360 Degree Feedback

360 Degree Feedback
360-DEGREE FEEDBACK
Sl No CONTENT PAGE
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I. INTRODUCTION
II. WHAT IS 360-DEGREE FEEDBACK?
III. WHAT DOES IT ACTUALLY MEASURE?
IV. WHO DOES THE ASSESSMENT?
V. CAN PEOPLE’S PERCEPTIONS BE TRUSTED?
VI. WHAT CAN 360-DEGREE FEEDBACK BE USED FOR?
VII. WHAT IMPACT WILL 360-DEGREE FEEDBACK HAVE ON THE

ORGANIZATION
VIII. WHAT TYPES OF INFORMATION ARE PRODUCED?
IX. WHY HAS 360-DEGREE FEEDBACK BECOME SO POPULAR

RECENTLY?
X. ADVANTAGES AND DISADVANTAGES AND PITTFALS
XI. HOW TO USE 360-DEGRE FEEDBACK EFFECTIVELY
XII. 360 DEGREE APPRAISEL IN GLOBAL COMPANIES
XIII. CONCLUSION
St. Aloysius College (AIMIT) 1

360 Degree Feedback
INTRODUCTION
Traditional performance appraisal involves bosses assessing their staff. Yet the people
who actually work with us – peers, subordinates, suppliers and customers – can often provide
far more accurate and useful insights into our strengths, weaknesses and scope for
development.
Organisations tap into these vital sources of information through 360-degree feedback, a
process originally developed by NASA to evaluate their space programmes. In this pioneering
book, consultant Peter Ward – who introduced this technique into Tesco – explains its
advantages over other assessment methods and offers detailed practical guidance on
implementation. He examines in turn:
• Where, why and how to adopt 360-degree approaches

• Designing, customizing or buying in questionnaires
• Planning, piloting and validating a new project
• Transforming raw data into effective reports
• Presenting the results and facilitating change
• Issues of confidentiality and the link with the reward
• Lessons in best practice form leading organizations such as the AA, Arco, National Grid
and Total
Introducing 360-degree feedback can loosen up a rigid corporate culture and cast light on
the vital process factors – teamwork, communications, decision-making and morale – that
underlie long-term business success. The essential principles are explained further.
WHAT IS 360-DEGREE FEEDBACK?
What’s In a Name?
360-degree feedback has been labeled by many names as:
• Multi-rater feedback
• All-round feedback
• 360-degree feedback
• 360-degree appraisal
• Peer appraisal
• Upwards feedback

360 Degree Feedback
All these terms represent different ways of describing the same thing. The numbers indicate
the different rater groups used. Thus 180-degree feedback describes top-down and bottom-up
feedback, whereas numbers greater than this imply feedback from more groups across the
organization. The definition, which applies to all these terms, is:
The systematic collection and feedback of performance data on an individual or group,

derived from a number of the stakeholders in their performance. The data collection is
systematic i.e. done in some systematic way via questionnaires or interviews. This formalizes
people’s judgments coming from the natural interactions they have with each other. There is
both a collection and a feedback process; data is gathered and then fed back to the individual
participant in a clear way designed to promote the individual participant in a clear way
designed to promote understanding, acceptance and ultimately changed behaviour. The
performance of either an individual or a group can be measured. The sources of data are
stakeholders in the participant’s (the person being rated) performance. Stakeholders are
people (called ‘respondents’) who are both affected by your performance and deal with the
participant closely enough to be able to answer specific questions about the way you interact
with them.
Thus 360-degree feedback symbolizes transition from top-down, single-stakeholder,

results-only measurement to something much more multi-dimensional and process-oriented.
WHAT DOES IT ACTUALLY MEASURE?
Many organizations have developed sophisticated ways of measuring their success as

corporate entities, the achievements of departments, and teams and the contribution of
individuals, which demonstrate:

360 Degree Feedback
• The tendency when assessing individuals to look not just at results achieved – but how
they were achieved
• The increasing emphasis by organizations on measuring employee opinions on a number
of issues, such as communications or morale, achievement of corporate standards of
behaviour or values
• The use of external measures by organizations to assess how others see them from
outside, typically using market research or other forms of survey to ass3ess customer
satisfaction. Some asking for similar feedback from their suppliers.
• The assessment of teams and departments by looking at what happens within the group-
communication and decision0making processes. This data is coupled with the views of
internal customers and others on team quality and service
• The increasing use of business excellence models as part of total quality movement and
the need to have more precise, data-focused ways of measuring them
Any or all of these circumstances may be suitable candidates for 360-degree feedback. In
practice it is used to assess how teams interact with their members and customers, and how
individuals interact with the stakeholders in their performance. Thus managers can be assessed
in terms of the competencies they posses, or more specifically through the detailed behaviors
which constitute them. Besides managers, power and value of 360-degree feedback has made
engineers, pilots. Sales people, human resource professionals, customer service staff,
secretaries and supervisors part of the assessment and feedback process.
WHO DOES THE ASSESSMENT?
The answer is “Anyone who works with the participant closely enough to form a view.” The list
of potential respondents is as follows:
• Yourself
• Boss
• Other bosses (previous boss, boss’s own boss etc.)
• Staff
• Team members
• Peers
• Internal customers
• External customers
• Suppliers
• Friends and family members
• Collection of people from a mixture of the groups listed above
CAN PEOPLE’S PERCEPTIONS BE TRUSTED?
Many organisational thinkers believe that perception is a reality. In other words what
your colleagues see you doing or hear you saying is real to them, describes the person you are,

