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Slide1: 360 Degree Appraisal What is 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. Slide3: a 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: What the process involves Obtaining feedback from the manager's key contacts. These would normally include: The manager him/herself Subordinates (employees who work for the manager) Peers (fellow managers) Managers (senior management) Customers Suppliers Slide5: 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 Slide6: 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 Slide7: Why 360 degree Appraisal Programs Fail? No perceived benefit Confrontation difficult Constructive feedback difficult Conflict between development and compensation How to Implement 360 Degree?: How to Implement 360 Degree? 360 Degree Feedback Planning Piloting Implementation Feedback Review Effective appraisal programs . . .: 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: Suggestions for an effective 360 degree appraisal Anonymous feedback Manager involvement Prevent gaming Statistical techniques Avoid and reduce biases Training Appraisers: 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: Performance Appraisal Methods Trait Methods Graphic rating scales Mixed standard scales Forced choice method Essay method Behavioural Methods: 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: 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

The 360 Degree Performance Evaluation Process

Managing human resource capital is now mission critical. One of the most effective tools for managing human resources is the 360-degree evaluation process. Traditionally, an employee is evaluated from a sole source (1 degree), namely the immediate supervisor or manager. However, employees interact with numerous sources: Co-workers, customers, Managers outside the employees department, vendors, contractors, and others. The 360- degree evaluation process relies on these multiple sources, providing a more balanced and objective approach to measuring employee performance. This leads to higher productivity, better customer service, and enhanced organizational performance. Every published report recommends multiple as opposed to single raters for performance appraisal. John Bernardin, Author & Expert on Performance Appraisal When you tap into an employee's circle of influence, you will have a major impact on changing employee behavior. Additionally, employees often respect the feedback of co-workers more than their respective supervisor. A survey of Coca-Cola Foundation employees indicates that over 90% of employees prefer evaluations that include both co-worker and supervisor. Only 4% of employees chose to have their performance evaluations performed by the supervisor only. Surveys are often used for collecting the feedback used to evaluate the employee. It is very important to keep surveys short and to the point. A few open comment questions can be included. However, you need an objective way of scoring the surveys. It is also important to maintain anonymity; i.e. receivers of the surveys should not know who provided the information. Likewise, the information received must be controlled so that confidentiality is maintained. Example of Survey Questions for Evaluating Employee Performance : Assign a score of 1 to 10 for each of the following questions. 1 is the lowest score (strongly disagree) and 10 is the highest score (strongly agree). N for Don't Know Score 1. Performs day to day activities in a timely and accurate manner. ____ 2. Communicates effectively, both orally and in writing ____ 3. Demonstrates initiative for solving problems ____ 4. Directs and leads others in a positive way ____ 5. Coordinates and manages time, people and other resources well ____ As with any new approach to managing people, the 360-degree approach requires careful planning. For example, training is a must since employees will be apprehensive about how this new evaluation approach will work. Training should address fundamental questions, such as what is the 360 approach, why is the organization adopting it, who will be doing the evaluations, how will the information be collected, etc. The design of a 360-feedback process should actively enlist the employee. In fact, the employee should select their own evaluation team, consisting of no more than six targets (co-worker, supervisor, customer, etc.). Design of the surveys for feedback is also important since traditional approaches will not fit: Traditional Survey . . . . . . . . . . . . . . . . . . . . . . . 360 Feedback Survey Single Target Audience . . . . . . . . . . . . . . . . . . . Numerous Targets (all employees)

Numerous Responses . . . . . . . . . . . . . . . . . . . . Few Responses (5 to 7) per target Response Rates may be low . . . . . . . . . . . . . . . Need High Response Rate for Objectivity Respondent may be known . . . . . . . . . . . . . . . . Respondents must be anonymous Survey may be long . . . . . . . . . . . . . . . . . . . . . .Survey must be short (less than 20 minutes) Distributed through traditional ways . . . . . . . . . . Electronic distribution is common Control over surveys is low . . . . . . . . . . . . . . . . Control must be high for confidentiality Consistent rules must be adopted to make sure the process is fair for all employees. For example, you will need rules on when to throw out invalid survey responses. Some companies consider a survey as invalid when the individual response is more than 50% different than all other responses. Minimum levels are also needed for acceptance of surveys. For example, a required response rate of 75% is common where employee compensation is linked to 360 feedback results. This article has touched on some of the basics behind the 360-feedback process. Multi-source systems, such as the 360 feedback, are more objective, accurate, creditable, and influential than traditional single source systems. By tapping into sources closet to the employee, we can better motivate and manage the employee. And since employees are at the center of organizational performance, we need fair and accurate methods for evaluating employee performance. The 360-degree feedback model is one of the best methods for driving employee performance and satisfaction.

