original thesis 2

8/6/2019 Original Thesis 2

1/37

Abstract

A 360-degree performance appraisal system is a multisource assessment approach that taps the

collective wisdom of those who work closely with an employee. The employee and their

supervisors, colleagues, direct reports (subordinates), internal customers, external customers, and

others may be part of the evaluation process.

Proponents of the 360-degree feedback approach offer it as a progressive means of conducting

performance appraisal. Many contend that 360-degree feedback systems and other forms of

multisource or multirater assessment methods in organizations have evolved from an innovative

nice-to-have technique administered only to the most senior levels to a must-have tool for

integration into overall performance and human resource management strategies. These systems

appear well suited for the flexible, team-based, change-oriented organizational cultures of many

organizations today.

360-Degree systems are gaining popularity because they tend to reduce the problems of previous

generations of assessment methods. 360-Degree appraisal moves the manager (as appraiser) back

into the comfort zone as she or he is now only one among a number of assessors. It greatly

reduces the problems of central tendency, positive skewness, and halo effects in ratings that

plague the boss-subordinate approach. 360-Degree appraisal reduces defensiveness on the part of

the appraisee because there are a variety of assessors, feedback is presented as more balanced,

and it is said to have greater face validity. It requires organizations to resolve the issue of what is

meant by job effectiveness and what behaviors are causally related to it. It recognizes that

subordinates are best placed to assess leadership or people management skills. The

technique is helpful in defending legal challenges of the outcome of appraisals, it is presented as

important in meeting the demands for employee empowerment and involvement, and finally, it is

a useful tool in tapping employee opinions and attitudes.


2/37

Abstract

A 360-degree performance ap

collective wisdom of those

supervisors, colleagues, direct

others may be part of the evalu

Proponents of the 360-degree

performance appraisal. Many

multisource or multirater assesnice-to-have technique admi

integration into overall perfor


3/37

In a time when hierarchy is being replaced by teamwork, participative leadership, empowering

employees, improving customer service and re-engineering, employers need to look at other

alternatives that will support and enhance personnel development. Organizations are askingpersonnel for more productivity with less resource. Layers of management are being reduced

causing increased work loads and supervisors are managing larger work groups with larger spans

of control.The traditional top down supervisor-only evaluation systems is no longer practical. Supervisors

with increased workloads and a large number of reporting relationships lack the opportunity to

observe and provide fair, accurate, credible and motivating performance appraisals. The purposeof this research project was to gather information that would assist in the development of a fair,

accurate, honest and objective performance appraisal system. This research project utilizes an

evaluative research methodology. The following questions were answered while completing this

project.The procedures included an extensive literature review of various research papers. An inter-

department survey was conducted to determine how personnel felt about the current performance

appraisal system and the possibility of a multi-source performance appraisal.

The results of this research project confirmed that the organization is using the traditionalsupervisor-to-subordinate appraisal. It also concludes that multi assessors increase validity and

that subordinates and peers are in a better position to provide accurate feedback to theirsupervisors and co-workers. The survey concluded that personnel are dissatisfied with the

traditional performance appraisal and are willing to evaluate their superiors, peers and

subordinates.

INTRODUCTION

According to Stephen p. Robins, author of The truth about managing people: and nothing but

the truth, (Pearson Education, 2002 Singapore) 90 per cent of the fortune 1000 firms are using

360 degree assessment and it has been found useful. When prof. T.V. Rao thought of this

methodology in 1985, and started using this methodology in 1986 at the Indian Institute of

Management Ahmadabad, starting with the program on Leadership Styles and Organizational

Effectiveness, he did not have a clue that this methodology would one day be christened as 360

degree Feedback in the U.S. and will become so popular.

