The 360 Degree Performance Evaluation Process

Managing human resource capital is now mission critical. One of the most effective tools
for managing human resources is the 360-degree evaluation process. Traditionally, an
employee is evaluated from a sole source (1 degree), namely the immediate supervisor or
manager. However, employees interact with numerous sources: Co-workers, customers,
Managers outside the employees department, vendors, contractors, and others. The 360-
degree evaluation process relies on these multiple sources, providing a more balanced
and objective approach to measuring employee performance. This leads to higher
productivity, better customer service, and enhanced organizational performance.

“Every published report recommends multiple as opposed to single raters for

performance appraisal.” – John Bernardin, Author & Expert on Performance Appraisal

When you tap into an employee's circle of influence, you will have a major impact on
changing employee behavior. Additionally, employees often respect the feedback of co-
workers more than their respective supervisor. A survey of Coca-Cola Foundation
employees indicates that over 90% of employees prefer evaluations that include both co-
worker and supervisor. Only 4% of employees chose to have their performance
evaluations performed by the supervisor only.

Surveys are often used for collecting the feedback used to evaluate the employee. It is
very important to keep surveys short and to the point. A few open comment questions can
be included. However, you need an objective way of scoring the surveys. It is also
important to maintain anonymity; i.e. receivers of the surveys should not know who
provided the information. Likewise, the information received must be controlled so that
confidentiality is maintained.

Example of Survey Questions for Evaluating Employee Performance :

Assign a score of 1 to 10 for each of the following questions. 1 is the lowest score
(strongly disagree) and 10 is the highest score (strongly agree). N for Don't Know Score

1. Performs day to day activities in a timely and accurate manner. ____

2. Communicates effectively, both orally and in writing ____

3. Demonstrates initiative for solving problems ____

4. Directs and leads others in a positive way ____

5. Coordinates and manages time, people and other resources well ____

As with any new approach to managing people, the 360-degree approach requires careful
planning. For example, training is a must since employees will be apprehensive about
how this new evaluation approach will work. Training should address fundamental
questions, such as what is the 360 approach, why is the organization adopting it, who will
be doing the evaluations, how will the information be collected, etc.

The design of a 360-feedback process should actively enlist the employee. In fact, the
employee should select their own evaluation team, consisting of no more than six targets
(co-worker, supervisor, customer, etc.). Design of the surveys for feedback is also
important since traditional approaches will not fit:

Traditional Survey . . . . . . . . . . . . . . . . . . . . . . . 360 Feedback Survey

Single Target Audience . . . . . . . . . . . . . . . . . . . Numerous Targets (all employees)

Numerous Responses . . . . . . . . . . . . . . . . . . . . Few Responses (5 to 7) per target

Response Rates may be low . . . . . . . . . . . . . . . Need High Response Rate for Objectivity

Respondent may be known . . . . . . . . . . . . . . . . Respondents must be anonymous

Survey may be long . . . . . . . . . . . . . . . . . . . . . .Survey must be short (less than 20

minutes)

Distributed through traditional ways . . . . . . . . . . Electronic distribution is common

Control over surveys is low . . . . . . . . . . . . . . . . Control must be high for confidentiality

Consistent rules must be adopted to make sure the process is fair for all employees. For
example, you will need rules on when to throw out invalid survey responses. Some
companies consider a survey as invalid when the individual response is more than 50%
different than all other responses. Minimum levels are also needed for acceptance of
surveys. For example, a required response rate of 75% is common where employee
compensation is linked to 360 feedback results.

This article has touched on some of the basics behind the 360-feedback process. Multi-
source systems, such as the 360 feedback, are more objective, accurate, creditable, and
influential than traditional single source systems. By tapping into sources closet to the
employee, we can better motivate and manage the employee. And since employees are at
the center of organizational performance, we need fair and accurate methods for
evaluating employee performance. The 360-degree feedback model is one of the best
methods for driving employee performance and satisfaction.

