360 Degree Appraisal

360 DEGREE PERFORMANCE APPRAISAL SYSTEM Presented By: Group 2 Aditya Sikder Anubhav Dhankar Anupreet Singh Meenakshi

Narmadeshwar Prasad Prerna Malhotra Ranjeeta 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)

IBM (1980)

Maruti

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 selfratings 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!!!