720 Degree Performance Appraisal

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720 degree Performance Appraisal

Performance appraisal is a concept that started in the early 20thCentury. It is the process of obtaining, analyzing and recording information about an employee to evaluate and improve their performance. Performance appraisal is evaluated in terms of Quality, quantity, time a n d c o s t a n d a l s o a n a l y s e s t h e v a l u e t h a t t h e e m p l o y e e a d d s t o t h e g o a l s o f t h e organization. . There are different methods of performance appraisal used based on the typeof organization, size of the organization and also the period when it is used. . 720 degree performance appraisal is one of the most recently introduced concepts. As the name suggests, 720 degree performance appraisal is the evaluation of the performance of an employee from all the aspects and giving timely feedback to ensure that the person is able to achieve the set goals before the next appraisal. performance appraisal , employee appraisal , performance review , or (career)development discussion A performance appraisal is a part of guiding and managing career development. It is the process of obtaining, analyzing, and recording information about the relative worth of an employee to the organization. Performance appraisal is an analysis of an employee's recent successes and failures, personal strengths and weaknesses, and suitability for promotion or further training. It is also the judgment of an employee's performance in a job based on considerations other than productivity alone CONCEPT OF 720 DEGREE PERFORMANCEAPPRAISAL “720 degree performance appraisal”, is the latest appraisal method that has been introduced in New Economy companies. Accurately and objectively measuring the performance of an employee is the most difficult part of the Performance appraisal process. Different methods are used for Performance appraisal that includes: Critical incident method, weighted checklist method, paired comparison analysis, graphic rating scales, essay evaluation method, behaviorally anchored rating scales, performance ranking method, Management by Objectives (MBO) method, 360 degree performance appraisal method, Forced ranking and Behavioral observation scales. 720 degree performance appraisal is an integrated method of performance appraisal where, the performance of an employee is evaluated from 360degrees (Management, Colleagues, Self and also customers) and timely feedback is given

and performance is evaluated again based on the targets that are set. Hence, 720 degree performance appraisal can be stated as twice 360 degree performance appraisal: once when he appraisal is done and the targets are set and he second where the feedback is given and the boss gives tips to achieve the goals. Hence, there is a pre and a post round of feedback. Considered as all round appraisal, the 720 degree performance appraisal system givesan employee more than feedback from one person.

This appraisal gives the employee a lot of feedback generally from anywhere from 5 to8 people to provide the employee with an all round assessment of his or her on the job performance. 720 degree for two round of feedback (a pre and post ) or a feedback approach which is done again after 9 to 12 months. 720 CONTAINS – 1. Key skill / capability type.2. Skill components/ elements.3. Question number (purely for reference and ease of analysis)4. Specific feedback question.5. Tick box and grade box (ideally a, b, c, d or excellent, good, not good, poor or rate out of 5 to 10.) 720 degree performance evaluation 1. The 720 degree review starts with a review of the leader’s contribution to the business,competence and other factors. 2 . Next, major customer are identified and representatives asked to be part of the review. 3. After programmer training , the 720 degree services provider, interviews the customer todetermine the quality of the relationship with the executive. 4. All internal and external input is complied , analyzed and presented to the executive. 5. The executive , with support from the 720 degree service provider , develops measurablegoals and a detailed action plan to make changes.6

THE NEED OF 720 DEGREE PERFORMANCE APPRAISALS F O R TODAY’S BUSINESS WORLD The main need of 720-degree performance appraisal is the improvement of the performance of the people in their jobs and to ensure that the expectations of the employer, employee and the customers are met. The main need of 720-degree performance appraisal can be summarized as follows: • 720-degree performance appraisal method is more development focused than performance alone, and supplements training and development functions in a better way. •

Provide information about the performance ranks. Assist in taking decisions regarding salary fixation, confirmation, promotion, transfer and demotion. • Provide timely feedback about the performance, set targets and monitor t h e performance based on the targets set. • Helps to check the effectiveness of personnel procedures and practice i.e . validation. • It is needed to ensure that employees reach organizational standards and objectives. • To discover the work potential and to understand the areas where training is required to guide the employees to perform their best. • To understand the expectations of the employees and prevent grievances and indisciplinary activities. • Provide information to diagnose deficiency in the employee regarding skill,knowledge, determine training, and prescribe the means for employee growth and information for correcting placement. • Set realistic target, monitor the performance and provide timely feedback to ensure that the performance is enhanced. • These critical competencies are essential to assist the executives and managers to be able to lead these organizations toward successful implementation of st rategic changes. 3DIMENSIONS OF 720-DEGREE PERFORMANCE APPRAISAL

All the current IT organizations aim at achieving higher rate of employee satisfaction and transparency in the working environment. In order to achieve the above goals,720 degree performance appraisal would be a vital tool as it is used to appraise the performance of an employee from different dimensions and helps to overcome the barriers of bias, prejudice and discrimination. The performance is appraised from 5dimensions and feedback or the appraisal meeting is conducted twice (pre and post feed back) to ensure the efficient performance of the employee. Including the pre and the post feedback, that plays a vital role, the 720 Degree performance appraisal has 7phases.PREAPPRAISALFEEDBACKThis is the first appraisal step that is done after the feedback is collected from the different dimensions or people with whom the employee would interact. In this step ,the performance is evaluated, targets are set and feedback or training is organized tohelptheemployeeachievethetarget.) SELFAPPRAISALThe employee is given a questionnaire and asked to evaluate his performance and throughthismethod,theemployeegetsanopportunitytoexpresshisthoughtsandhisvaluationofstrengths,weaknessandjudgehis performance.c) PEERS/COLLEAGUESAPPRAISAL The feedback from the peers or colleagues is important as it helps to understand the abilityof the employee to work as a team, cooperate, co-ordinate with others and bring out the best. d)CUSTOMERAPPRAISAL

