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24168468 Performance Appraisal

24168468 Performance Appraisal

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Published by Chirag Patel

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Published by: Chirag Patel on Sep 16, 2010
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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 employee‘s 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 individual‘s 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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1) Setting SMART Goals for Employees: Goal setting provides leaders, managers and employees with web-based tools to set SMART goals and track progress on frequent intervals. 2) Evaluate Employee Performance: Employee Appraisal ensures objective and accurate evaluation of your employee‘s performance and helps you find the strengths and weakness of the employee. 3)Coach and Train Employees to improve their performance: To continually improve performance of your organization you need to continuously training employees to update their skills and competencies. Training Management allows you manage employee training effectively.

4) Define competitive employee compensation plans: Employee compensation plan helps you to remain competitive in your business and attract and retain talented employee.

5)Promote right employees to critical positions: Organizations success by placing right employee in right positions.


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Objectives of Performance appraisal: To review the performance of the employees over a given period of time. To judge the gap between the actual and the desired performance. To help the management in exercising organizational control. Helps to strengthen the relationship and communication between superior – subordinates and management – employees. To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future. To provide feedback to the employees regarding their past performance. Provide information to assist in the other personal decisions in the organization. Provide clarity of the expectations and responsibilities of the functions to be performed by the employees. To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development. To reduce the grievances of the employees.


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bonuses and pay will affect the success or failure of a 360 degree performance appraisal. demotions. employee contributions and determine the employee‘s results in meeting those goals and contributions.S Page 5 . T.Y.360 DEGREE PERFORMANCE APPRAISL PERFORMANCE APPRAISAL SYSTEMS Issues like promotions.M. Keep in mind that performance appraisal systems are used to define employee goals.B. It is a genuine review of past employee performance.

First. career planning and succession planning. It provides information for making salary.360 DEGREE PERFORMANCE APPRAISL PERFORMANCE APPRAISAL .M.Y.S Page 6 . T. performance appraisal serves a developmental purpose. who work efficiently and effectively. some employees suggest to their managers that companies should get rid of performance appraisals as it is a bitter process which has the ability to create emotional pressures and stress for the employees.PUNISHMENT TOOL OR ORGANIZATIONAL CATALYST Performance Appraisal is one of the core HR activities. Second. will get the agreed intrinsic as well as extrinsic benefits. According to one segment. This information can be utilized for determining training needs. Those employees. On the contrary. Performance Appraisal (PA) has 2 basic purposes. it is for the betterment of the employees and the organization. The better you perform.B. promotion and layoff decisions as well as providing documentation for justifying these decisions. Employees have mixed views about performance appraisals. the more you get. It is being regarded as an excellent method of keeping everyone motivated. PA serves an administrative purpose. rather more importantly. It is completely based on employee‘s job description and objectives to be achieved. It is the assessment of the employee‘s job performance.

Appraisals offer an opportunity to clarify job descriptions. formulate sensible compensation decisions.M.‖ Annual performance The annual performance appraisal might be the most important meeting you have with your employees all year. Furthermore. he might lack proper training for evaluating employees‘ performances.S Page 7 .360 DEGREE PERFORMANCE APPRAISL A manager‘s bias also plays its role. performance appraisals can correct personnel issues and set employees on a positive course for the coming months.B. and decisively address any performance challenges. our contributions will never be acknowledged. Properly handled.Y. set goals and objectives. and erode trust in management. Handled poorly. provoke EEO complaints. T. they have the potential to demoralize employees. 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. Their perception is that ―no matter how well we perform.

Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses. T. Subordinates appraisal gives a chance to judge the employee on the parameters like communication and motivating abilities. Peer appraisal. Also known as internal customers. 360 degree appraisal has four integral components: 1. Superiors appraisal 3. 360 Performance Appraisal incorporates multiple perspectives by using feedback from a variety of sources.360 DEGREE PERFORMANCE APPRAISL 360 DEGREE PERFORMANCE APPRAISAL INTRODUCTION Unlike. is the most comprehensive appraisal where the feedback about the employees‘ performance comes from all the sources that come in contact with the employee on his job. suppliers/ vendors . managers (i. 360 degree respondents for an employee can be his/her peers.anyone who comes into contact with the employee and can provide valuable insights and information or feedback regarding the ―on-the-job‖ performance of the employee.S Page 8 . 360 degree feedback.M. superior‘s ability to delegate the work. Self appraisal 2.B. also known as 'multi-rater feedback'. team members. Superior‘s appraisal forms the traditional part of the 360 degree appraisal where the employees‘ responsibilities and actual performance is rated by the superior. Subordinate‘s appraisal 4. customers.Y. co-operation and sensitivity towards others. and judge his own performance. the traditional top-down appraisal where a supervisor appraises the performance of their subordinate. the correct feedback given by peers can help to find employees‘ abilities to work in a team.e. subordinates. his achievements. superior). leadership qualities etc.

While it is true that the system serves as an excellent process since it reduces biases. the situation can turn disastrous as some staffers will become obvious targets. It is necessary to create the right culture in the company before introducing the system. It provides a "360-degree review" of the employees‘ performance and is considered to be one of the most credible performance appraisal methods.Y. 360 degree appraisal is also a powerful developmental tool because when conducted at regular intervals (say yearly) it helps to keep a track of the changes others‘ perceptions about the employees. This will in turn enable a professional to analyze his strengths and shortcomings and accordingly improve his performance. A 360 degree appraisal is generally found more suitable for the managers as it helps to assess their leadership and managing styles. it is not always successful. The aim is to find the gap between one‘s own appraisal and the perceptions of others.B.M. T. This technique is being effectively used across the globe for performance appraisals. If many people are unhappy or their morale is low.360 DEGREE PERFORMANCE APPRAISL Self assessment is an indispensable part of 360 degree appraisals and therefore 360 degree Performance appraisal have high employee involvement and also have the strongest impact on behavior and performance.S Page 9 .

promotion.360 DEGREE PERFORMANCE APPRAISL Some of the Organizations using 360 Degree Performance Appraisal are: Wipro. and clients etc.S Page 10 . The half yearly or yearly report of work schedule goes from company to their headquarter of all the workers where their performance is appraised. HCLTechnologies. and to the side of an individual employee. below.B.g. Such appraisal can provide valuable information regarding the ―on-thejob‖ performance of the employee. Infosys. as well as self assessment in practice. The employees receiving feedback gets rated by 360 raters. T. It contains all demotion. supervisors. For e. subordinates.Y. Wyeth Consumer Health (WCH) WHAT IS 360 DEGREE PERFORMANCE APPRAISAL? 360 Degree performance Appraisal is the most comprehensive appraisal where the feedback about the employee‘s performance comes from all the sources that come in contact with the employee on his job. including the employee himself. Reliance Industries Maruti Udyog etc.: peers. It involves appraisal by those above. colleagues‘. and other activities related to the performance.M.

T. meaning a circle of those co-workers.360 DEGREE PERFORMANCE APPRAISL 360 DEGREE FEEDBACK INTRODUCTION 360 feedbacks is simply a process for employees.S Page 11 .M.Y. managers and customers around you. Thus the term 360 degree feedback.B. management and customers to receive… advice reactions comments opinions responses criticisms views pointers …from each other about the efficiency of their professional development.

our system will automatically adjust for this.M. This can include direct reports. The system can include feedback from all of these groups. co-workers. What if this appraisal process can be improved by gaining feedback from people that work around the employee as well? This would give a fairer and more accurate view of an employee. peers. self assessment. A common example might be that employee (a) will be appraised by two managers.B. six coworkers. and from multiple people from each of the groups. customers or clients.360 DEGREE PERFORMANCE APPRAISL It is common for employees to be appraised by just one person. managers. These sources may include: management. a manager or boss. in fact anybody who is credible to the individual and is familiar with their work can be included in the feedback process. which is also used in the process. WHAT IS 360-DEGREE FEEDBACK? It is a process whereby an individual is rated on their performance by people who know something about their work. 360-degree feedback occurs when feedback is obtained from sources all around an employee.Y. The individual usually completes a self-assessment exercise on their performance. clients. If you do not want to include all the groups in the appraisal process.S Page 12 . zero clients and will perform a self assessment. T.

superiors. usually by a manager. the worker is central to the evaluation process and the ultimate goal is to improve individual performance within the organization. and customers. his/her peers. Interpretation of the results. trends and themes are discussed as part of the feedback. the worker is able to set goals for self-development which will advance their career and benefit the organization. With 360-degree feedback.B. subordinates. From this feedback. T. Under ideal circumstances.Y. The primary reason to use this full circle of confidential reviews is to provide the worker with information about his/her performance from multiple perspectives.M.S Page 13 . Results of these confidential surveys are tabulated and shared with the worker. 360-degree feedback is used as an assessment for personal development rather than evaluation‖.360 DEGREE PERFORMANCE APPRAISL 360-DEGREE FEEDBACK DEFINITION -ACCORDING TO: TERRI LINMAN ―360-degree feedback is an evaluation method that incorporates feedback from the worker.

government. Research shows that 360 feedbacks when used incorrectly cause poor performance.B. For performance appraisal purposes.360 DEGREE PERFORMANCE APPRAISL 360 DEGREE FEEDBACK SYSTEM A 360 degree feedback system is designed to develop and discover and employee‘s level of skill. A performance evaluation appraisal and a 360 degree feedback have different functions. In my organization (Local Government) there is a culture of skepticism of management at best. This could be a positive for anyone who works for a local government. co-workers are bad at figuring out 360 feedbacks that influences promotions and the size of the paychecks. mistrust may set in.Y. Multiple source raters are not very good at giving unbiased feedback. because of the secrecy involved in who does the rating…secrecy. T. However. employees will begin to doubt the advantages of 360 degree feedback. 360 degree appraisals involve evaluating supervisors and managers as well employees. Employee compensation decisions have historically been associated with performance appraisals.M. how capable and knowledgeable employee is and look for ways to improve how employee does their job.S Page 14 . When 360 reviews are merged with compensation decisions (360 degree performance appraisal). Some employee and manager raters may have trouble separating personal bias and dislikes from an honest assessment of a coworker. When workers perceive that people around them are deciding their financial rewards and promotional opportunities. increases the organizations risk of legal hot water. It breeds employee mistrust and as stated before.

subordinate or customer expectations. A traditional staff performance appraisal highlights a set of tasks performed satisfactorily in a specific period of time. There are other differences between a performance appraisal and 360 degree feedback. The employee does not come to a performance appraisal to find out how much she met co-worker. Thus a 360 degree evaluation is used for ongoing personal and professional development. There are different expectations in a 360 degree feedback.M.S Page 15 . 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) Each of these areas is then measured to determine where improvement is needed.360 DEGREE PERFORMANCE APPRAISL SOME DIFFERENCES BETWEEN A 360 DEGREE FEEDBACK AND A PERFORMANCE APPRAISAL An effective performance appraisal is basically done between the employee and however she reports to.B. 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. Typical performance appraisal methods involve the following… pay increases or decreases merit raises promotions demotions separations or transfers guidelines to calculate effective progress in training and decisions T.Y.

