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Unit 6: Methods of Performance Appraisal

which is known as 360-degree appraisal – a performance management in which people receive Notes
performance feedback from those on all sides of them in the organization.
?

Did u know? 360-degree feedback is also known as ‘multi-rater feedback’, as it is the most
comprehensive appraisal where the feedback about the employees’ performance comes
from all the sources that come in contact with the employee on his job.

360-degree respondents for an employee can be his/her peers, managers (i.e. superior),
subordinates, team members, customers, suppliers/vendors – anyone who comes into contact
with the employee and can provide valuable insights and information or feedback regarding the
“on-the-job” performance of the employee.
360-degree appraisal has four integral components:

1. Self appraisal
2. Superior’s appraisal
3. Subordinate’s appraisal
4. Peer appraisal.
Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses,
his achievements, and judge his own performance. Superior’s appraisal forms the traditional
part of the 360-degree performance appraisal where the employees’ responsibilities and actual
performance is rated by the superior.
Subordinates appraisal gives a chance to judge the employee on the parameters like communication
and motivating abilities, superior’s ability to delegate the work, leadership qualities etc. Also
known as internal customers, the correct feedback given by peers can help to fi nd employees’
abilities to work in a team, co-operation and sensitivity towards others.

Self assessment is an indispensable part of 360-degree appraisals and therefore 360-degree
Performance appraisal have high employee involvement and also have the strongest impact on
behavior and performance. It provides a “360-degree review” of the employees’ performance
and is considered to be one of the most credible performance appraisal methods.
360-degree performance appraisal is also a powerful developmental tool because when conducted
at regular intervals (say yearly) it helps to keep a track of the changes others’ perceptions about
the employees. A 360-degree appraisal is generally found more suitable for the managers as it
helps to assess their leadership and managing styles. This technique is being effectively used
across the globe for performance appraisals. Some of the Indian organizations following it are
Wipro, Infosys, and Reliance Industries etc.

Many American companies are now using this 360-degree feedback. Companies that practice
360-degree appraisals include Motorola, Semco Brazil, British Petroleum, British Airways,
Central Televisions, and so on. Barring a few multinational companies, in India this system of
appraisal is uncommon.

This form of performance evaluation can be very beneficial to managers because it typically gives
them a much wider range of performance-related feedback than a traditional evaluation. That is,
rather than focusing narrowly on objective performance, such as sales increase or productivity
gains, 360-degree often focuses on such things as interpersonal relations and style. Of course,
to benefit from 360-degree feedback, a manager must have thick skin. The manager is likely to

hear some personal comments on sensitive topics, which may be threatening. Thus, a 360-degree
feedback system must be carefully managed so that its focus remains on constructive rather than
destructive criticism.

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