Professional Documents
Culture Documents
PERFORMANCE APPRAISAL
INTRODUCTION
To judge the gap between the actual and the desired performance.
To help the management in exercising organizational control.
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Issues like promotions, demotions, bonuses and pay will affect the
success or failure of a 360 degree performance appraisal. Keep in mind that
performance appraisal systems are used to define employee goals, employee
contributions and determine the employee‘s results in meeting those goals and
contributions. It is a genuine review of past employee performance.
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A manager‘s bias also plays its role. Furthermore, he might lack proper training
for evaluating employees‘ performances. Their perception is that ―no matter
how well we perform, our contributions will never be acknowledged.‖
Annual performance
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INTRODUCTION
1. Self appraisal
2. Superiors appraisal
3. Subordinate‘s appraisal
4. Peer appraisal.
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The aim is to find the gap between one‘s own appraisal and the
perceptions of others. This will in turn enable a professional to analyze 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.
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Wipro,
Infosys,
Reliance Industries
Maruti Udyog etc.
HCLTechnologies.
Wyeth Consumer Health (WCH)
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INTRODUCTION
advice
reactions
comments
opinions
responses
criticisms
views
pointers
…from each other about the efficiency of their professional development. Thus
the term 360 degree feedback, meaning a circle of those co-workers, managers
and customers around you.
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360-degree feedback occurs when feedback is obtained from sources all around
an employee.
These sources may include:
management;
co-workers;
clients;
self assessment.
The system can include feedback from all of these groups, and from multiple
people from each of the groups. If you do not want to include all the groups in
the appraisal process, our system will automatically adjust for this. A common
example might be that employee (a) will be appraised by two managers, six co-
workers, zero clients and will perform a self assessment.
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When 360 reviews are merged with compensation decisions (360 degree
performance appraisal), employees will begin to doubt the advantages of 360
degree feedback. When workers perceive that people around them are deciding
their financial rewards and promotional opportunities, mistrust may set in.
Some employee and manager raters may have trouble separating personal bias
and dislikes from an honest assessment of a coworker. Multiple source raters
are not very good at giving unbiased feedback. For performance appraisal
purposes, co-workers are bad at figuring out 360 feedbacks that influences
promotions and the size of the paychecks.
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When the manager calls her into the office for a performance appraisal
meeting the focus is on the actual performance of her job between the last
review and the current one. There are different expectations in a 360 degree
feedback. 360 degree evaluations involve how those around you perceive your
level of…
skill
practice (the way you apply yourself to the task)
competency(know-how)
behavior (actions or deeds)
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A 360 degree feedback system by design should not deal with employee
compensation.
Compensation decisions are one of the areas of controversy involving the
merger of 360 degree feedback and performance appraisal in evaluating job
reviews.
The need for growth in team and personal levels of performance have been
the driving force toward blending appraisal of performance and a 360 degree
feedback system.
A standard procedure of 360 appraisal involves providing a survey for
employees to rate each other and managers. These surveys are typically of a
confidential nature. This gives employees the confidence to give comments
without fear of retaliation. However there is research that points to dangers in
360 degree evaluations.
These 360 degree feedback surveys have managers and employees who are
selected as raters. What does rater mean? They are fellow employees or
managers who are selected to evaluate us. This is viewed as a more fair process
because the appraisals of employee performance are conducted by multiple
sources versus one manager who may be biased.
Research shows mixing 360 degree feedback and job performance appraisals
can expose a company to more employee lawsuits. This is because those rating
an employee must be careful not to violate the Civil Rights Act or Equal
Employment Opportunity Commission (EEOC) guidelines. The info gathered
from all raters is then given to the employee by someone designated by
management.
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PREREQUISITES
Performance Appraisal
o Recognition of performance.
o Providing feedback on individual performance.
o Providing a basis for self-evaluation.
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HOW IT IS CONDUCTED.
If using a printed questionnaire form, they should consider using forms that can
be scanned into a computer.
(3.) Provide training/orientation often the feedback process involves use of one
or more questionnaires, confidential information, and involvement from many
different areas of an organization. Therefore, training and orientation to the
feedback process is needed to facilitate a smooth feedback process. During this
training/orientation, employees should be informed of what 360 Performance
Appraisal is and why it is being implemented at the organization. They may
want to provide samples of the questionnaire items and/or feedback results.
(5.) Analyze the data Basic data analysis would include averages of ratings.
More complicated analyses may include item-analysis and/or factor-analysis.
Types of analyses include: Performance Dimension Summary; Summary-
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(6.) Develop and Distribute Results Feedback results should be shared with the
employee. It should not be mandatory that the employee share the results with
their supervisor. However, they may want to make this an optional part of the
performance review of the employee.
Most results for an employee will include a comparison of their ratings to the
ratings of their supervisor and average of the ratings from others (peers,
customers...). The comparisons may be in the form of numbers or simple bar
charts.
Dimensions
Responses are collected for items that fall under a specific dimension of job
performance. A single questionnaire may contain dozens of questions that
measure responses on one or more dimensions.
