CHAPTER 1- INTRODUCTION
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1.1 Theoretical Underpinnings
With the maturation of organizations and new techniques, the work has become complicated
and it is a necessity to have a multiform and unified feedback system. The 720-Degree
performance evaluation is required for the improvement in performance of the people in their
jobs and to ensure that the prospect of the organization, employee and the customer are met.
It is a proficient tool to improve and recompense the performance of the personnel. It helps to
scrutinize worker attainments and evaluate his influence towards the attainment of complete
organizational objectives. 720 Degree evaluation aims at monitoring, mapping, giving
feedback and encouraging the employees to achieve the goals of the Organization. 720degree performance appraisal method is more development focused than performance alone,
and supports training and development functions in a better way.
The administrations today, aim at attaining higher rate of worker contentment and clarity in
the working environment. In order to attain the goals, 720 Degree performance assessment
would be a vital tool as it is used to assess the routine of workers from different extents and
helps to overcome the barricades of prejudice, partiality and discrimination. It is a combined
method of performance assessment where, the performance of an employee is evaluated from
all angles (Management, Colleagues, Self and also customers) and opportune opinion is
provided and performance is assessed again based on the goals that are set.
The 720 Degree is a performance Assessment system in which 360 Degree is instigated
twice. Some managers feel that doing ―one‖ ample 360 Degree is not thorough in itself.
There is a need of an effective technique to measure improvements and obtain feedback. This
leads to the advent of pre and a post intervention results. The pre-intervention results set the
reference point. The development program is then framed in order to improve the
participants' behavior through training /development/ education. The post intervention
appraisal then shows the scope of improvement in the participant.
In the degree feedback system of performance appraisal, the participation of people as
performance raters differs in the following sequence:
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In customary 360 Degree evaluation, raters include:
•
Supervisor
•
Peers – immediate & functional colleagues
•
Direct reportees
•
Colleagues and internal customers
Then, the 540 Degree judgment adds external customers and suppliers. In the 720 Degree
reaction the data is also collected from investors and family.
The success of every organization is dependable on the performance of their employees and it
is the human nature to judge everything around them. If there are no concrete standards of
evaluation, they will start evaluating on the basis of informal standards that can create
negativity and impact the performance of the employee and in turn, the organization. Hence,
it is necessary that we set the right standards to judge the performance of the employees. The
major drawback in the traditional methods of appraisal was that it did not give any guidance
to the employees post appraisal. Hence, the 720 degree appraisal has been developed so that
the employees‘ performance is based on targets, measured and analyzed in the first appraisal
and after a definite span of time his performance is measured again and proper feedback and
guidance is given to ensure that the employee works efficiently and achieve the given target.
1.2 Concept of Performance and Performance Appraisal
Human beings are the one who run and steer the organization. The goals are set and
objectives are also realized through people. The cumulative performance of an organization is
dependent upon the performance of its members. The success of an organization therefore,
depends on its ability to measure the performance accurately and use it objectively to
optimize them as a critical resource. In the present current modest environment,
administrations need to ensure high performance of their employees at an unceasing pace in
order to contend and endure successfully (Prasad 2005). Performance can be defined as the
record of outcomes generated as specified job functions or activities during a specified time
period (Bernardin 2007).
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The term performance denotes a comprehensive set of result that is shaped during a stated
period of their job time and does not refer to any individual characteristics, or proficiencies of
the performer. The evaluation of employee‘s performance reveals the contribution of an
individual in the organization‘s objectives. People do not absorb unless they are given
appropriate feedback on their activities. For counteractive actions to take place feedback
should be delivered regularly and it should record both the successes and failures of an
individual. Appraisal is the assessment of the individual, so performance appraisal of
employees means the evaluation of their performance made throughout a certain period of
time. In the structural context, performance evaluation is a methodical evaluation for an
organizational personnel by administrators or others familiar with their performance (L.M.
Prasad). Performance assessment is also described as merit rating in which employees are
rated in judgment to others. This is one of the oldest kinds of performance appraisal done in
organizations (Tripathi 2005).
This is a procedure which tells that how well employees do their jobs when their performance
is being compared with the defined set of standards. Merit rating is used for elevation of
workers. However, performance appraisal is more inclusive term for such events, because its
use extends beyond ascertaining eligibility for promotion. (Prasad, 2005).
―Performance evaluation is appropriate and methodical evaluation of the individual with
regard to performance on the job and expansion potential.‖ Performance assessments are
used in about all the organizations. Performance assessment cater to multiple aims that focus
to scrutinize individual‘s performance and potential of development. So at its core, the
performance evaluation process helps the organization to independently assess worker‘s
behavior and achievements over a specific epoch of time.
At a glance the main purposes of performance assessment reflect out the following:
a) Provide inputs to
1. system of rewards encompassing salary increase, obligations, additional
responsibilities, promotions, etc., and
2. Salary administration.
b) Generate suitable observation and direction from the reporting officers to the
employee.
c) Enhancing employee‘s effectiveness: helps the employee to overwhelm his weakness
and improve his performance by providing appropriate training and expansion
program.
d) Help identifying worker for the purpose of inspiring, training and developing them.
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e) Generate noteworthy, relevant, free and valid information about workers.
“Evaluate what you want – because what gets measured gets produced” – James A.
