LIMITATIONS OF PERFORMANCE APPRAISAL SYSTEM
Halo effect :• In this case the superior appraises the person on certain positive qualities only. The negative traits are
not considered. Such an appraisal will no give a true picture about the employee. And in some cases
employees who do not deserve promotions may get it.
Horn effect :• In this case only the negative qualities of the employee are considered and based on this appraisal is
done. This again will not help the organization because such appraisal may not present a true picture
about the employee.
Central tendency :- • In this case the superior gives an appraisal by giving central values. This prevents a
really talented employee from getting promotions he deserves and some employees who do not
deserve any thing may get promotion.
Leniency and strictness :- • Some bosses are lenient in grading their employees while some are very
strict. Employee who really deserves promotions may loose the opportunity due to strict bosses while
those who may not deserve may get benefits due to lenient boss.
Spill over effect :- • In this case the employee is judged +vely or – vely by the boss depending upon the
past performance. Therefore although the employee may have improved performance, he may still not
get the benefit.
Fear of loosing subordinates and spoiling relations :- • Many bosses do not wish to spoil their relations
with their subordinates. Therefore when they appraise the employee they may end up giving higher
grades which are not required. This is an injustice to really deserving employees.
Goodwill and techniques to be used :- • Sometimes a very strict appraisal may affect the goodwill
between senior and junior. Similarly when different departments in the same company use different
methods of appraisal it becomes very difficult to compare employees.
Lack Of Clarity:- The objective of performance appraisal is to evaluate and develop employees. An
organization should avoid using one appraisal system to achieve both objectives. The particular system
of the appraisal system should clarify
before it is designed and should be discussed with all managers and employees to gain their
commitment. Any performance appraisal system, however good the design, is unlikely to succeed if the
managers and employees are suspicious of its objectives.
360 Degree Performance Appraisal, Feedback
System and its Review
The 360-degree performance appraisal system is a way to make sure the appraisal is done
in a full-fledged way considering all the elements surrounding the employee.
The 360-degree performance appraisal policy is very complicated and difficult to
implement. One may ask why organizations should invest in 360 degree performance
appraisal system? Here the answer is for the long-term development of employees and
to create a strong leadership front. The 360-degree performance appraisal method
provides a holistic approach to the performance of the employee. It includes very
important factors such as collaboration, teamwork, and leadership. A development plan
based on the 360-degree performance appraisal system, effectively improves the overall
performance of employees and productivity of organization. There are different steps
which we follow in order to implement the 360 degree assessment. Clarity and
effectiveness of the system is very important for an organization.
Click and Learn about: What is Performance Management?
What is a 360 degree performance appraisal?
The 360 degree performance appraisal system is an advanced kind of appraisal that is
used by many organizations where the performance of employees is judged using the
review of around 7 to 12 people. These people are working with the employee and they
share some of their work environment. The feedback is gathered in the form of reviews in
terms of the competencies of the employee. The employee himself or herself also takes
part in this appraisal with the help of self-assessment. The 360-degree performance
appraisal system is a way to improve the understanding of the strength and weaknesses
of employees with the help of creative feedback forms.
There exist 3 prime reasons why organizations prefer to go for a 360-degree
performance appraisal.
1. In order to get an enhanced review of the performance and perspective of the
future leader.
2. To broaden the insight of manpower development and its needs.
3. In order to collect feedback from all the employees and to ensure
organizational justice.
Usually, under 360 degree appraisal system the feedback is collected from peers
subordinates customers managers, and the team members of the employee. The feedback
is collected using on job survey based on the performance of employees there exist four
stages of a 360-degree appraisal. The first stage is self-appraisal followed by the superior’s
appraisal then the subordinates' appraisal and lastly the peer appraisal.
What is a 360 performance review in HR?
The 360 review is a professional opportunity given to coworkers to provide 360-degree
feedback about the performance of their fellow employees. Traditionally either the HR
department or reporting manager of an employee asks the subordinates to provide their
feedback.
