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360-Degree performance appraisals: An overview

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  1. Performance appraisals
  2. 360-degree appraisals
    1. History
  3. Components of the 360-degree appraisal system
    1. Self-appraisal
    2. Superior's appraisal
    3. Subordinates appraisal
    4. Peer appraisal
    5. Customer / supplier appraisal
  4. The process
    1. Accuracy
  5. Advantages
  6. Shortcomings
  7. Critical factors for success
  8. Conclusion
  9. References

Performance Appraisals is ?the systematic, periodic and an impartial rating of an employee's excellence in the matters pertaining to his present job and his potential for a better job ." Performance appraisal is therefore the process of obtaining, analyzing, and recording information about the relative worth of an employee, with the objective being to measure what the employee does and improve the potential of the employee.Performance appraisals help organizations judge the gap between the actual and desired performance of an employee and help management exercise control over the organization. The specific motives of an organization in conducting a Performance Appraisal exercise could be any or all of the following:
? To provide feedback to the employees regarding their past performance

? To provide clarity regarding the responsibilities of the role and the expectations of the company from the employee

? To strengthen the communication and working relationship between the employees and their managers

? To diagnose the strengths and weaknesses of the employee and identify the relevant training and development needs

? To provide information that would facilitate decisions such as promotions and salary revisions, and fixing the career path of the employees

? To judge the effectiveness of the employee related functions of the organization, such as recruitment, selection, training, and development.

[...] Appraisals by suppliers and customers The focal point of an enterprise being to satisfy the customer, it is a logical conclusion to measure the performance of an employee by the extent to which the customer is happy with the employee. Feedback from the customer is the best way to evaluate a success of those who interact with customers routinely, and it is the best way to identify potential problems that drives away customers. This feedback would consist of parameters like how well the employee could understand the customers need and try to fulfill it, his eagerness, and commitment in serving the customer, his communication skills, and his keenness in explaining matters to customers and solving their doubts. [...]

[...] Like all performance appraisal methods, 360-degree appraisals provide feedback on the employee's performance, judge the gap between the past and present performance, and help management exercise better organizational control. One major thrust of the 360-degree appraisals however lies in career development, especially pinpointing skills and competencies, and identifying training and development needs in areas that require improvement. The industry has not yet concluded on whether to confine 360- degree feedback exclusively for development purposes, or to use them for appraisal purposes as well[iii]. [...]

[...] Does 360-degree feedback negatively affect company performance? Studies show that 360-degree feedback may do more harm than good. What's the problem? HR Magazine, Jun 54-60. [xiii] Vinson, M. (1996, April). The pros and cons of 360-degree feedback: Making it work. Training and Development, April, 11-12. [xiv] Atkins, P., & Wood, R. (2002). Self-versus others' ratings as predictors of assessment center ratings: Validation evidence for 360-degree feedback programs. Personnel Psychology, 871-904. Gupta, Vinita. Is your organization ready for 360-degree appraisal? [...]

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