360 Appraisals

8/8/2019 360 Appraisals

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360 Degree360 Degree

Performance AppraisalPerformance Appraisal

What it isWhat it is

What it is not What it is not Is it appropriate for your organization?Is it appropriate for your organization?

How do you implement it?How do you implement it?



OverviewOverview DefinitionDefinition

Key FeaturesKey Features

Appropriate Uses Appropriate Uses

Inappropriate UsesInappropriate Uses Pros and ConsPros and Cons

Support For UseSupport For Use

Is The Environment Appropriate?Is The Environment Appropriate?

Key FeaturesKey Features ImplementationImplementation

ParticipantsParticipants

Web ResourcesWeb Resources



DefinitionDefinition

Evaluation tool that utilizes opinions of Evaluation tool that utilizes opinions of many different people that interact with themany different people that interact with the

employee on a routine basisemployee on a routine basis33

Generates more accurate feedback byGenerates more accurate feedback by gathering information from people about gathering information from people about an individuals performance as seen by thean individuals performance as seen by the

standards and expectations of their boss,standards and expectations of their boss,self, peers, direct reports, and customers.self, peers, direct reports, and customers.



Key FeaturesKey Features Usually based on a questionnaire, possibly webUsually based on a questionnaire, possibly web--basedbased

Choosing AppraisersChoosing Appraisers

Done by the individual employeeDone by the individual employee

Done by HRDone by HR Done randomlyDone randomly

Feedback is usually anonymousFeedback is usually anonymous

Appraisal is normally followed up with actions for Appraisal is normally followed up with actions forindividual improvement and development individual improvement and development

Not to be used for decisionNot to be used for decision--making, only purpose is formaking, only purpose is foremployee growthemployee growth

Utilizes many stakeholders inside, and outside of, theUtilizes many stakeholders inside, and outside of, theorganizationorganization



Appropriate Uses Appropriate Uses

Employee Development Employee Development Employee CoachingEmployee Coaching Validate personal opinion of ones self (or not) Validate personal opinion of ones self (or not) Starting point for personal development planStarting point for personal development plan Seeking objective information, such as determiningSeeking objective information, such as determining

employee knowledge, skills, and behavior, not employee knowledge, skills, and behavior, not personality traitspersonality traits

Benchmark individual performance against peerBenchmark individual performance against peergroupgroup

Provide a broader view of the employeesProvide a broader view of the employeesperformanceperformance



Inappropriate UsesInappropriate Uses

Rarely linked to decisions on payRarely linked to decisions on pay

Not recommended for promotion decisionsNot recommended for promotion decisions

Should not be a heavy determinant in bonusShould not be a heavy determinant in bonusawardsawards

In small organizations where anonymity isIn small organizations where anonymity is

unlikely or there are a lack of enough peersunlikely or there are a lack of enough peersand direct reports to reduce outlyingand direct reports to reduce outlyingopinionsopinions



Pros and ConsPros and Cons

ProsPros Combined opinionsCombined opinions

more accuratemore accurate

Colleague commentsColleague commentstend to carry weight tend to carry weight

Some skills are best Some skills are best judged by peers and not judged by peers and not management management

Increases motiv

ation of Increases motiv

ation of employeesemployees

Helps engender a moreHelps engender a morehonest organizationalhonest organizationalcultureculture

ConsCons Administratively Administratively

burdensomeburdensome

Results can be difficult Results can be difficult to interpret to interpret

Feedback can deFeedback can dedamaging unlessdamaging unlesshandled appropriatelyhandled appropriately

Can generate anCan generate anenvironment of environment of suspicion and cynicism if suspicion and cynicism if not managed openednot managed openedand honestlyand honestly



Support For UseSupport For Use

US Office of Personnel Management supportsUS Office of Personnel Management supportsresearch that shows assessment approaches withresearch that shows assessment approaches withmultiple rating sources provide more accurate,multiple rating sources provide more accurate,

reliable, and credible informationreliable, and credible information Spencer and Morrow indicate that 360Spencer and Morrow indicate that 360--degreedegree

feedback systems could yield a Return onfeedback systems could yield a Return onInvestment as high as 700 percent Investment as high as 700 percent

In 1997, 8% of companies used 360In 1997, 8% of companies used 360°°, increased to, increased to

10% by 200010% by 2000 Current posted information at Current posted information at www.360www.360--

degreefeedback.comdegreefeedback.com states that nearly all Fortunestates that nearly all Fortune1000 companies have either already implemented a1000 companies have either already implemented a360 degree approach or plan to shortly360 degree approach or plan to shortly



Is The EnvironmentIs The Environment

Appropriate? Appropriate? Ask yourself the following questions: Ask yourself the following questions:

What is the desired outcome of the feedback?What is the desired outcome of the feedback?

