360 degree performance appraisal
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I. Contents of getting 360 degree performance appraisal
Businesses use the 360 degree feedback performance appraisal process to evaluate the individual
managers. This comprehensive performance appraisal system provides feedback on a manager’s
performance collected from a variety of people with whom he interacts regularly. Sources of
feedback include the manager’s direct supervisor, peers, customers, vendors and a selfassessment.
Because feedback comes from all areas in which a manager interacts, the results are more
reliable. When the same feedback come from several people and departments, it becomes
difficult to ignore. In addition the process requires anonymity on the part of evaluators; this
encourages them to answer honesty without fear of negative repercussions.
Survey questions should assess the manager’s knowledge, skills and behavior. The knowledge
assessment determines how well the manager knows the job, company and industry as a whole.
In the skills assessment portion, evaluators rate how efficiently the manager completes tasks as
well as the quality and effectiveness of the result. The behavior assessment covers interpersonal
skills, communication effectiveness, attitude toward others, time management skills and
organization. In other words, it evaluates how well the manager handles a dynamic work
environment—his behavior patterns and attitude management, but not personality traits.
The 360 degree feedback process collects data from multiple perspectives rather than just the
direct supervisor as with traditional methods. The process is customer focused and defines
customers as outside the company and internal, such as a person in another department with
whom the manager interacts frequently. When implemented properly, the process delivers direct,
honest feedback to the manager. By reviewing the perceptions of others, he can see more clearly
the effect his behaviors and attitudes have on others.
Employees must accept the feedback process as fair and accurate for it to work properly and
successfully. The process should fit into the organizational culture; it works best for businesses
where employees regularly collaborate or work in teams. Survey questions should focus on
relevant job performance criteria. To encourage employee acceptance, organizations should run
an informational campaign emphasizing the benefits, fairness and accuracy of the system.
Businesses willing to implement this comprehensive method of assessment should be willing to
spend the time and effort necessary to train each anonymous evaluator in the process as well as
correct and incorrect ways to interpret questions. Failure to properly train feedback providers
will most likely result in inaccurate results or a total failure of the process to produce relevant
information. In addition, companies should have the swath of evaluators for each manager
picked by an outside human resources associate or an outside firm.
III. Performance appraisal methods
1. Essay Method
In this method the rater writes down the employee
description in detail within a number of broad categories
like, overall impression of performance, promoteability
of employee, existing capabilities and qualifications of
performing jobs, strengths and weaknesses and training
needs of the employee. Advantage – It is extremely
useful in filing information gaps about the employees
that often occur in a better-structured checklist.
Disadvantages – It its highly dependent upon the writing
skills of rater and most of them are not good writers.
They may get confused success depends on the memory
power of raters.
2. Behaviorally Anchored Rating Scales
statements of effective and ineffective behaviors
determine the points. They are said to be
behaviorally anchored. The rater is supposed to
say, which behavior describes the employee
performance. Advantages – helps overcome rating
errors. Disadvantages – Suffers from distortions
inherent in most rating techniques.
3. Rating Scale
Rating scales consists of several numerical scales
representing job related performance criterions such as
dependability, initiative, output, attendance, attitude etc.
Each scales ranges from excellent to poor. The total
numerical scores are computed and final conclusions are
derived. Advantages – Adaptability, easy to use, low cost,
every type of job can be evaluated, large number of
employees covered, no formal training required.
Disadvantages – Rater’s biases
4. Checklist method
Under this method, checklist of statements of traits of
employee in the form of Yes or No based questions is
prepared. Here the rater only does the reporting or
checking and HR department does the actual evaluation.
Advantages – economy, ease of administration, limited
training required, standardization. Disadvantages – Raters
biases, use of improper weighs by HR, does not allow
rater to give relative ratings
The ranking system requires the rater to rank his
subordinates on overall performance. This consists in
simply putting a man in a rank order. Under this method,
the ranking of an employee in a work group is done
against that of another employee. The relative position of
each employee is tested in terms of his numerical rank. It
may also be done by ranking a person on his job
performance against another member of the competitive
Advantages of Ranking Method
Employees are ranked according to their
It is easier to rank the best and the worst
Limitations of Ranking Method
The “whole man” is compared with another
“whole man” in this method. In practice, it is very difficult
to compare individuals possessing various individual
This method speaks only of the position where an
employee stands in his group. It does not test anything
about how much better or how much worse an employee
is when compared to another employee.
When a large number of employees are working,
ranking of individuals become a difficult issue.
There is no systematic procedure for ranking
individuals in the organization. The ranking system does
not eliminate the possibility of snap judgements.
6. Critical Incidents Method
The approach is focused on certain critical behaviors of
employee that makes all the difference in the
performance. Supervisors as and when they occur record
such incidents. Advantages – Evaluations are based on
actual job behaviors, ratings are supported by
descriptions, feedback is easy, reduces recency biases,
chances of subordinate improvement are high.
Disadvantages – Negative incidents can be prioritized,
forgetting incidents, overly close supervision; feedback
may be too much and may appear to be punishment.
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