360 DEGREE

PERFORMANCE
APPRAISAL SYSTEM

Presented By:
Group 2
Aditya Sikder Narmadeshwar Prasad
Anubhav Dhankar Prerna Malhotra
Anupreet Singh Ranjeeta
Meenakshi Suman
 Overview

• Performance Appraisal
• Concept of 360 degree appraisal
• Key features
• Implementation
• Rating Sources/ Participants
• Advantages and disadvantages
• Uses
 Performance Appraisal
• Performance Appraisal (PA) refers to all those procedures
that are used to evaluate:
• Personality
• Performance
• Potential of its group members
• Objectives:
• Provide a basis for promotion/ transfer/ termination
• Enhance employees’ effectiveness by helping to identify
their strengths and weaknesses and
• Inform them about expected levels of performance
• Identify training and development needs
• Remove work alienation: Counseling Employees
 360 DEGREE APPRAISAL
-concept
• Traditional PA: feedback between employees and
supervisors

• Now with increased focus on teamwork, employee

development, and customer service, emphasis on
employee feedback from full circle of sources

• This multiple-input approach to performance feedback is

sometimes called “360-degree assessment” to connote
that full circle.

• Research shows assessment approaches with multiple

rating sources provide more accurate, reliable, and
credible info.
 Definition
• What is 360 degree appraisal system?

– Systematic collection of performance data on an individual or

group, derived from a number of stakeholders being the
immediate supervisor, team members,
customers,subordinates, peer and self.

– Generates more accurate feedback by “gathering information

from people about an individual’s performance as seen by the
standards and expectations of their boss, self, peers, direct
reports, and customers.”
 Examples
Bell Atlantic (1980)

Maruti IBM (1980)

Infosys

Johnson &
Johnson
Ltd(1980s)
Xerox (1980s)

Wipro Technologies Ltd

(Dec17th 2002)
 KEY FEATURES
• Usually based on a questionnaire, possibly web-based
• Choosing Appraisers
– Done by the individual employee
– Done by HR
– Done randomly
• Feedback is usually anonymous
• Appraisal is normally followed up with actions for individual
improvement and development
• Not to be used for decision-making, only purpose is for
employee growth
• Utilizes many stakeholders inside, and outside of, the
organization
IMPLEMENTATION
• PHASE-I: organizational analysis

• PHASE-II: Questionnaire designing

• PHASE-III: making the staff aware

• PHASE-IV: conducting the activity

• PHASE-V: Analysis of data

 RATING SOURCES
-Superiors
• CONTRIBUTION

– First-line supervisors often in best position to carry out full cycle

performance management

– Superiors have authority to redesign an employees work based on

individual and team performance

– Most Federal employees think that best ratings come from first-line
supervisors
• CAUTIONS

– Relying solely on superiors reduces validity of

performance feedback

– Superiors may not be in same location as employee,

preventing them from having hands-on knowledge of
the employee’s performance

– Training may be lacking on appropriate methods of

evaluation
 -Self Assessment
• CONTRIBUTION

– Improves communication between supervisor and employee

– Particularly useful if entire cycle focuses on self-assessment;

forces individual to keep track of successes and failures

– Develops ability to see one’s self for what they really are

– Allows supervisor to have better handle on performance when it

can not always be observed
• CAUTIONS

– Research indicates “low correlation between self-

ratings and all other sources of ratings, particularly
supervisor ratings”

– Self ratings are consistently higher than other ratings

– If supervisors do not use appropriate feedback skills,

the fact that a self-rating is higher than the
supervisor’s may cause alienation and defensiveness
 -Peers
• CONTRIBUTIONS

– Peer pressure and peer approval more effective motivators

than supervisors

– valid and reliable in rating behaviors and manner of

performance

– tend to average out bias from other groups in the rating process

– Increased use of self-directed team encourages use of peer

evaluation

– help move supervisors into a coaching role as opposed to a

pure judging role
• CAUTIONS

– Should not be used to determine pay, bonuses, or

promotions (creates animosity and prevents truthful
responses from peers)

– anonymity of those providing feedback

– Choose the peers wisely -the peers must be very familiar

with the work requirements and performance

– Can be time consuming

– Can cause tension among employees and breakdown of

teams
 - Subordinates
• CONTRIBUTIONS

– Gives more comprehensive picture of employee

issues and needs.

– Employees feel they have a greater voice in

organizational decision making and, in fact, they do.

– Effective in evaluating the supervisor’s interpersonal

skills.

– Combining various ratings, can provide the advantage

of creating a composite appraisal from the averaged
ratings all.
• CAUTIONS

– need for anonymity is essential

– Supervisors may feel threatened and perceive that their

authority has been undermined.

– ensure that subordinates are appraising elements of

which they have knowledge.

– Only subordinates with a sufficient length of assignment

under the manager should be included in the pool of
assessors.(>1 yr)
 -Customers
• CONTRIBUTIONS

– Serves as “anchor” for all other performance factors

– Combined with peer evaluation, this data ‘rounds out’

feedback from all sources

– Ensures that the employees concentrate their

attention on the customer
• CAUTIONS

– Only ask customers to evaluate outputs, not

processes

– Customer feedback process is time consuming

– Don’t ask the customer to evaluate a single

employee, unless the customer has a direct
relationship with the employee
 ADVANTAGES
– Little room for any discrimination or bias

– glimpse in to individuals performance improvement needs and

development needs of organization.

– Enhanced cohesion in the team, better communication and

improved productivity levels

– Front line employees can hone their customer skills owing to

the feed back of the customers. This may enhance the
customer service levels.

– Subordinates, derive enormous sense of importance and

empowerment when asked to provide feed back about their
superiors
– Decision making percolates down to the lowest
echelons of an organization, making it truly
participative

– Fosters a very open culture where giving and

receiving feed back is common place

– 360 degree helps the organization to zero in on and

leverage the overall strengths.

– Brings in more objectivity to the appraisal process and

complements the traditional appraisal system
 DISADVANTAGES
• Time consuming and more complex.

• Requires training and significant change effort

• The problems may arise with subordinate assessments where employees desire
to “get the boss” or may alternatively “scratch the back” of a manager for expected
future favors.

• The organization implementing this must clearly define the mission and the scope
of the appraisal. Otherwise it might prove counter productive.

• The culture shock that occurs with any system that creates “change.” must be
taken care of.
 360 degree assessment may be
used for:
• Self-development and individual counseling

• Part of ‘organized’ training and development

• Strategic or organization development

• Employee appraisal

• Incentives
QUESTIONS ??
THANK YOU!!!