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360-degree feedback is an add-on. A 360 survey is good for measuring competencies, not
operational metrics. Measurable competencies include areas like communication,
innovation, and decision-making. It may not be a good tool for peers or direct reports to
evaluate whether the individual accomplished KPIs or other business metrics. The
manager may be the only person able to assess those areas; you will still need to use a
separate form or set of questions to capture that information. Dont think that you can kill
two birds with one stone.
Consider your culture. If you have never used 360 surveys in your organization before
and there is a low-trust environment, dont start the 360 process with performance
appraisals. Instead, use 360 feedback for development with your senior leaders first, and
then roll it out over a period of time until the culture is ready to use it with appraisals.
Decide how to use the results. Dont tie the 360 score to the evaluation during the first
year! Instead, include the goals from the resultant action plan as part of the performance
appraisal for the next year. This way, you are evaluating the completion of the goals, as
opposed to a change in scores. Over time, the scores can be incorporated as part of the
overall appraisal score. Remember, 360 appraisal results compliment the review, but do
not a replace the current process.
It will take more time. Because you will gather feedback from multiple people, each
employee could take up to 10 surveys each. You also need to budget time to decide who
will provide feedback to whom. To make the process more efficient, use a short survey
(20-35 items) and restrict the number of raters for each person to five to ten. The
downside is that you will reduce the number of questions and raters a developmental 360
typically provides.
You will spend more. This is not a cheap replacement for your evaluation process (and
software system). You will need to purchase a good software tool or partner with a 360
survey provider. If you use a do-it-yourself software tool, be prepared to spend much
more time on the entire process. Service providers run the entire process for you and
save you valuable time, while increasing confidentiality and accuracy.
Train your managers. How do you plan to teach people about the 360 process and provide
performance-related feedback? What happens after someone receives their 360 feedback
results is the most important part of the process. Managers will need to know how to
interpret the results and coach their employees to create a personal development plan.
Bottom line: If you are only looking to simplify the performance appraisal process and save
money, then 360 feedback is not the answer. But is it worth it? It certainly can be, if done
correctly. Organizations that implement 360-degree feedback as part of their performance
appraisal process report higher levels of completion, fairer evaluations, increased accountability,
more personal growth, and a more open corporate culture.
If you have used 360 feedback for performance appraisal, what has been your experience? What
other advice would you give?
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1. Essay Method
3. Rating Scale
Rating scales consists of several numerical scales
representing job related performance criterions such as
dependability, initiative, output, attendance, attitude etc.
Each scales ranges from excellent to poor. The total
numerical scores are computed and final conclusions are
derived. Advantages Adaptability, easy to use, low cost,
every type of job can be evaluated, large number of
employees covered, no formal training required.
Disadvantages Raters biases
4. Checklist method
5.Ranking Method
The ranking system requires the rater to rank his
subordinates on overall performance. This consists in
simply putting a man in a rank order. Under this method,
the ranking of an employee in a work group is done
against that of another employee. The relative position of
each employee is tested in terms of his numerical rank. It
may also be done by ranking a person on his job
performance against another member of the competitive
group.
Advantages of Ranking Method
Employees are ranked according to their
performance levels.
It is easier to rank the best and the worst
employee.
Limitations of Ranking Method
The whole man is compared with another
whole man in this method. In practice, it is very difficult
to compare individuals possessing various individual
traits.
This method speaks only of the position where an