Many organizations use an online survey method in order to interact with the employee
and enable them to provide performance feedback. The online survey instrument is very
useful in collecting feedback and providing a clear understanding of employees’
performance.
The 360 performance review is mostly focused on the contribution of the employee and
their skills along with their competencies. It is a balanced way to view the actual
performance of employees in the area of teamwork, leadership, interaction, interpersonal
communication, contribution, management, accountability, work habits, vision, and other
things based on the employee’s job profile.
Here the actual contribution of an employee in terms of performance is judged by the
manager while the other aspects of the role are judged by or reviewed by the subordinate,
peers, and the customer.
The purpose of collecting feedback from all the employees who work together is to
analyze how the employee affected the work of their fellow employees. Also, it focuses
on the steps organizations need to carry out in order to enhance teamwork among the
employees. Along with the formal feedback, the manager can also request informal or
verbal feedback from the subordinates in order to get a clear view of the behavior and
work attitude of an employee.
How to implement a 360-degree performance appraisal system?
The implementation of the 360-degree appraisal method is not an easy task. In order to
design an effective 360-degree appraisal system one has to take care of the following
things.
1. Determine the right skill to be assessed.
2. Proper selection of appraiser.
3. Proper training should be provided to all the employees about how to use the 360degree review system.
4. The intention of the appraisal system should be elucidated.
5. Design a simple and easily understandable process.
6. Ensure that a follow up is taken after the appraisal review
Objectives of 360-degree performance appraisal
The objective of the 360-degree feedback process differs from company to company
however the main objective of a 360-degree performance review used to evaluate the
performance of the employee in a holistic manner expert in this field often claim that a
properly and effectively implemented 360-degree feedback process makes the employee
more comfortable with the organization and lead to their overall development along with
boosting their performance.
In this Era use of a 360-degree feedback system has brought a team-oriented meaning to
the organization. The organization is not restricted to a bunch of people but it has become
a bigger team. In a traditional way, the appraisal was the responsibility of human resource
management only, but now the objective of 360-degree performance appraisal is to
collect anonymous feedback about the employee from their superiors, colleagues, and
peers also from the customer. This holistic approach helps to evaluate the performance
and well-being of employee who is working for the organization.
360 Degree Performance Appraisal Process
The steps of the 360-degree feedback process may slightly vary from organization to
organization. However, the schedule of the 360-degree feedback process remains quite
the same. A timeline has been identified for a 360-degree performance review which
includes different steps which the organization has to follow. The step starts with the
communication about the 360-degree performance appraisal method and it ends with
the re-evaluation of participants.
1. Communicating the 360-degree performance review- It is very crucial to
communicate the entire process to the stakeholders of the organization. The purpose and
objective of the 360-degree performance appraisal process should be clearly mentioned
and explained to each and every participant. Also, the process through which the feedback
will be gathered and how the feedback will be utilized should be clearly conveyed to the
stakeholders.
Time required- This process could take 2-3 weeks to communicate about the appraisal
system. This can be done through a personal meeting with supervisors, managers, leaders,
and employees. Also, it can be communicated through emails and employees should be
encouraged to come forward if they have any queries related to the 360-degree
performance appraisal process.
2. Selection of raters- The selection of rater is one of the most important steps in a 360degree performance appraisal system. We have to choose enough participants in order
to receive data that is relevant and comprehensive. The number of raters will depend on
the employee’s job profile and working relationship.
Time required- This process generally takes one to two weeks. The rater will include
supervisors, direct reports, peers, and perhaps some customers or clients.
3. Distribution of survey- Organizations can use an online 360-degree feedback system
which will allow a quicker distribution of questionnaires among the employees. The
participants will receive an email with the link of the questionnaire and notification. They
can click on the link, and start and complete the 360 degree review.
Time required- This may take one week in order to distribute the survey among all the
employees.