• Problem Solving Items under this dimension measure how well a person can
understand information and options, give appropriate considerations to
information, make correct decisions, analyze and interpret information, and
react to changing situations.
• Business Control Measure the skill in, and concern for, controlling expenses,
reducing costs, setting performance standards and reviewing budgets.
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Employees should be aware of what 360 degree feedback benefits could mean
for them. The benefits centre on improving managerial performance which has
been demonstrated to have a substantial impact on productivity and
profitability. Evaluations typically achieve 90% agreement rates that the results
are useful.
(1.) Self-assessment
Number of raters
The design of the assessment, reporting and feedback process should suit the
purpose of the exercise. It needs to describe the behaviours, which relate to
actual job performance. It should relate to existing measurement systems within
their area, such as competencies. It also needs to be in line with City‘s culture
and values.
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Feedback report
Trained facilitators
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In terms of communication management and performance feedback in the workplace, the 360
degree feedback methodology is becoming an increasingly common way of developing
employees, appraising their performance or in some companies; a combination of the two.
The concept behind 360 degree feedback, including its pros and cons; stating that it can be
defined as a ―contrived method of providing a flow of feedback to employees from all
directions‖.
However a key point standpoint is the discussion of conflicting views on whether 360 degree
feedback should be used primarily for employee development or performance appraisal. The
purpose of 360 degree feedback arguably creates a huge impact on the overall effectiveness
of the feedback to initiate positive change in employee performance as it has the potential to,
for example, influence what motivates the employee and what they hope to gain from the
feedback process itself.
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For instance, provision of feedback for development purposes will ensure the employee is
seeking accurate feedback from their manager and/or other raters in order to improve their
performance. This means they will be more open and receptive to the dialogue about their
performance. However, when the feedback is evaluative in nature, provided for a
performance appraisal for example, the employee desires to appear competent and attractive
in order to be scored as highly as possible, particularly if this rating is linked to a financial
reward or bonus. This then significantly reduces their willingness to be receptive to the
feedback provided and make the necessary changes to improve performance.
Moreover, when 360-degree feedback is used for purposes other than development such as
performance appraisal, the effectiveness (or perceived accuracy) of the feedback received,
arguably diminishes. For instance O‘Reilly (1994) asserts that when 360 degree performance
feedback is provided by raters for the purposes of development, the feedback is ―remarkably
similar‖. However when this feedback is gathered and used for more formal evaluative
purposes, the scores and feedback are different as friends pump up each others scores and
mark competitors as mediocre.
34 per cent of respondents in their study would rate their manager differently if the feedback
was used for a performance appraisal as opposed to developmental purposes and both raters
and those being rated are less fearful and more likely to be honest if they know results will be
used for personal development purposes. In the same way it may encourage gamesmanship
and ‗behind-the-scenes‘ deals.
I found this article really interesting- but at the same time- it all makes so much sense. It will
really make good business sense to consider first WHY you are doing 360 degree feedback-
is it for developmental or evaluative purposes- and what is the outcome you need.
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Those are tough words from Dr. Jeffrey C. Pfeiffer, professor of organizational
behavior at Stanford University and a leader in management thinking, but they
are on the mark. Too many organizations base their human resources
investment decisions on tradition, fads or competitors' practices, instead of on
sound financial measures.
However, new research shows that 360-degree feedback programs may hurt
more than they help. Watson Wyatt's 2001 Human Capital Index (HCI), an
ongoing study of the linkages between specific HR practices and shareholder
value at 750 large, publicly traded companies, found that 360-degree feedback
programs were associated with a 10.6 percent decrease in shareholder value.
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The premise behind 360-degree feedback is logical: The people who work most
closely with an employee see that person's behavior in settings and
circumstances that a supervisor may not. And, in theory, the more complete the
insight into an employee's performance, the more likely he will understand what
needs to be improved and how.
The theory is very promising. The reality, on the other hand, is another matter.
Watson Wyatt's 2001 HCI report revealed that companies using 360-degree
feedback have lower market value. According to the study, companies that use
peer review have a market value that is 4.9 percent lower than similarly situated
companies that don't use peer review. Likewise, companies that allow
employees to evaluate their managers are valued 5.7 percent lower than similar
firms that don't.
Taken together, these practices are associated with a 10.6 percent decline in
shareholder value.
Voices of Doubt
The HCI study is not the only indicator that 360-degree feedback programs may
be failing to match their promise. Researchers and formerly strong advocates of
360-degree feedback have begun to raise questions. Jai Ghorpade, a professor
of management at San Diego State University, wrote in the Academy of
Management Executive that, "while it delivers valuable feedback, the 360-
degree concept has serious problems relating to privacy, validity and
effectiveness."
Ghorpade also reported that out of more than 600 feedback studies, one-third
found improvements in performance, one-third reported decreases in
performance and the rest reported no impact at all.
The time and cost associated with 360-degree feedback also are stumbling
blocks. By trying to capture every nuance of a worker's performance, many
360-degree feed-back programs have become so complex that they require a
much greater investment in time and money than they can return.
