What is 360-degree feedback / Performance Appraisal?
360-degree feedback is a full circle system of obtaining information from peers, subordinates, and internal and external customers, about the employee's performance. 360-degree assessment is based on the assessment of an individual's management styles, competencies and behaviour by colleagues horizontally and vertically by involving his boss, peers and direct reports in the organization.
360-degree feedback
Is a multi source assessment, which includes
* Self,
* Supervisor
* Internal Customers/peers/Staffs
* External Customers
Need of 360-degree feedback in organisations:
Business is towards surplus generation. Without surplus no organisation can grow. Here the effort to grow the business and the surplus should come from employee part. The performance of the employees is at work here matters in business development and organisational development. The performance of the employees should then align with the strategic decisions that integrate the business goals in an increasingly competitive environment. It is the responsibility of the Human Resource Management to integrate the culture of the organisation with all available resources to the optimum out put. The 3600 Appraisal helps the HR Department to have better understanding of the competitive advantage and disadvantages of the current manpower resources and tune them towards performance excellence and productivity.
Prerequisites
* Top Management Support
* Confidence of employees on the appraisal methodology
* Objectives need to be measurable with performance requirements clearly stated.
* A detailed plan of implementation
* Collaboration between superior and subordinates
* Some prior experimentation and positive experiences Clear organisational philosophy and policy objectives
Uses for 360 Degree Feedback include:
Performance Appraisal
o Recognition of performance.
o Providing feedback on individual performance.
o Providing a basis for self-evaluation.
Assessing Employee Development:
o Diagnosing training and career development needs.
o Providing a basis for promotion, dismissal, job enrichment, job enlargement, job transfer, probation, etc.
o Monetary and other rewards.
Organizational Climate Study:
o Organisational environment improvement needs
o Changes in the Managerial approaches, leadership, etc
Customer Satisfaction Study
o Employees attitudinal change
o Customer satisfaction improvements
How 360-degree feedback system adds value?
360 degree feedback enables an organization to focus on developmental efforts, at the individual and group level, in the present business environment where the success of the company depends on continuous revolution, which is possible through organizational development. 360-degree feedback facilitates the alignment of individual capabilities and behaviors with organizational strategies. It adds value to the organization indifferent ways:-
360-degree feedback provides a better understanding of individuals performance at work
360-degree feedback provides a multifaceted view about the employees from different sources
360-degree feedback provides a better understanding of employed developmental needs
360-degree feedback provides increased the understanding about one's role expectations.
360-degree feedback provides increased the understanding of competence and competency in various roles
360-degree feedback extends better morale to those who perform and contribute well to the organisation
360-degree feedback reduces training costs by identifying common development needs.
360-degree feedback increases the team's ability to contribute to the organizations goals
360-degree feedback helps everyone to work for a common standard and institutionalize performance management.
360-degree feedback ensure better interpersonal relationship and group cohesiveness
It promotes self-directed learning and provides a road map for employee's development planning.
It promotes better Communication within departments.
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.
Steps may be taken to gauge the readiness of an organization for 360-degree feedback:
Identification of the problem.
Analysis of the organizational context for finding a solution to the problem.
Allocation of resources for the purpose in terms of time and finances.
A detailed plan of implementation.
Follow up
Pitfalls of 360-degree feedback
A detailed plan of action, which ensure the transparent and clear implementation of appraisal with employee accountability.
Effective follow-up is the prime requirement of 360-degree feedback. Failure in follow-up may cause more harm than good.
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.
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.
The process involves a lot of paper work.
There are high chances of subjectivity from the management and employee part in the feed back assessment.
Many times the confidentiality of the appraisal cannot ensure from the HR department.
Since the assessment is based on qualitative data many times it cannot ensure unambiguous, clear, specific, and observable and quantifiable formats.
Types of 360-degree feedback
1)PEER-TO-PEER EMPLOYEE PERFORMANCE EVALUATIONS
Peer-to-peer employee performance evaluations require employees at the same level to review each other. The thinking behind peer-to-peer employee performance evaluations is that nobody knows a worker’s ability better than his or her co-workers. While this can be an effective review format for some groups of workers (for example, a team of doctors working on a research project together, where specific content knowledge is required), it can also cause controversy because of the way it affects future group dynamics. When evaluating the use of these types of employee performance evaluations, consider the maturity level of the employees involved and the long-term effects that could result from the source of negative reviews getting back to the team members.
2)SELF-ASSESSMENT PERFORMANCE REVIEWS
Self-Assessment performance reviews are effective when combined with any of the other three types of performance reviews. With this type of review, employees are asked to rate themselves, often using the same form that a manager will use to review them. Self-assessment performance reviews help make the employees an active part of the process and provide a vehicle for them to reflect on their own performance prior to the formal review.
Studies have shown that employees are usually harder on themselves in self-assessment performance reviews, than their managers and generally give themselves lower ratings. Having employees do self assessment performance reviews prior to a manager’s review can set a positive tone for the meeting, as the manager will often have better things to say than the employee has said about him or herself.
3)DOWN TO TOP EMPLOYEE PERFORMANCE EVALUATIONS
Down-Top employee performance evaluations tend to be one of the most common and most effective method, because they involve the assessment of an employee by its subordinate. Down to top employee performance evaluations are most useful when given by an employee’s immediate subordinate – someone who works with that employee everyday and knows his or her strengths and weaknesses. The Down-Top employee performance evaluation becomes less effective when given by a Human Resources manager who has only second-hand knowledge of an employee’s performance.
4)TOP – DOWN EMPLOYEE PERFORMANCE EVALUATIONS
Top-down employee performance evaluations tend to be the most common and most effective, because they involve the assessment of an employee by a direct manager. Top-down employee performance evaluations are most useful when given by an employee’s immediate supervisor – someone who works with that employee everyday and knows his or her strengths and weaknesses. The top-down employee performance evaluation becomes less effective when given by a Human Resources manager who has only second-hand knowledge of an employee’s performance.
One offshoot of top-down employee performance evaluations are “matrix” employee performance evaluations, where multiple managers rate the same employee. This is a good choice when the employee works for multiple managers, or engages in various fixed-time length projects..
Conclusion
360-degree feedback is sometimes referred to as multi-rater appraisals, multi-source feedback or 360 degree profiling. It is essentially a process, which enables a person to receive feedback from a number of people around them (see diagram). The purpose of the feedback is usually varied from organisation to organisation. 360-degree feedback not only acts as tool for organisational development but also to help an individual determine areas they need to develop. The success of the appraisal depends on the transparency and clear objectives of its need and its clear cut intimation to the employees even at the bottom level of the organisation.