“360 DEGREE PERFORMANCE

APPRAISAL”

An outlook
THE LATEST MANTRA BEING FOLLOWED BY
ORGANIZATIONS ACROSS THE WORLD IS “ GET
PAID ACCORDING TO WHAT U CONTRIBUTE”

Organization are paying more attention to performance

management and specially to individual performance.
So, if the process of performance appraisal is properly
structured, it will help employees understand their
roles, responsibilities, enable them to align their
individual performance with organizational goals and
also help review their performance.
PEOPLE DIFFER IN THEIR ABILITIES AND ATTITUDES SO
THERE IS ALWAYS SOME DIFFERENCE BETWEEN THE
QUALITY AND QUANTITY OF SAME WORK DONE BY TWO
DIFFERENT INDIVIDUALS.

Therefore, performance appraisal is necessary to

understand the employee’s individual abilities,
competencies, relative worth and merit for the
organization.
Performance appraisal is practiced in 90% of the
organization world wide.
 THE OBJECTIVE OF
PERFORMANCE APPRAISAL
To analyze the performance of the employees over a specified period of
time.
To find out the gap between the actual and desired performance.
To judge the effectiveness of the other human resource functions of the
organization, such as recruitment, selection, training and development.
To provide inputs to the system of reward and salary administration.
To help in creating an organizational culture.
To generate adequate feedback and guidance from the immediate superior
o the employees working under him.
It creates a sense of insecurity in the working environment and
becomes an obstacles in achieving the required changes in the
attitudes, but on the other, it also improves the work performance and
employee satisfaction
 IT IS A POWERFUL TOOL TO REFINE AND REWARD
THE PERFORMANCE OF THE EMPLOYEE WHICH
ANALYZE HIS ACHIEVEMENT OF THE OVERALL
ORGANIZATIONAL GOALS.
 PROCESS OF PERFORMANCE APPRAISAL

Establishing performance standards

 It is used as a base to compare the actual
performance of the employees. This step sets the criteria
to judge the performance of the employees whether
they will successful or unsuccessful and to analyze the
degrees of their contribution to the organizational goals.
 Goals should meet the criteria of SMART
S – Specific R – Relevant
M – measurable T - Time based
A – Attainable
 Background
Contemporary 360-degree methods have roots as early as the 1940s, however,
there is some disagreement regarding the exact genesis of the technique.

Despite these disagreements, one point that most scholars can agree on is 360-
degree performance appraisal has historical roots within a military context.

During the 1950s and 1960s this trend continued in the United States within
the Military service academies.

At the United States Naval Academy at Annapolis, the midshipmen used a

multi-source process called “peer grease” to evaluate the leadership skills of
their classmates.

In the corporate world during the 1960s and 1970s, organizations like Bank of
America, United Airlines, Bell Labs, Disney, Federal Express, Nestle, and
RCA experimented with multi-source feedback in a variety of measurement
situations.
 ( I n Ma
te r
nal nager
cus
tom
e

(In Su
r)

t e bo
rn rd
al in

m
cu at e

er
sto s
)
Top Management
(Internal customer)

or Co (In
(In te -w ter
ter am ork Re nal
na m er
l c em s
Ot pres cus
he t
us be r D en t a o m e
to rs
m
ep tive r)
er
art
)
me s
nt
360-degree performance appraisal
360-degree performance appraisal is also known as ‘multi-
rater feedback’ in which the feedback about the
employee’s performance comes from all the sources who
come in contact with the employee.
360-deree performance appraisal has a significant impact
on the behavior and performance of an employee.
It is a powerful development tool which helps keep track of
the changes and other’s perceptions about the employees
Some of the organizations which follow it are:
WIPRO, Infosys and Reliance industries.
 360-degree performance appraisal has four
integral components
• Self –appraisal:
Gives a chance to the employee to look at his strengths,
weakness, achievements and judge his own performance.
• Superior’s appraisal:
This type of appraisal helps from the employees
responsibilities and actual performance is rated by the
superior.
• Subordinate’s appraisal:
Here the subordinates assess the employees on the
parameters like communication and motivating abilities,
leadership qualities, etc.
PROS OF 360 DEGREE FEEDBACK
 The system is more comprehensive in that responses are gathered from
multiple perspectives.

 Quality of information is better.

 It may lessen bias/prejudice since feedback comes from more people,

not one individual.

 Feedback from peers and others may increase employee self-

development.

 Helps in identification of strength and weakness of employees.

CONS OF 360 DEGREE FEEDBACK
 The system is complex in combining all the responses.

 Feedback may not be fair.

 There may be conflicting opinions, though they may all be accurate from
the respective standpoints.

 Employees may collude or “game” the system by giving invalid evaluations

to one another.

 Consumes enormous time and very costly.

 Difficult for cross-cultural organizations.

 Maintaining confidentiality is difficult.