360 degrees Performance Appraisal




 





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

FOR WHICH CATEGORY OF EMPLOYEES IS THIS TOOL USED? 
Usually, this tool is used for employees at middle and senior level. The complexity of their roles enables the organisation to generate sufficient data from all stakeholders for a meaningful assessment.

WHICH ORGANISATIONS USE THIS TO ASSESS EMPLOYEE PERFORMANCE? 
Most organisations that focus on employee development use the 360-degree tool to assess performance and potential of staff and enable the employees to map their career path based on the feedback. Organisations take 360-degree feedback about an employee before taking a major decision about the professional's career. 

The results from 360-degree feedback are often used by the person receiving the feedback to plan training and development. Results are also used by some organizations in making administrative decisions, such as pay or promotion. When this is the case, the 360 assessment is for evaluation purposes, and is sometimes called a "360-degree review."

360 degree feedback  is the most comprehensive appraisal where the feedback about the employees’ performance comes from all the sources that come in contact with the employee on his job. this method is being used in the (MARUTHI SUZUKI Motors and HCL)

WHO ARE THE STAKEHOLDERS IN DOING 360-DEGREE ASSESSMENT? 
360 degree respondents for an employee can be his/her peers, managers (i.e. superior), subordinates, team members, customers, suppliers/ vendors - anyone who comes into contact with the employee and can provide valuable insights and information or feedback regarding the “on-the-job” performance of the employee.360 degree appraisal has four integral components
1.  Self appraisal
2.  Superior’s appraisal
3.  Subordinate’s appraisal
4.  Peer appraisal.
Self-appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his achievements, and judge his own performance. Superior’s appraisal forms the traditional part of the 360 degree appraisal where the employees’ responsibilities and actual performance is rated by the superior.

Subordinates appraisal
gives a chance to judge the employee on the parameters like communication and motivating abilities, superior’s ability to delegate the work, leadership qualities etc. Also known as internal customers, the correct feedback given by peers can help to find employees’ abilities to work in a team, co-operation and sensitivity towards others.
Self-assessment is an indispensable part of 360 degree appraisals and therefore 360 degree Performance appraisal have
high employee involvement and also have the strongest impact on behavior and performance. It provides a "360-degree review" of the employees’ performance and is considered to be one of the most credible performance appraisal methods.

360 degree appraisal is also a powerful developmental tool because when conducted at regular intervals (say yearly) it helps to keep a track of the changes others’ perceptions about the employees. A 360 degree appraisal is generally found more suitable for the managers as it helps to assess their leadership and managing styles. This technique is being effectively used across the globe for performance appraisals. Some of the organizations following it are Wipro, Infosys, and Reliance Industries etc.

Advantages of 360 degree appraisal
  • Offer a more comprehensive view towards the performance of employees.
  • Improve credibility of performance appraisal.
  • Such colleague’s feedback will help strengthen self-development.
  • Increases responsibilities of employees to their customers.
  • The mix of ideas can give a more accurate assessment.
  • Opinions gathered from lots of staff are sure to be more persuasive.
  • Not only manager should make assessments on its staff performance but other colleagues should do, too.
  • People who undervalue themselves are often motivated by feedback from others.
  • If more staff takes part in the process of performance appraisal, the organizational culture of the company will become more honest.

Disadvantages of 360 degree appraisal
  • Taking a lot of time, and being complex in administration
  •  Extension of exchange feedback can cause troubles and tensions to several staff.
  • There is requirement for training and important effort in order to achieve efficient working.
  • It will be very hard to figure out the results.
  • Feedback can be useless if it is not carefully and smoothly dealt.
  • Can impose an environment of suspicion if the information is not openly and honestly managed.

Who should conduct 360 degree performance appraisal?
  • Subordinates.
  • Peers.
  • Managers (i.e. superior).
  • Team members.
  • Customers.
  • Suppliers/ vendors.
  • Anyone who comes into contact with the employee and can provide valuable insights and information.