360 Degree Feedback
and forms the basis of their opinion about you, it also governs how they respond to you.
However people see only the tip of the iceberg and 360-degree feedback respondents
comment only on what they see, because this for tem is reality. The intentions, background or
reasons behind what they see might be perfectly rational and understandable – but if they
remain invisible or unexplained then people will respond only to what appears on the surface.
In 360-degree feedback there are as many realities as there are respondents.
WHAT CAN 360-DEGREE FEEDBACK BE USED FOR?
The main uses of 360-degree feedback can be summarized as follows:
• Self-development and individual counseling

• Part of ‘organized’ training and development
• Team-building
• Performance management
• Strategic or organization development
• Validation of training and other initiatives
• Remuneration
WHAT IMPACT WILL 360-DEGREE FEEDBACK HAVE ON THE ORGANIZATION?
If 360-degree feedback is planned and implemented in a thoughtful manner the impact on

the organization will be very beneficial especially in the following areas: • Quality and quantity
of data: Large amount of detailed information, not hitherto available on a person’s
performance, are generated by 360-degree feedback. The nature and variety of respondents
and the face validity of the activities measured make it much easier for participants to
understand what is said and use it as the basis for change and development.
• Communications: The application of 360-degree feedback is an exercise in open

management. We now have communication upwards and across the organization whereas
before it may have only been downwards.
• Motivation: Organisations introducing 360-degree feedback often find that it has a
morale-boosting effect. The feedback contains a mixture of strengths and areas for
development. Obviously the former can be motivating per se, but for those people who try
to change their behaviour and succeed there is an even greater improvement in morale.
Finally, 360-degree feedback changes attitude to performance, that what gets measured
gets done.
• Roles: The role of everyone involved in a 360-degree feedback project is changed –
sometimes subtly, sometimes dramatically. Participants find themselves asking for feedback
information from colleagues. Respondents find themselves in a position of influence over
participant. The boss’s role can change from being the hander down of judgments on
performance based in relatively limited information to being a facilitator, coach, or
counselor. The role implications for human resources function are strategic as well as

360 Degree Feedback
individual. The human resources function is in a much better position to measure the
success of its strategic initiatives and to use this information for better planning and
implementation I the future. 360-degree feedback also has profound implications for the
skills of the individual human resources practitioner who has to work with the participant as
a partner, drawing out his idea\s, helping him make and implement development plans.
• The customer: 360-degree feedback gives internal as well as external customers the
opportunity to make their views known on such matters as reliability of service, attention to
their needs, communication, problem-solving, and working in partnership.
WHAT TYPES OF INFORMATION ARE PRODUCED?

360 Degree Feedback
WHY HAS 360-DEGREE FEEDBACK BECOME SO POPULAR RECENTLY?
The following four forces have encouraged the rapid growth of 360-degree feedback in the
recent years:
• Changes in the roles of the employee and what the organization expects of the employee
such as Encouragement given to collaboration and team working, continuous
improvements, reduction in employee numbers and levels of management, flexibility etc.
• An emphasis on measurement within orgnisations to assess views, suggestions, attitudes,
motivations, morale, personalities, aptitude, skills, potential and career ambitions of
employees
• The influence of new management concepts
• Management attitudes and receptiveness
Some applications of 360-degree feedback can be summarized as follows:
• Self-development and individual counseling: With 360-degree feedback for self-

development, the responsibility for action lies more with the participant. The organization
should take as supportive role in the provisos of solutions
o Pitfalls
􀂃 Participant may react badly to feedback
􀂃 Requires clear briefing and skilled one-to-one facilitation
􀂃 Participant may not complete or carry out their action plan
o Opportunities
􀂃 Participants are very keen to learn and devote more time to a deep
understanding of the feedback and its implications
􀂃 Opportunity for building a close and effective relationship between
facilitator or with others who might be involved in the process, e.g. mentors
or boss
• Part of ‘organized’ training and development: Many organizations now see 360-degree
feedback as part of formal training programs which allows participants to use other course
delegates as a resource
o Pitfall
􀂃 People might feel threatened to receive feedback in a group setting
􀂃 Lack of time for facilitation and reflection
􀂃 Trained facilitators are required
o Opportunities
􀂃 Formal sessions can be run in which the participants can share their data an
tap into each other’s experience and skills
􀂃 Opportunity to share needs and development plan son an informal basis
• Team building: Team feedback is a relatively new development that that presents a
number of opportunities for improved team working
o Pitfalls
􀂃 Individual team member feedback can be threatening

