Business Definition for: 360 Degree Appraisal

The management style indicating a preference for focusing on the

task or people side of management .

The Great Debates About 360 Degree Feedback

In the great 360 degree feedback debate, do members of the
organization provide 360 degree feedback anonymously or
face-to-face? Do 360 ratings affect performance appraisal
ratings and salary increases or are they used to provide
employees feedback for development? These and several
other debates rage on in the performance management...

Does 360-Degree Feedback Negatively Affect Company

Performance
In the contemporary business era, the 360-degree feedback
appraisal system is in vogue. 360-degree feedback is a multi-
source feedback mechanism in which each employee, right
from the manager, and the peers evaluate and appraise the
employee. Such feedback system gives a multi-dimensional
perspective on the employee performance.

360 feedback, Leadership, Management Style and Performance

Improvement
This article is to find new strengths and productivity through
employee empowerment came the idea of performance
appraisals from subordinates as well as superiors – “360-
degree feedback.” It also involves three common ways of
getting 360-degree feedback. It also includes set of questions
before implementing 360 feedback and options of...

1
Giving Feedback on Management Style: The three degrees of
360° feedback
Traditionally, feedback on management style has come from
the top down, either as part of a yearly performance appraisal
or after a particularly disastrous event. A newer approach
considered the idea that a manager ought to receive
management style feedback from more than one source and
from people who knew...

Using 360-Degree Feedback In A Talent Management System

The method of 360-degree feedback involves the use of
multi-rater feedback systems. The method is popular with
training professionals and human resource departments. The
360-degree feedback method supports the development of
management and leadership skills. It also helps in assessing
the strengths and weaknesses of employees and provides a
basis...

360-Degree Feedback Best Practices To Ensure Impact

From the executive summary: ‘The 360-degree feedback
process, in which subordinates, peers, bosses, and customers
provide behavioral and performance feedback to recipients
has become ubiquitous in management and human resource
development practices.’ The paper presents the best practices
adopted by the organizations with regard to the feedback
techniques.

360 Degree Feedback: The Good, the Bad, and the Ugly
Implemented with care and training to enable people to better
serve customers and develop their own careers, 360 degree
feedback is a positive addition to one's performance
management system. Started haphazardly, because it's the
current flavor in organizations, or because "everyone" else is
doing it, 360 feedback will create a...

2
A 360-Degree Look at 360-Degree Feedback
The general consensus of those interviewed was that, a 360-
Degree Feedback is good in theory but weak in practice. If
done poorly, the organization risks discouraging and
frustrating people; at the very least, resources are spent on
feedback that is then dismissed as having missed the target.

The Dangers Of Using 360° Feedback For Performance

Appraisal
There is a rising demand in organizations for improved
performance and results. Nowadays, organizations in all
sectors, including government, are similarly challenged to
operate more efficiently and effectively. Raising individual
and team performance levels is central to this process and
360° feedback is increasingly used as part of the solution....

The 360-Degree Audit: Early Warning Device for High-Risk Audit

Teams
This article is about risky behavior in audit teams that is to
adopt the 360-degree assessment, an approach businesses
have been using for decades. As the name implies, a 360-
degree assessment looks at an individual or team from every
perspective. The 360-degree assessment is particularly useful
for learning what’s going...

Using 360-Degree Feedback To Evaluate Performance

The 360-degree assessment points out blind spots
individuals, team members, and managers cannot see about
themselves. Depending on the maturity level of the
individual, this revelation comes as a blessing or a curse.
Assessment results should be facilitated in a way that leads to
a complete process of improvement. Follow-up...

3
Retooling 360s For Better Performance
From the executive summary: ‘The 360-degree feedback tool
combines input from supervisors, peers, and direct reports to
provide a broad perspective on an employee's strengths and
developmental needs. It has insinuated itself into the
performance appraisal processes at an increasing number of
companies. But as some firms are discovering, the...

Beyond 360 . . . Adding Suitability To The Mix

The case study says that 360 degree feedback (360) is a
method of collecting, summarizing and reporting confidential
information on a variety of job-related factors from an
individual's immediate work contacts. A variety of excellent
assessment tools are available today that profiles an
individual's natural tendencies, talents and strengths. ...

COMPANIES EVALUATE EMPLOYEES FROM ALL

PERSPECTIVES
The article discusses that companies are turning to 360-
degree appraisals which pool feedback from both internal and
external, customers to receive a broader, more accurate
perspective on employees. The supervisor still has the
ultimate responsibility for the appraisal and ensures that the
appropriate raters are selected, thereby preventing the ratee...

