Professional Documents
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360 Pa PDF
360 Pa PDF
T.Y.B.M.S
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PERFORMANCE APPRAISAL
INTRODUCTION
People differ in their abilities and their aptitudes. There is always
some difference between the quality and quantity of the same work on the same
job being done by two different people. Therefore, performance management
and performance appraisal is necessary to understand each employees abilities,
competencies and relative merit and worth for the organization. Performance
appraisal rates the employees in terms of their performance.
Performance appraisals are widely used in the society. The
history of performance appraisal can be dated back to the 20th century and then
to the second world war when the merit rating was used for the first time. An
employer evaluating their employees is a very old concept. Performance
appraisals are an indispensable part of performance measurement. Performance
appraisal is necessary to measure the performance of the employees and the
organization to check the progress towards the desired goals and aims.
The latest mantra being followed by organizations across the
world being get paid according to what you contribute the focus of the
organizations is turning to performance management and specifically to
individual performance. Performance appraisal helps to rate the performance
of the employees and evaluate their contribution towards the organizational
goals. If the process of performance appraisals is formal and properly
structured, it helps the employees to clearly understand their roles and
responsibilities and give direction to the individuals performance. It helps
to align the individual performances with the organizational goals and also
review
their
performance.
Performance appraisal takes into account the past
performance of the employees and focuses on the improvement of the future
performance of the employees.
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A managers 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
The annual performance appraisal might be the most important
meeting you have with your employees all year. Appraisals offer an opportunity
to clarify job descriptions, set goals and objectives, formulate sensible
compensation decisions, and decisively address any performance challenges.
Properly handled, performance appraisals can correct personnel issues and set
employees on a positive course for the coming months. Handled poorly, they
have the potential to demoralize employees, provoke EEO complaints, and
erode trust in management.
This session is a must for managers and human resource professionals
who are frustrated with the typical ineffectiveness of performance management
discussions in advancing organizational goals and promoting positive employee
relations.
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INTRODUCTION
360 feedbacks is simply a process for employees, management and customers
to receive
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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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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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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HOW IT IS CONDUCTED.
(1.) Develop questionnaire: A questionnaire used for 360 Performance
Appraisal typically contains items that are rated on a 5 point scale. These items
may be developed to measure different dimensions of job performance (e.g.,
communication, teamwork, leadership, initiative, judgment). Questionnaires
also typically include one or more open-ended questions to solicit written
feedback.
Questionnaires typically include from 50 to 100 items. When estimating the
amount of time to complete the questionnaire they should estimate about 1
minute per questionnaire item.
If using a printed questionnaire form, they should consider using forms that can
be scanned into a computer.
(2.) Ensure confidentiality of participants Steps must be taken to ensure the
confidentiality of the feedback results. For example, feedback ratings from
several subordinates may be combined (averaged) to mask the identity of an
individual subordinate. The confidentiality helps ensure that the results are
genuine.
(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.
(4.) Administer the feedback questionnaire Distribute questionnaire forms (if
using printed copies) with instructions. May want to prepare answers to
common questions if other employees will be assisting in the administration. If
possible, post the questions and answers to their web site for easy access.
It is important to monitor the progress through the system in order to contact
employees who need to complete forms.
(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; SummaryT.Y.B.M.S
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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.
Example of dimensions are shown below.
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.
Planning and Organizing Items under this dimension measure a person's
ability to develop plans and objectives, develop long-term solutions, set
business objectives adhere to schedules.
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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 OReilly (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 feedbackis it for developmental or evaluative purposes- and what is the outcome you need.
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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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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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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:
360 performance rating system is not a validated or corroborated
technique for Performance appraisal.
With the increase in the number of raters from one to five
(commonly), it becomes difficult to separate, calculate and eliminate
personal biasness and differences.
It is often time consuming and difficult to analyze the information
gathered.
The results can be manipulated by the employees towards their
desired ratings with the help of the raters.
The 360 degree appraisal mechanism can have a adversely effect the
motivation and the performance of the employees.
360 degree feedback as a process- requires commitment of top
management and the HR, resources (time, financial resources etc),
planned implementation and follow-up.
360 degree feedback can be adversely affected by the customers
perception of the organization and their incomplete knowledge about
the process and the clarity o f the process.
Often, the process suffers because of the lack of knowledge on the
part of the participants or the raters.
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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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360 ASSESSMENTS
360 feedback tools are also known as
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 individuals job.
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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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CASE STUDY:
WYETH CONSUMER HEALTHCARE - AN ALL-ROUND
APPRAISAL SUCCESS
Wyeth is one of the worlds leading pharmaceutical and healthcare
products companies. They are research- driven, with a major focus on
developing innovative new medicines that really make a difference to peoples
lives and address significant areas of unmet medical need.
Appraisals are getting harder! People work flexibly in projects across
the organization - everyone is busy - appraisers see less of their people. So,
when appraisal comes around, managers are inevitably less well-informed than
10 years ago. A particular problem for appraisers seems to be how results were
achieved; the person's relationships, approach and values. What was achieved
can be relatively easy to judge - results are usually much more visible.
Adding 360-degree feedback to its performance management
process gives Wyeth Consumer Healthcare insight into how staff achieve as
well as what they achieve.
The challenge
Wyeth Consumer Healthcare (WCH) wanted to improve its performance
management process but found judging some aspects of it presented a real
challenge. "Besides specific achievements, the review also records ratings of
support for the company's values of quality, integrity, respect for people,
leadership and collaboration," says Don Sibley, the household medicine
manufacturer's improvement manager, who has since moved on. "But, unlike
performance objectives, these are not tangible but embedded in relationships
and attitudes."
The programme
The company decided 360-degree feedback would strengthen the review
process by providing insights into how employees achieved, rather than just
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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.
The company has introduced a unique 360-degree feedback system, starting
with its senior leadership. The new system has been co-developed with Ernst &
Young and has been put in place recently.
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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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.
360 feedbacks can be safely linked to appraisal in a performance
management system by doing the following:
1. Use individual 360 feedbacks to measure the hard-to-quantify
aspects of competence.
2. Link measurements of competence to appropriate development
activities. Hold people accountable for their development.
3. Use satisfaction surveys to measure the hard-to-quantify results.
4. Link the measurement of results to appropriate rewards. Hold
people accountable for results.
5. Separate both processes; coordinate them in time so that they
support each other.
Many of the more conventional performance appraisal methods have often
proved unpopular with those being appraised and evaluators alike, 360 is
gaining popularity with many managers and employees.
It offers a new way of addressing the performance issue.
When used with consideration and discipline, feedback recipients will feel
that they're being treated fairly.
In addition, supervisors will feel the relief of no longer carrying the full
burden of assessing subordinate performance.
The combined effect of these outcomes should result in increased
motivation, which in turn improves performance.
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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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