360 DEGREE PERFORMANCE APPRAISL 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.Y. 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. These surveys are typically of a confidential nature. Research shows mixing 360 degree feedback and job performance appraisals can expose a company to more employee lawsuits. 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. These 360 degree feedback surveys have managers and employees who are selected as raters. T. However there is research that points to dangers in 360 degree evaluations.B. This gives employees the confidence to give comments without fear of retaliation. What does rater mean? They are fellow employees or managers who are selected to evaluate us. A standard procedure of 360 appraisal involves providing a survey for employees to rate each other and managers. This is because those rating an employee must be careful not to violate the Civil Rights Act or Equal Employment Opportunity Commission (EEOC) guidelines.M.S Page 16 . The info gathered from all raters is then given to the employee by someone designated by management.

S Page 17 . Without surplus no organization can grow.M.360 DEGREE PERFORMANCE APPRAISL NEED OF 360-DEGREE FEEDBACK IN ORGANIZATIONS Business is towards surplus generation. Here the effort to grow the business and the surplus should come from employee part. Assessing Employee Development: o Diagnosing training and career development needs. probation. The performance of the employees should then align with the strategic decisions that integrate the business goals in an increasingly competitive environment. * A detailed plan of implementation * Collaboration between superior and subordinates * some prior experimentation and positive experiences Clear organizational philosophy and policy objectives USES FOR 360 DEGREE FEEDBACK INCLUDE: Performance Appraisal o Recognition of performance. job enlargement. dismissal. etc. The 360 0 Appraisal helps the HR Department to have better understanding of the competitive advantage and disadvantages of the current manpower resources and tune them towards performance excellence and productivity. o Providing a basis for self-evaluation. PREREQUISITES * Top Management Support * Confidence of employees on the appraisal methodology * Objectives need to be measurable with performance requirements clearly stated. o Providing feedback on individual performance. job enrichment. o Monetary and other rewards. T.B. The performance of the employees is at work here matters in business development and organizational development.Y. o Providing a basis for promotion. It is the responsibility of the Human Resource Management to integrate the culture of the organization with all available resources to the optimum out put. job transfer.

leadership.Y.S Page 18 .360 DEGREE PERFORMANCE APPRAISL Organizational Climate Study: o Organizational environment improvement needs o Changes in the Managerial approaches.B.M. etc Customer Satisfaction Study o Employees attitudinal change o Customer satisfaction improvements T.

they should consider using forms that can be scanned into a computer. leadership. employees should be informed of what 360 Performance Appraisal is and why it is being implemented at the organization. Therefore. 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.) Provide training/orientation often the feedback process involves use of one or more questionnaires.B. (2.) Ensure confidentiality of participants Steps must be taken to ensure the confidentiality of the feedback results.M.) Analyze the data Basic data analysis would include averages of ratings. judgment). (5. initiative. May want to prepare answers to common questions if other employees will be assisting in the administration. (1. The confidentiality helps ensure that the results are genuine. communication. For example. During this training/orientation. training and orientation to the feedback process is needed to facilitate a smooth feedback process. If possible.S Page 19 .Y. More complicated analyses may include item-analysis and/or factor-analysis.g. If using a printed questionnaire form. They may want to provide samples of the questionnaire items and/or feedback results. feedback ratings from several subordinates may be combined (averaged) to mask the identity of an individual subordinate. SummaryT.360 DEGREE PERFORMANCE APPRAISL HOW IT IS CONDUCTED. (3. post the questions and answers to their web site for easy access. and involvement from many different areas of an organization. It is important to monitor the progress through the system in order to contact employees who need to complete forms. Questionnaires also typically include one or more open-ended questions to solicit written feedback.) Develop questionnaire: A questionnaire used for 360 Performance Appraisal typically contains items that are rated on a 5 point scale.. confidential information.) Administer the feedback questionnaire Distribute questionnaire forms (if using printed copies) with instructions. (4. Types of analyses include: Performance Dimension Summary. teamwork. These items may be developed to measure different dimensions of job performance (e.

analyze and interpret information. Dimensions Responses are collected for items that fall under a specific dimension of job performance. • Planning and Organizing Items under this dimension measure a person's ability to develop plans and objectives. Example of dimensions are shown below. Expected. they may want to make this an optional part of the performance review of the employee. set business objectives adhere to schedules.M. Organizational Ranking. They may want to analyze the data by organizational division or department to assess group and organizational strengths and weaknesses.) Develop and Distribute Results Feedback results should be shared with the employee. This can be used to support or promote training and organizational development.. and react to changing situations. They may want to provide individual review sessions or group workshops conducted by a facilitator to help individuals review and understand the results and develop appropriate goals and objectives. customers.Y. 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. It should not be mandatory that the employee share the results with their supervisor. Highest.). • Problem Solving Items under this dimension measure how well a person can understand information and options. give appropriate considerations to information. and Recommendations for Development. Group &amp. The comparisons may be in the form of numbers or simple bar charts. develop long-term solutions. Item Ratings-Performance vs. Individual Item Ratings.360 DEGREE PERFORMANCE APPRAISL Performance vs. make correct decisions. A single questionnaire may contain dozens of questions that measure responses on one or more dimensions. Expected (formed).B..S Page 20 . T. However. (6.or Lowest-Rated Items (shows individual's strengths and weaknesses).

Also measures the ability to communicate with customers.Y. T. setting performance standards and reviewing budgets. controlling expenses. organizing and overseeing the work of subordinates.360 DEGREE PERFORMANCE APPRAISL • Communication Items under this dimension measure the ability to present information formally and informally in both written and orally.M. • Administrative Skills Measures an individual's ability to implement and monitor actions to ensure compliance with policies and regulations. • Manager Potential Index A measure of the composite score of the scales reflecting an individual\'s overall ability to successfully perform management tasks. staff.B.S Page 21 . • Supervisory Skills Measures the individual's skill level in planning. Also helps identify the ability to distribute information. • Business Control Measure the skill in. allocate staff and maintain records or documents. Also measures a person's ability to manage work flow efficiently. reducing costs. and concern for. peers and supervisors.

360 DEGREE PERFORMANCE APPRAISL HOW 360-DEGREE FEEDBACK SYSTEM ADDS VALUE? 360 degree feedback enables an organization to focus on developmental efforts. 360-degree feedback Increases the team's ability to contribute to the organizations goals develop better bottom line through boosting the capability of the organization to meet its objectives. which is possible through organizational development. 360-degree feedback increases the team's ability to contribute to the organizations goals 360-degree feedback helps everyone to work for a common standard and institutionalize performance management. It promotes better Communication within departments.B. 360-degree feedback facilitates the alignment of individual capabilities and behaviors with organizational strategies. 360-degree feedback ensure better interpersonal relationship and group cohesiveness It promotes self-directed learning and provides a road map for employee's development planning. in the present business environment where the success of the company depends on continuous revolution. 360-degree feedback provides increased the understanding of competence and competency in various roles 360-degree feedback extends better morale to those who perform and contribute well to the organization 360-degree feedback reduces training costs by identifying common development needs.Y. at the individual and group level.M. T.S Page 22 . It adds value to the organization indifferent ways:o o o o o o o o o o o o o 360-degree feedback provides a better understanding of individuals performance at work 360-degree feedback provides a multifaceted view about the employees from different sources 360-degree feedback provides a better understanding of employed developmental needs 360-degree feedback provides increased the understanding about one's role expectations.

strengths and development areas are also useful for sharpening ideas about the future and potential career directions. Culture change Introducing feedback can subtly change the culture. The benefits apply at several levels: Self-insight and learning.360 DEGREE PERFORMANCE APPRAISL 360 DEGREE FEEDBACK BENEFITS Employees should be aware of what 360 degree feedback benefits could mean for them. 360-feedback data provides quantifiable data on a range of leadership and personal capabilities. The managers feel they are being listened to as individuals and that they are receiving support in their development and dealing with problems. An atmosphere of open and honest feedback means decision making can be more rigorous. taking a broader set of perspectives than just the manager. Team members can similarly experience positive motivation if they too feel they are being listened to. Unsatisfactory behaviour can be identified and addressed rather than swept under the carpet. Broader perspective. Competency approach. Motivational. Hard data.S Page 23 . leadership development and performance appraisal into a coherent framework. 360-degree feedback provides the opportunity to see ourselves as others see us. Performance management becomes more rounded. both within and between managers. The use of competencies to define the managerial behaviours valued in an organization helps integrate recruitment.Y. T. and positive changes that affect their working lives follow. Evaluations typically achieve 90% agreement rates that the results are useful. The benefits centre on improving managerial performance which has been demonstrated to have a substantial impact on productivity and profitability.B. This is the first step to help identify strengths in one's management style that can be built on and areas of weakness that can be redressed. enabling comparisons to be made. A programme of 360-degree feedback can have a positive motivational effect on managers.M. Focuses career development Discussions around feedback.

such as competencies.) The raters Identifying the most appropriate people to rate the performance of the individual is a key part of the process.M. It should relate to existing measurement systems within their area.S Page 24 . which relate to actual job performance.360 DEGREE PERFORMANCE APPRAISL THE 360 DEGREE PROCESS (1. (3. 7 to 12 respondents are usually sufficient in terms of reliability. Consideration needs to be given to the purpose of this information and how it is used as well as who has access to this data and how long is it held for. reporting and feedback process should suit the purpose of the exercise. T.B. It also needs to be in line with City‘s culture and values. It needs to describe the behaviours.Y. there is a danger that one rater‘s view will have a major impact on the overall results. (2. Ideally the recipient will have full involvement in identifying who they think is in the best position to comment on their performance.) Self-assessment Self-assessment encourages the individual to take responsibility for his or her own development and is a useful starting point in the 360-degree feedback process. Number of raters The assessment has to be based on a large enough sample to ensure that it is valid. If too small. The raters must be credible to the recipient for them to act on the resulting feedback.) The questionnaire The design of the assessment.