In order to survive in the current competitive market, Organizations aim at achieving high customer satisfaction. Customer feedback helps to analyze the customer ‟ point of view and help to improve the person and the Organization.8 e)SUB-ORDINATESAPPRAISAL The feedback of the sub-ordinates is essential to analyze the organizing skills of the employee and to understand his abilities like communication and motivating abilities, ability to delegate the work, leadership qualities and way of handling responsibilities. f)MANGERS/SUPERIORSAPPRAISAL In this, the performance, responsibilities and the attitude of the employee is evaluated bythe Superiors or Managers. g)POSTAPPRAISALFEEDBACK It is this step that makes the 720-degree performance appraisal different and better than the360-degree performance appraisal method. In this step, the performance is evaluated based on the target set in the Pre appraisal and feedback is given. Timely feedback and guidance helps to make the employee improve his performance BENEFITS OF 720-DEGREE PERFORMANCE APPRAISAL 720 Degree performance appraisal will help in creating a synergetic work environment and will help to bring out the best of each employee. The other benefits of the 720 degree performance appraisal are as follows) It helps in better analysis and improved feedback from different dimensions b) Helps to develop a better and co-operative team) Reduces the appraisal barriers like prejudice, bias and discrimination) Customer feedback is valued do better customer service and satisfaction can be obtained) Encourages transparency and feeling of treated justly EFFECTS OF 720 DEGREE REVIEW • Performance goals are aligned with customer’s true expectations. • Customer’s internal evaluators, venders and executive being evaluated are coachedon the purpose, process and needed outcomes before beginning. • For a 720 degree assessment, collect information not only from inside the company but from out side groups. External assessors might include investors, customers or s u p p l i e r s . T h e s e g r o u p s a r e i m p o r t a n t b e c a u s e i t i s i n t h e i r e y e s t h a t t h e organization’s intangible value matters most. OBJECTIVES OF THE STUDY The following are the objectives of the study: • To study the awareness level of the Emp loyees and Managers on 720 degree performance appraisal method. • To find whether the 720 degree performance appraisal method is in vogue in theselected IT companies. •

To suggest a scheme to create the awareness and for effective practice of the 720degree performance appraisal method. IMPORTANCE OF 720 DEGREE PERFORMANCE APPRAISAL • 720 degree appraisal system provide alternatives to the traditional appraisal system. • It is useful in learning organizations. • It involves the use of more than one evaluator, which in turns mean that t h e different components of the appraisal system, which is based on a unitary system of evaluation. • The 720 degree appraisal mechanism are more reliable, focused and consistent. • They are capable of reassessment which is the opposite of what happens with the traditional system. • The 720 degree guarantee confidentiality , unlike the traditional appraisal system LIMITATIONS OF THE STUDY • The sample of New Economy companies was taken from only one city. Hence the Appraisers-respondents and Appraiser-respondents are from one city based new economy companies. • Subjective views of the appraisers and the appraise respondents • Time constraint SCOPE FOR FURTHER RESEARCH The following areas are identified for further research: • Analytical study on the opinions of the CEOs and top management on 720 Degree performance appraisal method and its implementation. • A sample study using the laboratory method to have a practical understanding. • Development of cases on 720 Degree performance appraisal method. • Research on creating awareness about the on 720 Degree performance appraisalmethod. ADVANTAGES OF 720 DEGREE PERFORMANCE APPRAISAL The Industries in India are broadly classified into two: Old Economy Companies NewEconomy CompaniesIn the New Economic companies, the practices are ultra modern in all functions of management. Therefore, the authors of this paper write to find whether the employees andmanagers (appraisers) are aware of the concept of 720 degree performance appraisalmethod. If yes, do they practice it for the performance evaluation? The opinion of theemployees vis -à-vis appraisers on the need and importance of this method as far as the ‟ performance evaluations, as it is the need of the hour.

• Errors of central tendency. • Leniency and strictness biases. • Personal prejudice. • Primary effect / first impression. • Regency effect. • Lack of rater preparedness. • Sampling error. • Stereotyping in this appraisal. HOW TO AVOID PROBLEMS IN 720 DEGREE PERFORMAN CEAPPRAISAL • Understand the potential problem and solutions. • Use the right appraisal tool. Each tool has its on pros and cons. • Train supervisors to reduce rating errors such as halo effect, leniency and central tendency. • Have raters compile positive and negative critical incidents as they occur.

The 720 Degree performance appraisal method as an objective method that cannot be influenced by personal bias and a method that suits t h e n e w e c o n o m y c o m p a n i e s a s i t g i v e s f e e d b a c k a n d f o l l o w s u p t o e n s u r e t h a t t h e appraised reach the goal.

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