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Origin
360-degree performance appraisal has historical roots within a military context.
During World War II, this trend was used as multiple-source feedback by the German military.
Soldiers were evaluated by peers, supervisors and subordinates to provide insight and recommendations on how to improve performance.
The first documented use of surveys to accomplish 360-degree feedback was in the 1950s, by the Esso Research and Engineering Company which is now under the Exxon Mobil umbrella.
Furthermore, many companies began adopting the idea of 360-degree feedback. The most notable success story was General Electric CEO Jack Welch's use of 360-degree feedback. According to Fortune magazine, 90 percent of all Fortune 500 companies use some sort of multi-rater feedback. (GE, HP, Accenture, ABN Amro, Bank of
A Circle Of Stakeholders - Peers Supervisor Direct Reports Higher Mg Levels Internal Customers External Customers Vendors Consultants Self = 360.
Top management support. Confidence of employees on appraisal methodology. KPI (key performance indicator ) must be clearly stated. A detailed plan of implementation. Collaboration between superiors and subordinates. Some prior experimentation and positive experiences.
Planning
Piloting
Review
Feedback
Implementation
PROCESS
The leadership heading, for example, is defined as: Shares a clear vision and focuses on achieving it; Demonstrates commitment to the organizations mission; Provides a coherent sense of purpose and direction; both internally and externally; harnessing energy and enthusiasm of staff.
STEP 2 - Ratings
Ratings are given by the generators of the feedback on a scale against each heading. Ratings may be supplemented by text comments. 1-2 : Least Skilled 3-4: Not a Strength 5-6: Appropriate Skill 7-8: A Strength Skill 9-10: An Exceptional Skill
STEP 4 Feedback
The feedback is often anonymous and may be presented to the individual (most commonly), to the individuals manager (less commonly) or to both the individual and the manager.
STEP 5 Action
Action will depend on the purpose
Development - Individuals/ Individuals & Managers Appraisal Managers/ Individuals & Managers Pay - H.R.
STEP 6 (Cont..)
Decide data analysis and presentation - Aim should be to keep it as simple as possible. Plan an initial implementation program - The pilot scheme will need to be launched with communications to those involved about the purpose of 360-degree feedback, how it will work and the part they will play. Training in giving and receiving feedback will also be necessary.
DEVELOPMENTAL AREAS
STRENGHTS
DISCREPANCIES
HIDDEN STRENGHTS
UNEXPECTED RESULTS
Cons
Time consuming and complex. Data is difficult to analyse. Based on peoples perception.
Consistency in methodology
Dependable anonymity Commitment to the process
CONCLUSION
Because many of the more conventional performance appraisal methods have often proved unpopular with those being appraised and evaluators alike, 360 is gaining popularity with many managers and employees. It offers a new way of addressing the performance issue. When used with consideration and discipline, feedback recipients will feel that they're being treated fairly. In addition, supervisors will feel the relief of no longer carrying the full burden of assessing subordinate performance. The combined effect of these outcomes should result in increased motivation, which in turn improves performance.
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