Assessment Alternatives: Appraising Organizational Performance

The 360-degree competency assessment has become the
default process used by human resources professionals to
provide feedback to employees regarding their performance.
Employees are expected to study the feedback so as to figure
out their strengths and weaknesses and to develop a plan to
strengthen their productivity and effectiveness.

4
Interviewing Principles And Practices
The focus of this presentation is upon performance interview.
The various topics, which have been covered in this, include:
new visions for new organizations, preparing for the
performance interview, selecting an appropriate review
model, conducting the performance review interview. There
are various ways of evaluating this interview. Some of
these...
Today's retail managers begin and end their long workdays
facing a multitude of job responsibilities. Delegating tasks,
moving inventory, helping customers, and implementing
sales promotions are just some of the duties facing these
front-line leaders. The performance of the store or outlet
often rests squarely on the retail manager's shoulders....

Developing Effective Leaders

The article says that the New World has rendered the
traditional "boss-down" appraisal extinct, and a new, and
more appropriate, approach to assessing management
competencies that lead to performance has emerged. That
new approach is variously called "multi-rater feedback,"
"reverse appraisals," or, most commonly, 360-Degree
Feedback.

Staff surveys, 360 degree feedback, employee surveys and

organisational surveys are powerful ways to ensure organisations
and people are performing and developing to their potential.

5
Flexible feedback and survey options
Full Circle Feedback offers a flexible range of quality services in
the field of staff surveys, 360 degree feedback, employee surveys
and organisational surveys. We can manage the project for you or
you can buy the software and do it yourself.

Staff surveys/employee surveys

• Customised or standard staff surveys

• Customised or standard reports
• Employee survey; Employee Attitude Survey
administration
• Exit surveys; Culture surveys; Employee Opinion
Surveys

6
 360 degree feedback

• Customised 360 degree feedback surveys

• Standard surveys
• 360 degree feedback administration (multi source
feedback, 360 degree assessment)
• Feedback debrief and coaching services

7
Why It's Important
Measures a leader's skill in the 22
Core and Adaptive leadership
competencies most critical for job
performance. Leaders rate
themselves and receive ratings
from their peers, supervisor(s),
subordinates and others (such as customers).

This process increases self-awareness and drives skill

development. Results are delivered in a report that
highlights strengths, areas for improvement, and
differences/similarities in views of behavior. Report
includes e-learning featuring clips of Hollywood
movies, television, and historical events plus a
complete online Goal Tracking System to ensure
lasting change.

How It Works
360º Refined is fast, clear and complete. In just 15
minutes participants deliver feedback through 75
closed-ended questions and four open-ended
questions.

The Process:

1. A leader is invited to rate him/herself online, as

is his/her boss(es), peers, direct-reports, and
others (such as customers). You control the
administration and watch the responses come
in.
2. Once responses are in, you open the report at
the click of a button. Responses remain
anonymous, so a leader can administer his or
8
Why It's Important
Good supervisory skills are
important to any manager, from a
line supervisor to the CEO.
Subordinates look to their boss for
the guidance and support they
need to perform.

How It Works
An online test with e-learning that reveals a
manager's current skill level in each of the
four components of good management:

1. Setting Expectations
2. Communicating
3. Managing Performance
4. Providing Support

Each manager simply answers

360º Feedback is used by over 90% of fortune 500

companies. 360º Refined is fast, comprehensive,
easy-to-use, and includes 6 months of e-learning.

Is your organisation ready for 360-degree

appraisal?

9
 Vinita Gupta finds out the right
time and process for implementing
the 360-degree appraisal system.

Appraisal is a developmental
process and also a tool for salary
increment or at times punishment
(if the appraisal is not good). It is a mechanism using
which organizations strive to achieve complete
development of an individual. Therefore, the
organization should make sure that the appraisal
process is transparent and bias free to make sure
that no injustice is done.

In an IT organization, employees are the biggest

asset and hence the 360-degree appraisal system is
a widespread phenomenon and is applauded as a
great development tool by many experts. 360-degree
appraisals are founded on the idea that any
employee’s performance is seen by many others—the
manager, peers, direct reports, customers, etc.

Evaluation is done combining the feedbacks received

from many people who see different parts of an
employee’s performance. Also known as multi-
perspective and peer-to-peer feedback, managers,
supervisors and employees have found it to be
effective in improving their performance.

