360 Degree Performance Appraisal

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360 Degree Performance Appraisal 360 Degree Performance Appraisal
What it is ? What it is ?
What it is not ? What it is not ?
Is it appropriate for your organization ? Is it appropriate for your organization ?
How do you implement it ? How do you implement it ?
Overview Overview
• • Definition Definition
• • Key Features Key Features
• • Appropriate Uses Appropriate Uses
• • Inappropriate Uses Inappropriate Uses
• • Pros and ons Pros and ons
• • !upport For Use !upport For Use
• • Is "#e $nvironment Appropriate% Is "#e $nvironment Appropriate%
• • Key Features Key Features
• • Implementation Implementation
• • Participants Participants
• • &e' (esources &e' (esources
Definition Definition
• •
Evaluation tool that utilizes opinions of many different Evaluation tool that utilizes opinions of many different
people that interact with the employee on a routine basis people that interact with the employee on a routine basis
3 3
• •
Generates more accurate feedbac by !gathering information Generates more accurate feedbac by !gathering information
from people about an individual"s performance as seen by the from people about an individual"s performance as seen by the
standards and e#pectations of their boss$ self$ peers$ direct reports$ standards and e#pectations of their boss$ self$ peers$ direct reports$
and customers%& and customers%&
Key Features Key Features
• • 'sually based on a (uestionnaire$ possibly web)based 'sually based on a (uestionnaire$ possibly web)based
• • *hoosing +ppraisers *hoosing +ppraisers
, -one by the individual employee
, -one by H.
, -one randomly
• • /eedbac is usually anonymous /eedbac is usually anonymous
• • +ppraisal is normally followed up with actions for individual +ppraisal is normally followed up with actions for individual
improvement and development improvement and development
• • 0ot to be used for decision)maing$ only purpose is for 0ot to be used for decision)maing$ only purpose is for
employee growth employee growth
• • 'tilizes many staeholders inside$ and outside of$ the 'tilizes many staeholders inside$ and outside of$ the
organization organization
Appropriate Uses) Appropriate Uses)
• • Employee -evelopment Employee -evelopment
• • Employee *oaching Employee *oaching
• • 1alidate personal opinion of one"s self 2or not3 1alidate personal opinion of one"s self 2or not3
• • 4tarting point for personal development plan 4tarting point for personal development plan
• • 4eeing ob5ective information$ such as determining employee 4eeing ob5ective information$ such as determining employee
nowledge$ sills$ and behavior$ not personality traits nowledge$ sills$ and behavior$ not personality traits
• • 6enchmar individual performance against peer group 6enchmar individual performance against peer group
• • 7rovide a broader view of the employee"s performance 7rovide a broader view of the employee"s performance
Inappropriate Uses) Inappropriate Uses)
• •
.arely lined to decisions on pay .arely lined to decisions on pay
• •
0ot recommended for promotion decisions 0ot recommended for promotion decisions
• •
4hould not be a heavy determinant in bonus awards 4hould not be a heavy determinant in bonus awards
• •
In small organizations where anonymity is unliely or there In small organizations where anonymity is unliely or there
are a lac of enough peers and direct reports to reduce outlying are a lac of enough peers and direct reports to reduce outlying
opinions opinions
7ros and *ons

7ros
,
*ombined opinions more
accurate
,
*olleague comments tend to
carry weight
,
4ome sills are best 5udged
by peers and not
management
,
Increases motivation of
employees
,
Helps engender a more
honest organizational
culture

*ons
,
+dministratively
burdensome
,
.esults can be difficult
to interpret
,
/eedbac can de
damaging unless handled
appropriately
,
*an generate an
environment of
suspicion and cynicism
if not managed opened
and honestly
!upport For Use !upport For Use
• • '4 8ffice of 7ersonnel 9anagement supports research that '4 8ffice of 7ersonnel 9anagement supports research that
shows !assessment approaches with multiple rating sources shows !assessment approaches with multiple rating sources
provide more accurate$ reliable$ and credible information& provide more accurate$ reliable$ and credible information&
• • 4pencer and 9orrow indicate that 3:;)degree feedbac 4pencer and 9orrow indicate that 3:;)degree feedbac
systems could yield a .eturn on Investment as high as <;; percent systems could yield a .eturn on Investment as high as <;; percent
• • In =>><$ ?@ of companies used 3:;A$ increased to =;@ by In =>><$ ?@ of companies used 3:;A$ increased to =;@ by
B;;; B;;;
• • *urrent posted information at *urrent posted information at www%3:;)degreefeedbac%com www%3:;)degreefeedbac%com
states that nearly all /ortune =;;; companies have either already states that nearly all /ortune =;;; companies have either already
implemented a 3:; degree approach or plan to shortly implemented a 3:; degree approach or plan to shortly
Is "#e $nvironment Appropriate% Is "#e $nvironment Appropriate%
• •
+s yourself the following (uestionsC +s yourself the following (uestionsC
, What is the desired outcome of the feedbac?
, -o we have enough raters?
, Is this applicable to all of our employees or an employee group?
, +re our employees mature enough to handle the feedbac and to give
feedbac?
, Is there openness and trust between supervisors and their direct
reports?
, +re our employees and !managers willing to listen and learn and to
effect any necessary changes as a result?&
, +re we willing to devote the time and energy to mae this system
wor? 2It won"t wor unless everyone in the organization is on board from
the !get)go&3
, What do we want to do with the information that is gained? Help the
employees grow or are we looing for a way to determine pay and
promotion?
Implementation Implementation
• • 6uild credibility early on by seeing input from all levels of 6uild credibility early on by seeing input from all levels of
the organizationD use this input to craft the feedbac tool the organizationD use this input to craft the feedbac tool
• • Ensure the employees that this will not be used to determine Ensure the employees that this will not be used to determine
pay$ promotion$ or bonus pay$ promotion$ or bonus
• • Instill in management that this tool is to assist them in Instill in management that this tool is to assist them in
coaching their direct reports to grow in all aspects of their coaching their direct reports to grow in all aspects of their
professional responsibilities professional responsibilities
• • 4ee outside professional help to ensure smooth 4ee outside professional help to ensure smooth
implementation implementation
• • Erain appraisers to be constructive$ positive$ and specific Erain appraisers to be constructive$ positive$ and specific
with their feedbac with their feedbac
360*feed'ac+,com - !tep Process
-etermine organizational readiness
-evelop an appropriate survey and process given organizational
needs and ob5ectives
Generate enthusiasm among ey decision maers and participants
Ensure that participants and managers have the sills to support
the process
7rovide an orientation briefing
+dminister the survey
*oach participants in one)on)one meetings
7rovide organizational summary data
.e)conduct the survey 2in four to si# months3
Participants Participants
• •
4uperiors 4uperiors
• •
7eers 7eers
• •
-irect .eports -irect .eports
• •
*ustomers *ustomers
• •
4elf 4elf
Participants Participants