Another common problem: Reviewers and those being reviewed fail to follow
up after feedback. When there are no consequences for poor performance--
which often is the case with 360-degree reviews--performance won't change.
Despite these drawbacks, there are good reasons not to give up on 360-degree
feedback.
The process still holds the potential to deepen employees' understanding of their
own performance. And, it may be able to help companies create value by better
aligning job performance with business strategy.
* Implement 360-degree feedback for the right reasons. "The first thing you
need to ask is why you're doing it," says Paul Rudely, a New York-based
executive coach. If you can't articulate a strong business case for a 360-degree
feedback program, it should not be introduced.
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Jeff Seretan, head of human resources for Barclay's Global Investors, based in
San Francisco, agrees. "You should not implement it unless you can show that
it is solving a problem or adding value," he says.
* Assess the costs of the program. Employers must "assess the real burden they
are placing on the organization by doing 360-degree feedback," Seretan says.
"If you don't do it in a way that is targeted and strategic, you run the risk of
value destruction.
Rudely likes to use 360-degree feedback as a baseline for a more in-depth look
at an individual's performance profile. "While I've yet to see a 360 that was
inaccurate, often they can stand to be fleshed out a bit," he says.
* Get support at all levels of the organization. Make sure executives play a key,
visible role. And, give line employees a voice in designing and implementing
the program to ensure relevance and ownership. A 360-degree feedback
program is doomed if HR is its only champion.
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* Create an "action plan" for each employee based on the feedback. "Knowing
what to do and not doing it doesn't get you very far," Pfeiffer says.
Rudely recommends that individuals sit down with their managers and their
subordinates and review scores. "They should present their scores and then ask,
'Which ones do you think are the most critical to being as effective as possible,
and what tactics are necessary to get there?"'
Monitor implementation, ask for ideas for improvement and make adjustments.
Companies don't always get 360-degree feedback exactly right on the first try.
By monitoring results, asking for feedback on the process and implementing
changes based on the answers, companies may be able to put 360-degree
feedback programs back on track.
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this axiom for years, and it is naive to think that 360-degree feedback programs
will be significantly different.
The findings about 360-degree feedback programs are eye-opening. The fact
that they are associated with a decline in shareholder value should persuade HR
managers to revisit their existing or planned 360-degree feedback programs.
The existence of such data also should force companies to ask themselves what
they hope to gain from 360 reviews--or, for that matter, from any HR initiative
they undertake. What is the potential return on investment (ROT)? How do ROI
projections compare to actual performance? And, if expectations haven't been
met, what can be done to improve the effectiveness of these programs?
By Kenneth M. Nowack
Multi-rater feedback can raise more questions: How is an employee to react, for
example when his manager gives him negative ratings while feedback from his
direct reports an peers is situation. Research suggests than disagreement
between rate groups is common-and that the resulting confusion creates
challenges for employee development.
And each rater group brings natural biases to the table. For example studies
conducted by Organizational Performance Dimensions find that supervisor
feedback tends to be based no bottom line results (are tasks completed on time
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None of these perspectives is wrong and all of these insights can be valuable in
creating a 360-degrees view of performance. However it's important that the
person being reviewed-and his supervisors-understand how the filters used by
different groups affect how they rate performance.
Jai Ghorpade
Assuming there is some truth to the Watson Wyatt report. I would like to focus
on a potential explanation provided by Plau and Key for why 360-degree
feedback is not living up to its advanced billing. The authors state that there
may be a gap between an organizations business objectives and what 360-
degree feedback programs measure. I strongly emphasized this point in an
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article they cite, which appeared in the January 2000. Academy of Management
Executive.
But I believe the problem goes beyond congruence with company objectives.
Most companies using 360-degree feedback tent to employ generic off-the shelf
instruments that are of interest to psychologists but may not have much
relevance to the organizational context in which they are being used. It is a
question of the relevance of the behaviors and traits on the feedback
instruments to specific interpersonal and cultural problems a specific company
laces are a specific time.
Assuring context relevance is not easy and calls for a very different type of
competency on the part of the HR professionals and other who are helping
companies to use 360-degree feedback.
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Trend:
Inappropriate use of 360 degree feedback can unravel years of
environment building effort and huge investments of bottom line dollars. It is
not, however, the "silver bullet". There is a rising demand in organizations for
improved performance and results. American business during the 1970's and
'80's was in serious trouble. In the 1990's, this situation provided the energy for
finding new approaches and processes to boost performance. In the new
century, organizations in all sectors are challenged to operate even more
responsively and efficiently. Raising individual and team performance levels is
central to this process and 360 feedbacks have been increasingly used as part of
the solution. Unfortunately, there is an advancing drift toward using 360
feedbacks for performance appraisal. Organizations need to be careful here.
Using 360 for appraisal may be an intriguing idea, but it's not the appropriate
use of this powerful new technology. Used for appraisal purposes, It can put the
organization at unnecessary risk and has a negative impact on motivation,
performance, and the entire work environment.
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source feedback ratings, they quickly see how the new game is played.
