The 360 degree performance appraisal as the name suggests is a process where the employees receive anonymous feedback about their work from all the people of that organization. Also known as the multisource assessment, this type of performance appraisal helps the supervisor to rate the employee on different parameters including intangible attributes like character, integrity and honesty.
The 360 degree performance appraisal system consists of a structured set of questionnaire which is given to the employee from the evaluator, bosses, immediate supervisors, colleagues and juniors. Since a structured questionnaire takes different parameters into account such as the ethical and moral standards of the employee, his/her ability to communicate effectively and clearly, approach to decision making and problem solving, applying new techniques to old processes etc, an employee receives a 360 degree feedback for his/her performance. After the employee fills in all the details of the questionnaire, the findings for every parameter are displayed to the evaluator after which there is a round of discussions and interviews.
While doing the employee performance appraisal, it is necessary to make agreement with the employees to develop a spirit of openness and be professional in your approach. Supervisors generally hold a meeting with all the employees in order to communicate effectively why 360 degree appraisal is being conducted. State the purpose and explain the processes in detail so that all the employees are on the same tangent. This will also help the appraisal to be fair and effective. Some organizations also believe in sharing the results of this evaluation openly. However, sometimes this may de-motivate certain employees whose performance has been up to the mark and who still have some scope for improvement.
It is believed that a 360 degree performance evaluation system is a very meticulous and an intense way of measuring the performance of any employee. Mangers that go through this evaluation are able to analyze their weak points and improve in their performance. This is because a 360 approach counsels the employee and shows him/her the correct path of progress. This tool helps the managers to develop leadership skills and decision making ability. For employees, it is important to listen carefully and self study the reports of their performance so that they can set realistic goals and also improve on their performance.
A 360 approach is more of a learning tool for the employees than a tool used for promotion. Effective performance appraisals are important but along with that it is also important to see to it that employees are continuously learning and excelling. Rather than making appraisals a stressful activity, make it a positive process where one encourages honesty and willingness to grow. There is no denying to the fact that employee performance holds a lot of significance in any organization as people are definitely one of the four most important assets any company possesses but care also needs to be taken to be fair in your practices and provide the rewards deservingly. A 360 degree approach is surely effective but to what extent depends on the way one carries out the processes.