The pros and cons of different models of performance management

Among the modern enterprise management, enterprise management is the core of strategic management, strategic management is the core of human resource management, human resources management is the core of performance management. Can be said that the overall management of all company operations are performanceoriented, all around performance and expanded. Therefore, we study the principle and mode of performance management is very important, not only can choose to determine a suitable mode of enterprise performance management, performance management can also enable enterprises to achieve strategic business objectives set. The current enterprise performance management mode has 360 of the Comprehensive Assessment, KPI-based performance evaluation, performance evaluation based on BSC, based on objective performance appraisal, assessment director report on his work to the value stream as the Centre's performance evaluation and other evaluation models, all of everything assessment methods is also based on an extension of these models and modifications. 1. 360 Degree Assessment 360-degree evaluation, also known as multi-perspective assessment or more of the assessment by examination, assessment by examination, but who's superior, subordinate, peer and external evaluation are, such as suppliers and clients. Can be said that the main assessment is very comprehensive in their inspection, the formation of qualitative and quantitative evaluation results, positive feedback to the relevant departments and by examination who, to achieve behavior change, the purpose of improving performance. Implement 360-degree assessment to note the following

1. Ensure that assessment's diversification, and the main examination and assessment process is fair. Because the examination for the same job is, he who must be unified assessment determined not appear the same position of different staff to those who carried out the examination of different assessment. 2. The implementation of anonymous assessment examination In order to ensure true and reliable assessment results, we say that the entire examination process, must be implemented anonymous assessment. 3. Assessment must be based on competency Competency refers to those who can work with the outstanding performance of average individuals who distinguish deep-seated characteristics of potential. We can not put all the acts of employees, including qualitative and quantitative overview and assessment are 11, we only need to play a major impact on employee performance to describe the key actions and assessment on it. Therefore, our 360-degree assessment to be undertaken, we must establish internal job competency assessment model. 360-degree assessment of the advantages are: 1. Reduce the assessment error, the relative effective examination results Because the subject is a wide range of assessment, it appears in the examination results on the relatively fair, and staff to accept the more easier. If an assessment were not talking, but who together speak more than assessment, it can not any more. 2. Can feel enterprises attach great importance to staff performance management To multiple subjects involved in assessment, to mobilize staff and resources of many departments, so in terms of overall drive performance management, employee participation and awareness for the importance of assessment is a certain degree of boost power. 3. Can motivate employees to improve their comprehensive quality and ability Now elements of the assessment may also be diversified, the overall quality of staff required is relatively high, to get good test results, all have strict demands on themselves. Conducive to promoting the overall rapid growth of employees, help enterprises to improve the overall level of human resources. However, the implementation of 360-degree assessment method presents its own disadvantages: 1. High cost Because the assessment of human resources involved, and other more resources, but also a longer period, the time cost and job losses are bound to exist, so the overall sum of explicit and implicit cost is relatively high. To assess many companies convenience, are reluctant to adopt this assessment model. 2. Because the emphasis on comprehensive assessment, the qualitative component, whereas the less quantitative components. We say that a department or a staff to reflect the performance level and the advantages and disadvantages, to a certain extent, is produced according to specific quantitative performance measure, with qualitative very subjective assessment, so we say that inside the target assessment quantitative indicators of qualitative indicators should be compared to more truly reflect the level of performance. 3. Sector jobs because of the number and positions are different in nature, would produce a certain unfairness Very simple, small departments, and few departments dealing with the external examination results confirmed with the major departments, deal with daily work and external examination results may vary greatly. Because the number of examination subjects and the limitations of the outcome of the decision of the assessment there is a certain deviation, which we also attach importance to. 2. KPI Performance Evaluation

KPI means key performance indicators, note here that the key performance indicators, rather than the general performance indicators, but also a key influence on performance indicators that part. How to define performance indicators which are inside the key performance indicators, which are general indicators, based on the company's strategic goals to get down to every level. In fact, corporate strategic objectives KPI indicators of decomposition, and in the process of concrete results. It acts for corporate control constraint management, communication plays an important role in enterprise efficiency. We say that an employee engaged in work behavior into effective work behavior and work behavior is invalid, we implement KPI is to find effective working employees what behavior is, and requires the effective conduct themselves in accordance with guidance and restraint, to prevent business performance ineffective behaviors. There are three ways to determine the KPI, the benchmark Standard Law, the key to success analysis and strategic objectives of decomposition. KPI then the advantages of performance appraisal what is it? 1. Targeted help companies achieve strategic goals KPI is a corporate strategic goals down to every level KPI targets through the integration and control to conduct employee performance and business objectives and requirements of conduct consistent to warrant the deviation, enabling the company to ensure that strategic objectives. 2. Customer value concept proposed KPI is to promote internal and external customer value for the company to achieve the idea of an enterprise to form a market-oriented business ideas have a certain upgrade. 3. Conducive to organizational and personal interests to reach agreement Strategically target decomposition, the company became a strategic goal of individual performance objectives, personal performance in achieving individual goals, it is also in achieving the company's overall strategic objectives, to achieve harmony between the company and the employees win-win outcome. At the same time KPI is not perfect, there are shortcomings, mainly the following: 1. More difficult to define KPI targets KPI more inclined to quantitative indicators, these quantitative indicators are truly critical to enterprise performance produce effects without the use of specialized tools and instruments, it is really difficult to define. 2. KPI assessment are being diverted to make way mechanical assessment Over-reliance on assessment indicators, without taking into account human factors and flexibility will result in a number of assessment on the dispute and disagreement. 3. KPI is not applicable for all positions are We say that a specific number of positions, using KPI is not very appropriate, some functions such as type of job, it takes a long time out of the performance cycle, and explicit performance behavior is not obvious, the use of KPI is not well suited to examination. Also reminded assessment workers, when in the use of KPI must be in the company has sufficient communication, enable departments and the employees themselves first of all recognize myself in the KPI targets before they can come Jinxing assessment, Keyidatai Jianqingkaohe resistance, but also guarantee the results of the examination widely recognized. 3. Performance evaluation based on BSC BSC is the USA, Professor Kaplan founded, according to surveys, in the current world top 500 enterprises in 70% of businesses have used the BSC, shows its true performance management and operation of enterprises have a certain role. It includes four assessment dimensions, internal operations, customers, learn and grow and finance. However, we reflect in our country, the use of BSC if it works, how to digest it into a localized assessment means and tools are worth considering. BSC's implementation has the following advantages:

