Submitted to: Prof. Alston Rozario

Done by: SATISH KR. GOENKA Dept. No: 08-CO-380

Department of Commerce Loyola College (Autonomous) Shift II, Chennai 34

Performance Appraisal:
A performance appraisal, employee appraisal, performance review, or (career) development discussion is a method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost, and time) typically by the corresponding manager or supervisor. A performance appraisal is a part of guiding and managing career development. It is the process of obtaining, analyzing, and recording information about the relative worth of an employee to the organization. Performance appraisal is an analysis of an employee's recent successes and failures, personal strengths and weaknesses, and suitability for promotion or further training. It is also the judgement of an employee's performance in a job based on considerations other than productivity alone. Performance appraisal is a method of evaluating the behaviour of employees in the work spot, normally including both and quantitative and qualitative aspects of job performance. It is a systematic and objective way of evaluating both work-related behaviour and potential of employees. It is a process that involves determining and communicating to an employee how the job and ideally, establishing a plant of improvement.

Generally, the aims of a performance appraisal are to: 

Give employees feedback on performance Identify employee training needs Document criteria used to allocate organizational rewards Form a basis for personnel decision: salary increases, promotions, disciplinary actions, bonuses etc. 


Provide the opportunity for organizational diagnosis and development Facilitate communication between employee and administration Validate selection techniques and human resource policies to meet federal Equal Employment Opportunity requirements. 

To improve performance through counselling, coaching and development.

A common approach to assessing performance is to use a numerical or scalar rating system whereby managers are asked to score an individual against a number of objectives/attributes. In some companies, employees receive assessments from their manager, peers, subordinates, and customers, while also performing a self assessment. This is known as a 360-degree appraisal and forms good communication patterns. The most popular methods used in the performance appraisal process include the following: 

Management by objectives 360-degree appraisal Behavioural observation scale Behaviourally anchored rating scales

360-degree appraisal:
In human feedback, resources or industrial/organizational also known as multi-ratter psychology , 360-degree feedback, feedback, multisource

or multisource assessment, is feedback that comes from all around an employee. "360" refers to the 360 degrees in a circle, with an individual figuratively in the centre of the circle. Feedback is provided by subordinates, peers, and supervisors. It also includes a self -assessment and, in some cases, feedback from external sources such as customers and suppliers or other interested stakeholders. It may be contrasted with "upward feedback," where managers are given feedback by their direct reports, or a "traditional performance appraisal," where the employees are most often reviewed only by their managers. The results from 360-degree feedback are often used by the person receiving the feedback to plan training and development. Results are also used by some organizations in making administrative decisions, such as pay or promotion. When this is the case, the 360 assessment is for evaluation purposes, and is sometimes called a "360 -degree review." However, there is a great deal of controversy as to whether 360-degree feedback should be used exclusively for development purposes, or should be used for appraisal purposes as well. There is also controversy regarding whether 360-degree feedback improves employee performance, and it has even been suggested that it may decrease shareholder value.

A study on the patterns of ratter accuracy shows that length of time that a rater has known the person being rated has the most significant effect on the accuracy of a 360-degree review. The study shows that subjects in the group ´known for one to three yearsµ are the most accurate, followed by ´known for less than one year,µ followed by ´known for three to five yearsµ and the least accurate being ´known for more than five years.µ The study concludes that the most accurate ratings come from knowing the person long enough to get past first impressions, but not so long as to begin to generalize favourably. It has been suggested that multi-ratter assessments often generate conflicting opinions, and that there may be no way to determine whose feedback is accurate. Studies have also indicated that self -ratings are generally significantly higher than the ratings of others.

Who should conduct 360 degree performance appraisal:
‡ Subordinates. ‡ Peers. ‡ Managers (i.e. superior). ‡ Team members. ‡ Customers. ‡ Suppliers/ vendors. ‡ Anyone who comes into contact with the employee and can provide valuable insights and information.

What are 360 degree measures:
‡ 360 degree measures, behaviours and competencies . ‡ 360 degree addresses skills such as listening, planning, and goal -setting. ‡ 360 degree focuses on subjective areas such as teamwork, character, and leadership effectiveness. ‡ 360 degree provides feedback on how ot hers perceive an employee.

360 degree appraisal has four components:
‡ Self appraisal ‡ Subordinate·s appraisal ‡ Peer appraisal. ‡ Superior·s appraisal

Advantages of 360 degree appraisal:

For Employees:
‡ Can uncover hidden lights and blind spots. ‡ Feedback coming from a number of different people is more likely to be accepted. ‡ Helps individuals gain a realistic view of how others perceive them. ‡ Inspires people to take ownership of their own learning and development. ‡ Provides feedback in a quan tifiable form on a structured range of behaviours.

For The Team:
‡ It helps people understand how their behavior influences both their own personal effectiveness and how they impact the smooth running of the organization. ‡ Supports teamwork by involving team members in the development process. ‡ Increases communication between team members. ‡ Higher levels of trust and better communication as individuals identify the causes of breakdowns. ‡ Increased team effectiveness.

For The Organization:
‡ Better career development planning and implementation for employees. ‡ Improves customer service by having customers contribute to the evaluation process. ‡ Reinforced corporate culture by linking survey items to organizational leadership competencies and company values. ‡ Helps with training needs analysis.

THANK YOU!!!!!!!!!!