Belasco
Performance assessment is a tactic that started in the early 20th Century. It is the procedure of
obtaining, recording information and analyzing about an employee to evaluate and improve
their performance. Performance assessment is assessed in terms of magnitude, quality, time
and cost and also examines the value that the employee adds to the objectives of the
association. There are innumerable methods of performance judgment based on the type of
organization, size of the organization and also the duration of when it is used. 720 Degree
performance evaluation is one of the most lately appeared concepts. As the name proposes,
720 Degree performance judgment is the assessment of the performance of an employee from
all the facets allied with giving timely reaction to ensure that the person is able to achieve the
set goals before the next assessment.
Almost every organization in one way or another goes through a performance evaluation. The
formal performance evaluation has been called an imperative tool of organization, a control
process, an activity and a critical factor of human resources allocation. Uses for performance
assessment have included equal opportunity deliberations for all. Primarily, performance
evaluation has been considered a system for controlling an organization. Performance
evaluation is the review connotation of a group about the performance of employees, groups
and entire divisions.
A performance assessment is a method by which the job performance of a worker is
evaluated typically by the equivalent director or administrator. A performance evaluation is a
part of guiding and managing career development.
Performance assessment may be defined as a structured formal communication between a
subordinate and supervisor that takes the form of an episodic interview, in which the
performance of the subordinate is examined, with a view to identifying weaknesses and
strengths as well as opportunities for improvement and skills development.
Secondly, evaluation not merely means the assessment of performance but the identification
of individual potential and this is where the focus of Cadbury differs from other
organizations. Cadbury, over the years has been able to create an evaluation system that is
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integrated to the organizations management development process. The approach towards
evaluation is now more qualitative in nature.
1.2.1 Components of performance appraisal system
In the words of author and eminent HR expert TV Rao, as quoted in his book titled
„Performance
Management
and
Evaluation
Systems
-
HR
Tools
for
Global
Competitiveness‟(Sage Publications), some of the vital components of Performance
Evaluation System are as under:
a) Identification of Key Performance Areas (KPAs) and setting objectives.
b) Identification of attributes to be shown by all managers irrespective of levels.
c) Self – evaluation
d) Performance analysis to identify factors facilitating and hindering performance and
taking corrective action.
e) Identification of training needs and preparation of development plans.
f) Assessment by the reporting officer and sharing the ratings with the appraisee to
arrive at mutually agreed ratings.
g) Performance analysis to help the individuals learn from their seniors and improve the
performance.
h) Review by the reviewing officer.
i) Expansion action by the HRD department.
j) De-linking assessment from performance rewards.
1.2.2 Uses of Performance appraisal
For organizations, the primary goal of an efficient appraisal system is to improve individual
and organizational performance. A potential problem of expecting high level of commitment
from single performance appraisal plan exists today. In fact, PA data are potentially valuable
for virtually every human resource functional area.
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Human Resource Planning
Human resource preparation works on the outline of classifying people who have the talent to
be promoted. It may be certainly discovered that insufficient number of works are prepared to
enter management. Plans can then be made for higher emphasis on organization development.
Succession planning is a key growth area for all firms. A well-designed evaluation system
gives a profile of the management‘s HR strengths and weaknesses to support this effort.
Recruitment and Selection
Performance assessment ratings are a specific basis of information in order to forecast the
performance of job applicants. For example, it may be observed that a firm‘s successful
employees (identified through performance evaluations) reflect certain set of actions when
accomplishing key tasks. These observations may then provide benchmarks for assessing
applicant responses obtained through behavioral interviews. Also, in validating selection
tests, employee ratings may be used for the purpose of comparison.
Training and Development
The precise needs of personnel for training and development should be catered competently.
By classifying loop holes that harmfully affect performance, T & D plans can be framed and
applied, that permits people to build on their assets and diminish their weakness. An
evaluation system does not promise competently trained and developed workers. However,
causal T & D needs is more precise when assessment data are available.
Career Planning and Development
Individuals have certain career goals and they work professionally to attain those thus,
making career scheduling a constant development. On the other hand, career expansion is a
dignified approach used by the organizations to ensure that people with the proper
qualifications are available when needed. Performance evaluation data is critical in assessing
a employee‘s strengths and weaknesses and in analyzing the person‘s potential. Managers
may use such information to advice assistants and help them in emerging and applying their
career plans.
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Compensation Programs
The results of performance appraisal provide a basis for rational decisions concerning pay
alterations. A high fraction of managers believe that the unsettled job performance should be
rewarded tangibly with pay increase. They trust that the performances you reward are the
performances you get. Satisfying behaviors essential for attaining objectives are very critical
to the firm‘s strategic plan. To inspire good performance, a firm should design a reliable
performance appraisal system and then reward the most creative workers therefore.
Internal Worker Relations
The data obtained by performance appraisal is also used for decisions in several parameters
of internal employee relations, including promotion, demotion, termination, layoff, and
transfer. Some organizations try to evaluate an worker‘s potential while appraising his or her
job performance. Although past behaviors are a good forecaster of future behaviors in some
jobs, an employee‘s past performance may not precisely and clearly depict the future
performance in other jobs. Exaggerating the technical skills and ignoring other equally
important skills is a basic error in promoting workers into policymaking places.
Acknowledgement of this problem has led some firms to separate the process of performance
evaluation, which focuses on past behavior, from the assessment of potential, which is futureoriented.
Evaluation Period
Formal and efficient performance evaluations are usually carried out at specific intervals.
There is nothing enchanted about the period of judgment for formal evaluation reviews, in
most governments they occur either annually or biannually. The other actions such as
coaching and other developmental tasks, continues throughout the evaluation period.
Managers are bound to understand that handling performance is a continuous process that is
built into their job every day.
