360 Degree Performance Appraisal

1. 360 DegreePerformance Appraisal Prepared By: SameerSood (82039) SharibNehal (82077)

2. 360 DegreePerformance Appraisal Any company that’s going to make it has got to find a way to engage the mind of every single employee. If you are not thinking all the time about making every person more valuable, you don’t have a chance. What’s the alternative? Wasted minds? Uninvolved People? A labor force that’s angry or bored? That doesn’t make sense. Jack Welch, CEO, GE

3. 360 DegreePerformance Appraisal 360 Degree Appraisal System A means of gathering specific evaluative information from a group of people above, below, and on the same organizational level who are knowledgeable enough to rate an individual’s performance. These include: • Individual • Peers • Subordinates • Supervisor • Customers (Internal/ External)

4. 360 DegreePerformance Appraisal Synonyms for 360 Degree Performance Appraisal • Stakeholder Appraisal • Full-Circle Appraisal • Multi-Rater Feedback • Multi-Source Assessment • Sub-ordinate and Peer Appraisal • Group Performance Appraisal • Multi-Point Appraisal • Multi-Perspective Ratings

5. 360 DegreePerformance Appraisal 360 Degree Performance Appraisal Process 1. Decide on the purpose of 360 Degree 2. Choose the instrument for collecting the data 3. Decide on behaviors/ items to be included in the rating instrument 4. Decide who the feedback recipients are 5. Train the raters and the ratees

6. 360 DegreePerformance Appraisal 360 Degree Performance Appraisal Process (Continued….) 6. Questionnaire distribution 7. Analysis of feedback data 8. Feeding back the feedback 9. Follow through 10. Repeat the process

7. 360 DegreePerformance Appraisal Applications of 360 Degree Performance Appraisal • Career Development • Culture Change • Performance Evaluation • Enhancing team effectiveness

8. 360 DegreePerformance Appraisal Common Mistakes During 360 Degree Performance Appraisal • Lack of Clear Purpose • Using it as a substitute • Not conducting a pilot test • Not involving key stakeholders • Having insufficient communication • Compromising confidentiality

9. 360 DegreePerformance Appraisal Common Mistakes During 360 Degree Performance Appraisal (Continued…) • Not making clear the use of feedback • Not Clarifying who “owns” the feedback • Having “unfriendly” administration and scoring • Making it an event, rather than a process • Not evaluating effectiveness

10. 360 DegreePerformance Appraisal Benefits of 360 Degree Performance Appraisal • Increases two-way communication within the organization • Supports in highlighting attention to important performance dimensions • Highlights and assesses the development needs • Helps increasing the focus on customer service • Promotes team-building and team-work • Creates high-involvement work force • Defines corporate competencies

11. 360 DegreePerformance Appraisal Drawbacks of 360 Degree Performance Appraisal • Costly and time consuming type of appraisal. • Tends to be somewhat shocking to managers at first. Amoco's Bill Clover described this as the "SARAH reaction: Shock, Anger, Rejection, Acceptance, Help". • 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. • 360 Degree might prove counter productive if the mission of this process is not defined clearly in the beginning . • 360 Degree creates a cultural shock by creating “change”. This may not be supported by the employees, or the organization may not be equipped to handle such change.