Study on Performance Appraisal and

 Evaluation System in a Company
I-Ming Wang
Chang Jung Christian University
Department of International Business

Chia-Wei Chang & Tzu-Ming Tzen

Altheia University Graduate School of Management Sciences

Chich-Jen Shieh
Fortune Institute of Technology
Department of Industrial Engineering and Management
摘要
本研究是以增進員工與組織雙方的認知，來發展一個有用的績效衡量與評估系統並正確的評價其
中的利益，同樣地.績效應該為利益而被衡量與管理，所以說，如績效果不能衡量，那是沒辦法談
管理。因此我們能更了解到；如果績效無法衡量時，是沒有人能夠去談改善工作.所以如果我們想
去創造一個高績效，我們也必需瞭解到什麼時候高績效要呈現，什麼時候不可。首先我們建立三種
的績效標準模型及四個步驟的程序，第一.白領員工，他們是最難衡量的工作，第二，工作團隊：
來衡量團隊績效，第三.困難的要素：團隊與其他難以衡量的工作。最後我訪談一些公司的白領階
級者及團隊的管理者，而得到本研究的結果。本研究發現應用如下的方法，績效能大大的影響或衝
擊：(1) 管理者需能明確知道，如何去幫助同伴克服他們在工作上所面對的問題 (2) 同伴們也能夠
認同，並能用一致性的方法去改善他們的績效 (3) 考慮另一個新的目標或次要的目標；及 (4) 身為
管理者應幫助同伴們成長。
關鍵字 ：績效,團隊精神, 白領階級, 工作團隊

Abstract
This study aims to increase both employees and organizations awareness for the need to develop a useful
performance evaluation or appraisal system and appreciate its benefits, as well. Performance should be
measured for it to be managed, for no one can manage what he can’t measure. And it also follows that; no
one can improve what he can’t measure. So if we are to create high-performance, we must also understand
that it requires are definition that you would know when it is present and when it isn’t.
We create three models in performance standards firstly, White-collar work and it’s for the hard-to-
measure jobs, secondly, Work Teams: A four-step process for measuring team performance, and thirdly, The
Hard Stuff: Teams and other Hard-to-measure Work. Lastly, we interviewed some of white collar work,
chair of a team in a company and got a result.
In this study, we found that performance can greatly influence or impact in the following ways: (1) the
managers can determine how they can help associates overcome problems they face on the job; (2)
associates can identify ways to improve their performance; (3) to consider new objectives or sub-
objectives; and (4) for the managers to help associates grow.
Keywords: Performance, esprit de corps, white-collar work, work
Teams

1. Introduction
Since employees are the most expensive as well as the most important resource in any company, it
would be to the best advantage of both employer and employee to ensure the latter’s satisfaction
performance. But how employee productivity is maximized? This can be attained and be made possible
only when management has provided are healthy climate for individual growth and development in the
company. There should increase the good relationship between employer and employee.
The importance for the need to evaluate or appraise every employee’s job performance therefore cannot
be overemphasized. This is one of the oldest and most universal practices of personnel management. But in
many cases, the appraisal or evaluation is in informal, unsystematic and unrecorded. Although, almost are
unhappy with it. Due to companies increasing awareness of its usefulness and benefits, training and
personnel improvement professionals can find fertile ground for improving the personnel of large numbers
of employees by applying to management’s goals the basic pr technology.
Generally, conscientious and concerned employees want to know how they are performing according to
the set standards – what is expected for them, how well they are meeting those expectations, how they can
improve and what their supervisors think about the way they are performing their work. And so consciously
or unconsciously the workers or employees are in are way evaluating themselves and their co-workers and
compare themselves with their colleagues. Also supervisor may do the same, which is, passing judgement
on the employees under them. Oftenly, these are subjectively rather than objectively done.
Everyone’s performance must be measured including that of the managers. But their manager’s own
performance is measured by the performance of the workers they manage.

