CASIRJ Volume 5 Issue 1 [Year - 2014] ISSN 2319 – 9202

360 Degree-Performance Appraisal Method

Dr. Rajiv Chopra

OSD-Principal
Delhi College of Arts & Commerce
(University of Delhi)

Abstract
360-Degree feedback is an appraisal that incorporates feedback from all who observe and are
affected by the performance of a candidate. 360-degree feedback will include direct feedback
from an employee’s subordinates, peers, and supervisors, as well as a self-evaluation. ‘It can
also include, in some cases, feedback from external sources, such as customers and suppliers or
other interested stakeholders. It has both advantages and disadvantages. The benefits of
implementing such a programme can only be realised if it is utilised in the correct
organizational climate with the appropriate expectations for success.

Organisations are created in order to achieve certain goals in the most effective and efficient
manner. The goals can be achieved only when employees put in their best efforts. The employees
will put in their best efforts when they are properly motivated and encouraged. But the question
is how to ensure whether an employee has shown his best performance on a job or not. The
answer to this question is “Performance Appraisal”. Performance appraisal or performance rating
is an objective method of judging the related work or ability of an employee in performing his
task. The primary purpose of performance appraisal is to provide feedback on an employee‟s
performance, to create a development plan for areas of improvement and to provide the basis for
promotion.

There are different methods of performance appraisal like ranking method, force choice method,
critical incident method etc. But all these methods have certain limitations. Hence people have
started opting for 360-degree method and it has been growing in popularity ever since.

In 2002, about 90% of fortune‟s 500 companies were using a 360-degree performance review
process. According to one study over one-third of the U.S. companies use inputs from
subordinates, peers and managers to provide a perspective on the performance. In India,
companies like Titan Industries, Dr. Reddy‟s laboratories, Bajaj Auto, State Bank of India,
Infosys, Wipro, Reliance and Compton Greaves are using this technology.

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National Thermal Power Corporation (NTPC) has introduced a 360- degree feedback system for
AGMs to appraise and evaluate their performance.

360-Degree feedback or multi-source feedback is an appraisal or performance assessment tool

that incorporates feedback from all who observe and are affected by the performance of a
candidate. 360-degree feedback will include direct feedback from an employee‟s subordinates,
peers, and supervisors, as well as a self-evaluation. „It can also include, in some cases, feedback
from external sources, such as customers and suppliers or other interested stakeholders.

360 degree respondents for an employee can be his/her peers, managers (i.e. superior),
subordinates, team members, customers, suppliers/vendors-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. 360 degree appraisal has four integral components:

1. Self-appraisal- It is an important part of 360 degree appraisal. It gives a chance to the

employee to look at his/her strengths and weaknesses, his achievements, and judge his
own performance.
It provides an opportunity to participate in evaluation process, particularly if appraisal is
combined with goal setting and improves the ratee‟s motivation. It s also used to evaluate
an employee who works in physical isolation. However, Self-appraisals tend to be more
lenient, less variable and more biased.

2. Review by the Subordinates- In this case the employees give their perception about
their superiors on the parameters like superiors ability to delegate the work,
communication, motivating abilities and leadership qualities etc.
Appraisal by the subordinate can be a useful input to the immediate supervisor‟s
development. The ratings are of great significance for the assessment of his leadership
qualities when used for that purpose. Subordinates know the extent to which the
supervisor actually delegates, how well he communicates, the type of leadership style he
is comfortable with and the extent to which he plans and organises. The use of this
appraisal may be useful in assessing an employee‟s ability to communicate, delegate
work, allocate resources, disseminate informations, resolve intra-personal conflict and
deal with employees on a fair basis.

However, this source of appraisal is more acceptable if the managers believe that their
subordinates are familiar with the job.

3. Review by Superiors- It forms the traditional part of the 360 degree appraisal where the
employees‟ responsibilities and actual performance is rated by the superior. This is the
most basic form of appraisal.

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CASIRJ Volume 5 Issue 1 [Year - 2014] ISSN 2319 – 9202

The Superior is considered to be the most fit candidate to appraise the performance of his
subordinates. There are a few reasons in support of this. First reason is, The Superior is
familiar with the individual‟s performance and he has the best opportunity to observe
actual job performance. Another reason is that the superior has the responsibility of
managing a particular unit. When the task of evaluating a subordinate is given to another
person, the superior authority may be undermined seriously.

4. Review by Peer- This appraisal include the correct feedback given by peers. It can help
to find employees‟ abilities to work in a team, co-operation and sensitivity towards
others. In some jobs, the superior may observe a subordinate‟s actual job performance
only rarely. Peers can provide a perspective in performance that is different from that of
superior. Closeness of the working relationship and the amount of personal contacts place
peers in a better position to make accurate assessments. However, friendship/animosity
may result in distortion of evaluation.
Peers are in a better position to evaluate certain facts of job performance which the
subordinates/superiors cannot do. Such facts include contribution to workgroup projects,
interpersonal effectiveness, communication skills, reliability and initiative.

 It provides complete and accurate assessment of the employee competencies, behaviour

The advantages of 360 Degree appraisal are as follow:

and performance outcome.

 Improves credibility of performance appraisal.
 Opinions gathered from lots of staff are sure to be more persuasive.
 Offers a more comprehensive view towards the performance of employees.
 People who undervalue themselves are often motivated by feedback from others.
 Colleague‟s feedback will help strengthen self-development.
 Increases responsibilities of employees towards their customers.
 The combination of ideas can give a more accurate assessment.
 If more staff take part in the process of performance appraisal, the organizational culture
of the company will become more authentic.
 Not only the manager should make assessment on its staff performance but other
colleagues should do, too.
 Transparent and bias free.

Disadvantages of 360 degree appraisal:

 Extension of exchange feedback can cause troubles and tensions to several staff.
 It takes a lot of time, and is complex in administration.
 Feedback can be intimidating and cause frustration and resentment.

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CASIRJ Volume 5 Issue 1 [Year - 2014] ISSN 2319 – 9202

 Feedback from all sources can be overwhelming.

From the above discussion, it is clear that 360- degree has both advantages and disadvantages.
The vivid benefits of implementing such a programme can only be realised if it is utilised in the
correct organizational climate with the appropriate expectations for success. But the results could
be detrimental in the improper or unfavourable environment without proper training of
employees and raters.

Bibliography:-

1. Linman, Terri. 360-feedback: Weighing the Pros and Cons.

2. Maylett, Tracy M, Riboldi, Juan M. 2006. The 360 degree dilemma.
3. Fundamentals of Human Resource Management, Dr. V.S.P. Rao, Scholar Tech. Prev.
4. Human Resource Management- Concept and Practices, Gopal Ji, J.P. Mahajan and
Poornima S. Talwar, Pearson.
5. Brett, J.F., Atwater, L.E. (2012). 360-feedback: Accuracy, reactions and Perceptions of
usefulness.

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