360 DEGREE PERFORMANCE APPRAISAL SYSTEM

Overview
Performance Appraisal Concept of 360 degree appraisal Key features Implementation Rating Sources/ Participants Advantages and disadvantages Uses

Performance Appraisal
Performance Appraisal (PA) refers to all those procedures that are used to evaluate:
Personality Performance Potential of its group members

Objectives:
Provide a basis for promotion/ transfer/ termination Enhance employees effectiveness by helping to identify their strengths and weaknesses and Inform them about expected levels of performance Identify training and development needs Remove work alienation: Counseling Employees

360 DEGREE APPRAISAL -concept

Traditional PA: feedback between employees and supervisors Now with increased focus on teamwork, employee development, and customer service, emphasis on employee feedback from full circle of sources This multiple-input approach to performance feedback is sometimes called 360-degree assessment to connote that full circle. Research shows assessment approaches with multiple rating sources provide more accurate, reliable, and credible info.

Definition
What is 360 degree appraisal system?
Systematic collection of performance data on an individual or group, derived from a number of stakeholders being the immediate supervisor, team members, customers,subordinates, peer and self. Generates more accurate feedback by gathering information from people about an individuals performance as seen by the standards and expectations of their boss, self, peers, direct reports, and customers.

Examples
Bell Atlantic (1980)

Maruti

IBM (1980)

Infosys Johnson & Johnson Ltd(1980s) Wipro Technologies Ltd (Dec17th 2002)

Xerox (1980s)

KEY FEATURES
Usually based on a questionnaire, possibly web-based Choosing Appraisers Done by the individual employee Done by HR Done randomly Feedback is usually anonymous Appraisal is normally followed up with actions for individual improvement and development Not to be used for decision-making, only purpose is for employee growth Utilizes many stakeholders inside, and outside of, the organization

IMPLEMENTATION

 PHASE-I: organizational analysis PHASE-II: Questionnaire designing PHASE-III: making the staff aware PHASE-IV: conducting the activity PHASE-V: Analysis of data

RATING SOURCES -Superiors

CONTRIBUTION First-line supervisors often in best position to carry out full cycle performance management Superiors have authority to redesign an employees work based on individual and team performance Most Federal employees think that best ratings come from first-line supervisors

 CAUTIONS Relying solely on superiors reduces validity of performance feedback Superiors may not be in same location as employee, preventing them from having hands-on knowledge of the employees performance Training may be lacking on appropriate methods of evaluation

-Self Assessment
CONTRIBUTION Improves communication between supervisor and employee Particularly useful if entire cycle focuses on selfassessment; forces individual to keep track of successes and failures Develops ability to see ones self for what they really are Allows supervisor to have better handle on performance when it can not always be observed

 CAUTIONS Research indicates low correlation between selfratings and all other sources of ratings, particularly supervisor ratings Self ratings are consistently higher than other ratings If supervisors do not use appropriate feedback skills, the fact that a self-rating is higher than the supervisors may cause alienation and defensiveness

-Peers
CONTRIBUTIONS Peer pressure and peer approval more effective motivators than supervisors valid and reliable in rating behaviors and manner of performance tend to average out bias from other groups in the rating process Increased use of self-directed team encourages use of peer evaluation help move supervisors into a coaching role as opposed to a pure judging role

 CAUTIONS Should not be used to determine pay, bonuses, or promotions (creates animosity and prevents truthful responses from peers) anonymity of those providing feedback Choose the peers wisely -the peers must be very familiar with the work requirements and performance Can be time consuming Can cause tension among employees and breakdown of teams

- Subordinates
CONTRIBUTIONS Gives more comprehensive picture of employee issues and needs. Employees feel they have a greater voice in organizational decision making and, in fact, they do. Effective in evaluating the supervisors interpersonal skills. Combining various ratings, can provide the advantage of creating a composite appraisal from the averaged ratings all.

 CAUTIONS need for anonymity is essential Supervisors may feel threatened and perceive that their authority has been undermined. ensure that subordinates are appraising elements of which they have knowledge. Only subordinates with a sufficient length of assignment under the manager should be included in the pool of assessors.(>1 yr)

-Customers
CONTRIBUTIONS Serves as anchor for all other performance factors Combined with peer evaluation, this data rounds out feedback from all sources Ensures that the employees concentrate their attention on the customer

 CAUTIONS Only ask customers to evaluate outputs, not processes Customer feedback process is time consuming Dont ask the customer to evaluate a single employee, unless the customer has a direct relationship with the employee

ADVANTAGES
Little room for any discrimination or bias glimpse in to individuals performance improvement needs and development needs of organization. Enhanced cohesion in the team, better communication and improved productivity levels Front line employees can hone their customer skills owing to the feed back of the customers. This may enhance the customer service levels. Subordinates, derive enormous sense of importance and empowerment when asked to provide feed back about their superiors

 Decision making percolates down to the lowest echelons of an organization, making it truly participative Fosters a very open culture where giving and receiving feed back is common place 360 degree helps the organization to zero in on and leverage the overall strengths. Brings in more objectivity to the appraisal process and complements the traditional appraisal system

DISADVANTAGES
Time consuming and more complex. Requires training and significant change effort The problems may arise with subordinate assessments where employees desire to get the boss or may alternatively scratch the back of a manager for expected future favors. The organization implementing this must clearly define the mission and the scope of the appraisal. Otherwise it might prove counter productive. The culture shock that occurs with any system that creates change. must be taken care of.

360 degree assessment may be used for:

Self-development and individual counseling Part of organized training and development Strategic or organization development Employee appraisal Incentives

QUESTIONS ??

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