1.1 Scope and Purpose

Performance is the primary reason for all the ins and outs of the business activities of any organization.
All strategic planning and other management functions aim for maximum productivity or excellent
performance in their respective departments. “Performance must always be are consideration in
productivity work because of the clear relationship between the effectiveness of the work of each individual
and the output personnel management-hour of are group”¹. This paper therefore soughs to establish the link
between the performance and management areas individual an organization. What impact would
performance create individual order that the goals and objectives of the organization be accomplished or
satisfied? How could every employee’s performance really contribute or support its mission?
This study also aims to increase both employees and organizations awareness for the need to develop a
useful performance evaluation or appraisal system and appreciate its benefits, as well. Performance should
be measured for it to be managed, for no one can manage what he can’t measure. And it also follows that;
no one can improve what he can’t measure. So if we are to create high-performance, we must also
understand that it requires are definition that you would know when it is present and when it isn’t.
This study emphasizes the virtue of esprit de corps. Regardless of what kind of organizations you lead,
you must reserve your command authority for those instances when it is appropriate to use it, our aim
should be to build are desire individual the individuals individual your organization so that they want to be
led by you. This organization consensus for your leadership and the high feeling of spirit associated with it
is called esprit de corps. This virtue can be developed and is built on three things: your personal integrity,
mutual confidence, and are focus on contribution rather than personal gain. But for the purpose of
elucidating some principles individual this paper, it focuses on the third building block, which refers to
contribution. The late President of the United State, John F. Kennedy, when he was sworn individual, he
exhorted his countrymen to “ask not what your country can do for you. Ask instead, what you can do for
your country “². He is the person who knew how to get people to focus on the right objective. He also
pointed out that we could development great things together, if people focused on what they could do rather
than what they could get.

2. Literature Review
The goals, design and management of the organizational and process levels are part of the system that
affects erformance (Rummler, Brache, 1990). The Performance System builds on those levels by providing
a more “micro” picture of people and of the immediateenvironment that surrounds them (Stolovich, 1992).
The Human Performance System is viewed in the input-output-feedback perspective. The quality of
outputs is a function of the quality of inputs, performers, consequences, and feedback- inputs are those raw
materials, forms, assignments, and customer requests that can cause people to perform (Stolovich, et al.,
1992). It also includes the performers’ resources, systems and procedures that represent the performer in to
the process level. A factor that affects input is task interference (Rummler, Brache, 1990). The performer
must easily recognize the input that requires immediate action. The task should be done without
interference from other tasks. Also, adequate resources (time, tools, and information) should be available
for performance.
Performers are the individuals or groups who convert inputs to output (Stolovich, 1992). Among the
factors that affect the performer are the skills and knowledge required of the job. If skills and knowledge
are inadequate or missing, job performance is impaired and training may be required for the job. Another
factor that affects the performer is his or her own individual capacity. This involves the performers’
internal capabilities. No matter how supportive their environment or effective their training, they will not
be able to do their job if they lack the physical, mental, or emotional capacity to achieve the goals.
Appraisals Feedback tells a performer to change performance or to keep on performing the same way.
Without feedback, good performance can Fall off-track and poor performance can remain unimproved.

3. Methodology
In order to achieve the objectives set for writing this paper and to determine the impact performance
would create individual accomplishing the organizations goals and objectives, it is therefore necessary to
adapt are particular plan that would provide practical assistance to both management and employees
individual achieving its objectives.
The difficulties inherent in this task can not be compared with the benefits or the impact if would to the
achievement of the organizations goals and objectives. Thus, we shall present here a four-step process steps
on how to create performance standards first, for the hard-to-measure jobs, second, for measuring team
performance, and third, for a team and hard-to-measure work. Then we interviewed some of white collar
work, chair of a team in a company and got a result.
Model 1: The hard-to-measure-job or white collar wok
Model 2: Team Measurement
Model 3: Team and Hard-to-measure jobs