360 Degree Feedback
􀂃 Pressure on team members to share or discus feedback with others in a

team-building session
􀂃 Skilled facilitators are required
o Opportunities
􀂃 Feedback can be gathered before any team event happens
􀂃 Capable of being turned into concrete actions from which the team or its
members will benefit
• Performance/appraisal management: To make the best use of 360-degree feedback in
performance appraisal, managers have to adopt different types of observation and coaching
skills through proper training
o Pitfalls
􀂃 Might promote a culture of tale-telling, putting the boot in, and over-
criticism
􀂃 Some appraising mangers might have difficulty in adapting t the new role
demanding
• Concentration on processes as well as results
• Being more observant than they otherwise might be
• Describing the tip of the iceberg of the performance
• Acting as a facilitator
o Opportunities
􀂃 Results in performance improvement
􀂃 Promote self-awareness for the participant
􀂃 Encourage self-development
􀂃 Clarifies problems
􀂃 Stimulates change
􀂃 Builds participant’s confidence
􀂃 Reinforces useful behaviors
• Strategic or organization development: Some organizations are using the technique as a
driver of culture change
o Pitfalls
􀂃 Requires signal from the top management
􀂃 Risk of disillusionment resulting from failed promises of a better tomorrow
o Opportunities
􀂃 Crates altered relationships in terms of more supportive management and
better team working
􀂃 Changes attitude to performance
􀂃 Changes the ways in which people give and receive feedback
􀂃 Helps to establish the concept of the internal customer
• Evaluation/validation of training and development: 360-degree feedback can be used to
evaluate training initiatives. The four areas of analysis used for evaluation of training
methods are reaction, learning, behaviour and results. 360-degree feedback presents a
great opportunity to improve the analysis of behaviour and results
• Remuneration: There are cases for (performance and process relate data) and against
(biased feedback) using 360-degree feedback to determine pay

360 Degree Feedback
• Total Quality Management: 360-degree feedback approach makes the people and team
issues within total quality easier to get grips with, by acting as a catalyst for changes in
performance and the adoption of a new culture
ADVANTAGES
1. It provides a more comprehensive view of employee performance than other appraisal
method.
As the procedure of carry out the 360-degree appraisal need to have a lot of people to
do the evaluation for the staff, it may include the staff in the company, from the top (manager)
to the bottom (colleagues), even some external sources such as the customers. If it is
conducted well, this can give the employee a more comprehensive and accurate view for the
evaluation and also it is good for the staff’s self-development. It is more comprehensive than
other appraisal methods since they may only need the manager to do the evaluation.
2. It increases the credibility of the appraisal result.
Since the 360-degree appraisal methods need a lot of people to finish it, as mentioned
before it may include of the manager also other staff, it can reduce the unfair of the result. It is
because it contain everyone’s point of view, not only the manager or any single staff, then they
cannot give some comments that show the evaluated employee is very good or not, then help
the staff easily get to promote to higher position or make the staff lose the job. It can show that
this appraisal can help to increase the credibility of the appraisal result.
3. The feedback from the peers can help to enhance the staff’s self-development.
Not every appraisal methods will also include the feedback from the peers, that may
only judge by the manager, so it is not easily show the real performance of the staff since the
manager may not observe the performance of the staff in every single minutes and they may
only have a blurred impression of the staff. By the way, if there also include the feedback from

360 Degree Feedback
the peers as they have more communication and cooperate experience with the evaluated
staff, they must know more than the manager about what the staff can improve, also help to
motivate people who are undervalue themselves, so the feedback from the peers can help the
staff to have a better self-development than other appraisal methods.
4. A chance to complain their manager without following the normal complaint procedures.
Though the 360-degree method, if the manager does not do well in his job and make
the staff feel discontent, they can compliant the manager during the appraisal without
following the normal complaint procedures. This can help the staff a chance to voice out their
discontent and what they want.
DISADVANTAGES
1. Time consuming and more complex on administration
It is no doubt that include more people to do the evaluation can give a more
comprehensive view of the result, but it also very time consuming since everyone need to do
the evaluation, after that the company need to find more staff to help to find out the result, it
will increase the complex on the administration, so the company cannot have the appraisal
frequently on the same people. It is very important to choose a right timing to conduct this
method that can minimize the impact of the organization.
2. May generate the environment of suspicion and cynicism
This method can be threatening both the staff is being assessed and the people doing
the evaluation. From the management level, the manager may feel this method could
undermine their authority and so they will not cooperate well when they do the appraisal.
About the staff, if they do not have a good result of the appraisal, they may suspicious that who

360 Degree Feedback
give them some bad comments and may things that other staff will cynics them because they
cannot get a good result. As the result, it will generate a worse atmosphere in the working
environment. So it is very important that the 360-degree appraisal should conduct in an open
and honest environment.
3. Risk of confidentiality.
It is the biggest risk of the 360-degree appraisal because many company may outsource
the 360-degree process to other company that can used to make the staff who are being
evaluated feels more comfortable that the information they give and receive will in a
confidential environment. However, some information is very sensitive but the company
discloses the information to others carelessly, that will affect the whole company.
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.

