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QUESTION

Performance appraisal should be multifaceted. Supervisors should


evaluate their employees and employees should be able to evaluate
their supervisors and customers should evaluate them all. Do you
agree or disagree with this statement. Discuss.

Table of Contents
Abstract:...........................................................................................................................................4
Introduction:....................................................................................................................................5
360 Degree Performance Appraisal:................................................................................................5
For which category of employees is this tool used:.........................................................................5
Which Organizations use this tool?.................................................................................................5
Who should conduct 360 degree performance appraisal?...............................................................5
Components Of 360 Performance Appraisal:................................................................................6
1.

Self Appraisal:......................................................................................................................6

2.

Superiors Appraisal:............................................................................................................6

3.

Subordinates Appraisal:.......................................................................................................6

4.

Peer Appraisal:......................................................................................................................6

Issues with 360 degree appraisal:....................................................................................................6


Advantages of 360 degree Appraisal:..............................................................................................7
Disadvantages of 360 Appraisal:....................................................................................................7
Conclusion:......................................................................................................................................7
References:......................................................................................................................................8

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Abstract:
Organizations use different appraisal methods 360 degree appraisal method is one
of them. Organizations use it for performance evaluation as well as for the
development of employees. The feedback is received from several people that
provides a detailed view about the performance of an employee. It help the
employees to overcome their weaknesses and develop the required job related
abilities in them. Now a days organizations use this tool for development purpose
but not for performance evaluation.
.

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Introduction:
Performance appraisal is the process of assessing employee performance by way of comparing
present performance with already established standards which have been already communicated
to employees, subsequently providing feedback to employees about their performance level for
the purpose of improving their performance as needed by the organization. Performance
appraisal is done through different methods that are:

Past oriented methods


Future Oriented methods

360 degree performance appraisal is from one of the future oriented methods.

360 Degree Performance Appraisal:


The 360 evaluation feedback method was first used in the 1940s. Analogous to the multiple
points on a compass, the 360 method provides each employee the opportunity to receive
performance feedback from his or her supervisor, peers, staff members, co-workers and
customers.
360-degree feedback or multi-source feedback is an appraisal or performance assessment tool
that incorporates feedback from all who observe and are affected by the performance of a
candidate.

For which category of employees is this tool used:


Usually, this tool is used for employees at middle and senior level. The complexity of their roles
enables the organization to generate sufficient data from all stakeholders for a meaningful
assessment.

Which Organizations use this tool?


Most organizations that focus on employee development use the 360-degree tool to assess
performance and potential of staff and enable the employees to map their career path based on
the feedback. Organizations take 360-degree feedback about an employee before taking a major
decision about the professional's career.

Who should conduct 360 degree performance appraisal?

Subordinates.
Peers.
Managers (i.e. superior).

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Team members.
Customers.
Suppliers/ vendors.
Anyone who comes into contact with the employee and can provide valuable insights and
information.

Components Of 360 Performance Appraisal:


360 performance appraisals have four integral components:
1. Self appraisal
2. Superiors appraisal
3. Subordinates appraisal
4. Peer appraisal.
1. Self Appraisal:
Self-appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his
achievements, and judge his own performance. In this component employee evaluates his
performance by himself.
2. Superiors Appraisal:
Superiors appraisal forms the traditional part of the 360 degree appraisal where the employees
responsibilities and actual performance is rated by the superior.
3. Subordinates Appraisal:
Subordinates appraisal gives a chance to judge the employee on the parameters like
communication and motivating abilities, superiors ability to delegate the work, leadership
qualities etc.
4. Peer Appraisal:
This feedback is given by the peers of an employee. The correct feedback given by peers can
help to find employees abilities to work in a team, co-operation and sensitivity towards others.

Issues with 360 degree appraisal:


Many 360-degree feedback tools are not customized to the needs of the organizations in which
they are used. 360-degree feedback is not equally useful in all types of organizations and with all
types of jobs. Additionally, using 360-degree feedback tools for appraisal purposes has
increasingly come under fire as performance criteria may not be valid and job based, employees
may not be adequately trained to evaluate a co-worker's performance, and feedback providers
can manipulate these systems. Employee manipulation of feedback ratings has been reported in
some companies who have utilized 360-degree feedback for performance evaluation including
GE, IBM, and Amazon. The U.S. military has criticized its own use of 360-degree feedback
programs in employment decisions because of problems with validity and reliability. Other
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branches of the U.S. government have questioned 360-degree feedback reviews as well. Still,
these organizations continue to use multi-rater feedback in their development processes.

Advantages of 360 degree Appraisal:

Offers a more comprehensive view towards the performance of employees.


Improve credibility of performance appraisal.
Such colleagues feedback will help strengthen self-development.
Increases responsibilities of employees to their customers.
The mix of ideas can give a more accurate assessment.
Opinions gathered from lots of staff are sure to be more persuasive.
People who undervalue themselves are often motivated by feedback from others.
If more staff takes part in the process of performance appraisal, the organizational culture
of the company will become more honest.

Disadvantages of 360 Appraisal:

Taking a lot of time, and being complex in administration


There is requirement for training and important effort in order to achieve efficient
working.
Failure to properly train feedback providers will most likely result in inaccurate results or
a total failure of the process to produce relevant information
Frank and honest opinion may not be received
Stress might be put on individuals for giving feedback.

Conclusion:
Organizations should use 360 performance appraisal tool for the development of employees but
they should not use it for the evaluation purpose because by using this technique in evaluation
they can fire some employees on the basis of stereotyped and biased information and they can
take unfair decisions regarding to promotion and pay etc. But by using this tool in development
employees will come to know about their weaknesses and they will also feel motivated by
receiving feedback from others.

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References:
https://en.wikipedia.org/wiki/360-degree_feedback
http://www.whatishumanresource.com/360-degrees-performance-appraisal
http://smallbusiness.chron.com/360-degree-performance-appraisal-process-1923.html

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