4. Submission of the questionnaire- Once the survey is distributed, the participant will
complete the survey online. The completed review will be provided to the evaluator. This
process can take the longest time. The time required to submit a questionnaire depends
on the number of raters which are involved, the job profile of employees, and the
organization. It is highly recommended that a particular deadline should be assigned to
the participant in order to quickly finish the process.
Time required- This process should take to 2-4 weeks in order to get completed feedback
from the participant.
5. Completion of the report- Once the review is been collected through the questionnaire
method a confidential report is being produced. It depends on the delivery plan of the
organization sometimes once the report is ready it is directly sent to the participants or
the result is been given through one-one feedback session.
Time required- if you are using an online system this very quick to produce the report,
sometimes it takes 1 to 2 days.
6. Facilitation of feedback- It is recommended that the feedback should be given in a
confidential manner by arranging a meeting with the employee’s manager or coach. This
meeting will allow a great understanding of the feedback report and also provides an
opportunity to discuss the strength of the employee and areas which need to be
improved.
Time required- It depends on the in-depth of the feedback session generally a meeting
can last for 1 to 2 hours for each employee.
7. Completion of development plan- Once the review is done the development plan
should be created for each of the participants based on the feedback reviews received
through 360-degree evaluation. It is important to develop an actionable plan which will
help to improve the employee. The areas where the improvement is required should be
identified as key areas based on which training programs, workshops, coaching,
conferences, or mentoring should be arranged for the employee. The development of
such a plan helps employees to improve quickly.
Time required- Generally, completion of the development program could take one to two
weeks
8. Re-evaluating- 360-degree feedback system is not one of the events; once you start
the process it is important to see the consequences of the process. Specific goals and
opportunities are outlined in the development program; it does make sense to check the
progress. The re-evaluation of the participant will enable the organization to see the
changes and the area in which the employees are actually improved.
Time required- This process should be carried out after 8 to 12 months of 360-degree
performance appraisal.
360 degree feedback questionnaire
The questionnaire for 360 degree feedback depends on the job profile of employee.
However there are some topics such as leadership, interpersonal skills, problem-solving
attitude, motivation, and efficiency of employees which can be judged by colleagues,
peers, the supervisor as well as clients. For such points, there are a few questionnaires that
can be used. Check out the sample 360 degree feedback questionnaireLeadership
o
Do you think this employee exhibits the quality of leadership in the role which he or
she plays for the organization?
o
o
How positively this employee contributes through his leadership skills?
Do you think the employee should improve his leadership quality?
Interpersonal skills
o
o
o
When you interact with this employee do you think the interpersonal skills which
were demonstrated were satisfactory?
Do you experience any sort of problem while interacting with this employee?
Do you recommend any improvement in the interpersonal skills and relationship
development skills of the employee?
Problem-solving attitude
o
o
o
Do you observe that this employee effectively solved the problem?
What are the skills that this employee has demonstrated in order to solve the
problem?
Do you think this employee has fewer problem-solving skills and the employee need
to work to improve the skills?
Motivation
o
o
o
Do you observe that this employee appeared motivated toward his work-related task,
job, or relationships?
How committed and motivated do you think this employee is with regard to the
success of the organization?
Have you ever experienced any issues related to the motivation level of the
employees?
Efficiency
o Do you think the work method and approach used by the employee are effective,
efficient, and improving?
o Do you suggest any areas of improvement for this employee?
o These are some areas in which the questions can be raised in order to improve the
effectiveness of 360 degree feedback system. These questions will help the employees
to respond about their issues and things that they appreciate about their colleagues
and peers. These questions will promote ease of sharing of information among the
employees.
The significance of 360-de3rmance appraisal
The immediate benefits of a 360-degree feedback system can be observed in terms of
teamwork, development of leadership, and improved productivity of the organization. It
provides a safe, confidential, and reliable way for colleagues to provide feedback. It also
provides the organization with valuable insights about the current leadership, how team
mechanics works, and the overall culture of the organization. 360-degree performance
appraisal system provides powerful knowledge to the leaders and hence helps them for
the development of employees. The effectively used 360-degree performance appraisal
system boosts the confidence of employees and helps them to improve their
performance. It also helps employees to become better leaders and contributors to the
organization.