360 Degree Feedback
 Since the assessment is based on qualitative data many times it cannot ensure
unambiguous, clear, specific, and observable and quantifiable formats.
HOW TO USE 360-DEGRE FEEDBACK EFFECTIVELY
 Be Realistic
 Coaching
 Use Experts
 Focus on task performance
 Be positive
 Show them Rewards
Examples from the hospitality industry to support our ideas.
In order to support our ideas of using the 360degree performance appraisal system, we have
found out a hotel which carried out this system successfully as an demonstration.
Homeland Hotel agreed with the benefits: Homeland Hotel is located in China has
implemented the 360degree performance appraisal about half year. Surprisingly Homeland
Hotel has proper progress of using this system and can see the primary outcomes. AS
Homeland Hotel said that 360 degree performance appraisal helps raise the management
ability of the staff and improve the service in term of being a 5 star hotel.
Differences they faced: How Homeland Hotel can overcome the problem occurs during the
implementation of 360 degree performance appraisal? As we know that, the culture shock of
organizations especially the differences between Chinese-western cultures will affect the
employees to adapt, recognize the system as well as participation in the system.
Actually, before 360 degree performance appraisal system took place, Homeland Hotel has
evaluated the disturbances which would come across during the process. For instance, this
system may break the relationship between the employees and managements. The employees
may not provide the real, accurate feedbacks as they don’t want to anger the management in

360 Degree Feedback
term of receiving disciplines. The managements may misapply the process and select targets for
elimination of bad feedbacks form their coordinators as well.
Preventive solution: Thus, Homeland Hotel has found out the preventive solution to get rid of
the problems in carrying out the system. The most effective method is to set up a supervisory
committee which is organized by 20 staff. And the 20 staff are elected by all the employees with
anonymity votes. It’s crucial to ensure the 360 degree performance appraisal is implementing
under a fair and confidential environment.
After implemented the system for half year Homeland Hotel agreed with the benefits that the
system brings to them.
HOW 360 DEGREE PERFOMANCE APPRAISAL BENEFITS THEM: Homeland Hotel said that 360
degree performance appraisal acts as a bridge between the staff and managements. Employees
receive fair, accurate and creditable information results in working harder and self-
development. Also, this system facilitates a comprehensive supervision to managements.
Everyone in hotel act as a supervisor to supervise, motivate each other. Therefore, the
managements will not violate the rules. Besides, it helps creating strategies for hotel
development.Peer pressures appear to be a productivity incentive.
The case of Homeland Hotel we illustrate is fit with our ideas of 360 degree performance
appraisal.
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

360 Degree Feedback
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 360 0 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
Recognition of performance.
Providing feedback on individual performance.
Providing a basis for self-evaluation.
 Assessing Employee Development:
Diagnosing training and career development needs.
Providing a basis for promotion, dismissal, job enrichment, job enlargement, job
transfer, probation, etc.
Monetary and other rewards.

360 Degree Feedback
 Organizational Climate Study:
Organisational environment improvement needs
Changes in the Managerial approaches, leadership, etc
 Customer Satisfaction Study
Employees attitudinal change
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
 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.
HERE ARE 13 COMMON MISTAKES TO AVOID WHEN IMPLEMENTING A MULTI-RATER

ASSESSMENT:
Mistake l: Having no clear Purpose:
Mistake 2: Using it as a substitute
Mistake 3: not conducting a pilot test
Mistake 4: Not involving key stakeholders
Mistake 5: Having insufficnet communication
Mistake 6: Compromising confidentiality
Mistake 7: Not making clear the feedback’s use
Mistake 8: Not giving people sufficiant resources
Mistake 9: Not clarifying who “owns” the feedback.
Mistake 10: Having “unfriendly” administration and scoring
Mistake 11: Linking to existing systems without a pilot
Mistake 12: Making it an event rather than a process
Mistake 13: Not evaluating effectiveness

360 Degree Feedback
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.

360 Degree Feedback
Performance management of Expatriate
Sl No CONTENT PAGE NO
I. Introduction
II. Factors influencing Expatriates
performance
III. Criteria to be used for appraisal of
expatriates or international staff
IV.
Who should appraise the expatriate?
V. Characteristics to be evaluated
VI. Criteria for appraisal of performance
VII. Some criteria for top management
personnel evaluation of performance are:
VIII. Performance Review Practices of some
countries
IX. Conclusion
Introduction

360 Degree Feedback
Performance management enables the multinational to evaluate and

continually improve individual subsidiary performance against clearly defined
pre-set targets and goals.
Characteristics of integrated performance management and their linked

to HRM functions
Performance Management HR functions
Link to MNC strategy clearly HR planning, Job designing & Job

communicating to all employees description
Setting individual performance goal Job analysis& Job description &

performance appraisal
Providing regular feedback towards Performance appraisal

goals
Providing opportunities to improve Performance appraisal, T & D

performance
Link between results and rewards Performance appraisal and compensation
Story and Sisson (1993) Emphasise four sub processes

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1. Setting clear goals for each unit, each department and every
individual employee.
2. Setting standard and measurement criteria for evaluating each
type of goal.
3. Formal monitoring and review of progress towards these
objectives.
4. Using the outcome of review process to reinforce desired employee
behavior through differential rewards and identifying training and
development needs
Setting Objectives
Measuring
Performance
Feeding Back
Results
Process Outputs