Realizing what is required to achieve a good appraisal, employees can
manipulate the process to ensure the desired outcome. The 'rate' can be helped
or hurt. Putting two and two together, employees realize that "if you scratch my
back, I'll scratch yours." Suspicions that were formerly directed at performance
appraisal are now focused on 360 feedback. The "new" system becomes tainted.
Trust and honesty begin to break down in favor of getting a good review. As a
result, actual skill proficiencies can decline which, in turn, leads to a weakened
ability to compete or deliver, and a performance environment of mediocrity.
This can result in defensiveness, denial, conflict, accusations, and loss of trust.
It puts the relationships within the work group in jeopardy and can lead to a
decline in productivity and performance.
Finally, organizations using 360 feedbacks as a performance
appraisal tool are exposing themselves to increased liability. 360 feedbacks is
not a tested or validated mechanism for performance appraisal. An organization
needs to be prudent and consistent with the standard and proven performance
appraisal approaches.
Potential Dangers
Skill levels stay relatively flat or even decline because the "360 appraisal" is
not taken seriously.
The numbers needed for a "good" appraisal can be informally fixed by silent
agreement among raters. Maximizing the size of the increase or bonus
overshadows the desire to elevate performance.
Individual development plans become window dressing. People may go
through the motions to create them but expend little effort in implementation.
When not held accountable for this, performance levels off.
If employees don't get a "good" appraisal, blame is placed on co-workers
causing a rise in the level of mistrust and apprehension. The work environment
becomes politicized, candor and honesty are compromised, trust and integrity
are damaged, risks are avoided, motivation diminishes, morale drops,
performance declines, and turnover rises.
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Most managers don't understand the risks of using 360 feedbacks as a platform
for performance management. Furthermore, they aren't aware that this concept
is a major controversy among HR practitioners. . 360 evolved over two decades
as a developmental feedback process, not as a performance appraisal process.
Experts agree that computerizing an appraisal system will not correct its
inherent problems. While multi-source judgments are usually superior to
single-source judgments, experience has shown that linking competence data to
pay and personnel decisions introduces unacceptable biases into ratings, thereby
rendering the assessment system invalid.
Still, many organizations are boldly going into uncharted territory, encouraged
by authors who suggest that with the right technology and know-how, they can
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work around the issues. Computer programs that facilitate 360-based appraisal
have appeared positioned to capitalize on an expressed need in the market. At
the same time, most experts and organizations are backing away from this
application.
The word performance also means something else: competence how well
people do their work. Are people knowledgeable and skilled? How effectively
do they use their skills? How well do employees interact with each other?
How do people treat their customers? Are procedures effective? How is the
work getting done?
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It's important to keep in mind that 360 feedbacks is not the best tool for
measuring competence that is already easily quantified/measured. This
includes most technical areas. For example, why would you ask for several
people's opinions about someone's typing ability, when all you have to do is
conduct a five-minute performance test?
However, many key workplace skills and activities are exceedingly difficult to
quantify and measure. These encompass mostly the interpersonal dimension of
work: communication, team interaction, leadership, customer service,
consulting, sales, negotiation, presentation, instruction and facilitation. Because
multi-source feedback uses scaled ratings from a variety of sources on
researched areas of performance, its able to compile remarkably objective
performance data, and modern 360 administration software programs make
doing so a relatively simple, cost-effective procedure.
There's nothing wrong with linking feedback to personnel and pay decisions,
provided that the feedback is about results. People should be held accountable
for results and rewarded for achieving them. But in a desire to "pay for
performance," organizations sometimes mistakenly focus on the competence
aspect, rather than the results aspect of performance. They make this error
because of a failure to appreciate the distinction between competence and
results, and because 360 feedback makes it easier to gather competence data
than results data.
The magnitude of the error has to do with the fact that it's enormously
expensive to administer compensation programs. If the rewards don't have the
desired impact on results, this huge investment is largely misdirected.
However, executives have learned that rewarding only business results can have
unintended negative consequences.
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Rewarding results is a simple concept, but the challenge is to set the right goals,
which is the responsibility of senior managers. Leaders must be wise enough to
define outcomes that actually help an organization achieve its vision. Some
organizations overemphasize financial objectives, not appreciating that if they
don't also focus on employees and customers, the desired financial results will
eventually falter.
The key is to know which outcomes will contribute most to the organization's
success, measure them and reward their achievement. It's better to focus on
major results rather than on a comprehensive list. And it's important to specify
end outcomes, not in-process milestones. Furthermore, desired outcomes
usually involve a team effort. Therefore, team goals and team rewards are often
more appropriate than individual ones.
Most business goals are easily quantified, and effective methods for
measurement already exist. In this case, 360 assessment systems will not be
needed; it wouldn't make sense to ask for opinions about on-time deliveries,
improved quality, reduced waste, safety, sales, new accounts, market share,
project phases completed, profit, return on investment, etc., because effective
systems already exist to compile and track this information.