360 Degree performance appraisal has become more popular in India in the last five years. It has

assisted almost every good organization in this country which includes- Tata Group (Taj group

of hotels, Titan, Tata Cummins, Tata tea, Tata Interactive etc) and covered over 500 Senior and

Top level Managers of the Aditya Birla Group and worked with them in countries including

Thailand, Philippines and Egypt. In addition, it has also worked with Dr. Reddys Laboratories,

Wockhardt, Novell software, Interra, Bajaj Auto, GVFL, Tyco (AMP India), NTPC and many


4/37

more. It has also started a news letter called perceptions, exclusively devoted to give accounts

of successful use of 360 and share experiences to avoid future problems and pitfalls.

This is competency era and also an era of leadership. Every employee needs to exhibit leadership

competencies. Expectations from employees are going up. Some of the most important

competency development tools that have become popular in the last two decades all over theworld are 360 degree feedback, assessment and development centers and performance

management systems.

The higher you go, the lonelier it gets. People will tell you what you like hear rather than what

they really feel. As a result, our talent as well as weaknesses sometimes go unnoticed putting us

at some disadvantages. 360 degree feedback is a great tool to help any person discover his

strength, weakness and other qualities which are noticed and not noticed by others. In the

changed business scenario, where organizations are required to compete globally, benchmark

have become global. Organizational survival and excellence now requires not only meeting but

setting global standards. Naturally speed of change has become a critical variable. Organizationhas had to react fast, learn from their experience and aim towards achieving world class

excellence through constant learning and renewal.

360 degree feedback has been found to be one such facilitator of change at an individual level.

Once it was branded in the US as 360 degree appraisal, it caught the attention of many

corporations and today a large percentage of fortune 500 companies use it in some form or the

other. Experiences with it as a development tool have been good, though experiences as an

appraisal tool are mixed. 360 degree feedback requires strong people not fragile minds, a desire

to build leadership competencies, top management commitment to change, courage, conviction

and customer sensitivity. Its success depend both on individual courage to face feedback andorganizational culture that supports change and learning. Many Indian corporations have begun

to show their commitment to change and individual managers also have begun to show courage

in knowing more about themselves. The result is an increasing use of 360 degree feedback.

Another HR related system that has been under scrutiny simultaneously is of performance

management and development. Organizations have constantly grappled with various issues in

this domain. Many questions have been raised and debated on- what is the most ideal

performance management system? How does one go about design, implementation, monitoring,

etc? Where does assessment end and development start? Is the 360 degree feedback system

suitable for Indian culture? How does one align 360 degree feedback with the PMS? How cansuch systems be used to meet both organizational and individual objectives?


5/37

Using 360 for appraisal

The research to date does not demonstrate whether it is a good thing or a bad thing to apply

360-degree feedback to performance appraisal rather than development. Rather, it is reasonable

to infer that trying to address both purposes with one scheme can be problematic. The ideal

design and implementation arrangements for a 360-degree feedback scheme differ, depending on

which aspect is most important: development or appraisal. It may therefore be that organizations

should consider that fully addressing both aspects may be unrealistic in practice.


6/37

There seems to be a high degree of acceptance that 360-degree feedback is suitable to support

appraisal, but only where schemes have not already been introduced exclusively for

development. The difficulty of shifting expectations once 360 is in place will, at the very least,

merit considerable effort and should not be underestimated.

360 Degree Performance Appraisal

The meaning of the word appraisal is to fix a price or value for something. This is used infinance in terms such as project appraisal or financial appraisal where a value is attached to a

project. Similarly performance appraisal is a process in which one values the employee

contribution and worth to the organization.

Employees across the entire organization are appraised of their performance. This could be done

annually, twice a year, periodically depending on the need of the organization. Performance

appraisal is a systematic and orderly evaluation of performance of employees at work by theirsuperiors or others who are familiar with the techniques of performance appraisal. A

performance appraisal is a formal review of employee performance. At a performance appraisal,

objectives or targets are agreed between manager and employee. At each subsequent appraisal,current and past performance is compared and targets are reviewed.