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Performance Management Cycle
Performance appraisal system covers in addition to the ability adapt to local circumstances,
the manager's contribution to overall strategic objectives of the company. Generally
performance is assessed through criteria of individual motivation, ability, working
conditions and expectations. However, in case of expatriates the performance is further
influenced by undernoted factors due to foreign assignment (Fig. 1).
Factors influencing Expatriates performance
Compensation package
Responsibility of assignment
Support of Head office Expatriates performance
Work environment in Host

subsidiary
Cultural adjustment of
expatriate and family
These influencing factors are further elaborated:
(a) Compensation Package on Foreign Assignment

If expectations of expatriate are not met, it will have bearing on motivation and commitment
whichwill affect performance.
(b) Responsibility of assignment

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It can vary either as manager in charge of subsidiary, or trouble-shooter to solve a particular

problem, or perform functional role at lower level. These responsibilities may be clear recording to
parent organization systems, but actually, cultural norms of host set-up determine the role of
expatriate. Thus, the task performance of expatriate has to be evaluated taking into
consideration the environment in the host subsidiary (in contrast to existing in the domestic
corporation).
(C) Support of Head office
It may be realized that head quarter's support to expatriate during foreign assignment is of
critical importance, as it affects on enthusiasm and performance. According to P.J, Dowling
and his co-authors, a perception of lack of adequate support for the family may decrease
commitment to the extent that expatriate may consider resigning from the organization.
Similarly, promised benefits and facilities to expatriate when not honoured may also lead
to quiting the assignment. Such aspects have psychological impact on loyalty and
commitment of expatriate.
(D) Work environment in Host subsidiary

Host environment may differ in legal, economic, technical, physical and social relationship
demands and that can be major determinant of expatriate performance. Further, the type of
operation to which an expatriate is assigned also affects performance. For example, i t is
easy to perform in wholly owned subsidiary than a joint venture in state owned communist
country. Conflicting goals between the parent company are common problems within
international joint ventures. Expatriate has to serve two masters with differing goal
expectations.
(e) Cultural adjustment of expatriate and family
The process of cultural adjustment is equally, critical factor affecting expatriate's job
performance. Similarly, his family adjustment in new environment will have impact on
expatriate's performance.

360 Degree Feedback
So the above five variables have significant impact and these to kept in view in
evaluation of international employee's performance.
Performance Criteria
 Hard Criteria :Profits, Market Share etc
 Soft Criteria : Interpersonal skills
 Contextual Criteria : Cultural, Language
Accuracy doesn’t depend on use of any one criteria but rather depends on the
appropriate use of each of these three types of criteria to collect data from multiple source.
Criteria to be used for appraisal of expatriates or international staff
A performance management approach instead of a traditional performance appraisal is

being adopted by companies. Performance management links goals and expectations of
expatriate with corporate objectives.
According to PJ. Dowling, these goals should cover three aspects, i.e. hard goals, soft
goals and contextual goals. The HARD GOALS are objective, quantifiable, and can be directly
measured such as, out turn, market share, ROI, etc. SOFT GOALS are relationship or trait-
based such as leadership styles, negotiating skills, etc. CONTEXUAL GOALS refer to
circumstances in which performance occurs, i.e. changes in currency conversion foreign
exchange risks, etc. Matters relating to ethical practices, it is necessary to link company
strategies and goals with performance appraisal.
PERSON TO EVALUATE. Normally the performance appraisal of head of unit as EVALUATED

BY SUPERIORS at head office. They should take into account situational variables while
appraisal of other expatriates is conducted by subsidiary chief and he can take into account
contextual criteria. It is propagated that A TEAM OF EVALUATORS be used for expatriate
performance appraisal.

360 Degree Feedback
Performance appraisal forms to be used. It is contented that standardized forms for

international staff may be devised and used.
Further, training and development and performance relaed pay increases based on
performance appraisal of expatriate.
Who should appraise the expatriate?
Several things complicate the task of appraising and expatriate performance for one
thing, the question of who should appraise the expatriate is the critical issue obviously local
management must have some input in the appraisal, but the appraisals may then be
distorted by cultural differences. Thus, a US expatriate manager in India may be evaluated
somewhat negatively by his host country bosses who find his use of participative decision
making inappropriate in their culture. On the other hand home office managers may be so
geographically distanced from the expatriate that they cannot provide valid appraisals
because they are not fully aware of the situation the manager actually faces. This can be
problematical. The expatriate may be measured by objective criteria such as profits and
market share, but local events such as political instability may undermine the manager's
performance while remaining 'invisible" to home-office staff.
Two experts make five suggestions for improving the expatriate appraisal process
1. Stipulate the assignment's difficulty level. For example, being an expatriate

manager in China is generally considered more difficult than working in England, and the
appraisal should take such difficulty-level differences into account.
2.Weight the evaluation more toward the on-site manager's appraisal

than toward the home-site manager's distant perceptions of the
employee's performance.
3. If, however (as is usually the case), the home-site manager does the actual written
appraisal, have him or her use a former expatriate from the same overseas location
to provide background advice during the appraisal process. This can help ensure
that unique local issues are considered during the appraisal process.