Do we have enough raters?Do we have enough raters?

Is this applicable to all of our employees or anIs this applicable to all of our employees or anemployee group?employee group?

Are our employees mature enough to handle Are our employees mature enough to handle

the feedback and to give feedback?the feedback and to give feedback? Is there openness and trust betweenIs there openness and trust between

supervisors and their direct reports?supervisors and their direct reports?



Is The EnvironmentIs The Environment

Appropriate? Appropriate? More questions to ask yourself More questions to ask yourself Are our employees and managers willing to Are our employees and managers willing to

listen and learn and to effect any necessarylisten and learn and to effect any necessary

changes as a result?changes as a result? Are we willing to devote the time and energy Are we willing to devote the time and energy

to make this system work? (It wont workto make this system work? (It wont workunless everyone in the organization is onunless everyone in the organization is on

board from the get board from the get--go)go) What do we want to do with the informationWhat do we want to do with the informationthat is gained? Help the employees grow orthat is gained? Help the employees grow orare we looking for a way to determine payare we looking for a way to determine payand promotion?and promotion?



ImplementationImplementation

Build credibility early on by seeking input from allBuild credibility early on by seeking input from alllevels of the organization; use this input to craft thelevels of the organization; use this input to craft thefeedback toolfeedback tool

Ensure the employees that this will not be used toEnsure the employees that this will not be used todetermine pay, promotion, or bonusdetermine pay, promotion, or bonus

Instill in management that this tool is to assist themInstill in management that this tool is to assist themin coaching their direct reports to grow in allin coaching their direct reports to grow in allaspects of their professional responsibilitiesaspects of their professional responsibilities

Seek outside professional help to ensure smoothSeek outside professional help to ensure smoothimplementationimplementation Train appraisers to be constructive, positive, andTrain appraisers to be constructive, positive, and

specific with their feedbackspecific with their feedback



ImplementationImplementation

360360--feedback.com 9 Step Processfeedback.com 9 Step Process Determine organizational readinessDetermine organizational readiness Develop an appropriate survey and process givenDevelop an appropriate survey and process given

organizational needs and objectivesorganizational needs and objectives Generate enthusiasm among key decision makers andGenerate enthusiasm among key decision makers and

participantsparticipants Ensure that participants and managers have the skills toEnsure that participants and managers have the skills to

support the processsupport the process Provide an orientation briefingProvide an orientation briefing

Administer the survey Administer the survey Coach participants in oneCoach participants in one--onon--one meetingsone meetings Provide organizational summary dataProvide organizational summary data ReRe--conduct the survey (in four to six months)conduct the survey (in four to six months)




SuperiorsSuperiors

PeersPeers

Direct ReportsDirect Reports

CustomersCustomers

Self Self




The following slides outline the pros and cautionsThe following slides outline the pros and cautionsassociated with each participant in 360 Degreeassociated with each participant in 360 Degree Appraisal process. There may be occasions when Appraisal process. There may be occasions when

one source or another may not be chosen toone source or another may not be chosen toparticipate.participate.For each individual being appraised, specific groupsFor each individual being appraised, specific groups

should be chosen to ensure that the feedback isshould be chosen to ensure that the feedback isappropriate and that a plan for improvement can beappropriate and that a plan for improvement can begenerated for the employee.generated for the employee.

A pro is something that is a positive outcome from A pro is something that is a positive outcome fromthat specific group. A caution is not something that that specific group. A caution is not something that is necessarily negative but must be monitored sois necessarily negative but must be monitored sothat it does not create a negative situation for allthat it does not create a negative situation for allinvolved.involved.