Right culture is essential

Many organizations always speculate on when is the

right time to start implementing the 360-degree

10
 "There appraisal system. Any time is
should be perfect, the more important thing
at least is doing it right the first time. If
four to six peer organizations have the scale and
level responses size to implement it while
and six to ten preserving the anonymity of the
direct reports participants, it should consider
responses to be the same.
able to
implement the Naresh Shah, Managing Director,
process" India Development Centre (IDC)
in Bangalore, Novell feels that for
- Naresh Shah this kind of an appraisal system,
MD, IDC, there should be at least four to six
Bangalore peer-level responses and six to
Novell ten direct-report responses to be
able to implement the process.

11
 "A matured
Vikram Shah, President India
Operations, NetApp points out
that appraisals should not be
looked at only from result point of organization will
view. A good amount of emphasis always take into
should be laid on the process too. account the
A matured organization will process involved
always take into account the to derive
process involved to derive complete learning
complete learning out of the out of the
appraisal for the employee and appraisal for
the organization. the employee and
the company"
NetApp deploys a development
tool based on research done from - Vikram Shah
studying a 360 assessment of President India
200,000 employees from different Operations
industries. This study and NetApp
subsequent tool was developed by
an external agency.

“While it is true that this system

serves as an excellent purpose
since it reduces biases, however it may not always be
successful. Hence it is necessary to create the right
culture in the company before introducing the
system. If many people at that time in the
organization are unhappy or their morale is low the
situation can backfire,” says Chetan Shah, Managing
Director, Synygy India.

Encourages teamwork

"While this In today’s global world, no

12
system
serves as
an
excellent process
since it reduces
biases, but it is
necessary to
create the right
culture in the
company before The pitfalls
introducing it" 360-degree appraisal is a little
- Chetan Shah complex process where
MD adherence to process and record-
Synygy India keeping will consume a lot of
time. Cost could also be one of the stumbling
blocks, especially if the process is conducted
through an external agency.

No doubt it reduces biases but is not free from

pitfalls. Hence a 360-degree feedback programme is
doomed if the HR is its only champion. It needs buy-
in from senior management as well. Companies
should train people in giving and receiving feedback.
Companies that implement 360-degree feedback
without first developing good managers who can
give feedback correctly risk serious damage to
teamwork and morale. Providing constructive
feedback calls for instruction, training and practice.

Chetan Shah adds, “While training individuals to

give and receive feedback may temporarily increase
the expense associated with 360-degree feedback
programmes, the gains will outweigh the higher
costs as the feedback delivered to participants
becomes more focused, targeting the behaviors
most closely associated with value creation and
destruction. Ultimately, the goal should be to create
a culture in which individuals feel comfortable giving
and receiving feedback, both positive and negative,
on a real-time basis, rather than waiting for an

13
annual review.”

14
The right process for
implementation

• Create awareness about

the 360-degree appraisal.
Inform the people about
importance of 360-degree
feedback/how it will be
conducted
• Create survey questions
• Create the technical
environment to capture
and report the scores
• Communicate the steps to
be followed for giving the
responses
• Close the survey on the
agreed date
• Collate reports and send to
the recipient
• Meet with employees to
discuss results and plan
future developments
• Provide feedbacks
• Conduct a survey again a
year or so later, using the
same model to determine
the amount of change

15
Presenting the
Appraisal 360

Like it or not the ever reliable and much debated 360 degree
feedback is here to stay. Want to know how the Fortune
1000 companies have made use of it?

The 360 degree appraisal has been used by more than 90%
of Fortune 1000 companies, for the past 10 years. It is a
boon to the corporate world though it has its drawbacks. The
pros definitely outweigh the cons. While traditional feedback
processes have failed miserably, the 360 degree feedback
has proved to be magical. As opposed to the conventional
appraisal system, wherein the immediate supervisor
provides the employee with unidirectional comments, the
360 degree relies on a multi-dimensional feedback.

The 360 degree performance feedback evaluates an

employee’s performance by soliciting information and
opinions about the individual’s performance from peers,
managers, direct reports as well as internal and external
customers. Also known as multi-perspective and peer-to-
peer feedback, managers, supervisors and employees have
found it to be effective in improving their performance.

Where is it applicable?
16
Many organisations have found the 360 degree appraisal to
be useful in:

• Validating selection processes and development

programmes
• Identifying training and development needs
• Pinpointing skills and competencies
• Making personnel decisions such as promotions,
terminations, salary hike and probationary status
• Career development
• Employee coaching
• Supervisory training
• Management development
• Style and leadership awareness
• Needs assessment

How does it work?