However, some key results are hard to quantify. For example, how would you
measure whether a leader was taking care that creates desired business
outcomes? How do your customers feel about the way you treat them? Can be
find out by using customized customer satisfaction surveys. How do team
members feel about working in their group? You can find out using team
climate surveys. Some 360 software programs are flexible enough to
administer customized climate surveys, although it's important to keep these
surveys separate from individual development assessments. Using the results of
a baseline survey of carefully chosen leadership outcomes (such as levels of
trust, loyalty, commitment, cooperation, professional satisfaction, development,
etc.), specific results goals tied to leadership, communication, relationships and
team development can be agreed upon.
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- The work of our group helps fulfill the organization's vision and values.
- The activities of my unit are well planned.
- The people who work around me show concern for our customers.
- My colleagues encourage each other when work is challenging.
- I feel empowered to do my best work.
- Adequate resources are available to achieve my goals.
- I work in a safe environment.
- I trust my boss.
- I have the freedom of action I need to do my job.
Wise leaders understand that in a busy workplace, people focus on specific
results only if there is a significant benefit for doing so. People may have the
"know-how," but they also need the "want-to."
Unlike praise, salary increases and bonuses have the power to help employees
care for elderly parents or put their children through college. Successful
organizations have learned to define what they need from people, empower
them and hold them responsible for results. When these payoffs are achieved,
the people responsible are rewarded financially.
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Assurances of confidentiality are based on trust, and this trust must be earned.
People may believe their managers when they are told that 360 inormation will
be safeguarded and used for development only. But if they discover that they
were misled, trust will be lost immediately and in most cases can never be
restored. This consequence would render a 360 system useless as a
development tool.
Eg:2 A regional bank experimented with using 360 feedbacks for management
development. But the organizational climate was characterized by low trust and
internal politics, and many people feared that the data would be used for
personnel and pay decisions. As a result, several participants found ways to
avoid or sabotage the process. With the pilot program in disarray and the
expected benefits unachieved, those who opposed the program used their
influence to eliminate it.
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Despite the fact that 360 degree appraisals are being widely
used throughout the world for appraising the performance of the
employees at all levels, many HR experts and professionals argument
against using the technique of 360 degree appraisals. The main
arguments are:
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Employees often consider the process biased, with unsupported ratings that do
not reflect the work they actually do. The appraisal either just pats them on the
back, or criticizes them with no workable suggestions for improvement. Their
review has become just another distraction during the annual (or less frequent)
evaluation process. On the other hand, managers for the most part aren‘t
equipped to give productive feedback; often they are afraid to provide negative
feedback because of legal threats or they do not want to adversely affect
someone‘s already small bonus; they are forced to spend hours filling out
detailed forms and looking up figures or trying to remember specifics to
evaluate their direct reports.
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Gathering input from multiple sources ensures that individual ratings can be
anonymous. Each rater, then, can be encouraged to be open and honest since their
feedback cannot be singled out from the groups.
Multiple sources of data also mean that ratings reflect multiple perspectives instead of
the single top-down view afforded by traditional appraisals. Combined with the added
anonymity, these ratings should give a fuller, more accurate picture of an employee‘s
performance.
Since the data describes perceptions of effectiveness, using feedback for personal
development is very easy. Instead of showing someone that they made their goals or
not, or providing feedback in personality terms (which, more often than not, feels like
a personal attack), an employee is shown how others perceive his/her behavior.
Behaviors and perceptions are much easier to change than personality. And, unlike
met or unmet goals, behaviors are specific and directly actionable.
Managers only have to complete one form per employee, usually taking about 15
minutes each. There are no figures to research, no goals to look up from last year, no
distribution of overall performance to worry about, no endless comparisons between
employees. Compared with other performance appraisal approaches, managers are
saving time and employees are getting more useful performance feedback.
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The employee should be aware of that (his individual performance related to the
performance expectations) continually throughout the review period.
But, the degree to which an employee meets client, supplier, peer or subordinate
expectations is not what an employee comes to a Performance Review to
discover. It's too late to learn that information at the end of the review period.
That feedback should be solicited continually by the employee throughout the
review period, and then the results of this feedback activity reviewed at
Performance Review time.
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If knowing how others perceive you is important for the performance of your
job, then measuring that and taking appropriate action on that feedback should
be part of your job and included in your job's performance requirements.
If you really want your employees to get performance feedback from the circle
of people they work with, including their customers, peers and subordinates, try
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One final caution. Paying for performance results is a good idea, but think
twice before rewarding goal achievement with salary increases: (1) It's
amazingly expensive. The salary differential is awarded not just once, but every
year afterward, as long as the person is employed. In addition, if salary level is
linked to retirement pay, the extra compensation will be expended for an
undetermined number of years during retirement. (2) The incentive doesn't
have immediate impact; the full amount of the reward is distributed through
dozens upon dozens of future paychecks. (3) The incentive is only temporarily
effective. The motivation of a promised salary disappears immediately after it
is awarded.
Once a salary is increased, it is perceived as a revision of the employment
contract: fair compensation for defined levels of employment - not as a reason
to continue exceptional levels of performance. Salary increases should be
based on an established track record of achievement, when a history of
accomplishment indicates that the value of the employee in the career market
place has increased.