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1.2.3 Goals of Performance Appraisal
Table 1.1 Goals of performance appraisal
General Goals
Specific Goals
Developmental Use
Individual needs
Performance feedback
Transfers and Placements
Strengths and Development needs
Salary
Administrative Decisions / Uses
Promotion
Retention / Termination
Recognition
Layoffs
Poor Performers identification
HR Planning
Organizational Maintenance
Training Needs
Organizational Goal achievements
Goal Identification
HR Systems Evaluation
Reinforcement of organizational needs
Validation Research For HR Decisions
Documentation
Legal Requirements
Source- Bonfring International Journal
1.2.4 Performance Appraisal Methods
Managers may choose from variety of evaluation methods. The type of performance
evaluation system used depends upon the purpose of its operation. If the major focus is on
selecting people for promotion and merit pay increases, a traditional method, such as rating
scales may be considered appropriate. Collaborative methods, including input from worker
for self-evaluation prove to be more suitable for developing employees
360-Degree Feedback Evaluation Method
The 360-Degree feedback method is a modern performance evaluation method that involves
evaluation input from multiple levels from internal and external sources. The 360-Degree
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method is unlike traditional performance which provides employees with feedback only from
the administrators. In this method, people all around the rated employee may provide
feedback for the employee, including senior managers, the employee himself or herself,
administrators, subordinates, peers, team members, and internal or external customers. Many
companies use results from 360-Degree programs also for succession planning, training, and
professional development.
Rating Scales Method
As per this method, the employee is rated according to defined factors. Using this approach,
the appraisers record their judgments about performance on a specified scale. The scale
includes various categories; normally 5–7 in number, defined by appropriate adjectives such
as outstanding, meets expectations, or improvement. The system often provides an overall
rating, the method allows for the use of multiple performance criteria. One reason for wide
acceptability of the rating scales method is its simplicity, which helps in quick evaluations of
many employees. The method also facilitates assessment of employees‘ performances.
Critical Incident Method
The critical incident method is a performance assessment method in which highly favorable
and unfavorable employee work actions are registered down in writing. When such an action,
a ―critical incident,‖ impacts the subdivision, either positively or negatively, the supervisor
writes it down. At the end of the judgment period, the rater uses these records along with
other data to evaluate performance of the employee. Through this method, the assessment
covers a longer time span, rather than the evaluation month or week.
Work Standards Method
The work standard is a method of performance evaluation method that compares each
employee‘s performance as per the predetermined standard or expected level of output.
Standards refer to the normal output of an average employee who is operating at a normal
pace. Firms may apply work standards to jobs of different profile, but production jobs
generally receive the most attention. However, in order know the objective of the standards;
they should understand clearly how the standards were set. Management must also explain
the rationale for any changes to the standards.
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Essay Method
The essay method of performance evaluation is the one in which the rater writes a brief
description about the employee‘s performance. The extreme behavior of the employee at the
workplace remain the key focus rather than on routine day-to-day performance. Ratings
under this method are highly dependent on the evaluator‘s writing ability. Administrators
with excellent writing skills can make a marginal employee sound like a top performer.
Assessment under an essay evaluation might be difficult and tedious task as there are no
common criteria. However, some managers believe that the essay method is not only the most
simple but also a highly acceptable approach to employee evaluation.
Ranking Method
Under this method, the rater ranks all employees from a group in order to analyze overall
performance. A difficulty occurs when all individuals have performed very competitively at
comparable levels (as perceived by the evaluator).
Paired assessment is a slight variation of the ranking method in which the performance of
each employee is compared with others employee in the group. A single criterion, such as
overall performance, often serves as the basis for this assessment. The highest rankers are the
ones who have received highly positive responses.
Forced Distribution Method
The forced distribution method of performance evaluation is the one in which rater is
required to assign individuals in a work group to a limited number of categories. The purpose
of forced distribution is to prevent managers from being excessively lenient and having a
disproportionate number of employees in the ―superior‖ category.
Behaviorally Anchored Rating Scale Method
The behaviorally anchored rating scale (BARS) method is a technique of performance
evaluation that brings together the traditional rating scales and critical incident methods; a
scale is shown with various performance levels, each described in terms of an employee‘s
specific job behavior This modification of BARS from the traditional rating scale analyses
each point on the scale and reduces rater bias and error by anchoring the rating.
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Results-Based System
Under the result based system, the objectives are jointly agreed by the appraiser and the
apraisee for the next performance evaluation, in the past a form of management by objectives.
At the end of the evaluation period, an evaluation critically focuses on how well the
employee achieved his target.
1.3 Performance appraisal and motivation
Motivation is the process that energizes employees and allows them to pursue their goals.
Well-designed performance evaluations have strong motivational impacts.
When employees have well directed goals, they tend to be more motivated if they also
receive feedback about their progress. Feedback may occur throughout the workday, but
many organizations also have a formal, companywide process of providing feedback to
employees, called the performance evaluation. A performance evaluation is a process in
which a rater or raters evaluate the performance of an employee. More specifically, during a
performance evaluation period, rater(s) observe, interact with, and evaluate a person‘s
performance. Then, when it is time for a performance evaluation, these observations are
documented on a form. The rater usually conducts a meeting with the employee to
communicate performance feedback. During the meeting, the employee is evaluated with
respect to success in achieving last year‘s goals, and new goals are set for the next
performance evaluation period.
