360 Degree Performance Appraisal: An Edge to Management


J. Chaithra
Management Student
Shirdi Sai Engineering College
Anekal, Bangalore

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 workspot, normally including both 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 is 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 decisions: 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.

360-degree appraisal:

360-degree feedback, also known as multi-rater feedback, multisource feedback, 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 center 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 (Waldman et al., 1998). There is also controversy regarding whether 360-degree feedback improves employee performance, and it has even been suggested that it may decrease shareholder value .

Benefits resulting from a 360 Degree system

* Decrease possibility of Biases
* Increased awareness of expectations
* Increased commitment to improve
* Improved self perceptions of performance
* Improved performance
* Reduced  "undiscussables"
* Employees enabled to take control of their careers

Example:360 Feed back at AAH Pharmaceuticals

AAH Pharmaceuticals utilizes a 360 degree feed back system that includes several  characteristics of a good system. To help ease employee concern, the company clearly outlined for employees that devlopment planning and feedback were the only purposes of the intrument, and information would not be used for any other purpose. Employees were also given the option of sharing information with supervisors. The system included gatheering performance rating from several sources through an automated on-line system of questionneres, ensuring that information was anonymous and confidential. After the results were obtained, participants attended a one-day meeting about the results away from the office that included one-on-one interpretation and discussion with the consultant  to initiate a development plan. Six-month follow-up meetings were held to review progrees toward developmental objectives.AAH found the process to be successful with a first group managers who went through the process and made plans for a broad rollout of the program for more employees to take advantage of development opportunities.In summary,the system utilized by AAH provides an example of several of the component of a succssful 360-degree feedback instrument.


Performance management, Herman Aguinis

360 Degree feedback and assessment and developmen centres by TV.Rao


J. Chaithra
Management Student
Shirdi Sai Engineering College
Anekal, Bangalore

Source: E-mail September 23, 2010




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