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3. Modify the normal performance criteria used for that particular position to fit the
overseas position and characteristics of that particular locale. For example,
"maintaining positive labor relations" might be more important in Chile, where labor
instability is more common, than it would be in the United States.
4. Attempt to give the expatriate manager credit for relevant insights into the
functioning of the operation and specifically the interdependencies of the domestic
and foreign operations. In other words, don't just appraise the expatriate manager in
terms of quantifiable criteria like profits or market share. His or her
recommendations regarding how home office/foreign subsidiary communications
might be enhanced and other useful insights should affect the appraisal, too.
Characteristics to be evaluated
Cross-cultural interpersonal skills, sensitivity foreign norms, values and case of adjustment
to unfamiliar environments are some common characteristics considered for evaluation of
international managers. Further challenges faced frequency of travel, long absence from
family, etc. in host country to be considered as factors for evaluation.
Criteria for appraisal of performance

The difference in criteria for appraisal of performance between national and international
managers working in similar positions in many cases is qualitative in nature. Some vital
criteria for successful performance for managers abroad are:
(a) Flexibility—capacity to change structures to implement changed strategies,
(b) Inter-personal understanding and respect.
(c) Empowerment—to share information, delegate responsibilities and motivate

employees to feel more capable,
(d) Team support cause employees to cooperate, and
(e) Versatility—capacity to adjust in new environment.

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Some criteria for top management personnel evaluation of performance

are:
(a) Strategic Thinking: Capacity to grasp changing environment and market possible
competitive threats so as to formulate strategic response.
(b) Initiating Change: Capacity to convey strategic vision and make people involve and
motivate employees.
(c) Relationship Management: Capacity to influence and seek cooperation success such
as customer trade unions, government institutions and lobby activities.
Cultural Adjustment
The process of culutal adjustment may be a critical deteminent of exatriates

job performance.
Stages of Culture Shock
Studies show that predictable stages occur when people enter a new culture, country, or
environment. The length and intensity of each stage varies from person to person. The steps
involved are:
 The honeymoon stage
When you first arrive in a new culture, differences are intriguing and you may feel
excited, stimulated and curious. At this stage you are still protected by the close memory
of your home culture.
 The distress (disintegration) stage
A little later, differences create an impact and you may feel confused, isolated or
inadequate as cultural differences intrude and familiar supports (e.g. family or friends)
are not immediately available.
 Re-integration stage
Next you may reject the differences you encounter. You may feel angry or frustrated, or
hostile to the new culture. At this stage you may be conscious mainly of how much you
dislike it compared to home. Don't worry, as this is quite a healthy reaction. You are
reconnecting with what you value about yourself and your own culture.
 Autonomy stage

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Differences and similarities are accepted. You may feel relaxed, confident, more like an
"old hand" as you become more familiar with situations and feel well able to cope with
new situations based on your growing experience.
 Independence-stage
Differences and similarities are valued and important. You may feel full of potential and
able to trust yourself in all kinds of situations. Most situations become enjoyable and you
are able to make choices according to your preferences and values.
Issues and challenges

• Overall corporate Vs. subsidiary approach
• Non comparable Data

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• Separation by time and distance

• Head quarters' Support
Performance Review Practices of some countries

I. American
The objective if American performance appraisal system is to evaluate the employee's
goals that have been pre-established between manager and employee. The employee
usually has input into these goals, especially in the area of professional growth, and
therefore, takes on the responsibility for meeting his or her goals. Reward or punishment is
then based on how the employee performed on these goals given the opportunities and
constraint of the situation.
Americans have formalized performance appraisal system. Appraisals take place at
regular intervals, usually every six or twelve months, in the manager's office. The interview
is well documented, and must be signed by both the manager and the employee. This
document is then reviewed by a higher level manager. Sometimes such appraisal meetings
may be self or group appraisal meetings.
In the American appraisal system, manager acts as a leader, facilitating the discussion
and encouraging the employee to present his or her own point of view. Communication
flows in both directions. Both the manager and the employee come prepared to discuss and
defend their own interpretation of employee’s performance. In this situation, the
employee acts as an independent, self-motivated individual. Both the sides defend their
positions openly and directly without major consideration for any personal relationship
the employee and manager may have.
The evaluation depends on how well that employee has performed the goals that were
previously discussed and agreed upon by the manager and the employee. Any difficulties or
problems in achieving these goals are openly discussed. A new set of goals and plans of
action for achieving these goals in the next review period are formulated. Personal
problems are not considered a valid excuse for not meeting professional goals.
American employee who receives a positive evaluation can expect a promotion with a
salary increase or bonus. A negative evaluation may lead to freeze in salary or position, a