The people giving the feedback (appraisers) must have had the relevant training to give them the skills to support this process. A well-designed questionnaire should offer respondents the opportunity to indicate where they have not had the opportunity to observe behaviour.B. so as not to force them to guess.M. . Feedback report Feedback usually consists of a report. The quantitative elements provide the structure and the qualitative questions provide the context. feedback is communicated face to face.S Page 25 . Ideally the questionnaire should take between 15 and 30 minutes to complete.) Feedback strategy It is important to consider what feedback is communicated and how and when this takes place. Someone must be available to help interpret the results with that person.Y. (4. Qualitative and quantitative data The most effective questionnaire design is one that encompasses both quantitative as well as qualitative elements. or where the behaviour is not relevant to the job.360 DEGREE PERFORMANCE APPRAISL The questionnaire needs to be relevant to the raters and their day-to-day involvement with the individual. Trained facilitators As 360-degree feedback is being used as part of the appraisal process. sensitivity is essential. direct reports and manager view their performance. The design of the report should be kept simple and ideally designed to help the individual priorities their relative strengths and development areas Given that an individual is receiving sensitive information about how their colleagues. T.

g.M. T.Y.S Page 26 .360 DEGREE PERFORMANCE APPRAISL When feedback is communicated Ideally the individual receives feedback as soon as possible after that feedback has been collated. It is important to ensure that people receive it when there is support available to interpret the results e.B. as part of a supportive appraisal process.

influence what motivates the employee and what they hope to gain from the feedback process itself. The concept behind 360 degree feedback.360 DEGREE PERFORMANCE APPRAISL 360 Feedback. 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.M. a combination of the two. for example.B.Y. stating that it can be defined as a ―contrived method of providing a flow of feedback to employees from all directions‖. the 360 degree feedback methodology is becoming an increasingly common way of developing employees. including its pros and cons. T.For Appraisal Or Employee Development? In terms of communication management and performance feedback in the workplace. 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. appraising their performance or in some companies.S Page 27 .

when 360-degree feedback is used for purposes other than development such as performance appraisal. It will really make good business sense to consider first WHY you are doing 360 degree feedbackis it for developmental or evaluative purposes. I found this article really interesting. However when this feedback is gathered and used for more formal evaluative purposes. the feedback is ―remarkably similar‖. provided for a performance appraisal for example. the effectiveness (or perceived accuracy) of the feedback received. However. This then significantly reduces their willingness to be receptive to the feedback provided and make the necessary changes to improve performance. arguably diminishes. 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.B. T.Y.M. particularly if this rating is linked to a financial reward or bonus.it all makes so much sense.S Page 28 . In the same way it may encourage gamesmanship and ‗behind-the-scenes‘ deals. This means they will be more open and receptive to the dialogue about their performance.360 DEGREE PERFORMANCE APPRAISL For instance. 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. the scores and feedback are different as friends pump up each others scores and mark competitors as mediocre.and what is the outcome you need. the employee desires to appear competent and attractive in order to be scored as highly as possible.but at the same time. Moreover. For instance O‘Reilly (1994) asserts that when 360 degree performance feedback is provided by raters for the purposes of development. when the feedback is evaluative in nature.

Y. Rather than having a single person play judge. T. The people who actually deal with the employee each day create a pool of information and perspectives on which the supervisor may act. This group of individuals is made up of both internal and external customers.B. Increases credibility of performance appraisal. Increases accountability of employees to their customers. Extensive giving and receiving feedback can be intimidating to some employees. not by manager alone Feedback may be motivating for people who undervalue themselves The wider involvement help to engender a more honest organizational culture DISADVANTAGES OF 360 DEGREE APPRAISALS o o o o o o Time consuming and more administratively complex.S Page 29 . Feedback from peers enhances employee self-development. The combination of opinions can approximate to an ‗accurate‘ view Comments expressed by several colleagues tend to carry weight Some skills are best judged by peers and staff.M.360 DEGREE PERFORMANCE APPRAISL ADVANTAGES OF 360 DEGREE APPRAISALS o o o o o o o o o Provides a more comprehensive view of employee performance. a 360-degree appraisal acts more like a jury. Results can be difficult to interpret Feedback can be damaging unless handled carefully and sensitively Can generate an environment of suspicion if not managed openly and honestly The 360-degree appraisal significantly differs from the traditional supervisor-subordinate performance evaluation. Requires training and significant change effort to work effectively.

and performance. it produces a more complete picture of an employee‘s performance. T. Because each customer offers a new. unique view.360 DEGREE PERFORMANCE APPRAISL Using 360-degree appraisals provides a broader view of the employee‘s performance.S Page 30 .M. The most obvious benefit of the 360-degree appraisal is its ability to corral a range of customer feedback. In addition to providing broader perspectives.Y. Unlike with supervisors. styles.B. employees can‘t hide as easily in 360-degree appraisals because peers know their behaviors best and insist on giving more valid ratings. the 360-degree appraisal facilitates greater employee self-development. It enables an employee to compare his or her own perceptions with the perception of others on the employee‘s skills.

Employee perception of rating Employees receiving negative performance appraisal comments will focus blame on the co-workers and supervisors who are the raters. a 360 degree evaluation feedback will not work. Discrimination from Raters They can distort the peer performance appraisal information to help or harm the employee being rated.B. T.360 DEGREE PERFORMANCE APPRAISL RISK OF 360 DEGREE PERFORMANCE APPRAISAL Appraisal of performance is not the same as an assessment of 360 feedbacks.Y. Here are some of the risks of 360 degree feedback appraisals.S Page 31 . Raters are normally selected anonymously so the employee doesn‘t know exactly who is evaluating them and did not give them a good rating of performance and appraisal.M. Mistrust of the 360 degree performance appraisal system If a business or organization already has a culture of suspicion and mistrust of management by the employees.

and that this can lead to an increased awareness of their day to day behaviours and their impact on other people. 360 Degree Feedback is part of a wider set of activities that helps people to understand their own skills and how they can grow as managers or leaders in their organization. AT THE RIGHT TIME T. Even in organizations with good face-to-face feedback. please don‘t throw the 360 Degree Feedback baby out with the bathwater !TRACK: THE RIGHT TRAINING.S Page 32 .M. but we know that‘s not always the case. That‘s why generic 360s are less useful that those that are customized and aligned with the organization‘s goals. FOR THE RIGHT PEOPLE. or as a way of avoiding difficult conversations. 360 Degree Feedback should never be used as a substitute for this.360 DEGREE PERFORMANCE APPRAISL THE PROBLEM WITH 360 FEEDBACK This is a good challenge to using 360 Degree Feedback as a means of communication in an organization. And maybe my boss needs to understand that a number of other people might feel that way? 360 is a great way of getting that message across.Y. And in an ideal world. of course I should tell my boss when I‘m not happy that she chews me out in front of the rest of the team…and she should accept that feedback directly from me and without any reprecussions. we find that individuals who receive 360 Degree feedback are often surprised at the perceptions of others about them.B. I would respond as follows: Face-to-face communication. with immediate and relevant feedback is of course the best way to manage individuals and teams. Used correctly and in the right situations. 360 Degree Feedback is a very powerful tool for development.

T.STATISTICAL DATA INCLUDED "If we practiced medicine like we practice management--based on hunch. new research shows that 360-degree feedback programs may hurt more than they help. an ongoing study of the linkages between specific HR practices and shareholder value at 750 large. A perfect example of this phenomenon may be 360-degree feedback. found that 360-degree feedback programs were associated with a 10. Too many organizations base their human resources investment decisions on tradition.360 DEGREE PERFORMANCE APPRAISL DOES 360-DEGREE FEEDBACK NEGATIVELY AFFECT COMPANY PERFORMANCE? STUDIES SHOW THAT 360DEGREE FEEDBACK MAY DO MORE HARM THAN GOOD. Watson Wyatt's 2001 Human Capital Index (HCI).Y. Popularity of 360-Degree Feedback 360-degree feedback is a performance appraisal approach uses input from an employee's supervisors. sometimes.6 percent decrease in shareholder value. That doesn't necessarily mean 360-degree feedback programs should be abandoned. subordinates--and.B." Those are tough words from Dr. 360-degree feedback is widely accepted as an effective performance management tool. Most 360-degree feedback programs focus on the manager level and above. instead of on sound financial measures. colleagues. Pfeiffer. even suppliers and customers. fads or competitors' practices. However. but they are on the mark. WHAT'S THE PROBLEM? PERFORMANCE MANAGEMENT . Adopted by a growing number of organizations.M. Jeffrey C. intuition and ideology--we would have much more malpractice and a lot of mortality and morbidity. professor of organizational behavior at Stanford University and a leader in management thinking. publicly traded companies. But it does mean organizations should take a second look at their performance management programs to see if they are accomplishing what they are supposed to.S Page 33 .

B. Jai Ghorpade. this figure jumped to 65 percent. decreases grievances or is superior to forced ranking and standard performance appraisal systems." T. Researchers and formerly strong advocates of 360-degree feedback have begun to raise questions. but there is no proof it works. John Sullivan. 40 percent of companies used 360-degree feedback in 1995. "while it delivers valuable feedback.6 percent decline in shareholder value. the 360degree concept has serious problems relating to privacy. The theory is very promising. Taken together. wrote in the Academy of Management Executive that.9 percent lower than similarly situated companies that don't use peer review. Watson Wyatt's 2001 HCI report revealed that companies using 360-degree feedback have lower market value. b 2000. on the other hand. According to HR consulting firm William M. According to the study. Likewise.S Page 34 . It sounds good. a professor of management at San Diego State University. is another matter.Y." Ghorpade also reported that out of more than 600 feedback studies. professor of human resource management at San Francisco State University.360 DEGREE PERFORMANCE APPRAISL The use of 360-degree feedback has grown dramatically in recent years. the more complete the insight into an employee's performance. And. says "there is no data showing that [360-degree feedback] actually improves productivity. Voices of Doubt The HCI study is not the only indicator that 360-degree feedback programs may be failing to match their promise.7 percent lower than similar firms that don't. one-third found improvements in performance. these practices are associated with a 10. one-third reported decreases in performance and the rest reported no impact at all. validity and effectiveness.M. The reality. Mercer. the more likely he will understand what needs to be improved and how. increases retention. in theory. companies that allow employees to evaluate their managers are valued 5. companies that use peer review have a market value that is 4. 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.