Performance appraisals are essential for the effective management and evaluation of staff.Appraisals help develop individuals, improve organizational performance, and feed into business

planning. Formal performance appraisals are generally conducted annually for all staff in the

organization. Each staff member is appraised by their line manager. Performance appraisals arealso essential for career and succession planning. Performance appraisals are important for staff

motivation, attitude and behavior development, communicating organizational aims, andfostering positive relationships between management and staff. Performance appraisals provide a

formal, recorded, regular review of an individuals performance, and a plan for futuredevelopment. In short, performance and job appraisals are vital for managing the performance of

people and orga

360 DEGREEE PERFORMANCE APPRAISAL

In 360-degree performance reviews, many different types of people are consulted about an

employees performance. This includes customers, suppliers, peers and direct reports. In the case

of a manager, employees are often asked to give upward feedback on how well they are beingmanaged. If 360-degree performance reviews are performed, a Human Resources manager

should coordinate the process, so that subordinate reviewers (i.e., employees) are assured that

their performance reviews are kept anonymous.


7/37

The aim is to find the gap between ones own appraisal and the perceptions of others. This willin turn enable a professional to analyze his strengths and shortcomings and accordingly improve

his performance. While it is true that the system serves as an excellent process since it reduces

biases, it is not always successful. It is necessary to create the right culture in the company

before introducing the system. If many people are unhappy or their morale is low, the situationcan turn disastrous as some staffers will become obvious targets.

ADVANTAGES OF 360 DEGREE APPRAISALS

Provides a more comprehensive view of employee performance.

Increases credibility of performance appraisal.

Feedback from peers enhances employee self-development.

Increases accountability of employees to their customers.

The combination of opinions can approximate to an accurate view

Comments expressed by several colleagues tend to carry weight


8/37

Some skills are best judged by peers and staff, not by manager alone

Feedback may be motivating for people who undervalue themselves

The wider involvement help to engender a more honest organizational culture

DISADVANTAGES OF 360 DEGREE APPRAISALS

Time consuming and more administratively complex.

Extensive giving and receiving feedback can be intimidating to some employees.

Requires training and significant change effort to work effectively.

Results can be difficult to interpret

Feedback can be damaging unless handled carefully and sensitively

Can generate an environment of suspicion if not managed openly and honestly

The 360-degree appraisal significantly differs from the traditional supervisor-subordinate

performance evaluation. Rather than having a single person play judge, a 360-degree appraisal

acts more like a jury. The people who actually deal with the employee each day create a pool ofinformation and perspectives on which the supervisor may act. This group of individuals is made

up of both internal and external customers.

Using 360-degree appraisals provides a broader view of the employees performance. The mostobvious benefit of the 360-degree appraisal is its ability to corral a range of customer feedback.

Because each customer offers a new, unique view, it produces a more complete picture of an

employees performance. Unlike with supervisors, employees cant hide as easily in 360-degreeappraisals because peers know their behaviors best and insist on giving more valid ratings. In

addition to providing broader perspectives, the 360-degree appraisal facilitates greater employee

self-development. It enables an employee to compare his or her own perceptions with theperception of others on the employees skills, styles, and performance.

PEER-TO-PEER EMPLOYEE PERFORMANCE EVALUATIONS

Peer-to-peer employee performance evaluations require employees at the same level to revieweach other. The thinking behind peer-to-peer employee performance evaluations is that nobody

knows a workers ability better than his or her co-workers. While this can be an effective review

format for some groups of workers (for example, a team of doctors working on a research projecttogether, where specific content knowledge is required), it can also cause controversy because of

the way it affects future group dynamics. When evaluating the use of these types of employee

performance evaluations, consider the maturity level of the employees involved and the long-term effects that could result from the source of negative reviews getting back to the team


9/37

members.

SELF-ASSESSMENT PERFORMANCE REVIEWS

Self-Assessment performance reviews are effective when combined with any of the other three

types of performance reviews. With this type of review, employees are asked to rate themselves,often using the same form that a manager will use to review them. Self-assessment performance

reviews help make the employees an active part of the process and provide a vehicle for them toreflect on their own performance prior to the formal review.

Studies have shown that employees are usually harder on themselves in self-assessment

performance reviews, than their managers and generally give themselves lower ratings. Having

employees do self assessment performance reviews prior to a managers review can set a positivetone for the meeting, as the manager will often have better things to say than the employee has

said about him or herself.