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lateral transfer to less powerful position, or even a demotion. The employees may
communicate their expectation about of reward directly to manager
Americans strive to end performance appraisal on a positive note. The manager and
employee directly workout any conflict or disagreement before the meeting ends. Any
unresolved conflicts will be referred to higher manager or the personnel department. At
the close of the review, the results of the evaluation are written up and signed by both the
parties; the document then becomes a part of employee's file.
2. Russian
The objective of the Russian appraisal system can be to measure the employee
achievement against the preset goals, or it can be to evaluate him on his personality factors.
Russian appraisal system is most of the times formal in structure. The most common
methods of appraisal used by the Russian firms are—either comparing the performance of
the company or department against set targets or the superior appraising his or her
subordinate. Some firms even use up-and-down evaluation system. So, in addition to
having the superiors evaluate the subordinates, the reciprocal process also takes place. Up-
and-down appraisal systems are very effective. Appraisals take place only once a year.
Some firms link training directly to the appraisal process. This is very beneficial for an
employee's development as well as for meeting company needs.
3. Japan
The Japanese objective in performance reviews is to ensure that the employee is
functioning in harmony with the group. The core element in Japanese system is the group's
output, and every member of the group is evaluated on how the group performed, its
contribution to the other groups, and to the company in general.
Japanese appraisals are semi-formal. The manager seeks to counsel an employee only
if the employee's performance is not in harmony with the group, and if the manager sees
that individual's behavior is having a negative impact on group's functional output. A
Japanese manager may call a meeting with his employee if he is always late. Such meeting
would be an informal meeting may be at coffee shop to find out the reasons for the
employee's satisfaction with the group. Many times the reason is personal. The Japanese
manager will then take employee's personal life into consideration while evaluating
his/her job performance.

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In Japanese system, the manager acts as a senior family member to counsel and guide
the employee. The employee, acting as a junior member, responds to manager's concerns.
Maintaining the relationship and harmony is very important during such sessions. The
feeling of harmony comes from previously established relationship of trust and respect for
the manager. Personal and professional relating to the job matters may be openly
discussed. Solutions are recommended by the manager.
The success of the Japanese employee is measured by her contribution to the harmony
and performance of the group. The manager is in-charge of the group goals, and works hard
to improve the group's output.
For the Japanese, the tangible reward is the traditional semi-annual bonus. A failure to
meet the group norm could result in less important job, job rotations or perhaps a decrease
in pay. The amount of bonus usually reflects the employee's contribution to the group's
output, harmony, contribution to the department, the department's contribution to the
company, and company's overall performance. In this culture, every member counts and is
measured on his contribution to the overall performance and output.
In the Japanese appraisal system, the manager will frequently send information to the
personnel department on how well employee is working within the group. This
information serves as input to calculate the employee' bonuses and salary increase. It is
also used to review the employee's job [rotation assignment and to identify any special
skills that could contribute to the growth of the group and the company.
4. Middle-Easterner/Arab
For Arab, the objective of performance appraisal process is to reprimand and set back
those employees whose performance does not meet the manager's expectations. The
employee is constantly monitored and measured for individual performance. The Arab
system concentrates on keeping the employee at the same performance level.
Arab system of performance appraisal is informal. The Arab manager will call the
employee to his office if he is not performing well. The manager will then reprimand the
employee in private, so as not to cause him public embarrassment.
In the Arab model, the communication, while conducting performance appraisal, is
one way. The manager is the authority figure and mentor whose role is to punish, if
necessary. The status and authority power of the manager must be maintained at all times.

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The employee's role is of reprimanded child.

The employee's performance in this system is evaluated on the basis of his personal
contribution. Group members must excel individually in order to prove to the manager that
they have performed up to the expectation. Each employee will be aware of his
achievement at each step by the manager's continuous admiration and criticism.
Positive outcomes for Arab employees include a bonus representing one or two days
of monthly salary, or a promotion that automatically includes an increase in salary.
Punishment for poor performance usually comes in the form of decrease in pay or a
demotion. The system rewards the individual's excellence rather than overall performance.
In Arab culture, the manager will congratulate the employee on his performance, and
offers him a reward in the form of promotion, which will involve a salary increase or the
manager will threaten him with punishment if he is not on track with the manager's
expectations. The employee may be honored in a special ceremony if his contribution
resulted in increased value to the company.
Performance Review Practices of some companies
Performance appraisal at Pepsi cola International

PCI devised a common performance appraisal system that focuses on motivating
managers to achieve and maintain high standard of performance.
Administrative consultancy was achieved through the use of performance appraisals
system of five feed back mechanism like
 Instant feedback
 Coaching
 Accountability based performance appraisal
 Development feedback
 HR plan
 The common system provided guidelines for performance appraisal yet allowed
for modification to suit cultural difference.
 The instant feedback message could be delivered in any culture, the important

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thing was not how it was done but that it was conducted in practice at PCI the
successfully delivery of feedback wanted some adjustments to local culture
 American used it because it fitted the fast paced way of doing business.
 In most Asian culture, feedback may be tough and direct but never given in
public
 In some Asian culture head nodding during instant feedback signify agreement
only that the message has been heard.
 Some Latin's argue very strongly if they do not agree with the feed back
 The purpose of instant feedback was to improve business performance , not to
criticize cultural style.
 PCI was trying to balance the culture and administrative imperative of
successfully managing the performance of a work force
Case 2 : Toyota
 An Australian was expatriated to the MNC’s Regional office in Toyota . Although
his position was designed as marketing Manager, he also performed the critical
strategy role for global business development. one of the main role was
intelligence gathering and identification business opportunities for his former
supervisor back at the Australian headquarters.
 The former supervisor, although located in Australia, was in the best position to
evaluate the market and environment research and related material that the
expatriate was collecting for input into the Multinational ‘global and regional
strategies. The Australian expatriates appraisal was therefore conducted by this
former supervisor at headquarters, rather than by a senior manager in the Toyota
Office.
 The headquarters based supervisor was also most influential in subsequent
decisions about this expatriate's post repatriation career progression
GE-Remote Performance Management