"The first thing you need to ask is why you're doing it. By trying to capture every nuance of a worker's performance. The process still holds the potential to deepen employees' understanding of their own performance. there are good reasons not to give up on 360-degree feedback. The time and cost associated with 360-degree feedback also are stumbling blocks. 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. Mend It. * Implement 360-degree feedback for the right reasons. giving effective appraisals is a difficult task. the process can lead to uncertainty and conflict among team members. it may be able to help companies create value by better aligning job performance with business strategy. The question is this: Can 360-degree feedback be implemented in such a way that it achieves these benefits without negatively affecting the bottom line? Based on our analysis--and conversations with clients-.Y. Typical 360degree feedback programs assess competencies that are not directly related to business results or are so broad that they aren't relevant to the average employee.S Page 35 . a New York-based executive coach. it should not be introduced.we believe the following steps may help companies transform 360-degree feedback into a value creator. If you can't articulate a strong business case for a 360-degree feedback program.360 DEGREE PERFORMANCE APPRAISL Roots of the Problem Why is 360-degree feedback failing to live up to its potential? For starters.M." says Paul Rudely. Another common problem: Reviewers and those being reviewed fail to follow up after feedback. And. Unless everyone participating in a 360-degree program is trained in the art of giving and receiving feedback.B. Don't End It Despite these drawbacks. T. Another issue is that there may be a gap between an organization's business objectives and what 360-degree feedback programs measure. When there are no consequences for poor performance-which often is the case with 360-degree reviews--performance won't change. not destroyer.

"but nobody walks on water like that. * Do not rely solely on 360-degree feedback. Make sure executives play a key." he says. "You should not implement it unless you can show that it is solving a problem or adding value. visible role. And. the thing to remember is that 360 feedbacks is just one part of an overall performance management system. After the interviews. often they can stand to be fleshed out a bit. he says." he says. agrees.Y. Barclay's uses 360-degree feedback to provide senior executives with input on their management styles. I had a much better view of her strengths and weaknesses. A 360-degree feedback program is doomed if HR is its only champion. I conducted a series of personal interviews with the woman's raters to follow-up." Seretan says. timely feedback about their day-today performance. * Get support at all levels of the organization.M." Seretan explains. He recalls one 360-degree feedback assessment that made an employee "look like Mother Theresa. "While I've yet to see a 360 that was inaccurate. "If you don't do it in a way that is targeted and strategic. Feedback should provide employees with insight into the skills they must develop to help the organization meet its goals. based in San Francisco." The woman was very talented. but companies should consider using them in situations where they can help clarify the results of 360 feedback. Employers must "assess the real burden they are placing on the organization by doing 360-degree feedback. head of human resources for Barclay's Global Investors.S Page 36 . T. Ultimately." Additional interviews won't always be necessary. so our goal was to address these information gaps. give line employees a voice in designing and implementing the program to ensure relevance and ownership. "360-degree feedback is just one part of our approach. * Assess the costs of the program. Rudely likes to use 360-degree feedback as a baseline for a more in-depth look at an individual's performance profile." Seretan says.360 DEGREE PERFORMANCE APPRAISL Jeff Seretan. "Our executives had minimal input into their leadership styles.B. * Focus on business goals and strategy. you run the risk of value destruction. Employees must receive regular.

Ultimately." Rumely says. "Knowing what to do and not doing it doesn't get you very far.S Page 37 . the gains will outweigh the higher costs as the feedback delivered to participants becomes more focused. targeting the behaviors most closely associated with value creation and destruction. Providing constructive feedback takes instruction. training and practice. Monitor implementation. ask for ideas for improvement and make adjustments. By monitoring results. and what tactics are necessary to get there?"' Companies should identify and enforce rewards and consequences for individuals related to their success in following their action plans. it's whether we got the desired result.M. rather than waiting for an annual review. Traditional performance management systems have struggled with T. asking for feedback on the process and implementing changes based on the answers.360 DEGREE PERFORMANCE APPRAISL * Train people in giving and receiving feedback. Just because an individual receives insight into his behavior doesn't mean he can--or will-change it. Companies don't always get 360-degree feedback exactly right on the first try. * Recognize that 360-degree feedback is not a panacea.Y. It also helps to continually benchmark results against the objective articulated at the outset. Companies that implement 360-degree feedback without first checking and developing managers' feedback skills risk serious damage to teamwork and morale. "If the program is just another add-or and not part of a scorecard. "For us. Rudely recommends that individuals sit down with their managers and their subordinates and review scores. 'Which ones do you think are the most critical to being as effective as possible. While training individuals to give and receive feedback may temporarily increase the expense associated with 360-degree feedback programs.B. the test is not whether we have a program in place. companies may be able to put 360-degree feedback programs back on track. * Create an "action plan" for each employee based on the feedback. you're kidding yourself." Pfeiffer says. "They should present their scores and then ask." Seretan says. the goal should be to create a culture in which individuals feel comfortable giving and receiving feedback--both positive and negative--on a real--time basis.

Feedback Varies with Your Point of View By Kenneth M. The strength of 360-degrees feedback is that it reflects him varying perspectives of different rate groups. 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.Y. but it takes work. and it is naive to think that 360-degree feedback programs will be significantly different. And each rater group brings natural biases to the table. The existence of such data also should force companies to ask themselves what they hope to gain from 360 reviews--or. That's also part of the problem. 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. if expectations haven't been met. What is the potential return on investment (ROT)? How do ROI projections compare to actual performance? And. what can be done to improve the effectiveness of these programs? Implementing a successful 360-degree feedback program is akin to managing your own investment portfolio: You can come out ahead. Nowack Multi-rater feedback can raise more questions: How is an employee to react. 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 T. another group may see as problematic.S Page 38 . for that matter. from any HR initiative they undertake. Take Another Look The findings about 360-degree feedback programs are eye-opening.M. What one group views as effective behavior.360 DEGREE PERFORMANCE APPRAISL this axiom for years.B.

Y. None of these perspectives is wrong and all of these insights can be valuable in creating a 360-degrees view of performance. We nee to know more about companies motivation for adopting 360-degree feedback as well as their financial condition before and after adoption. Therefore. Nowack is a licensed psychologist and director of Organizational Performance Dimensions. 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. I strongly emphasized this point in an T. Assuming there is some truth to the Watson Wyatt report. As a result a snapshot of companies using the Scanion Plan at that time would have shown that the plan was associated with poor performing companies.B. For example in the 1930s many troubled companies adopted Joe Scanion's group incentive plan. Focus on Why and How Jai Ghorpade In evaluating the effect of 360-degree feedback--on any HR practice--on firm performance we must ask why companies about it.M. Their remarks often reflect opinions or whether the participant has the "rights stuff" to motivate and create a compelling vision for others to follow. I suggest caution in interpreting the Watson Wyatt study. Perhaps the researchers can ferret out this information.360 DEGREE PERFORMANCE APPRAISL and well?) technical competence and whether an employee's behavior draws complains or clients. a Santa Monica Calif: based company specializing in 360-degree-feedback. The authors state that there may be a gap between an organizations business objectives and what 360degree feedback programs measure. Kenneth M. 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. By contrast direct reports base their reviews on factors such as willingness to involve the direct report in decisions interest in a direct reports professional development and trustworthiness Peers who lack perspective on their colleagues' day-to-day performance tend to focus on leadership potential.S Page 39 .

which appeared in the January 2000. 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.360 DEGREE PERFORMANCE APPRAISL article they cite. 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.B. Academy of Management Executive.S Page 40 . But I believe the problem goes beyond congruence with company objectives. 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. T.Y.M.

It is not. competencies. the relationship between their job and the organization's performance. Tools With Different Purposes At its best. and the entire work environment. Managers increasingly. there is an advancing drift toward using 360 feedbacks for performance appraisal.DAVID LASSITER In a time of low unemployment and transient loyalty. this situation provided the energy for finding new approaches and processes to boost performance. look to 360-degree assessment as a quick and easy solution to the feedback dilemma.Y. 360 feedbacks is a developmental tool. Performance appraisal allows employees to more clearly see the results of their efforts. and practices related to the conduct of their T. organizations in all sectors are challenged to operate even more responsively and efficiently. Unfortunately. develop. Trend: Inappropriate use of 360 degree feedback can unravel years of environment building effort and huge investments of bottom line dollars. knowledgeable managers are keenly aware of the need to motivate. behaviors. Research has clearly indicated that employee satisfaction is a key ingredient to loyalty and retention and is heavily influenced by feedback on performance. Organizations need to be careful here. Raising individual and team performance levels is central to this process and 360 feedbacks have been increasingly used as part of the solution.M. There is a rising demand in organizations for improved performance and results. Its' purpose is to measure and evaluate contribution to the organization in order to provide feedback. performance appraisal is an evaluative process used to determine results. and mistakenly. American business during the 1970's and '80's was in serious trouble.360 DEGREE PERFORMANCE APPRAISL THE DANGERS OF USING 360 DEGREE FEEDBACK FOR PERFORMANCE APPRAISAL. performance. It can put the organization at unnecessary risk and has a negative impact on motivation. In the 1990's. Used for appraisal purposes. In the new century.B.S Page 41 . and retain quality people. It is designed to encourage employees to grow and develop by providing feedback on their proficiency in the skills. but it's not the appropriate use of this powerful new technology. Using 360 for appraisal may be an intriguing idea. and fairly distribute rewards. the "silver bullet". and be rewarded for their particular contribution. however.

By design. But is it appropriate to performance appraisal because of its speed and ease? What is it that makes appraisal or development particularly effective? Research indicates that it is the quality of the conversation between the manager and the employee that is important. competencies.360 DEGREE PERFORMANCE APPRAISL jobs.Y. it has what marketing people call "sizzle". the essential performance conversation that provides motivation and builds trust and loyalty. time frames. on the other hand. and leadership. It is the quality of the interaction. automated is faster than manual. They can and do complement each other. and improving the skills and competencies needed to perform successfully. is effective for measuring outcomes and results. However. outcomes. But inexperienced multi-source raters are generally not as adept at providing balanced and objective feedback as the single source supervisors they may be replacing. coworkers are insufficiently qualified to give evaluative feedback that affects pay and promotion. Being able to explore and discuss aspects of one's work with clarity and without the usual time pressures is highly valued by most employees. resolving conflict. It is broader and brings in multiple and more balanced perspectives. It is especially good for the hard-to-quantify interpersonal areas (often labeled the 'soft skills') of behaviors and practices. Performance appraisal and employee development are separate and distinct processes with different purposes and different measurement tools. and measurements to be used. if 360 feedbacks are linked to compensation decisions.B. but they are distinct. it is good at identifying.). then 360 feedback is simply a more efficient and effective tool for conducting appraisals. When employees recognize that their financial rewards are based on multiT. coaching.S Page 42 . Because 360 feedbacks are usually automated or web-based. etc. and evaluating performance (results) is the same as measuring proficiencies (skills. multi-source feedback does have more validity and leveraging ability than single source. it loses its power and benefit as a developmental tool. what people are actually hired for and paid to produce. It is designed to clarify and document the goals. Problems With The Linkage It is too often assumed that since multi-source is better than single source. For developmental purposes. informing. Assumptions like these can get you in trouble. Performance appraisal in most organizations is used to determine merit increases and bonus amounts. Performance appraisal. Examples of this include listening. milestones. measuring. teamwork.M. For appraisal purposes. They are related. They can have enormous problems separating honest observation from personal differences and biases.