The most popular model used, namely the skill model, lists
the skills and behaviour necessary for effective job
performance. The employee recommends eight to twelve
people, for his 360 degree review. They can be direct
reports, peers, bosses, internal customers or any individual
who could provide relevant performance feedback on the
employee. Some companies also ask external customers to
rate the individual’s performance. The supervisor then
selects six to ten participants from the list for appraisal. The
employee is also required to assess himself.

The employee is rated in each of the requisite skill areas and

the survey responses are compiled accordingly. The
individual receives a report summarising others’ perceptions
of his performance, highlighting his strengths and
development needs.

17
How to implement 360 degree?

Firstly, human resource personnel and senior management

need to determine the usefulness of this feedback. Then
they have to

• Define the skill model to be used.

• Explain the purpose of the process, the use of the data
collected, and the steps involved to everyone
concerned.
• Distribute questionnaires.
• Complete questionnaires.
• Process questionnaires.
• Meet with employee to discuss results and plan future
development.
• Provide feedback.
• Re-survey using same model to determine the amount
of change.

Outcome

The 360 degree feedback allows better understanding of

others’ perspectives of the employee’s strengths and
weaknesses. Employee development efforts are more
focused and effective. Feedback being anonymous is more
honest. Thus a better communication between supervisor
and employees is a substantial result of this system

How can 360 appraisal & feedback system be used to

improve performance standards?
How does one prepare a customized 360 degree
feedback strategy & system for one's organization?
What are the various steps involved in administering
360 degree feedback instruments?
18
 How do you link 360 degree feedback with
Performance Management System?

Objectives:
The program aims at equipping HR managers,
corporate planning managers and others with the
necessary knowledge, tools and experience to
develop such proficiency in the area of 360 degree
feedback systems.

To familiarize the participants with the 360 degree

appraisal systems, what they are, how they are to be
administered and managed, etc.
To provide an experience in 360 degree feedback
To help the participants achieve skills to develop and
use 360 degree systems

Methodology:

The participants will be given feedback as per the

TVRLS 360 degree profiling system. The main
objectives would be:

To understand the dimensions and dynamics of 360

degree feedback through actual assessment by
others.
To understand the process of administering and
managing 360 degree feedback.

19
 To receive feedback on roles, leadership styles and
other dimensions of managerial functioning and their
impact as perceived by others in the organization.

The participants would be given an in-depth

knowledge of 360 degree feedback. This would be
through the following inputs.

Nature of 360 degree appraisal & feedback

Various advantages & disadvantages, conditions for
success
Indian experiences
360 degree instruments – designing and
administering
Designing 360 degree systems

The participants may design a 360 degree feedback

program and instruments for their respective
organizations. They will test out the same through
individual and group activities. Those who already
have 360 degree feedback systems may review,
revalidate and renew the same.

Participants should be prepared to stay for an extra

day in case he/she is interested in designing 360
degree instruments for his/her own organization.

360 Degree Appraisal

Appraisals are perhaps the most important aspect of

employee retention; if people feel valued and fairly
compensated, nothing in the world can induce them
to jump ship. The question this presents is: how to
assign value and compensate accordingly ? Most
companies still perform evaluations manually, now
20
this might not be a very complex and time
consuming process for a small scale Enterprise, but
for Enterprises supporting more than 70 staff
members it becomes a never ending process. Add to
this, quarterly reviews, well it would seem that
managers have time for nothing but appraisals;
business development, financial planning, problem
solving etc. would all suffer because employees need
to be evaluated on time and compensated
accordingly if they are to be retained.

Feel the pressure — if you don’t satisfy the

employees, you loose good people worth keeping;
on the other hand if you go on evaluating one
employee after another, your business suffers
incalculably. A catch-22 situation. By this time
you’re probably at your wits end. Well, hang in
there; the new age Avatar — software technology —
has come to the rescue !

Our appraisal software automates the entire

appraisal cycle, drastically reducing the time
consumption, while improving the process quality
and experience of both – the appraiser and the
appraised. And this is just a small part of what a 360
Degree Appraisal software can do; check out the list
below to fully appreciate the extent and scope of
tasks automated and simplified.

The List

• profiles an individual’s personality traits, talents

and work styles

21
 • executes performance evaluations on interim /
regular basis
• tracks and monitors performance and milestones
achieved
• facilitates: work plan establishment and
objective setting
• detects performance gaps and measures each
individuals pace
• generates un-biased reports, encompassing
every aspect of an individuals capabilities,
aspirations as well as expectations

The entire process is designed to help you in making

the right decision, for the right people at the right
time; this in turn saves you time and effort; but even
more importantly it streamlines employee activity
with business goals and allows optimized
performance management and planning.