Ehe following slides outline the pros and cautions associated with each Ehe following slides outline the pros and cautions associated with each
participant in 3:; -egree +ppraisal process% Ehere may be occasions participant in 3:; -egree +ppraisal process% Ehere may be occasions
when one source or another may not be chosen to participate% when one source or another may not be chosen to participate%
/or each individual being appraised$ specific groups should be chosen to /or each individual being appraised$ specific groups should be chosen to
ensure that the feedbac is appropriate and that a plan for improvement ensure that the feedbac is appropriate and that a plan for improvement
can be generated for the employee% can be generated for the employee%
+ pro is something that is a positive outcome from that specific group% + + pro is something that is a positive outcome from that specific group% +
caution is not something that is necessarily negative but must be caution is not something that is necessarily negative but must be
monitored so that it does not create a negative situation for all involved% monitored so that it does not create a negative situation for all involved%
!uperiors
• Pros
, /irst)line supervisors often in best
position to carry out full cycle
performance management
, 4uperiors have authority to
redesign an employees wor based
on individual and team
performance
, 9ost /ederal employees thin that
best ratings come from first)line
supervisors
• autions
, .elying solely on superiors
reduces validity of
performance feedbac
, 4uperiors may not be in same
location as employee$
preventing them from having
hands)on nowledge of the
employee"s performance
, Eraining may be lacing on
appropriate methods of
evaluation
Peers. Peers.
• • Pros Pros
, 7eer pressure and peer approval more effective motivators than
supervisors
, 7eer ratings have proven to be e#cellent predictors of future
performance
, 7eer ratings remarably valid and reliable in rating behaviors and
manner of performance
, 7eer ratings tend to average out bias from other groups in the rating
process
, Increased use of self)directed team encourages use of peer evaluation
, 7eer ratings help move supervisors into a coaching role as opposed to
a pure 5udging role
autions
, 4hould not be used to determine pay$ bonuses$ or promotions 2creates
animosity and prevents truthful responses from peers3
, -o not divulge the names of those providing feedbacD in general
anonymity is preferred to prevent animosity and generate truthful responses
, *hoose the peers wiselyD don"t choose at random)the peers must be
very familiar with the wor re(uirements and performance
, *an be very time consuming for peers to participate
, *an cause tension among employees and breadown of teams%
, Ensure employee involvement in creationD otherwise no buy)in will be
achieved from employees or their representatives
Direct (eports)
ustomers
• 7ros
, Gives supervisors a more comprehensive
picture of employee needs F issues
, 9aes employees feel that they have a
greater voice in organizational decision
maing
, E#tremely effective in evaluating
supervisor"s interpersonal sills
, *ombine direct report ratings to achieve an
average ratingD adds validity and reliability
, 4upervisors are more responsive to direct
report feedbac$ creating more effective
managers
• autions
, 0eed for anonymity is essentialD if not
anonymous$ reprisal from supervisors
is liely
, 4upervisors may feel that authority is
undermined when they must tae into
consideration that their employees are
rating them
, +llow only direct reports with at least
a one year relationship with the
supervisor and no disciplinary action
to comment
, If undergoing downsizing or
reorganization$ carefully weigh the
need for direct reports in the processD
may add fuel to the fire
• Pros
, 4erves as !anchor& for all other
performance factors
, *ombined with peer evaluation$
these data round out feedbac and
focus attention beyond only
serving the supervisor"s needs
, Ensures that the employees
concentrate their attention on the
customer as the customer will have
some say with regards to their
feedbac
• autions
, 8nly as customers to evaluate
outputs$ not processesD they can"t
always see the entire process
, *ustomer feedbac process is time
consumingD focus this time on !big
picture& items
, -on"t as the customer to evaluate a
single employee$ unless the customer
has a direct relationship with the
employee

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