Even though performance evaluations can be quite effective in motivating employees and
resolving performance problems, in reality, only a small number of organizations use the
performance evaluation process to its full potential. In many companies, a performance
evaluation takes the form of a bureaucratic activity that is mutually despised by employees
and managers. The problems a poor evaluation process can create may be so severe that many
experts, including the founder of the total quality movement, Edward Deming, have
recommended abolishing evaluations altogether.
Motivation is the process that energizes employees and propels them to pursue their goals.
Well-designed and well-executed performance evaluations have a strong motivational impact.
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Evaluations have the power to motivate employees because they provide a number of
interconnected benefits:
a)
They demonstrate the need for improvement. If employees don‘t have a clear
understanding of how they‘ve been performing, they can‘t be motivated to make any
improvements.
b)
They meet higher-level psychological needs. Researchers continue to find that
recognition is one of the most powerful forms of motivation for large numbers of
employees. Although you can find numerous possible sources of recognition on the
job, performance evaluations are an opportunity for employees to receive formal,
significant, and enduring recognition from their manager.
c)
They build a sense of personal value. When managers take the time and effort to
carefully review, analyze, document, and discuss performance with employees, the
underlying message to the employees is that they‘re important and valuable, and this
alone is quite rewarding, whether the feedback is positive or not.
d)
They improve personal development. Performance evaluations are motivational for
employees who are looking to improve their personal learning, growth, and
development. Evaluations are a highly valuable source of information, insights, and
tools necessary for such progress. Performance evaluations are similarly motivational
for employees whose needs are centered on achievement, goal attainment, and sensing
personal effectiveness, respect, and trust.
e)
They turn employees around. When employees are performing poorly, performance
evaluations can provide the wakeup call that they need to get refocused and
reenergized. With performance evaluation, however, the purpose of the session is not
strictly disciplinary, so the employee is more likely to walk in with a more receptive
and open mind. As a result, your comments regarding an employee‘s questionable
performance have an excellent chance of being heard and generating action as a
result.
f)
They increase satisfaction. When performance evaluations meet the employees‘
needs in such areas as gaining recognition, sensing achievement and competence,
experiencing growth, and meeting objectives, they‘re also contributing to the
employees‘ job satisfaction, and this is one of the most important elements at work
today. When employees are satisfied, some of the most visible indicators are reduced
turnover, absenteeism, and tardiness.
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On the flip side, when employees are subjected to a shoddy or even non-existent performance
evaluation system, the opportunities to fulfil these higher-level employee needs are
substantially reduced.
1.4 Multiple Appraisal Systems In Practice
a) Confidential reports by boss (es) or superior(s).
b) Evaluation by boss (es) or superior(s): not strictly confidential.
c) Evaluation by superior(s) and self: but appraiser and appraisee do not consult or
discuss.
d) Evaluation by superior(s) and self (appraise) followed by a discussion between
superior and appraise to arrive at a consensus on performance rating: open evaluation.
e) Evaluation by boss(es), self and one or two internal customers.
f) Evaluation as guided by MBO (Management by Objectives: result focus) by bosses,
self and may be, by one or two internal customers.
g) Evaluation considering results and attributes, both by superiors, self and may be, by
one or two internal customers.
h) Three sixty Degrees performance evaluation (by superiors, self, peers, direct reports,
internal customers and external customers).
i) Three sixty Degrees performance evaluation and leadership development (by
superiors, self, peers, direct reports internal customers and external customers).
j) 720 Degrees performance evaluation: evaluation of a manager/employee is done
through detailed personal interviews with performance evaluators. It concentrates on
what matters most to the organization. For example, the customers' or clients' views
on employee's performance may be most important to the organization.
1.4.1 Summary guidelines for appraisals
a) Evaluation standards are job related -- based on job analysis
b) Standards are clearly communicated to employees in advance
c) Standards are responsive to actual employee behaviour or effort
d) Activities performed and results achieved are both appraised
e) Acceptable vs. unacceptable results can clearly be discerned
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f) Evaluation criteria are consistently applied
g) Raters are able to consistently observe work performance
h) Raters are trained in evaluation and how to feedback results
i) Developmental feedback is separated from judgmental evaluation
j) An appeal process exists to resolve (judgmental) rating dispute
1.5 Ongoing improvement of appraisal systems
In human resources, 360-Degree feedback, also known as ‗multi-rater feedback‘, ‗multisource feedback‘, or ‗multi-source assessment focuses on improvement of evaluation and
taking appropriate feedback from raters. The term 360 Degree represents a full circle of
feedback from all angles. Other names are multi-source, multi-rater, full-circle, group
performance review, 180 Degrees and, finally, the 720 Degrees. Some organizations apply
720-Degree approach which provides for two rounds of feedback (a pre- and post-test) or a
feedback circle which is done again after nine to twelve months. The performance evaluation
can be on an individual basis, a multi-rater process—either from an online assessment or
through the structured interview process. Performance evaluations are done by companies to
help to review the performance of the employees, their strengths, weaknesses and
accomplishments during the year. Performance evaluation allows deciding the goals,
objectives and the aspired performance standards for the employee for the upcoming year.
There is no comprehensive formula for doing so. The overall rating is based upon a number
of factors like the extent of goals achieved, the overall performance of the employee, his
competencies etc.
Instead of getting 360 Degree Feedback from people who work with the employee
(colleague), the 720 Degree concept is about collecting feedback from people within and
outside organization i.e friends, family, spouses, and children. In addition, timely reassessment of one's skills is widely regarded as an industry 'best practice', common among
high-performing leaders. Comparing results over time is only effective if the instrumentation
is psychometrically sound and accurate.
