WHAT IS 360 DEGREE PERFORMANCE EVALUATION WHAT
ARE ITS PROS & CONS
● Performance Evaluation:
Performance Evaluation is a constructive process to acknowledge the performance of a non-probationary
career employee. An employee's evaluation shall be sufficiently specific to inform and guide the
employee in the performance of her/his duties.
● Purpose of performance Evaluation
The primary goals of a performance evaluation system are to provide an equitable measurement
of an employee's contribution to the workforce, produce accurate appraisal documentation to
protect both the employee and employer, and obtain a high level of quality and quantity in the
work produced.
● 360 Degree Performance Evaluation
Steps to be followed for the purpose are:
1. Determine the right skills to assess.
2. Carefully select the raters.
3. Explain the intent.
4. Ensure confidentiality.
5. Keep it simple.
6. Search for strengths rather than weaknesses.
7. Follow up.
● Historical Background
Three-hundred-and-sixty-degree feedback is a management tool and performance appraisal
method that gives employees the opportunity to receive feedback from multiple sources. It is
called 360-degree feedback because the feedback comes from subordinates, peers, supervisors,
customers, suppliers and even self-evaluations. The feedback is only as valuable as the employee
decides to make it; the feedback should highlight both strengths and weaknesses of the employee
and give insight to aid in her professional development.
Early History
The first known use of a multiple-source feedback method was during World War II, by the
German military. Although it lacked the flashy name, the concept was exactly the same: Soldiers
were evaluated by peers, supervisors and subordinates to provide insight and recommendations
on how to improve performance. The U.S. military used a similar performance appraisal concept
during World War I, but the feedback lacked the appraisals of subordinates that the Germans
incorporated; however, both tied the merit ratings directly to compensation and promotions.
Documented History
The first documented use of surveys to accomplish 360-degree feedback was in the 1950s, by the
Esso Research and Engineering Company. With the increased efficiency and financial success
gained from the anonymous surveys, Esso Research and Engineering was bought out, and is now
under the Exxon Mobil umbrella.
Growth in Popularity
The concept of 360-degree feedback grew in popularity due to the invention of the typewriter;
before typewriters and computers, feedback was handwritten and complete anonymity was
impossible to achieve, undercutting the entire value of the method.
Furthermore, many companies began adopting the idea of 360-degree feedback after multiple
famous, multinational companies had great success after the implementation of this method; the
most notable success story was General Electric CEO Jack Welch's use of 360-degree feedback.
Jack Welch increased shareholder value every year at GE by using 360-degree feedback, along
with a six sigma quality program, as the merit ratings used to decide the firing of the bottom 10
percent of employees each year.
Today's Use
The popularity of 360-degree feedback has grown quickly in the new millennium; according to
Fortune magazine, it is estimated that 90 percent of all Fortune 500 companies use some sort of
multi-rater feedback.
Misconceptions
Three-hundred-and-sixty-degree feedback is often referred to as multi-rater feedback or multi-
source feedback. It cannot stand by itself as a successful performance management system; it is
meant to be used as a positive addition and only an aspect of the overall system.
● What is 360 Degree Performance Evaluation
360 Degree Feedback is a system or process in which employees receive confidential,
anonymous feedback from the people who work around them. This typically includes the employee's
manager, peers, and direct reports.
● 360 Degree Constructive Feedback
● Politics and Human Behavior
● Morale, Denial and Rejection ,mkn
● Beyond the 100& point rating scale, why and its effects
● Individual competence and skill development
A significant gap between self-ratings and ratings from others can cause
psychological dissonance. When this happens, people are motivated to reduce this
gap and feel assonant again.
When people detect discrepancies between their goals and their behavior, they are
likely to take actions to reduce the discrepancies.
● Confidentiality
● Advantages of 360 Degree Performance Evaluation
When done correctly, there are eight clear benefits of 360 degree feedback:
1. Increases self-awareness
2. Clarifies behaviors
3. Measures “how” things get done as opposed to “what” get’s done.
4. Promotes dialogue
5. Improves working relationships
6. Encourages personal development
7. Increases accountability
8. Enhances performance
Can help employees feel a bigger part of the evaluation process
– Increases awareness of the ideas of those around them
– Can help shed the light on areas the employee is ignorant of (see Johari Window)
– Can increase overall camaraderie by greater interest in pushing the team ahead
With SuccessFactors 360 Degree Reviews, you will:
Identify better development paths. With the insights you gain, you can
provide the right opportunities for employees and have them working at full
potential for your business.
Involve every stakeholder. From peers to customers, aggregate multiple
ratings paint the entire picture.
Recognize gaps in skills and competencies. Identify areas for improvement
and development.
Save time. Use or adapt the role-based competencies and behaviors built
into our pre-populated Web templates.
Write better reviews. Managers can create concise, meaningful
assessments using suggested text created by experts.
Reduce risk and save HR review time. Identify and replace non-compliant
language immediately using the legal scan tool.
● Disadvantages of 360 Degree Performance Evaluation
An employee might be targeted by jealous rivals.
– An employee might try to retaliate when doing his evaluations.
– A negative feeling could harm the actual enterprise that is employing all the
evaluators.
● Common Mistakes in Execution
1. Having no clear purpose
2. Using it as a substitute
3. Not conducting a pilot test
4. Not involving key stakeholders
5. Having insufficient communication
6. Compromising confidentiality
7. Not making clear the feedback’s use
8. Not giving people sufficient resources
9. Not clarifying who “owns” the feedback
10. Having “unfriendly” administration and scoring
11. Linking to existing systems without a pilot
12. Making it an event rather than a process
13. Not evaluating effectiveness
● Subordinate Perception
● Peer Assessment
● Self-Assessment
● Seniors
● Vendors and contractors
● All Round Assessment
● Conclusion