Finally. organizations using 360 feedbacks as a performance appraisal tool are exposing themselves to increased liability. As a result. employees can manipulate the process to ensure the desired outcome. risks are avoided. T. When not held accountable for this.M. I'll scratch yours. An organization needs to be prudent and consistent with the standard and proven performance appraisal approaches. blame is placed on co-workers causing a rise in the level of mistrust and apprehension. Trust and honesty begin to break down in favor of getting a good review. accusations. actual skill proficiencies can decline which. 360 feedbacks is not a tested or validated mechanism for performance appraisal." Suspicions that were formerly directed at performance appraisal are now focused on 360 feedback. performance levels off. conflict. This can result in defensiveness. Potential Dangers  Skill levels stay relatively flat or even decline because the "360 appraisal" is not taken seriously. denial. The "new" system becomes tainted.Y. and loss of trust. in turn. motivation diminishes. Realizing what is required to achieve a good appraisal. Putting two and two together. and a performance environment of mediocrity.B. performance declines. candor and honesty are compromised. employees realize that "if you scratch my back. leads to a weakened ability to compete or deliver. and turnover rises.S Page 43 . The 'rate' can be helped or hurt. trust and integrity are damaged.  If employees don't get a "good" appraisal.  Individual development plans become window dressing. It puts the relationships within the work group in jeopardy and can lead to a decline in productivity and performance. People may go through the motions to create them but expend little effort in implementation. morale drops. The work environment becomes politicized. 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. they quickly see how the new game is played.360 DEGREE PERFORMANCE APPRAISL source feedback ratings.

and credibility will be lost.360 DEGREE PERFORMANCE APPRAISL The Bottom Line Executives and managers considering the use of a 360-feedback tool for performance appraisal need to be aware of the inherent differences between them.B. money.S Page 44 . Large investments of time. The bottom line: Keep developmental feedback separate from appraisal and compensation decisions. Using 360 feedbacks for the wrong reason can result in decreased trust. and increased risk. T.M.Y. and performance. loyalty.

On the one hand. it has been introduced into most Fortune 1000 companies.Y. and its use is spreading. Experts agree that computerizing an appraisal system will not correct its inherent problems. While multi-source judgments are usually superior to single-source judgments. Today. managers need ways to let people know how they are doing and to document individual achievements and problems. The desire to use 360 technologies for performance management is strong. many organizations are boldly going into uncharted territory. they aren't aware that this concept is a major controversy among HR practitioners. evaluations can have greater validity.360 DEGREE PERFORMANCE APPRAISL How To Avoid The Dangers Of Using 360 Feedback In Performance Management .S Page 45 . Senior managers are intensely interested in this application. people can give ratings and comments quickly and conveniently. thereby rendering the assessment system invalid. On the other hand. because performance appraisal has been a perennially frustrating area of human resource management. 360 did not become popular until the late 1980s.M. distrust. few organizations have set up appraisal systems that do this without creating discontent. With on-line input systems. customer feedback and organization climate surveys. such as team development.By Dennis E. and it's also flexible enough to use in a variety of applications. even though a pattern of real-world successes and best practices has not been established. Coates This early form of multi-source (360) feedback was practically unknown in business organizations thirty years ago. . loss of productivity and law suits.B. 360 evolved over two decades as a developmental feedback process. Most managers don't understand the risks of using 360 feedbacks as a platform for performance management. not as a performance appraisal process. With ratings coming from many sources. It is now affordable enough to use with all employees. they can T. Still. and then mostly as an executive development tool. Furthermore. The new 360 feedback technology is viewed by many as an intriguing solution to the problems with traditional performance appraisal. experience has shown that linking competence data to pay and personnel decisions introduces unacceptable biases into ratings. encouraged by authors who suggest that with the right technology and know-how.

The payoffs are there. The prudent path has three guideposts: (1) Link competence feedback to development decisions. and (3) Maintain confidentiality.S Page 46 . most experts and organizations are backing away from this application. teams and organizations achieved their goals? Are standards being met? Are projects completed on time? Are products and services delighting customers? Have business goals been achieved? The word performance also means something else: competence how well people do their work. What's involved in this path? What are the options? What are the risks? What are the costs? How to minimize risks and obtain the maximum benefit when using individual 360 feedback in the context of performance management. Computer programs that facilitate 360-based appraisal have appeared positioned to capitalize on an expressed need in the market.M. but a prudent traveler should make some preliminary inquiries. (2) Link results feedback to pay and other personnel decisions." The word performance refers to results what gets accomplished. mysterious territory separates managers from the promised land of high-tech appraisal. Guides promise to lead the way. At the same time.B. Guidepost 1: Link competence feedback to development: Using 360 successfully in performance management requires a clear understanding of what is meant by "performance. It's as if a dark. 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? T.Y.360 DEGREE PERFORMANCE APPRAISL work around the issues. will the judgment of bold executives prove to be superior to the cautiousness of human resource professionals? Using 360 feedbacks in the context of performance management involves significant risks that no prudent manager should underestimate. Have individuals. but part of the journey is knowing where not to go and what not to do. But approaching this territory is like visiting a great city. Why? Are the dangers real? Is 360-supported performance management too good to be true? Can it be achieved with the right know-how? In the end.

and because 360 feedback makes it easier to gather competence data than results data. customer service.S Page 47 . However.M. cost-effective procedure. This includes most technical areas. leadership. In this role. many key workplace skills and activities are exceedingly difficult to quantify and measure. It's important to keep in mind that 360 feedbacks is not the best tool for measuring competence that is already easily quantified/measured. People should be held accountable for results and rewarded for achieving them. consulting. For example. why would you ask for several people's opinions about someone's typing ability. instruction and facilitation. provided that the feedback is about results. The magnitude of the error has to do with the fact that it's enormously expensive to administer compensation programs.B.360 DEGREE PERFORMANCE APPRAISL Managing performance means managing both results and competence. T. and modern 360 administration software programs make doing so a relatively simple. there are no concerns about using the results to put someone's career or compensation in jeopardy. Measuring competence as the first step to self-improvement is the best use of 360 feedbacks. sales. this huge investment is largely misdirected.Y. presentation. There's nothing wrong with linking feedback to personnel and pay decisions. 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. negotiation. Both aspects can be measured." organizations sometimes mistakenly focus on the competence aspect. Guidepost 2: Link results feedback to pay and other personnel decisions. rather than the results aspect of performance. But in a desire to "pay for performance. These encompass mostly the interpersonal dimension of work: communication. executives have learned that rewarding only business results can have unintended negative consequences. but they should be measured differently and separately. team interaction. They make this error because of a failure to appreciate the distinction between competence and results. If the rewards don't have the desired impact on results. when all you have to do is conduct a five-minute performance test? However.

which is the responsibility of senior managers. and effective methods for measurement already exist. not in-process milestones. measure them and reward their achievement. However. not appreciating that if they don't also focus on employees and customers. Using the results of a baseline survey of carefully chosen leadership outcomes (such as levels of trust. communication.B. Some 360 software programs are flexible enough to administer customized climate surveys. etc. the desired financial results will eventually falter. project phases completed. The key is to know which outcomes will contribute most to the organization's success. loyalty. For example. market share. How do team members feel about working in their group? You can find out using team climate surveys. although it's important to keep these surveys separate from individual development assessments. etc. but the challenge is to set the right goals. Therefore. team goals and team rewards are often more appropriate than individual ones. It's better to focus on major results rather than on a comprehensive list. In this case. T.. 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.M. relationships and team development can be agreed upon.S Page 48 . Some organizations overemphasize financial objectives. desired outcomes usually involve a team effort.360 DEGREE PERFORMANCE APPRAISL Rewarding results is a simple concept.). development. it wouldn't make sense to ask for opinions about on-time deliveries. commitment. some key results are hard to quantify. professional satisfaction. Leaders must be wise enough to define outcomes that actually help an organization achieve its vision. safety. reduced waste. improved quality.Y. 360 assessment systems will not be needed. sales. new accounts. cooperation. Most business goals are easily quantified. return on investment. specific results goals tied to leadership. Furthermore. because effective systems already exist to compile and track this information. And it's important to specify end outcomes. profit.

Confidentiality safeguards and the perception of confidentiality are essential to the validity of the information gathered. .Adequate resources are available to achieve my goals. .I feel empowered to do my best work.Y. people focus on specific results only if there is a significant benefit for doing so. coworkers don't want their ratings and comments to be seen by managers who make personnel and pay decisions. .S Page 49 . The most important way to protect confidentiality is to limit the feedback that managers see. the people responsible are rewarded financially. . T. Wise leaders understand that in a busy workplace." Unlike praise.I trust my boss.I have the freedom of action I need to do my job. empower them and hold them responsible for results.M.The work of our group helps fulfill the organization's vision and values. Coworkers may want to give a person honest feedback. When these payoffs are achieved. Guidepost 3: Maintain confidentiality." but they also need the "want-to. Successful organizations have learned to define what they need from people. On the other hand. the following items may be included in a team climate survey: .My colleagues encourage each other when work is challenging. they may want an individual to have specific developmental feedback but only the individual and only for development.360 DEGREE PERFORMANCE APPRAISL To illustrate. .I work in a safe environment.The activities of my unit are well planned.B. People may have the "know-how. They don't want to be responsible for drastic career consequences. because they know that if the individual doesn't face up to the truth. . .The people who work around me show concern for our customers. . salary increases and bonuses have the power to help employees care for elderly parents or put their children through college. In short. changes in behavior are unlikely.

People may believe their managers when they are told that 360 inormation will be safeguarded and used for development only." managers concluded that the 360 performance data would help them decide who to keep and who to let go. When employees discovered what was happening. With the pilot program in disarray and the expected benefits unachieved. they raised such a furor that the company had to abandon the use of 360 altogether. When faced with the need to "downsize. But if they discover that they were misled.360 DEGREE PERFORMANCE APPRAISL Assurances of confidentiality are based on trust. several participants found ways to avoid or sabotage the process.S Page 50 . But the organizational climate was characterized by low trust and internal politics. As a result. This consequence would render a 360 system useless as a development tool. trust will be lost immediately and in most cases can never be restored. and many people feared that the data would be used for personnel and pay decisions.Y.M. Eg:1 One division of a large communications company began using 360 feedbacks for team development. those who opposed the program used their influence to eliminate it. Eg:2 A regional bank experimented with using 360 feedbacks for management development.B. T. and this trust must be earned.




