CONCEPT NOTE

360 DEGREE APPRAISAL SYSTEM

360 Degree Performance Appraisal is an Industrial Psychology in Human Resource Management. It is
also known as multi‐rater feedback, multi‐source feedback, or multi source assessment, is feedback that
comes from members of an employee's immediate work circle. Most often, 360‐degree feedback will
include direct feedback from an employee's subordinates, peers (colleagues), and supervisor(s), as well
as a self‐evaluation. It can also include, in some cases. It may be contrasted with "upward feedback,"
where managers are given feedback only by their direct reports, or a "traditional performance
appraisal," where the employees are most often reviewed only by their managers. The results from a
360‐degree evaluation are often used by the person receiving the feedback to plan and map specific
paths in their development. Results are also used by some organizations in making administrative
decisions related to pay and promotions. When this is the case, the 360 assessment is for evaluation
purposes, and is sometimes called a "360‐degree review." However, there is a great deal of debate as to
whether 360‐degree feedback should be used exclusively for development purposes or should be used
for appraisal purposes as well.

It is a system in which employees will get feedback from all the people they work with. There are about
7 to 12 people who will fill out a form which is usually a feedback form. The contents of the form may
vary from broad range competencies to work environment. The employee who receives the feedback
will also be required to fill out a self-assessment which again might consist of the same components.
This system is used to get an improved understanding of every one’s strengths and weaknesses.

There are three general reasons as to why an organization would go in for a 360 degree appraisal.

1. To get a better view of the performance and prospective of future leaders.

2. To have a broad insight of developmental needs of manpower.
3. To collect more feedback so as to ensure justice to the job performed by the employees.

In 360 degree appraisal system, the feedback is collected from managers, peers, subordinates,
customers, team members etc. A survey is conducted to get close understanding of-on the job
performance of the employees. A 360 degree appraisal has four stages in it:

1. Self-Appraisal

This form of performance information is actually quite common but usually used only as an
informal part of the supervisor-employee appraisal feedback session. Supervisors frequently
open the discussion with: “How do you feel you have performed?” In a somewhat more formal
approach, supervisors ask employees to identify the key accomplishments they feel best
represent their performance in critical and non-critical performance elements. In a 360-degree
approach, if self-ratings are going to be included, structured forms and formal procedures are
recommended.

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 2. Superior’s Appraisal

Evaluations by superiors are the most traditional source of employee feedback. This form of
evaluation includes both the ratings of individuals by supervisors on elements in an employee’s
performance plan and the evaluation of programs and teams by senior managers.

3. Sub-ordinates Appraisal

An upward-appraisal process or feedback survey (sometimes referred to as a SAM, for

“Subordinates Appraising Managers”) is among the most significant and yet controversial
features of a “full circle” performance evaluation program. Both managers being appraised and
their own superiors agree that subordinates have a unique, often essential, perspective. The
subordinate ratings provide particularly valuable data on performance elements concerning
managerial and supervisory behaviors. However, there is usually great reluctance, even fear,
concerning implementation of this rating dimension. On balance, the contributions can
outweigh the concerns if the precautions noted below are addressed.

4. Peer Appraisal

With downsizing and reduced hierarchies in organizations, as well as the increasing use of teams
and group accountability, peers are often the most relevant evaluators of their colleagues’
performance. Peers have a unique perspective on a co-worker’s job performance and
employees are generally very receptive to the concept of rating each other. Peer ratings can be
used when the employee’s expertise is known or the performance and results can be observed.
There are both significant contributions and serious pitfalls that must be carefully considered
before including this type of feedback in a multifaceted appraisal program.

5. Customers

Internal customers are defined as users of products or services supplied by another employee or
group within the agency or organization. External customers are outside the organization and
include, but are not limited to, the general public. Customer feedback should serve as an
“anchor” for almost all other performance factors. Combined with peer evaluations, these data
literally “round out” the performance feedback program and focus attention beyond what could
be a somewhat self-serving hierarchy of feedback limited to the formal “chain of command.”

It is not an easy task to implement 360 degree appraisal. For this appraisal to be effective one needs to
bear in mind the following:

• Right skills to be assessed are determined.

• Appraiser should be selected properly.

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 • He should be well aware of the system, if proper training on the appraisal system is not given.
• Elucidate the intention of this kind of appraisal system.
• Ensure the process to be simple.
• Follow up

ADVANTAGES OF 360 DEGREE APPRAISALS:

1. Offer a more comprehensive view towards the performance of employees.

2. Improve credibility of performance appraisal.
3. Such colleague’s feedback will help strengthen self‐development.
4. It increases responsibilities of employees to their customers.
5. The mix of ideas can give a more accurate assessment.
6. Opinions gathered from lots of staff are sure to be more persuasive.
7. Not only manager should make assessments on its staff performance but other colleagues
should do, too.
8. People who undervalue themselves are often motivated by feedback from others.
9. If more staff takes part in the process of performance appraisal, the organizational culture of the
company will become more honest.

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