360 Degrees Performance Appraisal

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360 Degrees Performance Appraisal!!! An Outlook. Background •

Contemporary 360-degree methods have roots as early as the 1940s, however, there is some disagreement regarding the exact genesis of the techniqe! "espite these disagreements, one point that most scholars can agree on is 360degree performance appraisal has historical roots within a military context! "ring the 19#0s and 1960s this trend contined in the $nited %tates within the &ilitary service academies! 't the $nited %tates (aval 'cademy at 'nnapolis, the midshipmen sed a mltisorce process called ) peer grease* grease* to evalate the leadership s+ills of their classmates! n the corporate world dring the 1960s and 190s, organi.ations li+e /an+ of 'merica, $nited 'irlines, /ell as, "isney, 2ederal xpress, (estle, and C' experimented with mlti-sorce feedac+ in a variety of measrement sitations! The Concept 

2or example, sordinate assessments of a spervisor5s performance can provide valale developmental gidance, peer feedac+ can e the heart of excellence in teamwor+, and cstomer service feedac+ focses on the qality of the team5s or agency5s reslts! The Process 


The Apprai App raiser serss uperiors

 It’s Contribution Contribution •

7he 1st line spervisor is often in the est position to effectively carry ot the fll cycle of 8erformance &anagement! 7he spervisor may also have the roadest perspective on the wor+ reqirements and e ale to ta+e into accont shifts in those reqirements!

Cautions Cautio ns to be addressed ad dressed •

%periors shold e ale to oserve and a nd measre all facets of the wor+ to ma+e a fair evalation! %pervisors shold e trained! 7hey shold e capale of coaching and developing employees as well as planning and evalating their performance!


 It’s Contribution:  Contribution:  •

• •

%elf-ratings are particlarly sefl if the entire cycle of performance management involves the employee in a self-assessment! 7he developmental focs of self-assessment is a +ey factor! 'pproximately half of the 2ederal employees in a large srvey felt that selfratings wold contrite )to )to a great or very great extent * to fair and well-ronded 8'!


%elf-appraisals are particlarly valale in sitations where the spervisor cannot readily oserve the wor+ ehaviors and tas+ otcomes!

Cautions to be addressed: •

esearch shows low correlations etween self-ratings and all other sorces of ratings, particlarly spervisor ratings! 7he self-ratings tend to e consistently higher! 7his discrepancy can lead to defensiveness and alienation if spervisors do not se good feedac+ s+ills! %ometimes self-ratings can e lower than others5! n sch sitations, employees tend to e self-demeaning and may feel intimidated and )pt on the spot!* %elf-ratings shold focs on the appraisal of performance elements, not on the smmary level determination! ' range of rating sorces, inclding the self assessments, help to )rond ot* the information for the smmary rating!


 It’s Contribution:  Contribution:  •

mployees when they that their extra reqired to )make )report make resentment the boss look good  * aselieve opposed to meeting theefforts nit5sare goals! 8eer ratings have een an excellent predictors of ftre performance and )manner of performance*! 7he se of mltiple raters in the peer dimension of 360-degree assessment  programs tends to average ot the possile iases of any one memer of the grop of raters! 7he increased se of self-directed teams ma+es the contrition con trition of peer evalations the central inpt to the formal appraisal ecase eca se y definition the spervisor is not directly involved in the day-to-day activities of the team! 7he addition of peer feedac+ can help move the spervisor into a coaching role rather than a prely dging role!

Cautions to be addressed: •

8eer evalations are appropriate for developmental prposes, t to emphasi.e them for pay, promotion, or o retention prposes p rposes may not e prdent always! :enerally, the identities of the raters shold e +ept confidential to assre honest feedac+! /t, in close-+nit teams that have matred to a point where open commnication is part of the cltre, the developmental d evelopmental potential of the feedac+ is enhanced when the evalator is identified and can perform a coaching or contining feedac+ role! t is essential that the peer evalators e very familiar with the team memer5s tas+s and responsiilities! 7he se of peer evalations can e very time consming! ;hen sed in 8', the data wold have to e collected several times a year in order to inclde the reslts in progress reviews!


"epending on the cltre of the organi.ation, peer ratings have the potential for creating tension and rea+down rather than fostering cooperation and spport!