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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Although it seems like performance evaluations should be a logical and productive part of an employee‘s development, they are often not anything more than ignored. 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. There is a way to do performance evaluations more effectively, a way to save the process from becoming disregarded. Multi-rater or ―360-degree‖ appraisals can provide an accurate and acceptable way to evaluate performance while saving managers time and effort. 360- Degree appraisals improve on any evaluation done by one person by combining ratings from many people who see different parts of an employee‘s performance. For example, direct reports probably have the best understanding of someone‘s delegating skills, while managers probably see someone‘s resultsfocus most clearly. To get a complete image of performance, then, data is gathered from others with various relationships to the employee. It often provides an eye-opening comparison that can serve as a good starting point for development. Gathering input from all of these points-of-view provides a fuller picture of someone‘s performance. In simple terms, 360-degree appraisals give a ―3-dimensional‖ performance report, whereas traditional performance appraisals only give a ―1- dimensional‖ report. Traditional performance appraisals often focus on goal attainment: how close did someone come to their sales goal, or did someone meet the minimum customer service rating. Most likely, there are only a couple of people in the organization who have the data to answer these types of questions. Because of this, goal-based appraisals limit the amount of input that is available for a
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360 DEGREE PERFORMANCE APPRAISL performance appraisal. 360-degree appraisals broaden the amount of usable input to target perceptions of an employee‘s effectiveness. This approach takes advantage of the various relationships represented in the group of raters. So, while typically only an employee‘s boss knows whether her/his cost-cutting goals were met for the most recent quarter, many more people will have perceptions of that employee‘s financial skills, diligence, fiscal responsibility, etc–all the things necessary to reach those goals. Also, by concentrating on competencies rather than goals, the data readily lends itself to personal development.  These features of 360-degree appraisals offer several advantages that help prevent it from just becoming ‗more to ignore‘:
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 basic concept in 360 Performance Appraisal of soliciting performance feedback not only from our supervisor but also from our customers, employees, peers and all whom we interrelate with in the course of doing our job, makes obvious sense. But organizations should have concerns about the 360 feedback concept in the context of a performance appraisal. Many organizations have jumped on this bandwagon without sufficient consideration. In looking at the 360 feedback performance review process, please consider the following: One -Feedback should be solicited continually: Performance "appraisal" is better called performance "review" since it is the closing stage of a performance management process which begins with the clarification of performance direction and expectations. A Performance Review is a review or comparison of actual performance during the review period, with the past direction, and an opportunity to set future direction (reviews are also used for formal documentation and for use in employee development, promotion and compensation decisions). A Performance Review is never the occasion for the employee to discover how well he's performed or to find out what was expected of him during the review period. The employee should be aware of that (his individual performance related to the performance expectations) continually throughout the review period. A Performance Review is principally between the employee and whomever the employee is responsible and accountable to. Realistically, in most organizations this is the "boss." At the review it would be insightful, and for some jobs essential, to review how the employee met client and/or peer expectations. 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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any employee feedback process which requires secrecy risks damaging healthy working relationships.Y. When we set up a system which assumes it must protect against deceit and retribution. Notwithstanding the substantial research evidence warning of the dangers associated with peer evaluations and their low validity. it can become self fulfilling. the anonymous survey unfortunately symbolizes that not only do employees take a risk if they raise problems or concerns directly with the supervisor. but also that it's not the supervisor's job to solicit such information.M. And as with suggestion boxes. Two . especially between employees and their supervisors. basic concern about this process can be summed up with these questions.B. Do effective salespeople rely on someone else to tell them. Do you really want to have a company with a culture that promotes the use of secret reports to assess and judge its employees? How can your organization pretend to be open. Aggregate data is then given to the employee in question and used as input to the appraisal and eventual rating of that employee. Four . especially so people can rate their peers and supervisor. honest and forthright when it uses secrecy and anonymity to measure the value of employees? Is this the way you want your business to run? Supervisors are also frustrated not knowing the actual source of employee concerns so that they can attend to the problem effectively. then measuring that and taking appropriate action on that feedback should be part of your job and included in your job's performance requirements. at year's end.S Page 56 . peers and subordinates. Essentially.360 DEGREE PERFORMANCE APPRAISL If knowing how others perceive you is important for the performance of your job.You Don't Need 360 to Include Feedback If you really want your employees to get performance feedback from the circle of people they work with. try T. including their customers.A Company Culture that Uses Secret Reports? A common approach to 360 Appraisal is to administer confidential surveys. It seems irresponsible to abdicate that to a third party. whether their customers were pleased with the service? And if relationships are so horrid that management can't get honest feedback directly from its employees. like an HR department or a survey company to do for you. then the real problem won't be solved by implementing a 360 Appraisal process. Anonymity is ensured and employees can comment in confidence about the performance of another employee or the boss.

One final caution. if salary level is linked to retirement pay. n require employees to regularly review (perhaps monthly) the results of getting feedback from others. the extra compensation will be expended for an undetermined number of years during retirement. but think twice before rewarding goal achievement with salary increases: (1) It's amazingly expensive. but every year afterward..B.Y. N determines what sort of feedback is required. Salary increases should be based on an established track record of achievement. with their own supervisor. as long as the person is employed. (3) The incentive is only temporarily effective. peers. peers or suppliers. etc. The salary differential is awarded not just once.M. Once a salary is increased. n teach employees how to give performance feedback to their supervisors. etc. Paying for performance results is a good idea. n teach employees how to use the tools (or questions) to get feedback from their subordinates. and. the full amount of the reward is distributed through dozens upon dozens of future paychecks. (2) The incentive doesn't have immediate impact.S Page 57 . and if possible develop tools to capture this information.360 DEGREE PERFORMANCE APPRAISL the following simple process: n make "soliciting performance feedback from significant others" a part of all employee jobs and therefore a performance requirement. it is perceived as a revision of the employment contract: fair compensation for defined levels of employment . so that the process becomes a priority and so that employees are held accountable for doing so. The motivation of a promised salary disappears immediately after it is awarded. customers. n teach employees how to make use of the feedback they receive. In addition. T. when a history of accomplishment indicates that the value of the employee in the career market place has increased.not as a reason to continue exceptional levels of performance. for example how to follow-up on their subordinates and customer concerns.

self-efficacy recipients do not often seek feedback -high need achievers and self-monitors desire feedback 2) Perception Of Feedback (positive or negative) Feedback can be either positive or negative and people tend to process positive feedback much better than negative.M. there is often a self-serving bias that is used more by those with high esteem for themselves than low.B. • Self: however.360 DEGREE PERFORMANCE APPRAISL IMPROVING PERFORMANCE WITH FEEDBACK REWARDS. AND POSITIVE REINFORCEMENT Opening thought: We need to work smarter. • 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 T. supervisors. • Task: the task itself is a source of feedback as to how well or not one does something.S Page 58 . Feedback: objective information about individual or collective performance how am I doing? How does this compare to others? Serves 2 functions: 1) instructional 2) motivational Three sources of feedback • Others: are peers. lower-level employees and outsiders.Y. Feedback must meet certain criteria to attain desired outcomes: 1) Desire For Feedback • depends on self-reliance • self-assessment ability • preference for external information Note: -recipients must be open to feedback -low self-esteem. not harder.

Newer organizational structures are trying new approaches (such as upward feedback and 360-degree feedback. effort.360 DEGREE PERFORMANCE APPRAISL 3) Cognitive Evaluation Of Feedback • accuracy. performance-reward expectancies. Nontraditional Upward Feedback and 360-Degree Feedback Tradition has been top down feedback especially in a hierarchical structure. fairness of system. reasonableness of standards • if do not meet these criteria will be rejected or downplayed • personal experiences dictates how these factors are weighed • often has a profound and lasting effect on behavior 4) Behavioral Outcomes Direction. meaning that a person can be evaluated from the top. etc. the side. outside the organization.S Page 59 .B. it will lead to resistance as well other negative actions. and perhaps resistance --Resistance is one outcome of feedback and one that needs to be managed. and persistence. from those below in position.M.Y. credibility of source. If the employee sees the efforts as manipulative. T.

S Page 60 . T. essential functions and characteristics that are critical to the individual‘s job.M. A good feedback program will generate trustworthy and clear suggestions of how employees and managers can improve by providing a solid plan of action. It can target precise information about areas employees need to keep up to date. It should also contribute a plan of action for the professional development of each individual. the intention of the feedback should help identify the weaknesses and strengths of the workforce.360 DEGREE PERFORMANCE APPRAISL 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.B. Properly applied 360 feedbacks can help employees improve performance and skills in the workplace.Y. It also aids in identifying the specific knowledge.

Managers typically only see a piece of the picture. HRsmart‘s 360-Appraisal Solution allows managers to extend beyond employee peers by gathering feedback from clients. HRsmart‘s 360-Appraisal Solution provides an easy method for gathering critical data. Peer reviews are a great way to determine who had leadership ability within a group by helping you identify employees who motivate others. 360-Appraisals can help managers more effectively pinpoint group leaders. Identify leaders. 360 appraisals provide insight into competencies and skills held by employees and can help employees better understand how the behaviors and attitudes they exhibit impacts those around T. set good examples and can be trusted by peers to do their part—traits that are often overlooked or hard to identify in team or group settings. When feedback is gathered from peers or outside contacts. a person‘s true value can become more apparent.Y.B. or vendors receive all of the information they need on the first inquiry.M. This strategic tool can help managers: Gauge employee performance. but what they don‘t see can be even more telling. vendors or others with whom they frequently interact.360 DEGREE PERFORMANCE APPRAISL 360 APPRAISALS | HUMAN RESOURCE MANAGEMENT 360-Appraisals.S Page 61 . Perhaps a customer service manager goes above and beyond every time they receive a call. also know as ―multi-rater feedback‖ or ―peer appraisals. Increase employee awareness.‖ can create a comprehensive view of an employee‘s performance.