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Maintain Turbine Performance

GE's remote performance management is a collaborative service that remotely
monitors thermal performance and provides a detailed engineering evaluation of
performance characteristics and root cause diagnostic testing. Our performance
experts provide actionable solutions to restore lost performance throughout the
duration of the service.
Features & Benefits
GE's Remote Performance Management (RPM) is a collaborative service that
remotely monitors thermal performance, provides a detailed engineering
evaluation, and conducts root cause diagnostic testing. GE's performance experts
will calculate, monitor, analyze and diagnose gas turbine performance utilizing
remote digital data acquisition technology, precision test instrumentation and
industry-leading analysis tools. Customers can view real-time data during scheduled
diagnostic tests via a secure web application.
Following the detailed evaluation, GE will provide actionable solutions to recover
lost performance and facilitate optimal operations throughout the duration of the
service.
 Maintain turbine output and heat rate
 Provide early detection of performance problems that could impact
reliability or cost of operation
 Recover lost performance and optimize operations
GE's comprehensive service offering provides valuable feedback about performance
losses and enhancements. The constant monitoring of equipment allows for more
accurate trend analysis and enables early detection of performance deviations,
which if left undetected, can lead to costly outages and revenue loss.

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Conclusion
Attracting and retaining staff, enhancing creativity and problem solving and
responding to customers needs through developing new products and services are
important, but more work is needed to such linkages between HR approaches and
performance outcome. Thus Only a well Structured performance Management will lead to
long run success of the origination.
Reference
http://project.shtm.polyu.edu.hk/wiki/index.php/Team_P__The_advantages_and_disadvantag
es_of_360-degree_appraisal_in_the_hospitality_industry.
HRM review 2009 369-degree feed back

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II. WHAT IS 360-DEGREE FEEDBACK?

III. WHAT DOES IT ACTUALLY MEASURE?

IV. WHO DOES THE ASSESSMENT?

V. CAN PEOPLE’S PERCEPTIONS BE TRUSTED?

VI. WHAT CAN 360-DEGREE FEEDBACK BE USED FOR?

VII. WHAT IMPACT WILL 360-DEGREE FEEDBACK HAVE ON THE

IX. WHY HAS 360-DEGREE FEEDBACK BECOME SO POPULAR

XI. HOW TO USE 360-DEGRE FEEDBACK EFFECTIVELY

XII. 360 DEGREE APPRAISEL IN GLOBAL COMPANIES

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• Where, why and how to adopt 360-degree approaches

WHAT IS 360-DEGREE FEEDBACK?

360-degree feedback has been labeled by many names as:

St. Aloysius College (AIMIT) 2

The systematic collection and feedback of performance data on an individual or group,

Thus 360-degree feedback symbolizes transition from top-down, single-stakeholder,

WHAT DOES IT ACTUALLY MEASURE?

Many organizations have developed sophisticated ways of measuring their success as

St. Aloysius College (AIMIT) 3

WHO DOES THE ASSESSMENT?

CAN PEOPLE’S PERCEPTIONS BE TRUSTED?

St. Aloysius College (AIMIT) 4

WHAT CAN 360-DEGREE FEEDBACK BE USED FOR?

The main uses of 360-degree feedback can be summarized as follows:

• Self-development and individual counseling

WHAT IMPACT WILL 360-DEGREE FEEDBACK HAVE ON THE ORGANIZATION?

If 360-degree feedback is planned and implemented in a thoughtful manner the impact on

• Communications: The application of 360-degree feedback is an exercise in open

St. Aloysius College (AIMIT) 5

WHAT TYPES OF INFORMATION ARE PRODUCED?

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WHY HAS 360-DEGREE FEEDBACK BECOME SO POPULAR RECENTLY?

Some applications of 360-degree feedback can be summarized as follows:

• Self-development and individual counseling: With 360-degree feedback for self-

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􀂃 Pressure on team members to share or discus feedback with others in a

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2. It increases the credibility of the appraisal result.

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1. Time consuming and more complex on administration

2. May generate the environment of suspicion and cynicism

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PITFALLS OF 360-DEGREE FEEDBACK

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HOW TO USE 360-DEGRE FEEDBACK EFFECTIVELY

Examples from the hospitality industry to support our ideas.

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NEED OF 360-DEGREE FEEDBACK IN ORGANISATIONS

St. Aloysius College (AIMIT) 13

USES FOR 360 DEGREE FEEDBACK INCLUDE:

 Assessing Employee Development:

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 Organizational Climate Study:

 Customer Satisfaction Study

HOW 360-DEGREE FEEDBACK SYSTEM ADDS VALUE?

360 degree feedback enables an organization to focus on developmental efforts, at the

 360-degree feedback provides a better understanding of individuals performance at

St. Aloysius College (AIMIT) 15

 360-degree feedback increases the team's ability to contribute to the organizations

HERE ARE 13 COMMON MISTAKES TO AVOID WHEN IMPLEMENTING A MULTI-RATER

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360-degree feedback is sometimes referred to as multi-rater appraisals, multi-source