 It’s Contribution:  Contribution:  •

• •

' formali.ed sordinate feedac+ program will give spervisors a more comprehensive pictre of employee isses and needs! mployees feel they have a greater voice in organi.ational decision-ma+ing! 7he feedac+ from sordinates is particlarly effective in evalating the spervisor5s interpersonal s+ills! <owever, it may not e as appropriate or valid for evalating tas+-oriented s+ills! Comining sordinate ratings, li+e peer ratings, can provide the advantage of creating a composite appraisal from the averaged ratings of several sordinates!

Cautions to be addressed  •

7he need for anonymity is essential when sing sordinate ratings as this will ensre honest feedac+! %pervisors may feel threatened and perceive that their athority has een ndermined when they mst ta+e into consideration that their sordinates will e formally evalating them! %ordinate feedac+ is most eneficial when sed  sed for developmental prposes! /t precations shold e ta+en to ensre that sordinates are appraising elements of which they have +nowledge! =nly sordinates with a sfficient length of assignment nder the manager shold e inclded in the pool of assessors! %ordinates crrently involved in a disciplinary action or a formal performance improvement period shold e exclded from the rating grop! =rgani.ations crrently ndergoing downsi.ing and>or reorgani.ation shold avoid this sorce of 8'!


 It’s Contribution:  Contribution:  •

Cstomer feedac+ shold serve as an )anchor* for almost all other performance factors! nclding a range of cstomers in 8' program expands the focs of performance feedac+ in a manner considered asoltely critical to reinventing the organi.ation!

Cautions to be addressed:  addressed:   •

:enerally the vale of cstomer service feedac+ is appropriate for evalating team otpt ?there are exceptions@!


Cstomers, y definition, are etter at evalating otpts as opposed opp osed to processes and wor+ing relationships! t is a time-consming process!

"mportant factors in 360 degree feedacks • • • • •

7he mission and the oective of the feedac+ mst e clear! mployees mst e involved early! esorces mst e dedicated to the process, inclding top managementAs time! Confidentiality mst e assred! 7he organi.ation, especially top management, mst e committed to the program!


To the individual:  individual:  • • •

<elps individals to nderstand how others perceive them! $ncover lind spots! Bantifiale data on soft s+ills!

To the team:  team:  • • • • •

ncreases commnication <igher levels of trst /etter team environment %pports teamwor+ ncreased team effectiveness

To the organization: •

• • • •

einforced corporate cltre y lin+ing srvey items to organi.ational leadership competencies and company vales! /etter career development for employees 8romote from within mproves cstomer service y involving them Condct relevant training

Prolems • •

t is the most costly and time consming type of appraisal! 7hese programs tend to e somewhat shoc+ing to managers at first! 'mocoAs /ill Clover descried this as the %''< reaction %hoc+, 'nger, eection, 'cceptance, <elp! 7he prolems may arise with sordinate assessments where employees desire to )get the oss* or may alternatively )scratch the ac+* of a manager for expected ftre favors!


7he organi.ation implementing this type of performance appraisal app raisal mst clearly define the mission and the scope of o f the appraisal! =therwise it might prove conter prodctive! =ne of the reason for which 360 36 0 degree appraisal system might fail is ecase the organi.ations attempt to assimilate the 360-degree method within a traditional srvey research scheme! n traditional srvey research, investigators attempt to maximi.e data collection with as many items>qestions as possile and with large sample si.es! n the case of 360-degree appraisal, creating measrement instrments with many items will sstantially increase non-response errors! n addition, large sample si.es are not typically possile considering that perhaps p erhaps 4 or # sorces will rate an employee5s performance! 's sch, statistical procedres that rely on large sample si.es in order to ensre statistical validity might not e appropriate! =rgani.ations mst consider other isses li+e safegarding the process from nintentional respondent rating errors! 7he cltre shoc+ that occrs with any system that creates )change!* 'nd especially with a modern system li+e 360 degree performance appraisalD mst e ta+en care of!

Conclusion  •

• •

/ecase many of the more conventional performance appraisal methods have often proved npoplar with those eing appraised and evalators ali+e, 360 is gaining poplarity with many managers and employees! t offers a new way of addressing the performance isse! ;hen sed with consideration and discipline, feedac+ recipients will feel that theyAre eing treated fairly! n addition, spervisors will feel the relief of no longer carrying the fll rden of assessing sordinate performance! 7he comined effect of these otcomes o tcomes shold reslt in increased motivation, which in trn improves performance!

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