HRsmart‘s 360-Appraisal solution is a core component of the Employee Performance Management solution.360 DEGREE PERFORMANCE APPRAISL them. Create and manage 360 assessments. This easy-to-use system allows appraisal owners to easily generate assessments.M. T.B. it can be purchased as a standalone application. however. Data can be captured in an employee‘s annual performance assessment with the option to include it in the overall rating. view and print the results. Contact a sales representative for more information.S Page 62 . particularly when direct peers and managers are involved and Human Resource Management.Y. then quickly edit. Anonymous feedback also encourages more open feedback and honestly.

and results .Assess where improvement is needed to achieve desired results . Ensure that performance goals conform to EEO guidelines: . the skills.If it was an individual effort. Reward team development as well as business results 3. specific goals . reward the individual 5. tracking and reward system simple: . Keep the goal-setting. outcomes.Related to specific corporate goals . Reward the people who do the work: . reward the team .Measure proficiencies in skills. and practices needed to successfully achieve goals. not routine performance . what increase or bonus is due Use 360 feedbacks to: -.Track and reward outcomes. behaviors.Create targeted development plans that increase capabilities and performance The best guidelines are the ones most commonly suggested by experts: 1.Linked to the person's responsibilities . based on performance. not process steps T.If it was a team effort. competencies.Establish measurements to determine outcomes and results .Set clear.S Page 63 .360 DEGREE PERFORMANCE APPRAISL GUIDELINES FOR USING 360 FEEDBACK AND PERFORMANCE APPRAISAL 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: Use performance appraisal to: .Determine.Measurable 2.Observable .Reward outstanding effort. competencies. Identify.B. behaviors and practices .Evaluate the degree to which outcomes and results were achieved .Achievable . Empower people to achieve the goals you set 4.M.Y.

M. evaluators and supervisors about purpose. It sounds good but there is no proof it works other than a lot of companies have tried it." T. Some of these are: Organizational climate fosters individual growth Criticisms are seen as opportunities for improvement Proper framing of feedback method by management Assurance that feedback will be kept confidential Development of feedback tool based on organizational goals and values Feedback tool includes area for comments Brief workers. decreases grievances or that it is superior to forced ranking and standard Performance Appraisal systems.360 DEGREE PERFORMANCE APPRAISL FACTORS LINKED TO SUCCESS Organizations that experience success with the 360-degree feedback methods have many environmental attributes present. increases retention.S Page 64 . Typical errors include: Feedback tied to merit pay or promotions Comments traced to individuals causing resentment between workers Feedback not linked to organizational goals or values Use of the feedback tool as a stand alone without follow-up Poor implementation of 360-degree tool negatively affects motivation Excessive numbers of surveys are required of each worker with few tangible results provided to individuals "There is no data it actually improves productivity.B. uses of data and methods of survey prior to distribution of tool Train workers in appropriate methods to give and receive feedback Support feedback with back-up services or customized coaching FACTORS LINKED TO FAILURE Many organizations have rushed into 360-degree feedback without laying the foundation for success.Y.

but also in India. conducted by the individual will also be included in the exercise. 360 degree. organizations are facing an unprecedented pressure to raise the bar of performance and continue to deliver to enable it leapfrog the competition.WHAT MAKES THE PROCESS DIFFICULT BY N. It all boils down to one vital imperative. The source. Though 360-degree approach brings slew of advantages in the wake of its implementation. 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.Y. were always the first off the block to come up with new approaches and methods to improve performance. internal and external customers. Companies may open a veritable can of worms. There is no gain saying the fact that it's an excellent process. Willy –Nilly. it has its fair share of naysayers who pan it mercilessly as a process that leaves a trial of blood both in the organization. ARAVAMUDHAN In a highly competitive market.R. If 360 degree were to be implemented in a haphazard manner. the company is setting itself up for a disastrous situation. if not implemented properly can have a calamitous consequence for companies. 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. 360 degree involves collecting feed back about an individual from multiple sources. Self-assessment. To put it succinctly. client reports. 360-degree appraisal has become current flavor of the season not only in US. Many experts argue that the right culture should prevail in the organization before introducing 360-degree approach. Widely touted as a great development tool.360 DEGREE PERFORMANCE APPRAISL Report On FLIP SIDE OF 360 DEGREE FEED BACK. peers. 360-degree feedback is increasingly finding favour with HR managers in Indian corporate landscape. suppliers. The fact that a competitor is doing it is good enough reason for others to follow the suit. But the nub of the issue is that it is not always successful. American companies. Debuted in US companies in 90's.S Page 65 .B.M. then morale will be hit hardest. 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. If people are not happy about the process. after having bloodied their hands in 70's and 80's when the US economy slid in to nadir. among others includes."How you do it is more important and critical than actually implementing 360 degree feed back". T. an individual's superior. One such innovative assessment tool was 360-degree feedback.

specific goals and measuring the actual performance against them. So performance appraisal and development tools are different from each other. Companies will have to assess its state of readiness vis-à-vis 360-degree system before taking a headlong plunge. Some employees may get excellent ratings. Trust and honesty gets short shrift. good enough to set the standards of performance and measure the progress made against it. 360-degree feedback is a developmental tool. As the employees grow and nurture their skill sets and competencies. teamwork are the few performance metrics factored in performance evaluation. coaching. Few employees may find themselves swamped by poor ratings. then it will be sitting on powder keg. In the light of these facts. Some staff will become soft target. Architecture of 360-degree tool is polar opposite to performance evaluation 360 feedback is a good process to zero in on and measure the skills. performance appraisal is an evaluative process. attitude. T. The result gets measured after determining a clear.S Page 66 . Proficiencies and competencies of the employees will spiral downwards. interpersonal skills. An eminently avoidable situation. employees can see through the larger game plan and may begin to subvert or circumvent the system to their advantages. If the organization tries to link both. If the 360-degree is linked to financial rewards. In fact 360 degree feedback works wonderfully well in measuring soft skills such as emotional quotients listening skills. Linking 360 degree feedback to promotion and salary decision is risk. companies will be able to turbo-charge its performance levels. So the purpose of 360 degree and performance appraisal are different.M.360 DEGREE PERFORMANCE APPRAISL making the situation muddier and murkier. and leadership. It is a modeled to help employees develop by providing feedback on their expertise in the remit of skills. Experts feel that this cannot be a real barometer of job performance. 360 degree feedback has a different use: Performance appraisal is a evaluative process used to determine the out comes or the end result.360 degree can also be adopted to identify the training needs. On the contrary.fraught Performance appraisal is used to decide upon salary hike and promotions. 360 degree is a development tool.B. It can also be used to assess the team cohesiveness and customer satisfaction. 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. behavior. competencies and practices required to do a job. Efforts. the process will have the stamp of failure written all over it.Y. If 360 degree feed back is tied to pay hikes and promotion decisions. Any attempt to dovetail 360-degree feedback into performance appraisal will have negative implications for the company as a whole. Competencies and behaviors.

people need training. Cynicism abounds Like a match fixing in the cricket.M. Employees may treat the whole exercise with disdain. This only obscures the picture further.Y. albeit of a different kind.360 DEGREE PERFORMANCE APPRAISL Lack of training could spell a trouble 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. there can be a "fixing" in companies also. Sub-ordinate feed back can help the bosses gain insight into their own strengths and weaknesses. The superiors blanch the possibility of sub-ordinates evaluating their performance. 360 degree feedback can be counter-productive if there is no right culture in the organization. The manager can never become responsive to the aspirations of his/her subordinate. Politicking may rear its ugly head. Even though the sub-ordinate evaluates the bosses in anonymity they may still give favorable ratings to the superior. If an individual don't get a good appraisal.B. Benefits will out strip the cost of training as the feedback delivered to participants becomes more targeted. as they know that the system is tainted and doctored. The process could plunge into uncertainty. intractable conflicts among the members could crop up. If the boss were to have less than five sub-ordinates in the rating pool. Employees may not come forward to provide feedback about bosses for the fear of reprisal.S Page 67 . Mud slinging and muckraking will become every ones favorite Pastime in the company. 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. Time and cost are the constraints Time and cost associated with 360-degree feedback is a real dampener. The fact that the sub-ordinates take a call on his/her performance is a frightening proposition for the bosses. the 360degree system may become unmanageable. In a bid to capture all the facets of employee's performance. gobbling up more time and high cost. T. To provide a constructive feedback. and launch a massive witch-hunt against the target. in order to avoid ruffling the feathers. it's easier for him to track down the source of negative feedback. Feedback will help employees identify a behavior that add or destroys value. Raters can collude with each others to muster enough numbers to get good ratings.

Adding 360-degree feedback to its performance management process gives Wyeth Consumer Healthcare insight into how staff achieve as well as what they achieve. They are research. these are not tangible but embedded in relationships and attitudes. integrity. rather than just T. respect for people.Y. the household medicine manufacturer's improvement manager.appraisers see less of their people.M. who has since moved on.everyone is busy . leadership and collaboration. unlike performance objectives. A particular problem for appraisers seems to be how results were achieved. the person's relationships. managers are inevitably less well-informed than 10 years ago. "But.B. What was achieved can be relatively easy to judge .360 DEGREE PERFORMANCE APPRAISL CASE STUDY: WYETH CONSUMER HEALTHCARE ." The programme The company decided 360-degree feedback would strengthen the review process by providing insights into how employees achieved. Appraisals are getting harder! People work flexibly in projects across the organization . So. The challenge Wyeth Consumer Healthcare (WCH) wanted to improve its performance management process but found judging some aspects of it presented a real challenge. approach and values. "Besides specific achievements. with a major focus on developing innovative new medicines that really make a difference to people‘s lives and address significant areas of unmet medical need.driven." says Don Sibley.AN ALL-ROUND APPRAISAL SUCCESS Wyeth is one of the world‘s leading pharmaceutical and healthcare products companies.results are usually much more visible.S Page 68 . when appraisal comes around. the review also records ratings of support for the company's values of quality.

M. "We addressed the issues of honesty and anonymity at short workshops. At the workshops. "Reviews are no longer based on one or two individuals' perceptions. by focusing on strengths that an employee T. inevitably." says Sibley. According to Sibley." he says.Y. They are also advised to consider choosing someone with whom their relationship could be improved. "It was important that executives showed commitment to it by using 360-degree feedback as part of their own performance management review." In the summer of 2007. He believes the 360-degree feedback really helped to open up a dialogue between manager and employee. a pilot scheme focusing on five senior and middle managers and opinion leaders was developed. 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. and get them resolved by reaching an understanding. 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.360 DEGREE PERFORMANCE APPRAISL what they achieved. honest discussions and. "Some were concerned people would not give the critical feedback that might lower appraisal ratings. the programme was extended throughout the company." THE HR VIEW Don Sibley was improvement manager at the time the process was developed." Questionnaires had to be pertinent for each level of staff and clarity was essential. along with their own views and those of their manager. "They have become much more open. the process would have lost credibility. people were able to express those concerns. or that individuals might seek out those who gave them critical feedback. WCH worked with provider Simply360 to develop a process for all 62 staff Some managers were skeptical. the feedback has changed the nature of performance reviews." explains Sibley. so to create champions for the process. some 360-degree reports have challenged managers' views about their team. "If executives were excluded. The relationship between appraiser and appraised has become more equal. Over a six-month period.B. The reviewers complete a short online questionnaire and the results form part of the report discussed at the review.S Page 69 .