1. Strategic goal decomposition, the formation of specific measurable indicators. Corporate strategic goals as it sounds abstract, but also a wider aim, how it is refined, specific, internalized, it acts to implement them to the specific work, BSC to help solve this problem. 2. BSC into account the assessment of financial and non-financial factors, but also consider internal and external customers, but also short-term benefits and long-term interests of each other. Previous assessment tools and instruments tend to consider the financial, internal, and short-term interests and more examination elements, while ignoring the enterprises for a long, non-financial, external evaluation element of this appraisal is one-sided, and also certain of the unfairness, collecting assessment information is also not completely symmetrical. Also has the following shortcomings: 1. BSC difficult to implement, a large workload First of all, accurate positioning of the company's strategy in itself the management of the quality of senior management demanding, but also at all levels of strategic management and HR practitioners to be very strong decoding ability. And BSC Kaolv assessment factor is very complete, causing a lot of work, execution expertise rating of high, Other In case enterprises do not have the complete specification of the management platform does not have the relevant quality of the management of people and HR professional staff, was hard to promote the BSC's. 2. Can not effectively assessing individual BSC's own goal decomposition is difficult to decompose to the individual, the goal is to position the core decomposition. Reflect the key quality requirements of individual expression is not obvious to a certain extent, caused by the quality of job responsibilities and requirements are unclear. 3. BSC system, large, short-term is difficult to reflect its strategic role in promoting Because the strategy are long-term planning areas, therefore, the implementation of the BSC is a relatively longer period and should be accurately described as a systems engineering point of the short term, it is difficult to see the results, but also to mobilize the resources of the entire company. 4. Object-based performance appraisal assessment model primarily aimed at some of the work and the work of Xing Wei Cheng Guo difficult to quantify, compare Ge Shi Yun Yong such Fangfa objective is to measure organizations, departments and Geti on the effectiveness of , how Shi Quanti staff and all departments to actively take the initiative, find ways to Di The overall objective of the organization work hard to become the key decision of the effectiveness of management activities. Management by objectives is the management guru Peter Drucker first create the research, now extensively used in the management of various agencies and organizations practice, is a common method of performance appraisal. It is mainly through the performance targets set, to determine the time frame for completion of performance goals, then compare actual performance and the performance gap between goals and make up the gap before re-design of the new performance targets to achieve this objective a process management cycle. On the goals set here is not specifically addressed, then talk about the Target Management Performance Assessment Model advantages: 1. Target management performance targets and easy to measure decomposition In the implementation of management by objectives in the performance targets is often correspond to the decomposition, the overall goal of decomposition from the company to the department, and then decomposed to the individual from the department, responsibilities and rights clear. Assessment on the target while the target is both easy to measure, the more dominant performance components. 2. Better assessment of the openness Because the assessment is based on the departments and staff to set goals, so the effectiveness of the appraisal done on how to complete the degree, completed quantity, is open and fair, not too many people there is subjectivity in it.

3. Promoting interpersonal communication within the company Because goal setting is the communication between supervisors and subordinates to achieve, and in the revision and evaluation were also communication, so the employees within the company, improved relationships between is very helpful. Of course, the objective management assessment method is inevitable there are some shortcomings: 1. Inadequate guiding behavior As to goals, but often overlooked in the process of reaching targets in lower or subordinate departments of the guidance, sometimes as long as the results appear not to process the phenomenon. We say in the management of which, the management process and the results are equally important. 2. There may be objections to setting goals Because goal setting is higher and lower levels of communication, co-determined, so inevitably there is the phenomenon of bargaining, set the target size may be subject to human relations. And sometimes will find how to set specific goals, there is a certain uncertainty. 3. Set the goal of short-term goals, ignoring long-term goals We say that target management is mostly for short-term goals, so there is some assessment is feasible, but in the long-term objectives, it is very difficult short-term assessment. Based on the charge of trip patterns and the use of relative value stream model in terms of previous performance management, utilization in practice slightly less, no more comment here. In a word, for business is the best, for various assessment models are not perfect.

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