The Power of 360 Degree Feedback

By

T. V. Rao
Raju Rao
T V Rao Learning Systems Pvt. Ltd.
Ahmedabad

In the changed business scenario where organizations are

22
required to compete globally, benchmarks have become global.
Organizational survival and excellence require not only meeting
but setting global standards. Speed of change becomes a critical
variable. Organizations have had to react fast, learn from their
experiences and aim towards achieving world class excellence
through constant learning and renewal. 360 degree has been
found to be one such facilitator of change at the individual level.

Though it was started in mid-eighties at the Indian Institute of

Management, Ahmedabad by T.V.Rao and team as Top
Management Styles And Organization Effectiveness Program, it
was not branded as 360 Degree Appraisal. Once it was branded
in the US as 360 Degree Appraisal, it caught the attention of
many corporations and today a large number of Fortune 500
companies use it in some form or the other. Experiences with it
as a development tool have been good, though experience as an
appraisal tool are mixed.

This book contains experiences of the Tata Group, Birla Group,

Wipro, Birla 3M, Philips and many others. The Book also
discusses issues dealing with performance management and
approaches to make them effective.

This book has a comprehensive coverage of 360 degree

feedback, performance management system, linking 360 degree
feedback with performance management and finally pay
strategies. The primary objective of TVRLS in compiling this
book is to encourage more indigenous innovations and enhance
learning through mutual sharing.

23
360 degree feedback, also known as 'multi-rater
feedback', is the most comprehensive appraisal
where the feedback about the employees’
performance comes from all the sources that come in
contact with the employee on his job.

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
2. Superior’s appraisal
3. Subordinate’s appraisal
4. Peer appraisal.

Self appraisal gives a chance to the employee to look

at his/her strengths and weaknesses, his
achievements, and judge his own performance.
Superior’s appraisal forms the traditional part of the
360 degree appraisal where the employees’
responsibilities and actual performance is rated by
the superior.

Subordinates appraisal gives a chance to judge the

employee on the parameters like communication and
motivating abilities, superior’s ability to delegate the

24
work, leadership qualities etc. Also known as internal
customers, the correct feedback given by peers can
help to find employees’ abilities to work in a team,
co-operation and sensitivity towards others.

Self assessment is an indispensable part of 360 degree appraisals

and therefore 360 degree Performance appraisal have high
employee involvement and also have the strongest impact on
behavior and performance. It provides a "360-degree review" of
the employees’ performance and is considered to be one of the
most credible performance appraisal methods.

360 degree appraisal is also a powerful developmental tool because

when conducted at regular intervals (say yearly) it helps to keep a
track of the changes others’ perceptions about the employees. A
360 degree appraisal is generally found more suitable for the
managers as it helps to assess their leadership and managing styles.
This technique is being effectively used across the globe for

25
performance appraisals. Some of the organizations following it are
Wipro, Infosys, and Reliance Industries etc.

Once a year Overview

Once a Year Overview

26
Self Appraisal

Performance Review -
Preparation

Performance Review -
The Meeting

How to Complete a
Performance Appraisal
Form

Analysis for Improving

Performance

Active performance
appraisal conversation

27
360 Degree Appraisal/ Feedback Systems

For a manager wishing to improve his or her management skills,

and the trusted mentor who is trying to help that manager to
improve, one of the most valuable monitoring tools is a well-
presented report showing the collected views of all those having
dealings with the manager. This is the output from a Multi-source
feedback, 360 degree feedback system or 360 Degree Appraisal
system.

You ask individuals to report anonymously on their experience of

the manager under a range of management skills headings. If you
have a corporate Competencies Framework, the questionnaire can
be based on its management competencies and the associated
behaviours.

Because people respond anonymously, they can be more honest

with their answers to a 360 degree feedback system than they
might feel able to be if asked face to face. We can present results as
a summary of all responses but you get more by comparing the
views of different groups. A popular approach is to report
separately the views of

• Team members (employees reporting to the manager)

• Peers (colleagues with whom the manager interacts, but with
no reporting relationship with the manager)

28
 • Team leader (or Boss - the manager or managers of the team
of which the manager is a member)
• Self (the manager himself or herself)

And sometimes

• Clients / customers

Absolute or Relative?

