360 Degree Feedback

360 Degree Feedback
360-DEGREE FEEDBACK
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I. II. III. IV. V. VI. VII. VIII. IX. X. XI. XII. XIII.
CONTENT
INTRODUCTION WHAT IS 360-DEGREE FEEDBACK? WHAT DOES IT ACTUALLY MEASURE? WHO DOES THE ASSESSMENT? CAN PEOPLES PERCEPTIONS BE TRUSTED? WHAT CAN 360-DEGREE FEEDBACK BE USED FOR? WHAT IMPACT WILL 360-DEGREE FEEDBACK HAVE ON THE ORGANIZATION WHAT TYPES OF INFORMATION ARE PRODUCED? WHY HAS 360-DEGREE FEEDBACK BECOME SO POPULAR RECENTLY? ADVANTAGES AND DISADVANTAGES AND PITTFALS HOW TO USE 360-DEGRE FEEDBACK EFFECTIVELY 360 DEGREE APPRAISEL IN GLOBAL COMPANIES CONCLUSION
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St. Aloysius College (AIMIT)
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? Whats In a Name? 360-degree feedback has been labeled by many names as: Multi-rater feedback
360 Degree Feedback

All-round feedback 360-degree feedback 360-degree appraisal 540-degree feedback 400-degree feedback 180-degree feedback Peer appraisal Upwards 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 peoples 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 participants (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.
360 Degree Feedback
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: 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
360 Degree Feedback

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, bosss 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 PEOPLES PERCEPTIONS BE TRUSTED?
360 Degree Feedback

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, 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 persons 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.
360 Degree Feedback

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 bosss 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 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.
360 Degree Feedback
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 selfdevelopment, 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
360 Degree Feedback

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 others 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 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 overcriticism
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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 participants 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
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Remuneration: There are cases for (performance and process relate data) and against (biased feedback) using 360-degree feedback to determine pay 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 staffs 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 everyones 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 staffs self-development.
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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 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
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360 Degree Feedback

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 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.

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360 Degree Feedback
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. 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
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360 Degree Feedback

system may break the relationship between the employees and managements. The employees may not provide the real, accurate feedbacks as they dont want to anger the management in 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. Its 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 selfdevelopment. 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
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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 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.
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Providing a basis for promotion, dismissal, job enrichment, job enlargement, job transfer, probation, etc. Monetary and other rewards.
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
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360 Degree Feedback
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.
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 feedbacks 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
St. Aloysius College (AIMIT) 19
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.
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Performance management of Expatriate Sl No

I. II. III. IV. V. VI. VII.
CONTENT
Introduction Factors influencing Expatriates performance Criteria to be used for appraisal of expatriates or international staff Who should appraise the expatriate? Characteristics to be evaluated Criteria for appraisal of performance Some criteria for top management personnel evaluation of performance are: Performance Review Practices of some countries Conclusion
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VIII. IX.
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360 Degree Feedback
Introduction 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 Link to MNC strategy clearly HR planning, HR functions Job designing & Job
communicating to all employees Setting individual performance goal
description Job analysis& Job description &
performance appraisal Providing regular feedback towards goals Providing opportunities to improve performance Link between results and rewards Performance appraisal and compensation Performance appraisal, T & D Performance appraisal
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Story and Sisson (1993) Emphasise four sub processes 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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360 Degree Feedback
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:

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360 Degree Feedback

(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 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.
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(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. 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 doesnt 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

GOALS
measured such as, out turn, market share, ROI, etc. SOFT
are relationship or traitGOALS
based such as leadership styles, negotiating skills, etc. CONTEXUAL
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
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appraisal of other expatriates is conducted by subsidiary chief and he can take into account contextual criteria. It is propagated that performance appraisal. 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.
A TEAM OF EVALUATORS
be used for 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.
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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. 4. 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. 5. 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) Flexibilitycapacity to change structures to implement changed strategies, (b) Inter-personal understanding and respect.
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(c) Empowermentto share information, delegate responsibilities and motivate employees to feel more capable, (d) Team support cause employees to cooperate, and (e) Versatilitycapacity to adjust in new environment.
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
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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
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.
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Issues and challenges Overall corporate Vs. subsidiary approach Non comparable Data 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
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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 employees 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 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
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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 areeither 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. Upand-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. 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
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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. 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.
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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 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.
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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 MNCs 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 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
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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.
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
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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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St. Aloysius College (AIMIT)