Page 72 - DMGT517_PERFORMANCE_MANAGEMENT_SYSTEM

Unit 6: Methods of Performance Appraisal

5. 360-degree feedback provides increased the understanding of competence and Notes
competency in various roles.
6. 360-degree feedback extends better morale to those who perform and contribute well
to the organization.

7. 360-degree feedback reduces training costs by identifying common development
needs.
8. 360-degree feedback increases the team’s ability to contribute to the organizations
goals.
9. 360-degree feedback helps everyone to work for a common standard and institutionalize
performance management.

10. 360-degree feedback ensure better interpersonal relationship and group
cohesiveness.
11. It promotes self-directed learning and provides a road map for employee’s development
planning.
12. It promotes better communication within departments.
13. 360-degree feedback Increases the team’s ability to contribute to the organizations
goals develop better bottom line through boosting the capability of the organization to
meet its objectives.

Pitfalls of 360-degree Feedback

1. A detailed plan of action, which ensure the transparent and clear implementation of
appraisal with employee accountability.
2. Effective follow-up is the prime requirement of 360-degree feedback. Failure in follow-up
may cause more harm than good.
3. The 360-degree feedback is time consuming and cost consuming assessment process.
Without having adequate resource to implement the process, it will end up nowhere and
develop financial burden to organisation.

4. The trust and confidence on the employees who undergo this feedback assessment process is

a determinant factor in its outcome. Many consider this appraisal as tool for downsizing.
5. The process involves a lot of paper work.
6. There are high chances of subjectivity from the management and employee part in the feed
back assessment.

7. Many times the confidentiality of the appraisal cannot ensure from the HR department.
8. Since the assessment is based on qualitative data many times it cannot ensure unambiguous,
clear, specific and, observable and quantifi able formats.

6.5 Balance Scorecard

The Balance Scorecard (BSC) creates a template of measurement of organizational performance
as well as individual performance. It is a measurement based management system, which enables
organizations to clarify vision and strategy before initiating action. It is also a monitoring system
that integrates strategy into performance measures and targets, thus making it operational and
highly effective. It helps cascade corporate level measures to lower level so that the employees
can see what they must do well to improve organizational effectiveness and helps focus the entire

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