If the report shows the percentage of favourable responses for each

item, and managers can compare their results with others', some
people will find that they have performed less well than most of
the others they discuss their results with. We think this is more
likely to discourage than encourage effort to improve, especially if
the manager's results are poor in all or most aspects of the report.

To avoid the danger of discouraging less able managers, or giving

more able ones the idea that they need not make any effort to
improve, we recommend presenting the 360 Degree Appraisal
results not in absolute terms as described above, but relative to the
participating manager's own average. For each manager's report we
work out the average for this manager of all the topics in the
questionnaire and then report how much better or worse was each
topic compared to the manager's own average. This way, every
participating manager receives a 360 Degree Appraisal report
setting out his or her relative strengths and weaknesses, and in any
conversation where managers are comparing their respective
results everyone is on equal terms because everyone has relative
strengths and development needs.
Reporting a 360 degree feedback system this way means everyone can be pleased about
their relative strengths but is encouraged to see their relative weaknesses as development
needs and to take steps to improve them. HR staff can still be provided with results
expressed in absolute terms, if you choose, so they will know which are the stars and
which are the managers most in need of development support.

29
Maruti adopts `360 degree' appraisal system

S. Muralidhar

Employee to be evaluated not just by superiors, but

also by peers, subordinates

Advertisement
Chennai Feb. 4 It would
seem that there is no
corporate human
resources policy that
has not had its share of
controversies for being
biased. With an
increasing number of
qualitative factors that
affect employees at the

30
workplace, democratising the performance appraisal
process to make it as fair as possible has been the
dream of every HR manager.

And now qualitative factors are not just at play in the

services sector, but also in manufacturing. With
cubicles giving way to open offices, the top-down
approach to employee performance appraisal is also
on its way out.

One company that has set itself on course to further

democratising and opening up its employee
evaluation process is car market leader Maruti
Udyog.

The company has introduced a unique 360-degree

feedback system, starting with its senior leadership.
The new system has been co-developed with Ernst &
Young and has been put in place recently.

Under the 360-degree feedback system, the

employee is rated not just by his superiors, but also
by his peers and subordinates.

"We are starting the 360-degree feedback process

with employees in the top management such as chief
general managers and general managers, whose
performance will now be assessed based on feedback
from their peers and junior management employees
within the same department. Till last year, their
performance was being appraised only by the
Directors and the Managing Director," says Maruti's
Chief General Manager (HR), Mr S.Y. Siddiqui.

31
Ernst & Young, in consultation with Maruti, has listed
a set of leadership competencies that are expected in
a general manager. Based on that, it has prepared a
questionnaire to which peers and subordinates can
respond online.

Although acknowledged as an effective tool for

leadership development in the West, Indian
companies have been shy of introducing such a
feedback system for fear of disturbing traditional
hierarchical structures.

HR consultants feel that the critical issues in

implementing such a system include assuring
respondents that their feedback will remain
confidential and convincing the person receiving the
feedback that this is a development tool and not an
appraisal tool. Maruti has handled this by getting
E&Y and other consultants to make detailed
presentations to the senior management personnel
before the process got under way. The company has
a committee of general managers, called Human
Resource Inter Divisional Committee (HRIDC), which
is consulted on all major HR issues.

The initiative has been unveiled with an e-mail by

Maruti's Managing Director, Mr Jagdish Khattar,
asking people to support the online questionnaire
process. The 360-degree feedback system will also
include a self-appraisal by the general manager. At
the end of the process, he can compare his self-
appraisal with the assessment of his subordinates
and peers.

32
One of the benefits that Maruti is hoping to get out
of the 360-degree feedback process is the sense of
empowerment and importance felt by subordinates,
when they are asked to offer their feedback about
their superiors. Maruti currently has over 4,000
employees on its rolls.

360-Degree Performance Appraisal Systems

Abstract

A 360-degree performance appraisal system is a multisource

assessment approach that taps the collective wisdom of those who
work closely with an employee. The employee and their
supervisors, colleagues, direct reports (subordinates), internal
customers, external customers, and others may be part of the
evaluation process.

Proponents of the 360-degree feedback approach offer it as a

“progressive” means of conducting performance appraisal. Many
contend that 360-degree feedback systems and other forms of
multisource or multirater assessment methods in organizations
have evolved from an innovative “nice-to-have” technique
administered only to the most senior levels to a “must-have” tool
for integration into overall performance and human resource
management strategies. These systems appear well suited for the
flexible, team-based, change-oriented organizational cultures of
many organizations today.