" THE EMPLOYEE VIEW James Watson is group brand manager.360 DEGREE PERFORMANCE APPRAISL may have shown that may not have been quantifiable and therefore could have been missed by their manager. Don is confident that poor design creates both ambiguities that fuel arguments and complexity that obstructs productive discussions. Similarly. and then introduced it carefully." What's WCH's secret? Don Sibley. In particular. sharing reports and planning their personal development with others. you agree on three or four other people within the company. Senior managers helped shape the questionnaire.S Page 70 . a simple.B. has given me a much wider understanding of how staff are delivering for others and where issues of confidence lie. clear questions that provides pertinent. This ensures the process is transparent and readily understood. not IT. highlights three things… Good 360 Feedback designs. as well as suggesting ways I could make their life easier. their Training and Development Manager. "However. I benefited from feedback from the sales division that highlighted that I needed to get out into the field more often. WCH worked hard at developing their 360 Feedback process. and then piloted 360 Feedback by getting feedback themselves." he says and admits he found the prospect a bit nerve-racking initially. And. "Besides your own review and that of your manager. Last year. "I was aware of the concept of 360-degree feedback but had not experienced it before." he says. and reading other people's views on my team. At WCH that means training at all levels so people can feel confident their concerns are addressed. visual feedback report that everyone finds helpful. Intelligent implementation. very simple. the administration process to manage the project needed thinking through and planning. "About 90% of the project is about people discussing how they will use the information." he stresses. Coming at it from the other angle as a manager myself. the programme has to be supported carefully and has to focus on people processes. It is tempting to go for people you know you get on with who can be guaranteed to say positive things. We had to allow time to make things very. 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. "You're advised to go for a broad range.M.Y. marketing. unambiguous feedback. Sophisticated tools would be difficult to understand. asking for feedback. Taking things step-by-step enabled several T. " he explains.

80% of appraises and appraisers felt 360 Feedback had enhanced their annual appraisal. it created understanding and ownership of 360 Feedback across the business before was used in appraisal. It's not about determining appraisal ratings or pay. the appraise did or didn't deliver. 68% of people described their 360 Feedback as "a fair assessment of my performance".M.it's about understanding performance not determining appraisal ratings.B. then appraisal is straightforward.Y. Almost everyone (87%) said they gave honest feedback to others. Clear personal objectives. An anonymous survey of appraisers and appraises found… Most people said 360 Feedback made it easier to discuss performance both in terms of the company's values and the job. 360 Feedback in appraisal has been a huge success for them. Don says clear objectives make the role of 360 Feedback straightforward . perhaps more importantly. But. If personal objectives are clear.WCH discovered what worked for them. and crucially they remove 360 Feedback results from those key decisions. T. Clear objectives remove doubt and debate from appraisal rating decisions.S Page 71 .360 DEGREE PERFORMANCE APPRAISL improvements .

Under the 360-degree feedback system.Y. the employee is rated not just by his superiors. The new system has been co-developed with Ernst & Young and has been put in place recently. has listed a set of leadership competencies that are expected in a general manager." says Maruti's Chief General Manager (HR).S Page 72 .360 DEGREE PERFORMANCE APPRAISL CASE STUDY. With an increasing number of qualitative factors that affect employees at the workplace. it has prepared a questionnaire to which peers and subordinates can respond online. One company that has set itself on course to further democratizing and opening up its employee evaluation process is car market leader Maruti Udyog.B. their performance was being appraised only by the Directors and the Managing Director.M. Ernst & Young. Till last year. starting with its senior leadership. but also in manufacturing. the top-down approach to employee performance appraisal is also on its way out. Siddiqui.MARUTI UDYOG It would seem that there is no corporate human resources policy that has not had its share of controversies for being biased. in consultation with Maruti. The company has introduced a unique 360-degree feedback system. but also by his peers and subordinates. democratizing the performance appraisal process to make it as fair as possible has been the dream of every HR manager. whose performance will now be assessed based on feedback from their peers and junior management employees within the same department.Y. With cubicles giving way to open offices. And now qualitative factors are not just at play in the services sector. "We are starting the 360-degree feedback process with employees in the top management such as chief general managers and general managers. Mr S. T. Based on that.

The initiative has been unveiled with an e-mail by Maruti's Managing Director. asking people to support the online questionnaire process. when they are asked to offer their feedback about their superiors.M. called Human Resource Inter Divisional Committee (HRIDC).S Page 73 .Y. T. HR consultants feel that the critical issues in implementing such a system include assuring respondents that their feedback will remain confidential and convincing the person receiving the feedback that this is a development tool and not an appraisal tool. Mr Jagdish Khattar.B. which is consulted on all major HR issues. At the end of the process. Maruti currently has over 4.000 employees on its rolls.360 DEGREE PERFORMANCE APPRAISL Although acknowledged as an effective tool for leadership development in the West. 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. Maruti has handled this by getting E&Y and other consultants to make detailed presentations to the senior management personnel before the process got under way. he can compare his self-appraisal with the assessment of his subordinates and peers. The company has a committee of general managers. The 360-degree feedback system will also include a self-appraisal by the general manager. Indian companies have been shy of introducing such a feedback system for fear of disturbing traditional hierarchical structures.

Website: 5.B. Address: 3. what kind of training and for who? T. team and organization? 4) Which type of 360 degree systems do you use? • Paper-based either electronic paper or the real thing • Third party e-mail based system • Personal/telephone based • Off the shelf‘ can be purchased and run it in-house. 2.Y.M. 6. Position…………… II/ Appraisal info: 1) What benefits are you looking to gain from using 360 feedback? 2) How is it better than? • 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.360 DEGREE PERFORMANCE APPRAISL APPRAISAL QUESTIONNAIRE OF 360 DEGREE SYSTEM Appraisal questionnaire of 360 degree system I/ Company info: 1. Person Interviewed…. Tel: 4. Name of the Company……………….S Page 74 . 5) Can you explain the 360 degree process carried out in your company? 6) What is the role of the HR manager in this whole process? 7) Any training required in conducting this process? If Yes.

etc.Y.S Page 75 .? 19) How much access do people have to internet and e-mail? 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? 23) Who sees the individual 360 profiles? 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? 26) Who provides the internal administration of the system? T.B.M. observers.360 DEGREE PERFORMANCE APPRAISL 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? 11) How many observers for one individual? 12) Who administers this process? 13) How are the questionnaires distributed? 14) On what basis are the questionnaires made (competency or result)? What competencies do you measure? 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? 18) Who appoints or chooses the raters.

360 DEGREE PERFORMANCE APPRAISL 27) What mix of narrative and numerical data is required in the profiles? 28) What does the 360 degree report contain? 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? T.S Page 76 .B.M.Y.

coordinate them in time so that they support each other. When used with consideration and discipline.B. 360 feedbacks can be safely linked to appraisal in a performance management system by doing the following: 1. 2. Many of the more conventional performance appraisal methods have often proved unpopular with those being appraised and evaluators alike. Yet. Use satisfaction surveys to measure the hard-to-quantify results. T. 4. In addition. Hold people accountable for results. The combined effect of these outcomes should result in increased motivation. supervisors will feel the relief of no longer carrying the full burden of assessing subordinate performance. Link the measurement of results to appropriate rewards.360 DEGREE PERFORMANCE APPRAISL CONCLUSION The popularity of 360-degree feedback is undeniable. Link measurements of competence to appropriate development activities. 3. should be made carefully. the decision to employ this tool. the results can be detrimental. Use individual 360 feedbacks to measure the hard-to-quantify aspects of competence. It offers a new way of addressing the performance issue. which in turn improves performance. When this method is utilized in the wrong environment. the perceived benefits will help the personal development of workers only in the right organizational climate.S Page 77 .M. or another. Hold people accountable for their development. 5. 360 is gaining popularity with many managers and employees. With close consideration and evaluation of the environment. feedback recipients will feel that they're being treated fairly. Separate both processes.Y.

how can anyone expect coworkers to be more objective? T. And since supervisors have been challenged to give fair appraisals for decades and have not met the challenge satisfactorily. then 'ease it in' to using it for performance appraisal. But single-source (boss) feedback is only one of the problems that plague performance appraisal. get them used to 360.M.S Page 78 . "A multi-source appraisal is more effective than a single-source appraisal. but as I have emphasized repeatedly. Using multi-source feedback as a platform for appraisal is like putting a new horn and side mirrors on a junk car. and (5) Contribute to the team mission and its success. From a cost viewpoint this may sound like a reasonable idea." No matter how gradually you familiarize people with the process.360 DEGREE PERFORMANCE APPRAISL In light of this approach. (2) Upgrade their skills. 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. but the car still needs major repairs. (4) Resolve problems they may be causing. "We can start with the development-only approach. what would motivate anyone to take it seriously?" Most people want to remain competitive in the workplace. there are huge risks.Y. The solution is to take the prudent path. It's safer to drive. if you connect a 360 appraisal to compensation and personnel decisions. 360 feedbacks will no longer be useful for development. "If 360 feedbacks aren‘t linked to pay. When this happens. Feedback is important to people who want to: (1) See themselves as professionals. and they know that feedback gives them an edge." That's true. the typical rationalizations that encourage linking individual 360 feedbacks to pay and personnel decisions are remarkably unconvincing.B. (3) Find out what their coworkers already know about their weaknesses.

S Page 79 .Y. using it to trigger pay and other personnel decisions puts trust at risk. when used with care and good judgment.B. leaders are responsible for "managing" performance both competence and results. Performance appraisal and 360 feedbacks are tools that help leaders fulfill this responsibility powerful tool. Using 360 confidentially for developmental purposes builds trust.360 DEGREE PERFORMANCE APPRAISL Trust is at the core of using 360 to enhance productivity. Trust determines how much an individual is willing to contribute for an employer.M. T. Why would an organization consciously choose to jeopardize trust for the sake of convenience or efficiency? In the end.

indiamba.com www.com www.com www.uk/casestudies/performance-m.citehr.com HR Magazine T..managementparadise.B..Y..co.findarticles.com www.simply360.google.S Page 80 . www.360 DEGREE PERFORMANCE APPRAISL Bibliography: www.M.

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