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1.6 The 360 Degree Feedback System
The 360 evaluation feedback method was first introduced in the 1940s. It is a system or
process in which employees receive confidential, anonymous feedback from the people who
work around them. 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-employees and customers.
Usually, this tool is used for employees at middle and senior level. The complexity of their
roles enables the organization to generate sufficient data from all stakeholders for a
meaningful assessment.
Most organizations 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. Organizations take 360-Degree feedback about an employee before taking a
major decision about the professional's career.
1.6.1 Advantages of 360 Degree Feedback
The 360 feedback system automatically tabulates the results and presents them in a format
that helps the feedback recipient create a development plan. Individual responses are always
combined by responses from other people in the same rater category (e.g. peer, direct report)
in order to preserve anonymity and to give the employee a clear picture of his/her greatest
overall strengths and weaknesses.
When done properly, 360 Degree feedback is highly effective as a development tool. The
feedback process gives people an opportunity to provide anonymous feedback to a coworker
that they might otherwise be uncomfortable giving. Feedback recipients gain insight into how
others perceive them and have an opportunity to regulate behaviors and develop skills that
will enable them to excel at their jobs.
360 Degree feedback is the most comprehensive evaluation where the feedback about the
employees‘ performance and is being used by 90% of Fortune 500 companies.
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360 Degree evaluation has four essential components:
• Self-evaluation
• Superior‘s evaluation
• Subordinate‘s evaluation
• Peer evaluation.
Self-evaluation is the best way to analyze one‘s strength and weakness, performance
standards, areas of improvement; whereas the superior‘s evaluation form is the traditional
part of the 360 Degree feedback method where the hand‘s performance is evaluated by the
superior. Subordinates evaluation 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.
The primary reason to use this full circle of private reviews is to provide the employee with
information about his/her performance from multiple perspectives. From this feedback, the
goals for self-development are determined which will advance their career and benefit the
organization.
Under ideal circumstances, 360-Degree feedback is used as an assessment for personal
development rather than evaluation. Criticisms are seen as opportunities for improvement.
Reaction tool includes area for comments.
This method has got high employee involvement and also has 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 evaluation methods.
To comprehend with the strengths of using 360 Degree feedback:
a) Comprehensive approach to performance of employees
b) Improve credibility of a performance evaluation system.
c) Feedback from colleagues to strengthen self-development.
d) More responsibilities of employees towards their customers.
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e) Persuasive feedback from staff.
f) Motivation of people who under value themselves.
g) Honest organizational culture
h) Improved Feedback from variety of sources
i) Team development.
j) Personal and Organizational development
k) Responsibility for career development
l) Reduced discrimination risk
m) Reduces manager bias
1.6.2 Disadvantages of 360 Degree Feedback
It is difficult to properly structure a 360 feedback process that creates an atmosphere of trust
when you use 360 evaluations to measure performance.360 Degree feedback focuses on
behaviors and competencies more than on basic skills, job requirements, and performance
objectives. Feedback tied to merit pay or promotions. Comments traced to individuals
causing resentment between employees.
360 Degree feedbacks that get driven by HR without much attention from the boss are not
effective. Whatever the boss gives importance to gets the attention of his/her reports. The
boss has to be a believer that this stuff helps the team.
People offer comments that are personal in nature rather than constructive.360 Degree
feedback data is only helpful to the extent that it gets acted upon and used.
One of the major drawbacks is that the evaluating process will be too much focused on
weakness of the employee. Forgetting the strengths and only focusing on weaknesses demotivates employees.
The entire process depends solely on the Rater. If the Rater is inexperienced and ineffective
the process becomes invalid. Paperwork/Computer data entry overload also acts as a
disadvantage.
Businesses willing to implement this comprehensive method of assessment should be willing
to spend the time and effort necessary to train each anonymous evaluator in the process as
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well as correct and incorrect ways to interpret questions. Failure to properly train feedback
providers will most likely result in inaccurate results or a total failure of the process to
produce relevant information. The system will fail if it is an add-on rather than a supporter of
your organization‘s fundamental direction and requirements. It must function as a measure of
your accomplishment of your organization‘s big and long term picture.
1.6.3 Attributes of a Sound 360 Degree Survey
a) Expert authorship, with factor analyzed competencies, thus, ensuring measurement
acuity.
b) Role-specific dimensions and questions.
c) Parallel validity over third party research.
d) Research indicating which competencies drive success in each role.
e) A reliable and valid theory of leadership development called the Task Cycle
f) Support material and resources, such as feedback workshops, online development
tools, and coaching to help exploit ROI.
720 Degree assessment is a new concept which is a modification to the above. It is multiperiod assessment.
Figure 1.1- 360 Degree feedback system
Source: www.hrinfo.in
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1.7 Concept of 720 Degree Performance Appraisal
720 Degree assessment is a system in which employees receive anonymous and confidential
feedback from the people who are directly or indirectly associated to them. Feedback is
collected from the family, friends, peer, manager and other direct reports. The system leads to
a platform that gives the better sympathetic of the strength and weakness of the employee and
the scope for his further improvement.
To use the 720 system, the following points must be followeda) The evaluation framework ought to be 360 Degrees.
b) The appraisal ought to be done twice or all the more amid a year.
c) The distinctive evaluations ought to be organized and thought about for a given
period.
d) The preferred standpoint of the framework is that it is more advancement centred than
execution alone, and supplements preparing and improvement works better.
