360-Degree Performance Appraisal in Organization

 

360-Degree performance appraisal is a system or method during which employees receive confidential, anonymous feedback from those that work with them. This usually covers the employee's manager, peers, and direct reports. The feedback received is usually anonymous and confidential. The basic procedure is generally the distribution of a digital form through a system that needs to be submitted by the people concerned.

Why Organisations need a Performance Appraisal Framework?

Organisations are met with the challenge of promoting innovative productivity improvement among workers. Hence, productivity plays a vital role in the organisation’s competitiveness. Thus, innovation supports efficiency through the new uses of technology in the business, enhanced industry systems, meeting changing customer demands, and better systems and processes (Business Victoria 2016). For an organisation to evolve, people working within it must be involved in processes that improve the organisation’s productivity. Fourie (2008) is of the opinion that organisational success depends on a suitable recognition and reward system. The recognition and rewards may be used to increase performance in organisations that have adopted the 360-degree performance appraisal. Therefore, a complete performance policy must be developed that aligns pay (or other incentives) to performance.

Let’s look at why adoption of performance management frameworks are widespread amongst top organizations around the globe.

• Performance Management - This type of performance appraisal method aligns employee rewards/recognition with a company’s performance. The data collected from the feedback is used for the review of an employee. With the size and frequency of the data available you can effectively track and develop the performance of your workforce.

• Employee Development - This is one of the main reasons why companies opt for an all-round feedback system. Human resource management applies these data from the survey to fill the gaps in the skillsets of the employees. This ensures that the organization is up to date with skills in-line with the current trends in the industry.

• Onboarding and Training - Companies want to have a structured way of training and getting new employees on board. It helps the companies recognize the kind of skills required and make arrangements for fresh new talent. Also, it helps companies to elect on a promotion. It helps to inform the administration with the strength and weaknesses of a new leader. This makes certain that the company doesn’t lose an excessive amount of time adapting to changes. These are generally the motives why companies opt for such an appraisal system.

“We all need people who will give us feedback. That’s how we

improve. – Bill Gates”

 Advantages and Disadvantages of 360-Degree Performance Appraisal System

 Appraisal management system could be a very powerful asset for the business. Yet, every system has its own advantages and disadvantages.

Advantages of 360-Degree Appraisal System

• Self-development of employees
• Fair and accurate reviews
• No biasing with 360-degree feedback
• Motivate workforce
• Provides a comprehensive view of employee performance
• Convincing opinions from participants
• Better morale of employees
• Positive work environment

          Disadvantages of 360-Degree Appraisal System

• Process could be time-consuming
• Sometime peers and subordinates might not give objective feedback
• Needs proper training to give proper feedback
• Data mix concerns
• Concerns on confidentiality might hamper objective feedback – especially from subordinates
• Sometimes too much data with conflicting views
• Data is not available to everyone. Can create a suspicious environment 

     Conclusion

      The 360-degree performance appraisal makes a working atmosphere that inspires worker participation. It is a suitable system for succession planning, training, and professional development (Riboldi & Maylette 2007). Henceforth, there was no relation between the 360-degree performance appraisal and labour efficiency. The system is not a result of inherent labour productivity problems. It is a method that takes advantage of a focused organisational approach to combine employee appraisal and participation. The system can be used for developing employee capital in organisations. Thus, the staff will have the ability to solve organisational problems (Brewster et al. 2003). Therefore, the 360-degree approach was able to reduce the spoilage rate in the organization.

    

    Reference    

•       Business Victoria, 2016, Increase profitability and staff retention with an innovative culture, State Government of Victoria, Melbourne

• Fourie, D., 2008, ‘An examination of an incentive system to maximize performance in an automobile manufacturing environment’, thesis, unpublished, Rhodes University, Grahamstown.

• Ahmed., 2021, An Overview of Employee Development? [Blog Entry] 01^st February 2021, Available from https://blog.vantagecircle.com/employee-development/ [Accessed on 24^th April 2021].

• Dutta., 2021, 7 Easy Steps to Build a New Employee Onboarding Process? [Blog Entry]29^th January 2021. Available on https://blog.vantagecircle.com/employee-onboarding/ [Accessed on 24^th April 2021]

• Riboldi, J. & Maylette, T., 2007, ‘Using 360 feedback to predict performance’, T&D 61(1), 48–52.

• Brewster, C., Carey, L., Dowling, P., Globler, P. & Wärnich, S., 2003, Contemporary issues in human resource management: Gaining a competitive advantage, Oxford University Press, Cape Town.

        

     

Jan 16, 2018