ILLUSTRATION
Step 1. Draw a customer diagram showing the internal and external customers to
whom you provide products and services.
List only those products and services that your customers need to help them to their job.
Step 2. Create a list of results for your position.
 Look at your customer diagram and the products and services each customer receives from you.
Reword each result using the “noun + verb in the past tense” format.
To help you identity the result of the service you listed, ask yourself, “What is left behind when I go
home at night after providing this service?’ If that doesn’t help, try asking, “What products come from
these actions?” or “what is my organization really paying me to produce here?”
Step 3. Decide how to measure each result.
For each result, determine which general measures (i.e., quantity, quality, cost and timeliness) are
important. For each general measure, ask your yourself, “How could I measure the (quantity, quality, cost,
or timeliness)?” If you can only measure the result with numbers, write down the units you would count or
track the percentage of. If you can only describe the performance, write down who would judge the work
and what factors they would look for.
Step 4 Check the performance standards using the following guidelines.

Does the list of results: Does each performance standard:

_Describe end products, not activities? _Allow verification that the performance standard
has been met? Can it be seen, or could several
knowledgeable persons agree that the performance
standard has been met?

_Account for 80 percent or more of _Have a judge, list of factors and what a
your job’s responsibilities? good job looks like for each factor, when the measure
is descriptive?

_Specify the critical results your customers _Appear practical to track and monitor?
Customers need?_ _Use a range when the measure is numeric?
_ _Leave room to exceed the standard, or require perfection only when no errors can be tolerated?

Appraising people is not an easy job because it is judgmental, subjective, and at times inpassionistic in
nature. Any judgment given by the supervision can determine the employee’s status and future in the
company. The problems in here lies in the biases the supervision may have considering are subordinates
performance. The supervisor may be considering what he is capable of doing which is not relevant to his
job. It is task requiring skill and training. Managers and supervisors therefore, who are required to give
performance evaluation of employees should be given adequate training so that they can give unbiased
ratings. In doing so, the raters must strictly adhere to the rating instructions and not to make their own rules
to achieve uniformity of methods for all raters in the company.
In rating, absolute accuracy cannot be expected since; it is based mostly upon the
observation and judgment of the raters. Its objective therefore is to minimize errors which
could be achieved once the raters are equipped with proper understanding of how should
it be done; as well as help them avoid the serious pitfalls in rating.

4. Result
 Employees are most likely to be successful performance when they clearly understand their assignments,
know what level of performance is considered acceptable, and receive consistent feedback. There should be
a clear-cut statement of “expectations” or set standards. Performance standards, therefore, are written
statements describing how well are job should be preformed. It is an “expectation” a statement of a
condition that will exist when a job is being performed satisfactorily. It is the range of points on the
“yardstick” that represents excellent performance. The employee demands to know what point of this
yardstick represents meeting expectations which a good manager should successfully communicate about.
Other employees may also be interested in knowing what performance will be interpreted as exceeding
expectations that would make earn an extra measure of reward or recognition.
On the other hand, measures are the yardstick used to judge how well the team or individual produces
each result. These are the factors you use to evaluate how well a result has been done. For the purpose of
discussion, there are two kinds of measures, namely: numeric and descriptive. Numeric measures have met
the criteria of verifiability. They are easily verified, so they can be used to verify whether a standard was
met, exceeded or not met. But to avoid frustration for an hour or so, you should stop trying to measure
everything with numbers. It’s not everything, which can be meaningfully measured with numbers, and
trying to would be impossible. Descriptive measures, on the other hand, are measures you can use by
describing the performance in a way that can be verified.
The task of identifying measures for a given result can be easy once you know what units you should
track. If you still have difficulty, you may use the four general measures, as a starting point. Generally, any
result can be evaluated from the standpoint of any of these four or a combination of all. These measures
which you can possibly use, quality, cost or timeliness. When you still have difficulty identifying a
measure, you may begin by asking, “When I evaluate this result, am I concerned with quantity, quality, cost
or timeless?”