Basic review model of 720 Degree performance appraisal:
Figure 1.2- 720 Degree review model
Source: Slideplayer.com
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1.7.1 720 Degree Performance Appraisal and Organizational Benefits
Consider an "inside and out" examination, the 720-Degree Performance Appraisal gives a
representative feedback from more than one individual. This evaluation gives the employee a
ton of feedback, for the most part from somewhere in the range of five to eight individuals, to
give the representative an inside and out appraisal of his or her at work execution.
The 720-Degree Performance Appraisal is like the 360-Degree Performance Appraisal. The
distinction is that the more elevated amount additionally incorporates feedback from the
client.
Clients are included all the while. With client required all the while, the employee gets a
decent sign in the matter of how he/she is carrying on to the outside world-i.e., clients. This
can help a representative enhance client benefit aptitudes.
720 Degree feedback is performed after the 360 Degree input. We as a whole know the 360
Degree input technique and it is a broadly utilized strategy in large portions of the
organizations over the world. 720 Degree evaluation is about doing the 360 Degree input
twice in such a way that it enhances the execution of a representative in all measurements. In
the main portion of the 720 Degree feedback i.e. 360 Degree feedback, the employee gets the
input from associates, subordinates, bosses and customers, if the representative is seen of
poor execution then the employee is taken to the instructing, tutoring, preparing and so on.
The prepared employee will be put forth a strong effort. After the finishing of time, again 360
Degree feedback will be taken. This is called 720 Degree Appraisal strategy. This strategy
accomplishes the objectives set for the representatives. This strategy offers contributions to
progression arranging process.
Indian organizations are as yet delaying in executing the 360 Degree input except very few.
This can be utilized as apparatus for advancement for the senior chiefs, as opposed to
considering it as the execution assessment devices for representatives. Power and political
issues will exist in Organization. Typically individuals (subordinates) not open their mouth
about bosses. Significantly beat down correspondence exists in association. Since 720-Degree
Performance Appraisal are led anonymously, those included, speak the truth about a man's
execution. The threat here, obviously, is that the individual giving the examination could be
extremely critical but, for the most part, there is less fear of retaliation for proving
straightforward feedback to help the employee improve. Honest feedback can help the
employee better understand his/her strengths and motivate him/her toward improvement.
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Legitimate input can help the employee better comprehend his/her qualities and propel
him/her toward change.
Gives more of a holistic view- Since the 720-Degree Performance Appraisal is directed by
more than one individual, it gives an inside and out perspective of a employee's execution, as
opposed to depending on the assessment, or investigation, of only one individual. Thus, the
method turns into a procedure that is more intelligent of the employee's general execution, as
opposed to in light of a solitary measurement of criticism. Also, the multi-rater nature of the
720-Degree Performance Appraisal can appraise both employee and supervisor of something
about the employee they both might have missed.
Saves managers time-and stress- Since more individuals are included all the while, this
strategy spares a manager's time that he/she may some way or another have devoted toward a
standard execution examination. It likewise spares the manager some stress. It can be a
troublesome thing to "assess" a employee, particularly if just a single side of the
representative is seen. The multi-rater strategy takes a lot of that obligation off the manager's
shoulders. Rather, the manager is the course between the appraisers and the representative.
Once the input has been perused and assessed, the manager can then spend his/her time
helping the representative create objectives and destinations for development.
Emphasize teamwork-This specific sort of execution evaluation makes considered an "all
round" examination, the 720-Degree Performance Appraisal gives a employee more than
feedback from one individual. This evaluation gives the representative a great deal of input,
by and large from somewhere in the range of five to eight individuals, to furnish the
employee with an inside and out appraisal of his or her at work execution.
The 720-Degree Performance Appraisal is similar to the 360-Degree Performance Appraisal.
The difference is that the higher level also includes feedback from the customer.
a) For a 90-Degree appraisal information is gathered from just the initiative group of the
unit being evaluated. This technique is fast yet frequently beguiling, as the leaders
self-reports might be one-sided.
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b) For a 360-Degree appraisal, information is gathered from various sources inside the
organization. Distinctive gatherings may recount altogether different stories, and can
give bits of knowledge that may otherwise be missed.
c) For a 720-Degree appraisal, data is gathered not just from inside the organization be
that as it may, from outside gatherings. Outside assessors may incorporate financial
specialists, clients, or providers. These gatherings are vital in light of the fact that it is
in their eyes that the association's intangible value matters most.
1.7.2 The Need of 720Degree Performance Appraisals for Today’s Business World
As Organizations evolve and new techniques make work complicated it also becomes
necessary to have a complex and integrated appraisal system. As organization grows and
become diverse the expectation from each employee becomes high in turn, the employee‘s
expectation from the employer also increases. The main need of 720-Degree performance
appraisal is the improvement of the performance of the people in their jobs and to ensure that
the expectations of the employer, employee and the customers are met. The main need of
720-Degree performance appraisal can be summarized as follows:
a. 720-Degree execution appraisal technique is more advancement centered than
execution alone, and supplements training and development in a better way.
b. Give data about the execution positions. Help with taking choices in regards to salary
fixation, confirmation, promotion, transfer and demotion.
c. Provide timely feedback about the performance, set targets and monitor the
performance based on the targets set.
d. Checks the adequacy of work force systems and practice i.e. validation.
e. It is expected to guarantee that employees achieve authoritative norms and targets.
f. To find the work potential and to comprehend the ranges where training is required
to control the representatives to perform out their best.
g. To understand the expectations of the employees and prevent grievances and indisciplinary activities.
h. Provide information to diagnose deficiency in the employee regarding skill,
knowledge, determine training, and prescribe the means for employee growth and
information for correcting placement.