DOWN TO TOP EMPLOYEE PERFORMANCE EVALUATIONSDown-Top employee performance evaluations tend to be one of the most common and most

effective methods, because they involve the assessment of an employee by its subordinate. Down

to top employee performance evaluations are most useful when given by an employees

immediate subordinate someone who works with that employee everyday and knows his or herstrengths and weaknesses. The Down-Top employee performance evaluation becomes less

effective when given by a Human Resources manager who has only second-hand knowledge of

an employees performance.TOP DOWN EMPLOYEE PERFORMANCE EVALUATIONSTop-down employee performance evaluations tend to be the most common and most effective,

because they involve the assessment of an employee by a direct manager. Top-down employee

performance evaluations are most useful when given by an employees immediate supervisor someone who works with that employee everyday and knows his or her strengths and

weaknesses. The top-down employee performance evaluation becomes less effective when given

by a Human Resources manager who has only second-hand knowledge of an employeesperformance.

One offshoot of top-down employee performance evaluations is matrix employee performanceevaluations, where multiple managers rate the same employee. This is a good choice when the

employee works for multiple managers, or engages in various fixed-time length projects.

As with any new approach to managing people, the 360-degree approach requires careful

planning. For example, training is a must since employees will be apprehensive about how thisnew evaluation approach will work. Training should address fundamental questions, such as


10/37

what is the 360 approach, why is the organization adopting it, who will be doing the evaluations,

how will the information be collected, etc.

The design of a 360-feedback process should actively enlist the employee. In fact, the employeeshould select their own evaluation team, consisting of no more than six targets (co-worker,

supervisor, customer, etc.). Design of the surveys for feedback is also important since traditionalapproaches will not fit:

Traditional Survey . . . . . . . . . . . . . . . . . . . . . . . 360 Feedback Survey

Single Target Audience . . . . . . . . . . . . . . . . . . . Numerous Targets (all employees)

Numerous Responses . . . . . . . . . . . . . . . . . . . . Few Responses (5 to 7) per target

Response Rates may be low . . . . . . . . . . . . . . . Need High Response Rate for Objectivity

Respondent may be known . . . . . . . . . . . . . . . . Respondents must be anonymous

Survey may be long . . . . . . . . . . . . . . . . . . . . . . Survey must be short (less than 20 minutes)

Distributed through traditional ways . . . . . . . . . . Electronic distribution is common

Control over surveys is low . . . . . . . . . . . . . . . . Control must be high for confidentiality

Consistent rules must be adopted to make sure the process is fair for all employees. For example,you will need rules on when to throw out invalid survey responses. Some companies consider a

survey as invalid when the individual response is more than 50% different than all other

responses. Minimum levels are also needed for acceptance of surveys. For example, a requiredresponse rate of 75% is common where employee compensation is linked to 360 feedback

results.

This article has touched on some of the basics behind the 360-feedback process. Multi-source

systems, such as the 360 feedback, are more objective, accurate, creditable, and influential than

traditional single source systems. By tapping into sources closet to the employee, we can better

motivate and manage the employee. And since employees are at the center of organizational

performance, we need fair and accurate methods for evaluating employee performance. The 360-

degree feedback model is one of the best methods for driving employee performance and

satisfaction.

Prerequisites

* Top Management Support

* Confidence of employees on the appraisal methodology

* Objectives need to be measurable with performance requirements clearly


11/37

stated.

* A detailed plan of implementation

* Collaboration between superior and subordinates

* Some prior experimentation and positive experiences Clear organizational

philosophy and policy objectives

Uses for 360 Degree Feedback include:

Performance Appraisal

o Recognition of performance.

o Providing feedback on individual performance.

o Providing a basis for self-evaluation.

Assessing Employee Development:

o Diagnosing training and career development needs.

o Providing a basis for promotion, dismissal, job enrichment, job enlargement, job transfer,

probation, etc.

o Monetary and other rewards.