4.1 Reason for measuring the Hard-stuff: Teams and other

hard to measure job.
Your job and that of others have something in common. They are all seen as hard to measure.
Nonetheless, however hard they maybe, they must also be measured for a number of reasons, many HR
professionals and most people interested in measuring performance have given:
1. You can’t manage what you can’t measure.
2. You can’t improve what you can’t measure.
3. High performance teams and individuals require clear goals.
4. Pay for performance requires metrics.
5. For job return of investment.
The reasons aforementioned answer why we need to measure performance. Without performance
measures, managers, as well as self-managing professionals and teams, can’t see clearly what is expected
of them, can’t give possibly evaluate a program or training when there’s no data before and after to see if
performance is really improving.

4.2 Difficulties of Measurement / Common Problems of Team

and Employee Measurement.
In almost every method or system of work, there are inherent difficulties which may not be obviously
observable at first but after a white, will be manifested.

4.2.1 Hard to Measure Job or the White Collar Work.

 The same is true in measuring hard-to-measure jobs (or the so-called white collar) performance. When
you say, “I’m sure we can find a way to measure your job”, most people don’t readily react positively.
Commonly, denial is the initial reaction. The worker might say, “My work can’t be measured. I’m not an
assembly line making widgets. It is too creative. In fact, I’m the only one in this organization who does
this. Who, could you compare me too?”
Another, since measurement comes just before publishment in most people’s experience, fear is also
widespread. This is so because it is not usually used to identify whom among the employees should be
rewarded, or it is being used to threaten one being held accountable for results. Of course, not everyone
would be willing to be held accountable for the outcomes of what they have done.
The nature itself of this type of work makes if difficult to measure. Since it is different from assembly
line work, it is less tangible and this often more service-oriented having power easily defined outcomes.
A lack of know-how is another reason for difficulty. Most people are untrained when it comes to
performance measurement. They are not informed well on the meaning of each factor used in evaluating
their performance. The terms used may not be within the comprehension of rates.
Lastly, measuring white-collar work is exhausting. This task requires thinking and calls for hand
decisions. And if the particular job of this type has never been measured, there will be few signposts to
guide you.
But this difficulty is not insurmountable. Learning a few techniques, which you can use to get around
the lack of know-how. By providing adequate training on employees on how to evaluate their own work
can eliminate the denial. And by letting supervisor’s reward their subordinates based on their
performance, you can reverse the feelings off threat that it comes just before punishment.

4.2.2 Team Measurement

Unless you have a systematic process for analyzing the work of the team and measurement methods
that can handle the wide variety of work which teams undertake, team measurement can be very difficult.
But for the purpose of discussion, we shall briefly present in here at least three reasons why team
measurement is difficult.
1. It is not always obvious what result should be measured. Most teams will use the obvious
measures without asking what result they should be producing and how they will know
they’ve done a good job.
2. Even if you know what to measure, it is often not clear how the measurement should be
done. Not everything can be easily measured with numbers; thus teams give up when
faced with measuring something like “creativity” or “user friendliness”.
3. Teams are made up individuals; thus measurement must be done at both the team and
individual levels, effectively doubling the size of the measurement task. Developing
individual measures, which support the team and don’t conflict. Is difficult without
direction.

5. Finding Performance Appraisals and Evaluation

System
Performance Evaluation is a construction process to acknowledge the performance of a non-
probationary career employee. An employee’s evaluation shall be sufficiently specific to inform and guide
the employee in the performance of her/his duties. Performance evaluation is not in and of itself a
disciplinary procedure.
A formal performance appraisal is an important opportunity to summarize the informal evaluations of
the employee’s performance over a longer period of time. There are many good reasons to conduct a
formal performance appraisal if assignments and standards have been clear, if coaching through informal
 evaluation and feedback has been ongoing, a formal performance appraisal should be merely a summary
of what has already occurred. It should include no surprise for the employee or the supervisors. Because
both should already know how successful employee has been in meeting performance standard.