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i. Set realistic target, monitor the performance and provide timely feedback to ensure
that the performance is enhanced.
j. These critical competencies are essential to assist the executives and managers to be
able to lead these organizations toward successful implementation of strategic
changes.
1.7.3 Dimensions of 720-Degree Performance Appraisal
All the present IT associations go for accomplishing higher rate of representative fulfillment
and straightforwardness in the workplace. So as to accomplish the above objectives, 720
Degree execution appraisal would be an indispensable instrument as it is utilized to assess the
execution of a representative from various measurements and defeats the obstructions of
inclination, partiality and separation. The execution is assessed from 5 measurements and
input or the appraisal meeting is led twice (pre and post feedback) to guarantee the proficient
execution of the employee. Counting the pre and the post feedback, that assumes an
imperative part, the 720 Degree execution appraisal has 7 stages.
Pre feedback
Post feedback
Figure 1.3- Dimensions of 720 Degree appraisal system
Source: www.zenithresearch.org.in
a) Pre appraisal feedback
This is the principal appraisal step that is done after the input is gathered from the
diverse measurements or individuals with whom the representative would associate.
In this progression, the execution is assessed, targets are set and training is sorted out
to help the employee accomplish the objective.
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b) Self-appraisal
The representative is given a survey and made a request to assess his execution and
through this strategy, the employee gets a chance to express his thoughts and his
valuation of qualities, shortcoming and judge his performance.
c) Peers/colleagues appraisal
The feedback from the associates or partners is vital as it comprehends the capacity of
the employee to function as a group, co-work, co-ordinate with others and draw out
the best.
d) Customer appraisal
Keeping in mind the end goal to get by in the current focused market, associations go
for accomplishing high consumer loyalty. Client feedback breaks down the client
perspective and help to enhance the individual and the association.
e) Sub-ordinates appraisal
The feedback of the sub-ordinates is basic to dissect the sorting out aptitudes of the
representative and to comprehend his capacities like communication and motivating
abilities, ability to delegate the work, leadership qualities and way of handling
responsibilities.
f) Mangers/superiors appraisal
In this, the execution, duties and the disposition of the representative is assessed by
the bosses or supervisors.
g) Post appraisal feedback
It is this progression that makes the 720-Degree execution appraisal diverse and
superior to the 360-Degree execution appraisal strategy. In this progression, the
execution is assessed in view of the objective set in the pre appraisal and input is
given. Opportune input and direction makes the employee enhance his execution.
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1.7.4 Benefits of 720-Degree Performance Appraisal
720 Degree execution appraisal will help in making a synergetic workplace and will draw out
the best of every representative. Alternate advantages of the 720 Degree execution appraisal
are as per the following:
a) It helps in better examination and enhanced input from various measurements
b) Builds up a superior and co-operative team
c) Diminishes the appraisal boundaries like partiality, bias and discrimination
d) Client feedback is esteemed to improve client administration and fulfillment can be
acquired
e) Encourages transparency and feeling of being treated justly.
1.7.5 Effects of 720 Degree Review
a) Performance goals are aligned with customer‘s true expectations.
b) Client's inside evaluators, merchants and official being assessed are coached on the
reason, prepare and required results before starting.
c) For a 720 Degree assessment, collect information not only from inside the
company but from outside groups. External assessors might include investors,
customers or suppliers. These groups are important because it is in their eyes that the
organization‘s intangible value matters most.
1.7.6 Importance of 720 Degree Performance Appraisal
a) 720 Degree evaluation framework gives other options to the conventional
examination framework.
b) It is valuable in learning associations.
c) It includes the utilization of more than one evaluator, which in turns imply that the
diverse components of the appraisal system, which depends on a unitary arrangement
of assessment.
d) The 720 Degree examination system is more dependable, engaged and predictable.
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e) They are equipped for reassessment which is the opposite of what occurs with the
conventional framework.
f) The 720 Degree guarantees confidentiality, unlike the traditional appraisal system.
1.7.7 Advantages of 720 Degree Performance Appraisal
a) Enhanced feedback from more sources.
b) Team improvement.
c) Personal and hierarchical execution advancement.
d) Training needs evaluation.
e) Improve client administrations.
1.7.8 Disadvantages of 720 Degree performance appraisal
a) A substantial number of the appraisers consider that 720 Degree performance
appraisal method is a tedious procedure.
b) Appraisers consider that the fiscal prerequisite is higher for 720 Degree performance
appraisal method as examination/feedback must be done twice.
c) Appraisers consider that there may be quality issue as all the 7 measurements of
evaluation in 720 Degree execution examination technique might not be accurate.
d) Failure to associate the procedure.
e) Focus on negative and weakness.
1.7.9 Similarities between the 360Degreeand 720Degree appraisal systems
a) Both the 360 Degree appraisal system and the 720 Degree appraisal system provides
alternatives to the traditional appraisal system.
b) They are both useful in Learning Organization.
c) They both involve the use of more than one evaluator, which in turns means that the
different components of the appraisal system are handled by different people unlike
the traditional appraisal system, which is based on a unitary system of evaluation.
d) The 360 Degree and 720 Degree appraisal mechanisms are more reliable, focused and
consistent.
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e) They are capable of re-assessment which is the opposite of what happens with the
traditional system.
f) They both guarantee confidentiality, unlike the traditional appraisal system.