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• depends on self-reliance
• self-assessment ability
• preference for external information
Feedback can be either positive or negative and people tend to process positive
feedback much better than negative.
• negative can have more positive outcomes because are motivated to improve
• negative must be presented carefully to avoid creating insecurity and
defensiveness
• can damage self-efficacy
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4) Behavioral Outcomes
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360 ASSESSMENTS
multi-rater feedback
multi-source assessment
multi-source feedback
full circle
group performance review
Whatever the name, the intention of the feedback should help identify the
weaknesses and strengths of the workforce. It should also contribute a plan of
action for the professional development of each individual.
Properly applied 360 feedbacks can help employees improve performance and
skills in the workplace. It can target precise information about areas employees
need to keep up to date. It also aids in identifying the specific knowledge,
essential functions and characteristics that are critical to the individual‘s job.
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them. Anonymous feedback also encourages more open feedback and honestly,
particularly when direct peers and managers are involved and Human Resource
Management.
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Here is a set of guidelines for when to use 360 feedback and performance
appraisal that can help organization stay squarely on the road of increased
performance and success:
The best guidelines are the ones most commonly suggested by experts:
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Excessive numbers of surveys are required of each worker with few tangible
results provided to individuals
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Report On
BY N.R. ARAVAMUDHAN
In a highly competitive market, organizations are facing an unprecedented pressure to raise the
bar of performance and continue to deliver to enable it leapfrog the competition. Today, a
beleaguered organization will have to slug it out in the market sweepstakes to live up to the
heightened expectations of its key stakeholders. Organizations are looking at ways and means
to operate more effectively and efficiently. American companies, after having bloodied their
hands in 70's and 80's when the US economy slid in to nadir, were always the first off the block
to come up with new approaches and methods to improve performance. One such innovative
assessment tool was 360-degree feedback. Debuted in US companies in 90's, 360-degree
appraisal has become current flavor of the season not only in US, but also in India. Widely
touted as a great development tool, 360-degree feedback is increasingly finding favour with HR
managers in Indian corporate landscape. Though 360-degree approach brings slew of
advantages in the wake of its implementation, it has its fair share of naysayers who pan it
mercilessly as a process that leaves a trial of blood both in the organization. 360 degree, if not
implemented properly can have a calamitous consequence for companies. Many experts argue
that the right culture should prevail in the organization before introducing 360-degree
approach; 360 degree involves collecting feed back about an individual from multiple sources.
The source, among others includes, an individual's superior, peers, internal and external
customers, client reports, suppliers. Self-assessment, conducted by the individual will also be
included in the exercise. To put it succinctly, the underlying objective is to find the gap
between one's own appraisal and the perception of other constituents in the 360 degree feed
back. There is no gain saying the fact that it's an excellent process. But the nub of the issue is
that it is not always successful. There is always a mad glamour among the companies to hitch
itself on to any new management fad that manages to generate quite a buzz. The fact that a
competitor is doing it is good enough reason for others to follow the suit. It all boils down to
one vital imperative- "How you do it is more important and critical than actually implementing
360 degree feed back". If 360 degree were to be implemented in a haphazard manner, the
company is setting itself up for a disastrous situation. If people are not happy about the process,
then morale will be hit hardest. Willy –Nilly, Companies may open a veritable can of worms,
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making the situation muddier and murkier. Some staff will become soft target. Companies will
have to assess its state of readiness vis-à-vis 360-degree system before taking a headlong
plunge. In the light of these facts, the question that begs an answer is what makes 360-degree
appraisal difficult? Some common deficiencies in the 360-degree approach that renders it less
reliable and attractive are using the feedback for performance appraisal.
Performance appraisal is a evaluative process used to determine the out comes or the end result.
The result gets measured after determining a clear, specific goals and measuring the actual
performance against them. Efforts, attitude, behavior, teamwork are the few performance
metrics factored in performance evaluation. Experts feel that this cannot be a real barometer of
job performance. 360-degree feedback is a developmental tool. It is a modeled to help
employees develop by providing feedback on their expertise in the remit of skills,
Competencies and behaviors. As the employees grow and nurture their skill sets and
competencies, companies will be able to turbo-charge its performance levels. So the purpose of
360 degree and performance appraisal are different. If the organization tries to link both, then it
will be sitting on powder keg.
360 feedback is a good process to zero in on and measure the skills, competencies and practices
required to do a job. In fact 360 degree feedback works wonderfully well in measuring soft
skills such as emotional quotients listening skills, interpersonal skills, coaching, and
leadership.360 degree can also be adopted to identify the training needs. It can also be used to
assess the team cohesiveness and customer satisfaction. On the contrary, performance appraisal
is an evaluative process, good enough to set the standards of performance and measure the
progress made against it. So performance appraisal and development tools are different from
each other. Any attempt to dovetail 360-degree feedback into performance appraisal will have
negative implications for the company as a whole. An eminently avoidable situation.
