The document discusses the 360-degree performance appraisal method, which collects feedback from various sources such as supervisors, colleagues, and subordinates to provide a comprehensive evaluation of an employee's performance. This approach promotes honest assessments, enhances motivation, and allows for personal development by revealing strengths and areas for improvement. It emphasizes the importance of organizational readiness for this change and explores additional traditional performance appraisal methods.

1. 360 degree performance appraisal method
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I. Contents of getting 360 degree performance appraisal method
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We have all seen cartoons depicting the owl that can turn his head 180-degrees to the left and
180-degrees to the right. But in reality, an owl can only turn his head 270-degrees — not in a full
circle. Full circle or not, it’s still a good range of vision.
I’m sure you’re wondering what this has to do with your business. But consider this. An owl
lives in a very competitive environment. If he is to be successful in his world, he must constantly
be looking for opportunities and threats. He must gather information from all directions to get a
complete read on his environment and what he must to do to survive. In business terms, this
translates to gathering input on our performance from all points to ensure we are doing the job
we want to do.
The 360-degree evaluation is a common tool in human resource management. Simply put, it is a
mechanism for evaluating someone’s performance based on feedback from everyone with whom
the individual comes in contact — supervisors, coworkers, partners, subordinates, the general
public. It is a method of collecting input from many sources in an employee’s environment.
This can be a powerful tool. Each of wants to know how we’re doing in our work. This method
of collecting evaluative input is an excellent source of motivation for employees because it
provides a truly honest assessment of how the employee and her performance are viewed by a
variety of constituents.

2. In the more traditional method of performance appraisal, supervisors meet with employees one-
to-one to discuss performance. By contrast, the 360-degree method uses confidential input from
many people who can truly respond to how an employee performs on the job. The supervisor and
employee meet to discuss the feedback received.
This type of feedback helps employees see themselves as others see them and allows them to
seriously examine their behavior. It can reveal areas in which employees are performing
particularly well and those areas in which there is room for improvement. It provides information
of which neither the employee nor the supervisor may be aware. Specific input allows employees
to adjust their performance.
The most challenging aspect of the 360-degree evaluation is the evaluators’ concerns about
confidentiality. When implementing this type of evaluation, it’s best to assure other employees
that what they share will remain strictly confidential. Likewise, explain to each employee that he
will be evaluated by many people, including those who know his work best.
Typically, employees will find this methodology to be more fair. When they consider this
process as opposed to being evaluated by an individual supervisor who has limited knowledge of
what they do, they will begin to see the value in this type of evaluation. They will conclude that
the 360-degree feedback is more accurate and equitable than other traditional approaches and
puts all employees on a level playing field.
This review process is also helpful for the supervisor. It can provide a more accurate assessment
of an employee’s performance and help eliminate accusations of favoritism. The 360-degree
process provides greater objectivity. And because the feedback is submitted anonymously, it
provides a supervisor with the most unbiased and accurate information from which to draw
performance conclusions.
Most people are not able to see clearly how their performance is either enhancing the work
situation for others or detracting from it. This performance evaluation method can help reveal
these areas and allow us to improve the way we do our job, thereby creating greater harmony and
better productivity in the workplace. The 360-degree evaluation will help employees identify
their strengths so they can build on them at the same time it addresses their skill gaps. It is a
process that leads to continuous learning, team building, growing self-confidence and improved
productivity.
Sounds like a winning system, right? It can be, but your organization must be ready to accept the
change from the traditional method of employee evaluation. Your formal and informal leaders
must buy in to this idea and see the value of its adoption. Some questions you should ask
yourself include the following:

3.  Is your organization committed to continuous learning?
 Does your organization see the value of developing leaders in-house?
 Are you willing to make the changes necessary to do this?
 What is the level of trust in your organization? Will your culture support honest
feedback?
 Is upper level management willing to lead the way and volunteer for 360-degree
evaluation?
If you cannot answer “yes” to these and similar questions, then your organization may not be
ready for 360-degree evaluations. While this can be a powerful and positive tool when tied to
strategic goals and individual development, you might consider doing more research on the
subject before implementation.
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III. Performance appraisal methods
1.Ranking Method
The ranking system requires the rater to rank his
subordinates on overall performance. This consists in
simply putting a man in a rank order. Under this method,
the ranking of an employee in a work group is done
against that of another employee. The relative position of
each employee is tested in terms of his numerical rank. It
may also be done by ranking a person on his job
performance against another member of the competitive
group.
Advantages of Ranking Method
i. Employees are ranked according to their performance
levels.
ii. It is easier to rank the best and the worst employee.
Limitations of Ranking Method
i. The “whole man” is compared with another “whole man”
in this method. In practice, it is very difficult to compare
individuals possessing various individual traits.
ii. This method speaks only of the position where an
employee stands in his group. It does not test anything
about how much better or how much worse an employee
is when compared to another employee.
iii. When a large number of employees are working, ranking
of individuals become a difficult issue.

4. iv. There is no systematic procedure for ranking individuals
in the organization. The ranking system does not eliminate
the possibility of snap judgements.
2. Rating Scale
Rating scales consists of several numerical scales
representing job related performance criterions such as
dependability, initiative, output, attendance, attitude etc.
Each scales ranges from excellent to poor. The total
numerical scores are computed and final conclusions are
derived. Advantages – Adaptability, easy to use, low cost,
every type of job can be evaluated, large number of
employees covered, no formal training required.
Disadvantages – Rater’s biases
3. Checklist method
Under this method, checklist of statements of traits of
employee in the form of Yes or No based questions is
prepared. Here the rater only does the reporting or
checking and HR department does the actual evaluation.
Advantages – economy, ease of administration, limited
training required, standardization. Disadvantages – Raters
biases, use of improper weighs by HR, does not allow
rater to give relative ratings
4. Critical Incidents Method

5. The approach is focused on certain critical behaviors of
employee that makes all the difference in the
performance. Supervisors as and when they occur record
such incidents. Advantages – Evaluations are based on
actual job behaviors, ratings are supported by
descriptions, feedback is easy, reduces recency biases,
chances of subordinate improvement are high.
Disadvantages – Negative incidents can be prioritized,
forgetting incidents, overly close supervision; feedback
may be too much and may appear to be punishment.
5. Essay Method
In this method the rater writes down the employee
description in detail within a number of broad categories
like, overall impression of performance, promoteability
of employee, existing capabilities and qualifications of
performing jobs, strengths and weaknesses and training
needs of the employee. Advantage – It is extremely
useful in filing information gaps about the employees
that often occur in a better-structured checklist.
Disadvantages – It its highly dependent upon the writing
skills of rater and most of them are not good writers.
They may get confused success depends on the memory
power of raters.
6. Behaviorally Anchored Rating Scales
statements of effective and ineffective behaviors
determine the points. They are said to be
behaviorally anchored. The rater is supposed to
say, which behavior describes the employee
performance. Advantages – helps overcome rating
errors. Disadvantages – Suffers from distortions
inherent in most rating techniques.

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