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360 degree feedback performance appraisal

Shweta Nahar, IILM-AHL

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.

A circle of stakeholders peers supervisor direct reports higher mg levels internal customers external customers vendors consultants self = 360.

360-degree performance appraisal has historical roots within a military context. During World War II, this trend was used as multiple-source feedback by the German military. Soldiers were evaluated by peers, supervisors and subordinates to provide insight and recommendations on how to improve performance. The first documented use of surveys to accomplish 360-degree feedback was in the 1950s, by the Esso Research and Engineering Company which is now under the Exxon Mobil umbrella. Furthermore, many companies began adopting the idea of 360-degree feedback. The most notable success story was General Electric CEO Jack Welch's use of 360-degree feedback. According to Fortune magazine, 90 percent of all Fortune 500 companies use some sort of multi-rater feedback. (GE, HP, Accenture, ABN Amro, Bank of America, etc.)

How does 360 Degree help ?

- Proper 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 to Implement 360 Degree?


360 Degree Review Feedback




360 degree feedback methodology

STEP 1 - The questionnaire
o Dimensions

to be judged Leadership, Team

player, Communication , Organisational Skills, Decision- Making, Adaptability, Expertise, Vision o The leadership heading, for example, is defined as: Shares a clear vision and focuses on achieving it; Demonstrates commitment to the organizations mission; Provides a coherent sense of purpose and direction; both internally and externally; harnessing energy and enthusiasm of staff.

Ratings are given by the generators of the feedback on a scale against each heading. Ratings may be supplemented by text comments. 1-2 : Least Skilled 3-4: Not a Strength 5-6: Appropriate Skill 7-8: A Strength Skill 9-10: An Exceptional Skill


Questionnaires are normally processed with the help of
o o

software developed internally. provided by external suppliers.

Graphical presentation is preferred over numerical presentation.

The feedback is often anonymous and may be presented to the individual (most commonly), to the individuals manager (less commonly) or to both the individual and the manager.

Action will depend on the purpose Development - Individuals/ Individuals & Managers Appraisal Managers/ Individuals & Managers Pay - H.R.


Define objective development, appraisal or pay Decide on recipients Decide who will give the feedback - the individuals manager, direct reports, team members, other colleagues, internal and external customers. Decide the areas of work and behavior on which feedback will be given Decide the method of collecting the data - the questionnaire could be designed in-house, or a consultants or software providers questionnaire could be adopted

Decide data analysis and presentation - aim should be to keep it as simple as possible. Plan an initial implementation programme - The pilot scheme will need to be launched with communications to those involved about the purpose of 360-degree feedback, how it will work and the part they will play. Training in giving and receiving feedback will also be necessary. Analyse the outcome of the pilot scheme Plan and implement full programme Monitor and evaluate

To the individual:
Helps individuals to understand how others perceive them. Uncover blind spots. Quantifiable data on soft skills. Information for enhancing career development Reduced risks of halo effects, stereotyping errors, etc.

To the team:
Increases communication. Higher levels of trust. Better team environment. Increased knowledge sharing Increased team effectiveness

To the organization:
Reinforced corporate culture by linking survey items to organizational objectives and company values. Better career development for employees Improves customer service by involving them.

People not giving frank or honest feedback Paperwork/computer data entry overload Incapability and lack of skill of managers Unclear statements or comments during feedback

8 Questions Companies Must Ask Before Using 360 Degree Feedback Is employee engagement and morale high enough to support a
feedback intervention? Is the organization supportive of talent development and coaching? Do managers get trained, rewarded and compensated to act as performance coaches? Do employees feel comfortable giving feedback? Has your organization had a bad experience with a prior 360-degree feedback intervention? Are people motivated to use the feedback they receive for their own professional growth and development? Does your organization have resources, training and other support to help employees create and implement professional development plans as a result of the feedback? Will employees be held accountable to discuss the results of their feedback with their bosses and to create a development plan?

10 must bes for success

Active support of top management Clarity about purpose & process Consistency in methodology Dependable anonymity Commitment to the process Understanding of the benefits to individuals as well as the organization Questionnaire items fit or reflect typical and significant aspects of behaviour Items in the questionnaire related to actual events experienced by the individual Comprehensive and well-delivered communication and training programmes Trust - the MOST important element runs through everything

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