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360 Degree Feedback Appraisals-An Innovative Approach of Performance Management System
360 Degree Feedback Appraisals-An Innovative Approach of Performance Management System
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Council for Innovative Research 53 | P a g e
www.ijmit.com International Journal of Management & Information Technology
ISSN: 2278-5612 Volume 1, No 2, July, 2012
growing trend in Corporate America in recent organizational climate with the appropriate
years is the 360 degree performance review. expectations for success. In the wrong
EXHIBIT 1-Types of out comes in an environment, without the presence or proper
organization training of feedback coaches and raters, the
results can be detrimental. Organizations
1 The employee‟s job 3.3 should carefully weigh all the costs,
performance improved as a including process related as well as the cost
result of 360 feedback of behavioral outcomes. Success of such a
2 360 feedback provided a 2.7 program is predicated on implementing and
competitive advantage to the sustaining long term behavioral change and
organization development. Careful consideration should
3 360 feedback helped the 2.9 be given to the design of the process as well
organization strive to achieve its as to the implementation in order for the
major goals process to drive performance behaviors and
4 360 feedback increased 2.3 performance outcomes.
profitability in the organization A major concern of organizations centres on
5 The 360 feedback process was 3.8 the performance of employees. Performance
worth the resources committed refers to what an employee does or doesn‟t
6 360 feedback was beneficial to 3.6 do on the job. Employee performance
the organization includes for example, quantity of output and
This popularity is based on the perceptions of quality of output. Performance management
organizational leader‟s that 360 degree integrates management of organizational and
reviews establish a culture for continuous employee performance. Baron and
learning and provide more global feedback Armstrong (1998) emphasized the strategic
for employees, which leads to improved and integrated nature of performance
performance. According to Human Resource management by stressing that it focuses on
Consultant, William M. Mercer, forty percent increasing the effectiveness of organizations
of American companies used 360 degree by improving the performance of employee
feedback in1995; by 2000 this number had and by developing individual and team
jumped to sixty-five percent. In 2002, 90% capabilities. Performance management as a
of Fortune 500 companies were using a 360 process recognize that, in a globally
degree performance review process. 360 competitive business environment it is
degree reviews are intended to give an essential that the efforts of every employee of
employee the opportunity to understand and the firm are focused on helping the firm
remedy any friction points or issues that may achieve its strategic goal. Performance
exist between themselves and the rest of the management is a critical component for
organization. Friction points often times achieving and maintaining effectiveness of
include issues in the areas of interpersonal individuals and organizations. Performance
relationships, teamwork, communication and management system is the entiregamut of
management style. The true ability of a 360 activities from performance planning to
degree review to remedy these types of issues performance enhancement. Presence of such
is in question. Clearly the 360 degree a system in an organization provides
feedback process is popular. The perceived opportunities to individuals and teams in the
benefits of implementing such a program will organization receive feedback about their
only be realized if it is utilized in the right performance.
©
Council for Innovative Research 54 | P a g e
www.ijmit.com International Journal of Management & Information Technology
ISSN: 2278-5612 Volume 1, No 2, July, 2012
Human
Resource
Planning
Feedback,
Motivation
and Recruitment
Development and selection
Objectives of
Internal Performance
Employee Management Personnel
Relation Decision
System
Career
Compensation
Planning and
and Reward
Development
Training and
Development
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Council for Innovative Research 55 | P a g e
www.ijmit.com International Journal of Management & Information Technology
ISSN: 2278-5612 Volume 1, No 2, July, 2012
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Council for Innovative Research 56 | P a g e
www.ijmit.com International Journal of Management & Information Technology
ISSN: 2278-5612 Volume 1, No 2, July, 2012
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Council for Innovative Research 57 | P a g e
www.ijmit.com International Journal of Management & Information Technology
ISSN: 2278-5612 Volume 1, No 2, July, 2012
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Council for Innovative Research 58 | P a g e
www.ijmit.com International Journal of Management & Information Technology
ISSN: 2278-5612 Volume 1, No 2, July, 2012
Many firms have combined the different 360 degree appraisals have also begun to be
sources of performance appraisal into a used for making evaluative or administrative
„multi source‟ appraisal & feedback system, decisions. For instance, an employee‟s
popularly called the 360 degree appraisal. incentives may be linked to customer
One of the main purposes served by the 360 feedback. Reliance industries ltd., Crompton
appraisal system is to obtain information greaves, Godrej soaps, Wipro & Infosys all
about the employee‟s performance in use 360 degree feedback primarily for self
multiple roles and from different correction & fact finding purposes.
perspectives. Amway, a direct selling
organization practices a group appraisal 7. GENERAL GUIDELINES
system where a manager is appraised by his TO IMPLEMENT 360
management team as well as customers.
For example -At lupin laboratories self
DEGREE SYSTEM IN AN
evaluation & colleague evaluation is used to ORGANIZATION
assess several characteristics such as ability
Some firms that seeks to implement the 360
to recall, concept retebaining feedback from
degree system should follow certain general
all angles-subordinate, peers, customers,
guidelines such as-
supervisors, etc. feedback from multiple
1. Determine the potential cost of the
sources may reinforce & support the
programme.
feedback provided from the supervisor, thus
2. Focus feedback on specific goals.
making it harder to discount negative
3. Train employees giving & receiving
feedback from the supervisor as one person‟s
feedback.
feedback that is perhaps biased.