360-Degree systems are gaining popularity because they tend to

reduce the problems of previous generations of assessment
methods. 360-Degree appraisal moves the manager (as appraiser)
back into the “comfort zone” as she or he is now only one among a

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number of assessors. It greatly reduces the problems of central
tendency, positive skewness, and “halo effects” in ratings that
plague the boss-subordinate approach. 360-Degree appraisal
reduces defensiveness on the part of the appraisee because there
are a variety of assessors, feedback is presented as more balanced,
and it is said to have greater face validity. It requires organizations
to resolve the issue of what is meant by job effectiveness and what
behaviors are causally related to it. It recognizes that subordinates
are best placed to assess “leadership” or “people management”
skills. The technique is helpful in defending legal challenges of the
outcome of appraisals, it is presented as important in meeting the
demands for employee empowerment and involvement, and
finally, it is a useful tool in tapping employee opinions and
attitudes.

Using 360 degree appraisals is a very effective

means of improving management and team
performance. To succeed, they have to be carefully
planned and well executed.

Planning your approach

Firstly, you need to understand how the proposed

360-degree appraisal process fits with your current
performance appraisal and people management
processes. This will help you select the most
appropriate questionnaire and process, and ensure
that it produces real performance improvements.

The level of investment in time and money that you

make at the start of this process will pay dividends in

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the long-term. The first time you use a 360-degree
process, you need to enlist the help of an expert so
that you achieve the best possible outcomes. This
will set the standard for future success and ensure
that tangible performance improvements are
achieved and maintained.

Long-term performance improvement can only

succeed if you have an accurate picture of where to
start and the majority of employees believe that it is
in their best interests to work together to improve.

Make sure that:

* Your chosen supplier has a full understanding of

your needs and organisational culture

* You choose the right time to undertake the

exercise

* Participants are properly briefed on the importance

of their role in the success of the appraisals

* There is a plan to act on the results of the

appraisals and this plan is communicated to your
participants

Gathering feedback is only the start. The information

obtained from a 360 appraisal does not provide the
solution - it acts as a 'catalyst' to open up discussion
with the very people who provided the feedback in

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order to find out why they are feeling this way. By
involving them in a independently facilitated
discussion of the results, you can generate a shared
understanding and commitment to work together to
improve, by building on strengths and developing
areas of weakness.

The ability to compare feedback different individuals

also enables the 'blue-printing' of best practice
across the organisation. There are various options
for delivering feedback, facilitating discussion and
generating action plans depending on individuals'
needs and circumstances.

This could include a mix of the following:

* 1-2-1 feedback (2 hours duration) with an

experienced coach

* One-day Developmental Workshops with a

maximum of 8 participants in each - delivered by an
experienced coach and facilitator

* Training for 'appropriate' personnel to deliver the

feedback and run the workshops with initial support
from the chosen supplier

Developmental Workshops are particularly valuable

when working with several individuals to build on the
information obtained from 360 appraisals.

The workshops are tailored to focus on the needs of

each participant/group, using the feedback gathered

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in advance by the appraisals, so that each individual
leaves the workshop with their own measurable
action plan. This format also encourages individuals
to support each other on an ongoing basis to
improve performance.

Action

The 'facilitated' discussion process leads to practical

actions agreed by each individual on how they are
going to work to improve performance.

These actions need to be SMART - Specific,

Measurable, Achievable, Realistic and Timely.

Learning

Ongoing support to achieve your action plan is

essential. This support is likely to involve a
combination of independent facilitation, training and
coaching depending on what needs to be achieved.
Encouraging individuals to 'buddy-up' with a
colleague whose strengths compliment their
development needs and vice versa helps to maintain
commitment and enthusiasm, in addition to fostering
a more supportive and open culture.

Measurement

How do you know things are improving and how do

you ensure that the momentum is maintained?

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Regular progress reviews are critical to sustain
enthusiasm and commitment. Ideally you should
repeat the process on a regular basis, preferably
every nine to twelve months, to monitor and review
progress and re-define your action plans, based on
the results.

Suggested workplan for your 360 degree appraisals

1. Meet with your chosen supplier to discuss your

requirements and their approach.

2. Decide on timescales for the appraisals.

3. Plan your questions - do you need a generic or a

bespoke questionnaire.

4. Agree the structure of the report (grouping and

comparing data).

5. Define the briefing process.

6. Brief participants.

7. Undertake the appraisals.

8. When the appraisals are closed, thank everyone

personally via email and outline the next stages.