Organizational Climate Study:

o Organizational environment improvement needs

o Changes in the Managerial approaches, leadership, etc

Customer Satisfaction Study

o Employees attitudinal change

o Customer satisfaction improvements

Potential Dangers

Given the distinctions between the two, and given the drift toward co-mingling, what occurs

when the

360 feedback is actually used for performance appraisal? Here is a list of potential dangers, risks,

and unintended consequences that can result when the two are merged.


12/37

Skewed and unreliable data from raters who, consciously or otherwise, shade their responses to

protect or punish the ratee.

David Lassiter 1997

Increased cynicism from employees who know the system is being gamed.

Skill levels stay relatively flat or even decline because the "360 appraisal" is not taken

seriously. The numbers needed for a "good" appraisal can be informally fixed by silent

agreement among raters. Maximizing the size of the increase or bonus overshadows the desire to

elevate performance.

Individual development plans become window dressing. People may go through the motions to

create them but expend little effort in implementation. When not held accountable for this,

performance levels off.

If employees don't get a "good" appraisal, blame is placed on co-workers causing a rise in thelevel of mistrust and apprehension. The work environment becomes politicized, candour and

honesty are compromised, trust and integrity are damaged, risks are avoided, motivation

diminishes, morale drops, performance declines, and turnover rises.

RECOMMENTATION


13/37

RESEARCH DESIGN


14/37


15/37

RESULT AND ANALYSIS

1. Are you satisfied with the present performance appraisal system?

Yes No

46.67% 53.33%

Illustration- The survey depicts that 53.33% of the employees are not satisfied with the present

performance appraisal, however 46.67% are satisfied with it.

2. Does it approve feedback on your performance?

Yes

No


16/37

0 100%

Illustration:- The enterprise does not provide any feedback to the performance.

3. Does the system allow you to even evaluate your senior, peers, colleagues?

Yes No

0 100


17/37

Illustration: - The present system does not allow to evaluate their seniors, peers and colleagues.

4. Do you think that the present performance system justify your performance?

Yes No46.67 53.33


18/37

5. Do you think that the present performance appraisal system helps in

motivating employees?

Yes 66.67

No 13.33

May be 20

6. Does the present system help in improving your performance?

Yes No

33.33 66.67


19/37

FEEDBACK ON 360 DEGREE PERFORMANCE APPRAISAL

1. Do you think that 360 degree performance appraisal helps in the

improvement of your performance?

Yes No

100 0


20/37

Illustration- 100% of the respondents agree that 360 degree performance

help them to improve their performance.


21/37

2. Do you think that the 360 degree performance appraisal act as a tool for

professional and self development?

Yes No

100 0

Illustration- 100% of the respondent agreee that 360 degree performance

appraisal act as tool for professional and self development.


22/37

3. 360 degree performance appraisal helps to motivate and build

competency of staff in your enterprise?

Yes No Not sure

80 6.67 13.33


23/37

Illustration:- 80% of the respondent agree that 360 performance

appraisalhelp them to motivate and build competency of staffs in the

company, however 6.67 % doesnot agree to it and 13.33% are not sure.

4. Do you find it a threat to be evaluated by your internal and external

subordinates and colleagues?

Yes No May be

33.33 60 6.67

33%

60%

7%

Yes

NoMay be

Illustration:- 60% of the employees doesnot find it a threat to be

evaluated by its internal and external subordinates and colleagues,

however 33.33% finds it a threat and 6.67 % are not sure of it.


24/37

5. Does the 360 degree performance appraisal help you to understand the

expectation of your boss?

Yes No

100 0

Illustration:- All the respondents agree that 360 degree performanceappraisal help them to understand the expectation of their boss.


25/37

6. Do you think that 360 degree performance appraisal would have an ill

effect on the relationship among the colleagues?

Yes No May be

33.33 20 46.67


26/37

Illustration:- 33.33% of the respondent agree says that 360 degree

performance appraisal would have an ill effect on the relationship among

the colleagues. However 20% says it will not have any effect on their

relationship and 46.67 % are afraid that it might or might not effect their

relationship with the colleagues.