4. Ensure that the feedback is productive,
The traditional top-down appraisal system
unbiased and development oriented.
appears to be increasingly inconsistent with
recent developments is management thought 8. FACTORS IMPACTING 360
& practice. For e.g. as organization eliminate
boundaries vertically across hierarchies, DEGREE APPRAISAL
horizontally across departments and Some factors may impact the acceptability of
organizationally between firms & their 360 degree appraisals by both the appraiser
customers, „the boundary-less appraisal‟ that & the appraise. These are
is 360 degree appraisal has emerged as a a) Organizational Cynicism- when
more viable alternative to traditional employees in an organization hold the
appraisals. Several firms such as shell, Exxon common belief that potentially fixable
Mobil, IBM, AT & T, Levi Strauss, Fedex problems cannot be resolved due to
etc have started using 360 degree appraisal factors beyond the control of the
and feedback systems. The AV Birla Group, employees, it results in organizational
Gillette, and Ballaspur industries have 360 Cynicism. Both the appraiser & appraise
degree feedback system for senior level may nurture cynicism about the 360
managers. It is expected that 360 degree degree appraisal system. To manage
system will result in more comprehensive cynicism, it is important to first
picture of an employee‟s performance & implement 360 degree as a pilot project
developmental needs and since ratings are & allow organization members to
anonymous, a more honest evaluation is experience the process.
possible. The 360 degree appraisal approach b) Purpose of appraisal- employee who
is more appropriate for developmental are evaluated by peers and managers
purposes than for evaluative purpose. who are evaluated by subordinate, all
Feedback from multiple sources helps prefer that feedback from 360 degree
employees in self development. However,
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Council for Innovative Research 59 | P a g e
www.ijmit.com International Journal of Management & Information Technology
ISSN: 2278-5612 Volume 1, No 2, July, 2012
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Council for Innovative Research 60 | P a g e
www.ijmit.com International Journal of Management & Information Technology
ISSN: 2278-5612 Volume 1, No 2, July, 2012
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Council for Innovative Research 61 | P a g e
www.ijmit.com International Journal of Management & Information Technology
ISSN: 2278-5612 Volume 1, No 2, July, 2012
will be created which is more users friendly, rating scale, but with the opportunity to give
more widely available and more fair, comments as well. Individuals who give
accurate and valid. 360-degree feedback will feedback do so anonymously via the
continue to become a better process for software. Once all feedback is received,
collecting information and applying it. reports are generated using the software. The
Intelligence will therefore be integrated into reports include graphical, narrative and data
360-degree systems in order to make them table reports. Daniella and her team have
faster, easier and better. Thus, 360-degree worked with the external consultant to
systems will not only provide important customise the reports to the needs of TACT.
feedback to individuals but also suggest The 360 feedback reports are integrated into
better ways to improve performance. the appraisal process. There is a section in
11. CASE STUDY - TACT the appraisal which prompts the manager and
employee to discuss and record feedback
TACT is a foster care and adoption services from the 360 process. Managers have been
charity. TACT is a national organisation with trained on the 360 feedback system.
an annual turnover of c.£14m, 105 full-time Benefits of the system
equivalent staff and working agreements Daniella feels it is difficult to evaluate the
with around 300 foster carers. Daniella 360 degree process in a totally objective way,
Black, HR Manager, was responsible for since organisational change often comes
introducing 360 degree feedback in 2004. At about due to a number of factors.
this stage, a paper-based system was adopted. However, she does perceive the following
Daniella and her colleagues defined a set of benefits:
competencies for managers and a set for
Reduction of the ‘blind areas’
staff. They invited staff to suggest 15-20
Danielle feels that 360 feedbacks at
people (peers, managers, more junior staff,
TACT has definitely enabled staff to
local authority contacts and foster carers) to
become more self-aware of how they
give feedback on their performance. From
come across to others – a really
these 15-20 people, the HR team then chose
valuable development tool.
around eight people from whom to seek
More effective management of
feedback. HR was responsible for all aspects
performance Managers have found
of coordination: selecting feedback persons,
that the 360 feedback helps them
dispatching forms, monitoring, receiving
substantiate to staff both learning
forms and summarising responses.
areas and areas of performance which
TACT ran this system for two years running,
is already effective.
but there were several disadvantages. The
first was the sheer administrative volume for Greater ownership of learning and
the HR team! In addition, there was some self-development amongst the
staff mistrust about the confidentiality of the workforce Daniella said that staff
process and managers were not totally have started to take more
„bought in‟. As a result, in 2007, TACT responsibility for their own
introduced a new 360 feedback scheme, this development, because 360 degree
time using software and engaging an external feedback requires everyone to really
consultant to assist them. They revised their think about how they are working and
competencies, taking into account staff how they can improve.
views. The current system still involves staff Improvement in behaviour from
nominating a number of individuals, with HR some individuals Some individuals
selecting a smaller number, to whom they who were negative or disruptive in
send an electronic invitation to give their behaviours to other staff have
feedback. The feedback is on a numerical made positive changes for the better.
©
Council for Innovative Research 62 | P a g e
www.ijmit.com International Journal of Management & Information Technology
ISSN: 2278-5612 Volume 1, No 2, July, 2012
©
Council for Innovative Research 63 | P a g e
www.ijmit.com International Journal of Management & Information Technology
ISSN: 2278-5612 Volume 1, No 2, July, 2012
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Council for Innovative Research 64 | P a g e
www.ijmit.com International Journal of Management & Information Technology
ISSN: 2278-5612 Volume 1, No 2, July, 2012
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Council for Innovative Research 65 | P a g e
www.ijmit.com International Journal of Management & Information Technology
ISSN: 2278-5612 Volume 1, No 2, July, 2012
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Council for Innovative Research 66 | P a g e