5.1 The Objectives of Performance Appraisal

Employee’s self-development is one of the objectives of good employer-employee relations. This can
only be made possible when there is a healthy climate for individual growth and develop in the company.
The objectives of an employee performance ratting system are:
1. Providing feedback on employee performance
2. Basis for personnel action
a. Potentials and promotions
b. Transfer, Demotion, Layoff, and Discharge
c. Salary increases
3. Management guide in employee counseling and discipline
4. Promotion of better employee-employer relations
5. Improvement of supervision by making the supervisor better aware of his duties
6. Development of employees and supervisors
7. As an Agent of Change
8. Identification of training needs and management development
9. Facilitate organizational diagnosis and development

5.2 Guidelines for an Effective Performance Appraisal System

To support productivity management, the following guidelines for an effective performance appraisal
system have been recommended:
Current performance on the job must be rated in a numeric rating on a maximum of five gradients. No
explanation or analysis is required. The rating conclusion is fed into corporate headquarters as part
of the human resources information system.
There must be evaluation appraisal of each person to determine how his or her performance could be
improved.
The PAS should do nothing but rate performance and require evaluation appraisal to determine action
steps to improve effectiveness.
Never require feedback of the results of this appraisal process unless an employee specifically asks for
it.
Don’t use a form or ask a lot of performance-related questions.
Whenever performance rating remains below a satisfactory level or decline, have human resources
people to make a through investigation and determine the cause.
These guidelines describe a system of performance appraisal that is guaranteed to contribute to high
levels of performance. This is much less costly than most of those used in business, get higher levels of
support from operating managers, is accepted by employees, and is excellent in compliance cases. Most of
all, it contributes substantially to higher productivity.

5.3 Matching Performance to Coaching Technique

 Since the performance of your people is your paramount concern as a coach, your
style and actions have to change to respond to specific needs:
a. When people performed well. The adage, "different strokes for different folks" is as true
on the shop floor or the phone banks as it is on the playing fields.
b. When your people perform unevenly. You can reward the great stuff and to encourage
improvement in the "only average" but not at the same time.
c. When your people hit a slump. Not even the best performers can do their best all the
time, but sometimes they hit a slump or a lull. When this happens, remember the classic
coach's axiom, "If I traded players every time they were off, I'd wind up without a team in
a hurry.
d. When your people try and fail (and don't know why). The coach, in this case, can
function as mentor. The word today is used to describe "a wise and trusted adviser".

6. Conclusions and Recommendations

Because people like to know where they stand with their managers, it is important that periodic
performance appraisal be conducted. Many companies have merit rating systems in which the manager
rates his/her people on a variety of traits (e.g., productivity, attendance, initiative and the like.) However,
this is not very helpful in developing employees. A much more effective method is to be results-oriented
instead of trait-oriented. People will be measured on the basis of what has been achieved rather than a
subjective view by a manager on a series of factors, some of which are measurable but most of which are
not.
This writer therefore recommends the use of a Monthly Project List. This form could be the keynote to
the performance appraisal.
The employee states each month which projects will be undertaken in each of the key result areas.
These, of course, are set to reach specific goals and seek-goals. At the end of month, the achievements in
each of the KRA’s are listed for each project.
If the manager would sit down with each worker for a formal discussion of progress made once a
year, or preferably more often, these forms would established the nucleus of the discussion.
The manager could use this time to discuss with the employee how the results achieved fit into the
total picture and how it contributed to achieving departmental and organizational goals or the knowledge
management in a company. A plan of action for the next year based on the performance evaluated could be
discussed and commitments to implement them could be made.
In addition, performance can greatly influence or impact in the following ways: (1) the managers can
determine how they can help associates overcome problems they face on the job; (2) associates can identify
ways to improve their performance; (3) to consider new objectives or sub-objectives; and (4) for the
managers to help associates grow.

7.References:
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Executive Digest Limited, pp. 35
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G. Ferguson Publishing Company, Chicago, Illinois.
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pp. 14.
5. Op. Cit. Zigon, Jack, White-collar Article pp. 1
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Last Updated March 16, 2000 http://www.hr.arizona.edu/hrinfoSeries3.htm pp. 3
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13. UCSD Human Resources Department, guide to Performance Management,
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7, to 8
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Performance Group pp. 1
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Zigon, Jack. White Collar Article. Zigon Performance Group. 1998
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