The document outlines the concept of 360-degree performance appraisal, which includes input from various individuals in relation to the employee being evaluated, rather than just supervisors. It discusses different appraisal methods, their advantages and disadvantages, and emphasizes the complexity and potential challenges of gathering feedback from multiple sources. The document also provides additional resources for performance appraisal tools and methods.

1. What is 360 degree performance appraisal
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I. Contents of getting what is 360 degree performance appraisal
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Employee performance evaluations are a standard aspect of managing employees and are a key
factor in decisions about promotions and salary increases. Traditionally, appraisals have been
conducted based mainly on the opinion and perspective of an employee's supervisor, but an
alternative method is becoming popular.
Definition
A 360-degree appraisal or "360" incorporates input from people in different relationships to the
employee being appraised, and not just from the individual's boss. Direct reports, peers, and even
customers may be asked to contribute their feedback.
Types
These appraisals may be part of the performance review process, whereby employees are
formally evaluated and considered for promotions and raises. They may also be used as part of
an employee development program, separate from the formal review process.
Benefits
Appraisals based on input from a variety of colleagues provide more comprehensive data for
review and development purposes. Their use can help create a culture where constructive
feedback is valued, and employees learn to effectively give and receive feedback.
Disadvantages

2. Gathering and incorporating input from other people increases the complexity and time
investment for business leaders conducting employee reviews. In addition, employees may be
unwilling to provide honest opinions of bosses and others of influence due to fear of retribution.
Considerations
Training employees in effective performance evaluation and effective feedback increases the
likelihood of a successful 360 process. Introducing different aspects of the process gradually can
also help employees adjust to a system that is different from what they have known.
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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.
iv. There is no systematic procedure for ranking individuals
in the organization. The ranking system does not eliminate
the possibility of snap judgements.

3. 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

4. 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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