1.7.10 Differences between the 360Degreeand 720Degree appraisal systems
a) The 720 Degree appraisal system is more focused on the customer‘s feedback on
specific position in the organization such as directors, managers and other higher or
mid-level managers and is therefore reliant on the Voice of the external customers
while the 360 Degree appraisal system is focused on the internal customer‘s feedback
on employee performance.
b) The 720 Degree appraisal system is more focused on Management/ Higher level
employees while the 360 Degree appraisal system is general.
c) The 360 Degree has a Single evaluation cycle while the 720 Degree has dual
evaluation cycles.
1.7.11 Impact of 360Degree review
From Employee’s Perspective
a) Employees Job Satisfaction
b) Encouragement
c) Reduce Their Intent To Leave
From leader’s perspective
a) Take advantage of under-utilized personnel strengths to increase productivity
b) Avoid the trap of counting on skills that may be weak in the organization
c) Apply human assets data to the valuation of the organization
d) Make succession planning more accurate
e) Design more efficient coaching and training initiatives
f) Support the organization in marketing the skills of its Members
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1.7.12 720o performance evaluations
The 720 Degree review starts with a review of the leader‘s contributions to the business,
competencies and other factors.
Next, major customers are identified and their representatives asked to be part of the review.
After program training, the 720 Degree service provider, an objective third party, interviews
the customer to determine the quality of the relationship with the executive.
All internal and external input is compiled, analyzed and presented to the executive.
The executive, with support from the 720 Degree service provider, develops measurable
goals and a detailed action plan to make changes.
1.7.13 Pitfalls in performance appraisals in practice
Performance appraisal is constantly under a barrage of criticism. The rating scales method
seems to be the most vulnerable target. Yet, in all fairness, many of the problems commonly
mentioned are not inherent in this method but, rather, reflect improper implementation. The
following section highlights some of the more common problem areas.
a) Appraiser Discomfort
Conducting performance appraisals is regularly a baffling human asset administration
assignment. It has been noticed the performance appraisal systems neither motivate
individuals nor adequately manage their improvement. Rather, they make strife
amongst chiefs and subordinates and prompt broken practices.
b) Lack of Objectivity
A potential shortcoming of traditional performance appraisal methods is that they
need objectivity. In the rating scales strategy, for instance, usually utilized variables,
for example, state of mind, appearance, and identity are hard to gauge. Furthermore,
these variables may have little to make with a employee's showing with regards to
execution. Despite the fact that subjectivity will dependably exist in appraisal
strategies, employee evaluation construct essentially in light of individual attributes
may put the evaluator and the organization in untenable positions with the
representative and equivalent business opportunity rules. The firm might be unable to
demonstrate that these variables are occupation related.
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c) Halo/Horn
A halo error happens when an administrator sums one up positive performance
highlight or occurrence to all parts of employee performance, bringing about a higher
rating. The horn blunder is the one that happens when a chief sums one up negative
performance highlight or occurrence to all parts of representative performance,
bringing about a lower rating.
d) Leniency/Strictness
A few directors are excessively liberal with acclaim or too hard on a man. Giving
undeserved high appraisals to a representative is alluded to as mercy. This conduct is
regularly roused by a yearning to maintain a strategic distance from discussion over
the evaluation. It is most pervasive when profoundly subjective (and hard to shield)
performance criteria are utilized, and the rater is required to talk about assessment
comes about with representatives. At the point when directors know they are
assessing employees for authoritative purposes, for example, pay builds, they are
probably going to be more merciful than while assessing performance to accomplish
representative improvement.
e) Central Tendency
Central tendency error is an assessment examination blunder that happens when
employees are erroneously appraised close to the normal or center of a scale. This
practice might be empowered by some appraising scale frameworks that require the
evaluator to legitimize in composing to great Degree high or low appraisals. With
such a framework, the rater may stay away from conceivable debate or feedback by
giving just normal appraisals. Nonetheless, since these appraisals tend to group in the
completely palatable range, employees don't frequently complain.
f) Recent Behaviour Bias
For all intents and purposes each representative knows accurately when a
performance survey is booked. In spite of the fact that his or her activities may not be
cognizant, a employee's conduct frequently enhances and profitability tends to rise a
few days or weeks before the planned assessment. It is normal for a rater to recall late
conduct more obviously than activities from the more removed past. Notwithstanding,
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formal performance evaluations for the most part cover a predefined time, and an
individual's performance over the whole time frame ought to be considered.
g) Personal Bias (Stereotyping)
This entanglement happens when supervisors enable individual contrasts to influence
the appraisals they give. On the off chance that these are components to maintain a
strategic distance from, for example, sex, race, or age, not exclusively is this issue
hindering to representative confidence, yet it is obtrusively unlawful and can bring
about exorbitant suit. The impacts of social inclination, or stereotyping, can impact
evaluations. Supervisors build up mental pictures of what are viewed as perfect
regular specialists, and representatives who don't coordinate this photo might be
unjustifiably judged.
h) Manipulating the Evaluation
In a few occurrences, managers control basically every part of the evaluation
procedure and are subsequently in a position to control the framework. For instance,
an administrator might need to give an increase in salary to a specific representative
or the boss may simply "support" one specialist more than another. Keeping in mind
the end goal to legitimize this activity, the manager may give the representative an
undeserved superior assessment and maybe a less supported, yet beneficial, employee
a lower rating. On the off chance that the association can't sufficiently bolster the
assessment, it might endure huge financial loss.
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