360 Degree Appraisal

What is 360 Degree Appraisal?

360-degree Appraisal is an assessment process used to improve managerial effectiveness by providing the manager with a more complete assessment of their effectiveness, and their performance and development needs.

360 Degree Appraisal

-Advantages: -Reduces bias & Fits well with TQM initiatives
-Disadvantages: -Complex -Raters may not provide fair feedback -Ganging up -Disagreements

What the process involves

Obtaining feedback from the manager's key contacts. These would normally include:
o o o o o o

The manager him/herself Subordinates (employees who work for the manager) Peers (fellow managers) Managers (senior management) Customers Suppliers

How does 360 Degree help ?

-Regular discussion of performance -Identification of strengths for career development -Identification of weaknesses for training -Salary recommendations - A well designed performance appraisal system is associated with increased profitability

How is Feedback obtained?

By using a questionnaire which asks participants to rate the individual according to observed behaviors - usually managerial or business-specific competencies.

This process will not suit all companies. One should assess how well it would fit with the current culture before launching a scheme and a pilot scheme is worth building into the programme

Why 360 degree Appraisal Programs Fail?

No perceived benefit Confrontation difficult Constructive feedback difficult Conflict between development and compensation

How to Implement 360 Degree?

Planning

360 Degree
Review

Piloting

Feedback
Implementation

Feedback

Effective appraisal programs . . .

Comply with the law To ensure that the performance appraisal system does not violate principles of fair employment practices: - Job related performance standards - Provide employees with a written copy of the standards before the appraisal - Standards must be based on observable or measurable behaviour - Train the raters - Provide feedback - Implement an appeal system to settle disagreements

Suggestions for an effective 360 degree appraisal

Anonymous feedback Manager involvement Prevent gaming Statistical techniques Avoid and reduce biases

Training Appraisers
Train appraisers to eliminate rater error
Error of central tendency Leniency or strictness error Recency error Contrast error Similar to me error

Performance Appraisal Methods

Trait Methods
Graphic rating scales Mixed standard scales Forced choice method Essay method

Behavioural Methods
Critical incidents method

Behavioural checklist method

Behavioural anchored rating scales (BARS) Behavioural observation scale (BOS)

Result Methods
Productivity measure
MBO

Conducting the Appraisal Interview

Ask for self assessment Invite participation Express appreciation Minimize criticism Change behaviour, not the person Focus on solving problems Be supportive Establish goals Follow up day-to-day