Linking 360 degree feedback to promotion and salary decision is risk- fraught
Performance appraisal is used to decide upon salary hike and promotions. 360 degree is a
development tool. If 360 degree feed back is tied to pay hikes and promotion decisions, the
process will have the stamp of failure written all over it. If the 360-degree is linked to financial
rewards, employees can see through the larger game plan and may begin to subvert or
circumvent the system to their advantages. Some employees may get excellent ratings. Few
employees may find themselves swamped by poor ratings. Trust and honesty gets short shrift.
Proficiencies and competencies of the employees will spiral downwards.
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Giving effective feedback is a tough proposition unless the company trains all the constituents
involved in 360 degree feed back to receive and provide feedback. The process could plunge
into uncertainty; intractable conflicts among the members could crop up. To provide a
constructive feedback, people need training. Benefits will out strip the cost of training as the
feedback delivered to participants becomes more targeted. Feedback will help employees
identify a behavior that add or destroys value.
Cynicism abounds
Like a match fixing in the cricket, there can be a "fixing" in companies also, albeit of a
different kind. Raters can collude with each others to muster enough numbers to get good
ratings. Employees may treat the whole exercise with disdain, as they know that the system is
tainted and doctored.
If an individual don't get a good appraisal, the whole blame game is played out. An aggrieved
individual may accuse the co-worker of deliberately giving a low rating and may demand his /
her scalp. Mud slinging and muckraking will become every ones favorite Pastime in the
company.
Time and cost associated with 360-degree feedback is a real dampener. In a bid to capture all
the facets of employee's performance, the 360degree system may become unmanageable,
gobbling up more time and high cost.
360 degree feedback can be counter-productive if there is no right culture in the organization.
The superiors blanch the possibility of sub-ordinates evaluating their performance. The fact that
the sub-ordinates take a call on his/her performance is a frightening proposition for the bosses.
Employees may not come forward to provide feedback about bosses for the fear of reprisal. If
the boss were to have less than five sub-ordinates in the rating pool, it's easier for him to track
down the source of negative feedback, and launch a massive witch-hunt against the target.
Even though the sub-ordinate evaluates the bosses in anonymity they may still give favorable
ratings to the superior, in order to avoid ruffling the feathers. This only obscures the picture
further. Sub-ordinate feed back can help the bosses gain insight into their own strengths and
weaknesses. The manager can never become responsive to the aspirations of his/her sub-
ordinate.
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CASE STUDY:
The challenge
The programme
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what they achieved. Over a six-month period, WCH worked with provider
Simply360 to develop a process for all 62 staff
Some managers were skeptical, so to create champions for the process, a pilot
scheme focusing on five senior and middle managers and opinion leaders was
developed. "It was important that executives showed commitment to it by using
360-degree feedback as part of their own performance management review,"
says Sibley. "If executives were excluded, the process would have lost
credibility."
In the summer of 2007, the programme was extended throughout the company.
"We addressed the issues of honesty and anonymity at short workshops,"
explains Sibley. "Some were concerned people would not give the critical
feedback that might lower appraisal ratings, or that individuals might seek out
those who gave them critical feedback. At the workshops, people were able to
express those concerns, and get them resolved by reaching an understanding."
Questionnaires had to be pertinent for each level of staff and clarity was
essential. Employees negotiate with their manager who their reviewers will be
and are advised to select as broad a range as possible from people they work
with on a regular basis. They are also advised to consider choosing someone
with whom their relationship could be improved. The reviewers complete a
short online questionnaire and the results form part of the report discussed at the
review, along with their own views and those of their manager.
The results
Anecdotal evidence suggests the majority of managers and employees feel the
360-degree feedback has enhanced the review process and made it easier to
identify personal development needs. According to Sibley, the feedback has
changed the nature of performance reviews. "Reviews are no longer based on
one or two individuals' perceptions," he says. "They have become much more
open, honest discussions and, inevitably, some 360-degree reports have
challenged managers' views about their team. The relationship between
appraiser and appraised has become more equal."
THE HR VIEW
Don Sibley was improvement manager at the time the process was developed.
He believes the 360-degree feedback really helped to open up a dialogue
between manager and employee, by focusing on strengths that an employee
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may have shown that may not have been quantifiable and therefore could have
been missed by their manager. "However, the programme has to be supported
carefully and has to focus on people processes, not IT," he stresses. "About 90%
of the project is about people discussing how they will use the information,
asking for feedback, sharing reports and planning their personal development
with others. At WCH that means training at all levels so people can feel
confident their concerns are addressed. This ensures the process is transparent
and readily understood. Sophisticated tools would be difficult to understand.
Similarly, the administration process to manage the project needed thinking
through and planning. We had to allow time to make things very, very simple,"
he says."
James Watson is group brand manager, marketing. "I was aware of the concept
of 360-degree feedback but had not experienced it before," he says and admits
he found the prospect a bit nerve-racking initially. "Besides your own review
and that of your manager, you agree on three or four other people within the
company, " he explains. "You're advised to go for a broad range. It is tempting
to go for people you know you get on with who can be guaranteed to say
positive things, but it is often more productive to pick people whose reactions
you're not so sure of or who you feel are not so impressed. Last year, I benefited
from feedback from the sales division that highlighted that I needed to get out
into the field more often, as well as suggesting ways I could make their life
easier. Coming at it from the other angle as a manager myself, and reading
other people's views on my team, has given me a much wider understanding of
how staff are delivering for others and where issues of confidence lie."
