360 Degree Performance Appraisal 582

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    360 DEGREEPERFORMANCE APPRAISAL

    An outlook

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    Background

    Contemporary 360-degree methods have roots as earlyas the 1940s, however, there is some disagreementregarding the exact genesis of the technique.

    Despite these disagreements, one point that mostscholars can agree on is 360-degree performanceappraisal has historical roots within a military context.

    During the 1950s and 1960s this trend continued in theUnited States within the Military service academies.

    At the United States Naval Academy at Annapolis, themidshipmen used a multi-source process called peergrease to evaluate the leadership skills of theirclassmates.

    In the corporate world during the 1960s and 1970s,

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    The Concept

    For example, subordinate assessments of a supervisorsperformance can provide valuable developmentalguidance, peer feedback can be the heart of excellence inteamwork, and customer service feedback focuses on thequality of the teams or agencys results.

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    The Process

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    The Appraisers

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    Superiors

    SUPERIOR

    S

    SUPERIORS

    Its Contribution:

    The 1st line supervisor is often inthe best position to effectivelycarry out the full cycle ofperformance management.

    The supervisor may also have the

    broadest perspective on the workrequirements and be able to takeinto account shifts in thoserequirements.Cautions to be addressed:

    Superiors should be able to observe and measure

    all facets of the work to make a fair evaluation.

    Supervisors should be trained. They should be

    capable of coaching and developing employees

    as well as planning and evaluating theirerformance.

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    Self-ratings are particularlyuseful if the entire cycle ofperformance managementinvolves the employee in aself-assessment.

    The developmental focus ofself-assessment is a keyfactor.

    Approximately half of theFederal employees in a large

    survey felt that self-ratingswould contribute to a great orvery great extent to fair andwell-rounded PA.

    Self-appraisals are particularly

    valuable in situations wherethe supervisor cannot readily

    Research shows low correlationsbetween self-ratings and all othersources of ratings, particularlysupervisor ratings. The self-ratings tend to be consistentlyhigher. This discrepancy can leadto defensiveness and alienation if

    supervisors do not use goodfeedback skills.

    Sometimes self-ratings can belower than others. In suchsituations, employees tend to beself-demeaning and may feel

    intimidated and put on the spot.

    Self-ratings should focus on theappraisal of performanceelements, not on the summarylevel determination. A range ofrating sources, including the selfassessments, help to round outthe information for the summary

    SelfIts Contribution: Cautions to be addressed:

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    PeersIts Contribution:

    Employees report resentment when they believe thattheir extra efforts are required to make the boss lookgood as opposed to meeting the units goals.

    Peer ratings have been an excellent predictors of future

    performance and manner of performance.

    The use of multiple raters in the peer dimension of 360-degree assessment programs tends to average out thepossible biases of any one member of the group of

    raters.

    The increased use of self-directed teams makes thecontribution of peer evaluations the central input to theformal appraisal because by definition the supervisor is

    not directly involved in the day-to-day activities of theteam.

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    A formalized subordinate

    feedback program will givesupervisors a morecomprehensive picture ofemployee issues and needs.

    Employees feel they have agreater voice in

    organizational decision-making.

    The feedback fromsubordinates is particularlyeffective in evaluating thesupervisors interpersonal

    skills. However, it may notbe as appropriate or validfor evaluating task-orientedskills.

    Combining subordinateratings, like peer ratings,

    can provide the advantageof creating a composite

    The need for anonymity is essential when

    using subordinate ratings as this willensure honest feedback.

    Supervisors may feel threatened andperceive that their authority has beenundermined when they must take intoconsideration that their subordinates will

    be formally evaluating them.

    Subordinate feedback is most beneficialwhen used for developmental purposes.But precautions should be taken toensure that subordinates are appraisingelements of which they have knowledge.

    Only subordinates with a sufficient lengthof assignment under the manager shouldbe included in the pool of assessors.Subordinates currently involved in adisciplinary action or a formalperformance improvement period should

    be excluded from the rating group.Organizations currently undergoing

    SubordinatesIts Contribution: Cautions to be addressed:

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    CUSTOMERS

    Its Contribution:

    Customer feedback should

    serve as an anchor for

    almost all other performancefactors.

    Including a range o

    customers in PA program

    expands the focus o

    performance feedback in a

    manner considered absolutely

    critical to reinventing the

    organization.

    Cautions to be addressed:

    Generally the value o

    customer service feedback is

    appropriate for evaluating teamoutput (there are exceptions).

    Customers, by definition, are

    better at evaluating outputs as

    opposed to processes and

    working relationships.

    It is a time-consuming

    process.

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    Companies using 360 degreeperformance appraisals

    Bellcore

    International

    Ltd(1998)

    Johnson &

    Johnson

    Ltd(1980s)Wipro

    Technologies Ltd

    (Dec17th 2002)

    Xerox (1980s)

    IBM (1980)

    Bell Atlantic (1980)

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    Important factors in 360 degreefeedbacks

    According to Mr. Pratik Kumar.

    The mission and the objective ofthe feedback must be clear.

    Employees must be involvedearly.

    Resources must be dedicated tothe process, including top

    management's time.

    Confidentiality must be assured.

    The organization, especially topmanagement, must be committed

    Pratik Kumar

    Corporate VP HR,

    Wipro Technologies

    Limited- One of the

    pioneers of 360

    degree PA in India.

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    Advantages

    To the individual:Helps individuals to understand

    how others perceive them.Uncover blind spots

    Quantifiable data on soft skills

    To the team:Increases communicationHigher levels of trustBetter team environmentSupports teamwork

    Increased team effectiveness

    To the organization:Reinforced corporate culture by linking

    survey items to organizational leadershipcompetencies and company valuesBetter career development for employeesPromote from within

    Improves customer service by involvingthem

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    Problems It is the most costly and time consuming

    type of appraisal.

    These programs tend to be somewhatshocking to managers at first. Amoco's Bill

    Clover described this as the "SARAH reaction:Shock, Anger, Rejection, Acceptance, Help".

    The problems may arise with subordinate

    assessments where employees desire toget the boss or may alternativelyscratch the back of a manager forexpected future favors.

    The organization implementing this type

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    Conclusion

    Because many of the more

    conventional performance appraisalmethods have often proved unpopularwith those being appraised andevaluators alike, 360 is gaining

    popularity with many managers andemployees.

    It offers a new way of addressing the

    performance issue.When used with consideration and

    discipline, feedback recipients will feelthat they're being treated fairly.

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    Thank You

    Any

    Questions???