360-degree performance appraisal advantages and disadvantages
Similar to every system 360 degree performance appraisal also has some pros and cons.
Let's take a look at the advantages and disadvantages of a 360-degree performance
appraisal system.
Advantages of 360-degree assessment
o
This system provides a comprehensive view of the performance of employees.
o
It improves the credibility of the performance appraisal system
The feedback from colleagues helps to strengthen the self-development process of the
employee
It also increases the responsibility and alertness of employees towards their clients.
The different ideas coming from different raters combined provide a more accurate
360-degree assessment.
More persuasive opinions can be gathered from different participants.
Here not the only manager but colleagues are also responsible for the assessment of
staff performance which empowers them.
Employees get motivated who generally undervalue themselves.
o
o
o
o
o
o
o
Honest culture can be established in the organization using 360-degree performance
appraisal system.
Disadvantages of 360-degree assessment
o
o
The process is very lengthy, complex, and takes a lot of time.
If the feedback got exchanged among the employees it can create trouble and tension
among the staff.
o
o
o
o
A lot of effort has to be placed in order to train the employee to effectively use the
360-degree appraisal system.
It is very difficult to figure out the results.
Some feedbacks are useless and need to be deleted carefully.
A suspicious environment can be created in the organization as the information is not
available to everybody.
360-degree performance appraisal form
360-degree performance appraisal form sample
Instructions for the 360 Degree Performance Review:
Kindly respond to each statement provided in the respective categories on the pages. Use
the assessment system as provided after the instructions. If you have a lot of “U” responses
then it is better to meet the HR department before submitting the review.
Comments: You can add comments after a review of each section. In the comments, you
can provide specific information or suggestion which you want to convey with clarity.
Assessment system:
5- Exceeds expectations – The performance demonstrated is beyond the standard
expectation.
4 -Meets expectations – The performance meets the standard expectation from the
employee.
3 -Meets most expectations – Average performance with some improvement required.
2-Needs improvement – Some responsibilities are effectively performed but serious
improvement
1
is
-Unsatisfactory
required
–
in
certain
Performance
below
areas.
standard
U -Unknown – Rater is not aware of these skills of the employee.
Job knowledge & skills
1. Knowledge is demonstrated as per
the mission,
Company policies,
Self
Board
Direct
report
Other
Total
Average
values & procedures of
the
organization.
2. Job knowledge is demonstrated.
3. Communicates competently in
writing and
verbally
Comment-
Collaboration:
Self
Board
Direct
report
Other
Total
Average
Self
Board
Direct
report
Other
Total
Average
1. Cooperative and professional
attitude toward all coworkers is
displayed
2. Ability to work as a team is
demonstrated
3. Use professional ways to resolves
conflicts.
Comment-
Dependability:
1. Despite obstacles achieves the task,
in a timely manner.
2. Follows up and monitors the
pending projects.
3. Good time management
Comment-
Accountability:
Self
Board
Direct
report
Other
Total
Average
Self
Board
Direct
report
Other
Total
Average
1. Follow-through and closes while
completing an assignment.
2. Shows responsibility for his/her
actions.
3. Timely accomplishment of the set
goals.
Comment-
Leadership:
1. Focuses on the empowerment,
competence development and
providing choices to the team
members.
2. Individual contributions are
recognized
3. Verbal commitments are met
properly
Comment-
Disclaimer: The 360-degree performance assessment mentioned in this article is created
to provide a brief idea about the real-time 360-degree performance appraisal process
carried out in the organization. The structure is designed for the enhancement of
understanding and to clear the concepts regarding the 360-degree performance appraisal
system. The site hrhelpboard.com is not responsible for the resemblance or accuracy of
the system. It is important to professionally verify the suitability of the policy before using
the content given in the sample system.
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