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Group Members

Niraj Kherajani - 47 Jeetu Wadhwa - 108

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

What is 360-degree feedback ?


360-degree feedback is feedback that comes from all around an employee. "360" refers to the 360 degrees in a circle, with an individual in the centre of the circle.

A Circle Of Stakeholders - Peers Supervisor Direct Reports Higher Mg Levels Internal Customers External Customers Vendors Consultants Self = 360.

What does it actually measure ?


360 feedback measures behaviours and competencies. 360 assessments provide feedback on how others perceive an employee. 360 feedback addresses skills such as listening, planning and goal-setting. A 360 evaluation focuses on subjective areas such as teamwork, character, and leadership effectiveness.

Who does the assessment?


The list of potential respondents is as follows,
Yourself Boss Other bosses (previous boss) Staff Team members Peers Internal customers External customers Suppliers Friends and family members

What can 360-degree feedback be used for?


Self-development and individual counselling. Part of organized training and development. Team-building. Performance management. Strategic or organization development. Validation of training and other initiatives. Compensation plans.

What are the Prerequisites ?

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.

How to Implement 360 Degree Appraisal?

Planning
Piloting

Review

360 Degree Feedback

Feedback

Implementation

PROCESS

360 Degree Feedback Methodology


STEP 1 - The Questionnaire
o Dimensions

to be judged Leadership, Team player,

Communication , Organizational Skills, Decision- Making, Adaptability, Expertise, Vision.


o

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 3 Data Processing


Questionnaires are normally processed with the help of
o o

software developed internally. provided by external suppliers.

Graphical presentation is preferred over numerical presentation.

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.

Development & Implementation (A Snapshot)


Define objective Development, Appraisal or Pay.
Decide on recipients. Decide who will give the feedback - The individuals manager, direct reports, team members, other colleagues, internal and external customers. Decide the areas of work and behavior on which feedback will be given. Decide the method of collecting the data - The questionnaire could be designed in-house, or a consultants or software providers questionnaire could be adopted.

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.

Analyze the outcome of the pilot scheme


Plan and Implement full program

Monitor and Evaluate

WHAT TYPE OF INFORMATION ARE PRODUCED?


EXPECTED RESULTS
A B

DEVELOPMENTAL AREAS

STRENGHTS

DISCREPANCIES

HIDDEN STRENGHTS

UNEXPECTED RESULTS

What are the common mistakes ?


Having no clear Purpose. Not conducting a pilot test. Not involving key stakeholders. Having insufficient communication. Not giving people sufficient resources. Having unfriendly administration and scoring. Making it an event rather than a process.

What are the pros and cons of 360degree appraisal ?


Pros
Comprehensive view of employee performance. Increased credibility.

Cons
Time consuming and complex. Data is difficult to analyse. Based on peoples perception.

Staffs self-development. Chance to complain their manager.

Risk of confidentiality. Demotivation.

8 Questions Companies Must Ask Before Using 360 Degree Feedback


Is employee engagement and morale high enough to support a feedback intervention?

Is the organization supportive of talent development and coaching?


Do managers get trained, rewarded and compensated to act as performance coaches? Do employees feel comfortable giving feedback? Has your organization had a bad experience with a prior 360-degree feedback intervention? Are people motivated to use the feedback they receive for their own professional growth and development? Does your organization have resources, training and other support to help employees create and implement professional development plans as a result of the feedback? Will employees be held accountable to discuss the results of their feedback with their bosses and to create a development plan?

10 must bes for success


Active support of top management Clarity about purpose & process

Consistency in methodology
Dependable anonymity Commitment to the process

Understanding of the benefits to individuals as well as the organization


Questionnaire items fit or reflect typical and significant aspects of behaviour Items in the questionnaire related to actual events experienced by the individual Comprehensive and well-delivered communication and training programmes Trust - the MOST important element runs through everything

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.

COMPANIES USING 360 DEGREE


NOVELL INDIA LTD ADITYA BIRLA GROUP TATA FINANCE LTD WIPRO INFOSYS RELIANCE INDUSTRIES HCL CAREER LAB, USA BIZWIZ, CANADA

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