360 Feedback in appraisal has been a huge success for them. An anonymous
survey of appraisers and appraises found…
80% of appraises and appraisers felt 360 Feedback had enhanced their
annual appraisal.
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It would seem that there is no corporate human resources policy that has not
had its share of controversies for being biased. With an increasing number of
qualitative factors that affect employees at the workplace, democratizing the
performance appraisal process to make it as fair as possible has been the dream
of every HR manager.
And now qualitative factors are not just at play in the services sector, but also in
manufacturing. With cubicles giving way to open offices, the top-down
approach to employee performance appraisal is also on its way out.
One company that has set itself on course to further democratizing and opening
up its employee evaluation process is car market leader Maruti Udyog.
Under the 360-degree feedback system, the employee is rated not just by his
superiors, but also by his peers and subordinates.
"We are starting the 360-degree feedback process with employees in the top
management such as chief general managers and general managers, whose
performance will now be assessed based on feedback from their peers and
junior management employees within the same department. Till last year, their
performance was being appraised only by the Directors and the Managing
Director," says Maruti's Chief General Manager (HR), Mr S.Y. Siddiqui.
Ernst & Young, in consultation with Maruti, has listed a set of leadership
competencies that are expected in a general manager. Based on that, it has
prepared a questionnaire to which peers and subordinates can respond online.
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The initiative has been unveiled with an e-mail by Maruti's Managing Director,
Mr Jagdish Khattar, asking people to support the online questionnaire process.
The 360-degree feedback system will also include a self-appraisal by the
general manager. At the end of the process, he can compare his self-appraisal
with the assessment of his subordinates and peers.
One of the benefits that Maruti is hoping to get out of the 360-degree feedback
process is the sense of empowerment and importance felt by subordinates, when
they are asked to offer their feedback about their superiors. Maruti currently has
over 4,000 employees on its rolls.
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I/ Company info:
1) What benefits are you looking to gain from using 360 feedback?
• MBO
• Assessment Centre‘s
• Balanced Scorecard
• Traditional Methods of performance appraisal?
3) What are the advantages and disadvantages of 360 degree process towards
the individual, team and organization?
5) Can you explain the 360 degree process carried out in your company?
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9) What briefing do you have in place for the participants and observers?
10) How capable are your managers of debriefing the 360 profiles with their
people?
15) How many different questionnaires will be required for different levels of
management or is it uniform for all employees?
16) Is there any scoring system and which tool do you use to scale the scores?
17) What are the difficulties faced during the process and how do you overcome
them?
20) How well is the company IT system able to support this initiative of
conducting a 360 degree through the internet?
21) What kind of information is targeted through the 360 degree appraisal?
22) What security is needed for individuals and for corporate compliance?
24) What benefits have your managers gained from using a 360 feedback
process?
25) How much are you using any organizational data from the 360 processes?
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27) What mix of narrative and numerical data is required in the profiles?
29) How do you manage the feedback process after the profiles have been
completed?
30) How much follow-up is carried out after the 360 profiles are received?
31) What is the agreed level of confidentiality for the 360 profiles?
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CONCLUSION
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.
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"If 360 feedbacks aren‘t linked to pay, what would motivate anyone to take it
seriously?" Most people want to remain competitive in the workplace, and they
know that feedback gives them an edge. Feedback is important to people who
want to: (1) See themselves as professionals, (2) Upgrade their skills, (3) Find
out what their coworkers already know about their weaknesses, (4) Resolve
problems they may be causing, and (5) Contribute to the team mission and its
success.
From a cost viewpoint this may sound like a reasonable idea, but as I have
emphasized repeatedly, there are huge risks. The solution is to take the prudent
path.
"We can start with the development-only approach, get them used to 360, then
'ease it in' to using it for performance appraisal." No matter how gradually you
familiarize people with the process, if you connect a 360 appraisal to
compensation and personnel decisions, employees will know that their
evaluations can affect a person's career and will find it insurmountably difficult
to give honest feedback and accurate ratings. When this happens, 360
feedbacks will no longer be useful for development. And since supervisors
have been challenged to give fair appraisals for decades and have not met the
challenge satisfactorily, how can anyone expect coworkers to be more
objective?
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Trust is at the core of using 360 to enhance productivity. Trust determines how
much an individual is willing to contribute for an employer. Using 360
confidentially for developmental purposes builds trust; using it to trigger pay
and other personnel decisions puts trust at risk. Why would an organization
consciously choose to jeopardize trust for the sake of convenience or
efficiency?
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Bibliography:
www.google.com
www.citehr.com
www.indiamba.com
www.simply360.co.uk/casestudies/performance-m....
www.managementparadise.com
www.findarticles.com
HR Magazine
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