7. As you are allowed to evaluate your boss in the 360 degree performance

appraisal, do you think it contributes in the development of leadership

skills in your boss?


27/37

Yes No

66.67 33.33


28/37

DISCUSSION OF IMPLICATION


29/37

CONCLUSION


30/37


31/37

APPENDICES

360 Degree Performance Appraisal Questionnaire

QUESTIONS TO OBTAIN FEEDBACK FROM EMPLOYEES

In preparation for the boss's upcoming performance appraisal, would you please comment in the

following areas?

Please read them and give your views on the following questions. I would appreciate it if you

would explain your opinions by providing examples of things the boss has done.

a. In your opinion, to what extent is the boss responsible for progress or the lack of the

accomplishing organizational goals/ target?

2. a) Please place a mark on the scale below to indicate how you would characterize your

relationship with your organization?

Unsatisfactory |-------|------|-------|-------| satisfactory

Unproductive |-------|------|-------|-------| productive

Uncooperative |-------|------|-------|-------| cooperative

b) How might it be improved?

3. Outline any accomplishments or strengths of the boss which have been notable for you.

4. What improvements would you like to see in the boss's performance?

5. Any other comments?


32/37

Survey Questions for Evaluating Employee Performance

Assign a score of 1 to 10 for each of the following questions. 1 is the lowest score (strongly

disagree) and 10 is the highest score (strongly agree). N for Don't Know Score

1. Performs day to day activities in a timely and accurate manner. ____

2. Communicates effectively ____

3. Demonstrates initiative for achieving target ____

4. Coordinates and manages time, people and other resources well ____


33/37

QUESTIONAIRE USED ON THEIR PRESENT PERFORMANCE

APPRAISAL

1. What is the predominant performance appraisal system in your company?

2. Are you satisfied with your present performance appraisal system?

(Yes) (No)

3. Do you believe that the present performance appraisal system contribute to

the growth of the company?

(Yes) (No)

4. Does it approve feedback on your performance?

(Yes) (No)

5. Who evaluates your performance?

a. Boss b. supervisors c. stakeholders

d. peers e. subordinates

6. Does the system allow you to even evaluate your boss?

(Yes) (No)

6. Do you think that the present performance system should make some

changes ? Give reasons to your answer.

7. Do you think that the present performance system justify your performance?

(Yes) (No)

8. Do you think that its justified if you are allowed to evaluate your boss and

peers?


34/37

(Yes) (No)

9. Do you think that the present performance appraisal system helps in

motivating employees?

(Yes) (No)

10.Do you think that the present Performance appraisal system helps in

developing the work culture in your company to become open, positive and

interactive?

(Yes) (No)

11.Does the present system help you to perform under the expectation of the

boss?

(Yes) (No)

12.Does the present system have any ill effect in hampering the relationship

among the colleagues?

(Yes) (No)

13.Does the present Performance appraisal system help in improving your

performance?

(Yes) (No)

14.At what intervals are employee performance evaluation/appraisals

conducted?

1. Once a year

2. Twice per year

3. Quarterly

4. Other


35/37

15.Is employee performance related to pay increases (pay for performance)?

(Yes) (No)

16.Do employee performance evaluation ratings play a role in promotions ordisciplinary actions?

(Yes) (No)

17.Does your evaluation rating have an influence on various kinds of incentives?

(Yes) (No)

If yes- (1) Pay bonus

(2) Cost of living raise

(3) Merit raise

(4) Job promotion

(5) Increased responsibility

(6) Others

18. Does employee performance appraisal address teamwork, attitude and co-

operation among staff?

(Yes) (No)

19.What do you like most about the enterprise performance evaluation?

20.What do you like least about the enterprise performance evaluation?


36/37


37/37

8. As you are also allowed to evaluate your boss in the 360 degree performance

appraisal, do you think its justified and contribute in the development of the

organization and leadership skill?

(Yes) (No)

NAME:-

DESIGNATION:-

original thesis 2

Documents