9. Arrange feedback with each individual who has

been appraised within two weeks of receiving all
responses

a. 1-2-1 feedback with each individual manager

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b. Developmental Workshops for 8 managers in each
(You may choose for some individuals to receive 1-2-
1 feedback and others attend a workshop)

10. Develop action plans and get commitment from

all stakeholders.

11. Maintain motivation and commitment to the

plans through ongoing support and advice.

12. Repeat appraisals within 9-12 months to

measure improvement.

Ten mistakes that cause a 360-degree feedback program

to fail

Ineffective Poor Planning

Assessment Items
If your feedback program
If you are not asking the is not well thought out, it
right questions, how can will not run smoothly.
you expect to get good There are many logistical
data? You need to issues to consider before
consider organizational launching a feedback
expectations as well as program. If your
job-specific employees perceive that
competencies. Moreover, the program is not well
your assessment items planned, your credibility
need to be well written to will be undermined.

39

gather the data you are
looking for. Poorly written
items will yield useless
data. Garbage in -
garbage out...
Lack of Alignment
with the
Organization's Vision,
Mission, and Strategy
If the things you are
measuring are not
important to the
organization's vision,
mission, and strategy,
then employees will not
be developing
competencies that are
aligned with the direction
of the organization.
Lack of Senior-Level
Support
If the leaders of your
organization do not
vocally support and
encourage participation
in the feedback program
and express their belief
in the benefits it will
provide, your 360
Inappropriate Delivery
of Feedback
The idea of a feedback
program is to help
employees perform
better. Negative feedback
can be demoralizing and
counterproductive. If
feedback is not provided
in an appropriate manner,
your program could
backfire. We recommend
using professional,
neutral coaches to deliver
feedback.
No Development Plan
So what if you run a
smooth 360 program? If
you fail to do anything
with the data, you have
wasted your time as well
as the time of both
participants and
respondents. Every
person who receives
feedback needs to create
some developmental
goals based on the
feedback he or she
received - and remember
- those goals need to be
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initiative will never get
off the ground.
Lack of
Communication
You MUST communicate
with both the people
receiving feedback and
the people getting
feedback. If you do not
tell them what, why,
how, and when, they will
not be comfortable with
the program. You must
get buy-in at all levels of
your organization to
make it work.
Fear / Lack of Trust
If participants are afraid
to get feedback or if
respondents are afraid to
provide feedback, you
will be fighting an up-hill
battle. Communication
helps reduce fear. One of
the most effective ways
to reduce anxiety is to
use a neutral third party
to administer your
feedback program.
both measurable and
achievable.
No Accountability
Developmental goals are
meaningless unless
people are held
accountable for achieving
them. Make sure your
employees and their
managers understand
how to create S.M.A.R.T.
goals - Specific,
Measurable, Attainable,
Realistic and Timely.
No Follow-Up
How will you know if your
program has been a
success if you do not
follow up? How will
participants know if they
are improving without
follow-up feedback? Plan
to solicit additional
feedback six to twelve
months after the initial
data are collected.
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Sample 360 Degree Feedback Surveys

The evaluation forms for employees at different

levels will have a lot of overlap in some areas, but
differ significantly in other areas. Listed below are
some sample 360 survey categories, with examples
of how the assessment items might differ for senior
leaders and non-managers.

Note that neither of these lists is a complete 360

degree feedback survey. A complete 360 feedback
evaluation form would include additional categories.

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Middle- to Upper-Level Non-Manager
Manager, Organizational
Leader Character
Character
o Patient when
o Eagerly pursues new necessary
knowledge, skills, and o Self confident
methods o Open to feedback
o Knows own strengths and and criticism
limitations o Avoids negative
o Personally committed to politicking and
the strategy hidden agendas
o Makes decisions based on o Willing to take a
business needs rather courageous stand
than personal agenda o Trusts others
o Self confident appropriately
o Open to feedback and o Respected by others
criticism o Sincere and
o Avoids negative straightforward
politicking and hidden o Serves others;
agendas avoids selfishness
o Willing to take a o Accepts
courageous stand responsibility for
o Trusts others own mistakes
appropriately o Can be trusted with
o Respected by others sensitive
o Sincere and information
straightforward o Eagerly pursues new
o Serves others; avoids knowledge, skills,
selfishness and methods
o Accepts responsibility for o Knows own
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Hence , the conclusion is 360 Degree is a
very important method of appraisal.It
shows that with praises negative points of
an employee should also be highlighted .
More and more companies should start
using it as it will lead the Company to
greater heights .

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