraisal. A performance appraisal is a formal review of employee performance. At a performance appraisal, objectives or targets are agreed between manager and employee. At each subsequent appraisal, current and past performance is compared and targets are reviewed.

Performance appraisals are essential for the effective management and evaluation of staff. Appraisals help develop individuals, improve organizational performance, and feed into business planning. Formal performance appraisals are generally conducted annually for all staff in the organization. Each staff member is appraised by their line manager. Performance appraisals are also essential for career and succession planning. Performance appraisals are important for staff motivation, attitude and behaviour development, communicating organizational aims, and fostering positive relationships between management and staff. Performance appraisals provide a formal, recorded, regular review of an individuals performance, and a plan for future development. In short, performance and job appraisals are vital for managing the performance of people and organizations.

360

DEGREEE

PERFORMANCE

APPRAISAL

In 360-degree performance reviews, many different types of people are consulted about an employees performance. This includes customers, suppliers, peers and direct reports. In the case of a manager, employees are often asked to give upward feedback on how well they are being managed. If 360-degree performance reviews are performed, a Human Resources manager should coordinate the process, so that subordinate reviewers (i.e., employees) are assured that their performance reviews are kept anonymous.

The aim is to find the gap between ones own appraisal and the perceptions of others. This will in turn enable a professional to analyse his strengths and shortcomings and accordingly improve his performance. While it is true that the system serves as an excellent process since it reduces biases, it is not always successful. It is necessary to create the right culture in the company before introducing the system. If many people are unhappy or their morale is low, the situation can turn disastrous as some staffers will become obvious targets.

ADVANTAGES OF 360 DEGREE APPRAISAL

Provides a more comprehensive view of employee performance. Increases credibility of performance appraisal. Feedback from peers enhances employee self-development. Increases accountability of employees to their customers. The combination of opinions can approximate to an accurate view Comments expressed by several colleagues tend to carry weight Some skills are best judged by peers and staff, not by manager alone Feedback may be motivating for people who undervalue themselves The wider involvement help to engender a more honest organizational culture

DISADVANTAGES OF 360 DEGREE APPRAISAL

Time consuming and more administratively complex. Extensive giving and receiving feedback can be intimidating to some employees.

Requires training and significant change effort to work effectively. Results can be difficult to interpret Feedback can be damaging unless handled carefully and sensitively Can generate an environment of suspicion if not managed openly and honestly

The 360-degree appraisal significantly differs from the traditional supervisor-subordinate performance evaluation. Rather than having a single person play judge, a 360-degree appraisal acts more like a jury. The people who actually deal with the employee each day create a pool of information and perspectives on which the supervisor may act. This group of individuals is made up of both internal and external customers. Using 360-degree appraisals provides a broader view of the employees performance. The most obvious benefit of the 360-degree appraisal is its ability to corral a range of customer feedback. Because each customer offers a new, unique view, it produces a more complete picture of an employees performance. Unlike with supervisors, employees cant hide as easily in 360-degree appraisals because peers know their behaviors best and insist on giving more valid ratings. In addition to providing broader perspectives, the 360-degree appraisal facilitates greater employee selfdevelopment. It enables an employee to compare his or her own perceptions with the perception of others on the employees skills, styles, and performance.

PEER-TO-PEER

EMPLOYEE

PERFORMANCE

EVALUATIONS

Peer-to-peer employee performance evaluations require employees at the same level to review each other. The thinking behind peer-to-peer employee performance evaluations is that nobody knows a workers ability better than his or her co-workers. While this can be an effective review format for some groups of workers (for example, a team of doctors working on a research project together, where specific content knowledge is required), it can also cause controversy because of the way it affects future group dynamics. When evaluating the use of these types of employee performance evaluations, consider the maturity level of the employees involved and the long-term effects that could result from the source of negative reviews getting back to the team members.

SELF-ASSESSMENT

PERFORMANCE

REVIEWS

Self-Assessment performance reviews are effective when combined with any of the other three types of performance reviews. With this type of review, employees are asked to rate themselves, often using the same form that a manager will use to review them. Self-assessment performance reviews help make the employees an active part of the process and provide a vehicle for them to reflect on their own performance prior to the formal review. Studies have shown that employees are usually harder on themselves in self-assessment performance reviews, than their managers and generally give themselves lower ratings. Having employees do self assessment performance reviews prior to a managers review can set a positive tone for the meeting,

as the manager will often have better things to say than the employee has said about him or herself.

DOWN

TO

TOP

EMPLOYEE

PERFORMANCE

EVALUATIONS

Down-Top employee performance evaluations tend to be one of the most common and most effective method, because they involve the assessment of an employee by its subordinate. Down to top employee performance evaluations are most useful when given by an employees immediate subordinate someone who works with that employee everyday and knows his or her strengths and weaknesses. The Down-Top employee performance evaluation becomes less effective when given by a Human Resources manager who has only second-hand knowledge of an employees performance.

TOP

DOWN

EMPLOYEE

PERFORMANCE

EVALUATIONS

Top-down employee performance evaluations tend to be the most common and most effective, because they involve the assessment of an employee by a direct manager. Top-down employee performance evaluations are most useful when given by an employees immediate supervisor someone who works with that employee everyday and knows his or her strengths and weaknesses. The top-down employee performance evaluation becomes less effective when given by a Human Resources manager who has only second-hand knowledge of an employees performance. One offshoot of top-down employee performance evaluations are matrix employee performance evaluations, where multiple managers rate the same employee. This is a good choice when the employee works for multiple managers, or engages in various fixed-time length projects