SuperiorsSuperiors

ProsPros First First--line supervisorsline supervisors

often in best position tooften in best position to

carry out full cyclecarry out full cycleperformanceperformancemanagement management

Superiors have authoritySuperiors have authorityto redesign anto redesign anemployees work basedemployees work basedon individual and teamon individual and team

performanceperformance Most Federal employeesMost Federal employees

think that best ratingsthink that best ratingscome from first come from first--linelinesupervisorssupervisors

CautionsCautions Relying solely onRelying solely on

superiors reducessuperiors reduces

validity of performancevalidity of performancefeedbackfeedback Superiors may not be inSuperiors may not be in

same location assame location asemployee, preventingemployee, preventingthem from havingthem from havinghandshands--on knowledge of on knowledge of

the employeesthe employeesperformanceperformance

Training may be lackingTraining may be lackingon appropriate methodson appropriate methodsof evaluationof evaluation



Peers1Peers1 ProsPros

Peer pressure and peer approval more effectivePeer pressure and peer approval more effectivemotivators than supervisorsmotivators than supervisors

Peer ratings have proven to be excellent predictors of Peer ratings have proven to be excellent predictors of

future performancefuture performance Peer ratings remarkably valid and reliable in ratingPeer ratings remarkably valid and reliable in rating

behaviors and manner of performancebehaviors and manner of performance Peer ratings tend to average out bias from otherPeer ratings tend to average out bias from other

groups in the rating processgroups in the rating process

Increased use of self Increased use of self--directed team encourages usedirected team encourages useof peer evaluationof peer evaluation

Peer ratings help move supervisors into a coachingPeer ratings help move supervisors into a coachingrole as opposed to a pure judging rolerole as opposed to a pure judging role



PeersPeers

CautionsCautions Should not be used to determine pay, bonuses, orShould not be used to determine pay, bonuses, or

promotions (creates animosity and prevents truthfulpromotions (creates animosity and prevents truthfulresponses from peers)responses from peers)

Do not divulge the names of those providing feedback; inDo not divulge the names of those providing feedback; ingeneral anonymity is preferred to prevent animosity andgeneral anonymity is preferred to prevent animosity andgenerate truthful responsesgenerate truthful responses

Choose the peers wisely; dont choose at randomChoose the peers wisely; dont choose at random--thethepeers must be very familiar with the work requirementspeers must be very familiar with the work requirementsand performanceand performance

Can be very time consuming for peers to participateCan be very time consuming for peers to participate Can cause tension among employees and breakdown ofCan cause tension among employees and breakdown of

teamsteams Ensure employee involvement in creation; otherwise noEnsure employee involvement in creation; otherwise no

buybuy--in will be achieved from employees or theirin will be achieved from employees or theirrepresentativesrepresentatives



Direct ReportsDirect Reports ProsPros

Gives supervisors a moreGives supervisors a morecomprehensive picture of comprehensive picture of employee needs & issuesemployee needs & issues

Makes employees feel that Makes employees feel that

they have a greater voice inthey have a greater voice inorganizational decision makingorganizational decision making Extremely effective inExtremely effective in

evaluating supervisorsevaluating supervisorsinterpersonal skillsinterpersonal skills

Combine direct report ratingsCombine direct report ratingsto achieve an average rating;to achieve an average rating;

addsvalidity and reliabilityaddsvalidity and reliability Supervisors are moreSupervisors are more

responsive to direct report responsive to direct report feedback, creating morefeedback, creating moreeffective managerseffective managers

CautionsCautions Need for anonymity is essential; if Need for anonymity is essential; if

not anonymous, reprisal fromnot anonymous, reprisal fromsupervisors is likelysupervisors is likely

Superv

isors may feel that authoritySuperv

isors may feel that authorityis undermined when they must is undermined when they must take into consideration that theirtake into consideration that theiremployees are rating thememployees are rating them

Allow only direct reports with at Allow only direct reports with at least a one year relationship withleast a one year relationship withthe supervisor and no disciplinarythe supervisor and no disciplinary

action to comment action to comment If undergoing downsizing orIf undergoing downsizing or

reorganization, carefully weigh thereorganization, carefully weigh theneed for direct reports in theneed for direct reports in theprocess; may add fuel to the fireprocess; may add fuel to the fire



CustomersCustomers

ProsPros Serves as anchor for allServes as anchor for all

other performance factorsother performance factors

Combined with peerCombined with peerevaluation, these dataevaluation, these dataround out feedback andround out feedback andfocus attention beyondfocus attention beyondonly serving theonly serving thesupervisors needssupervisors needs

Ensures that theEnsures that theemployees concentrateemployees concentrate

their attention on thetheir attention on thecustomer as the customercustomer as the customerwill have some say withwill have some say withregards to their feedbackregards to their feedback

CautionsCautions Only ask customers toOnly ask customers to

evaluate outputs, not evaluate outputs, not processes; they cant processes; they cant always see the entirealways see the entireprocessprocess

Customer feedback processCustomer feedback processis time consuming; focusis time consuming; focusthis time on big picturethis time on big pictureitemsitems

Dont ask the customer toDont ask the customer to

evaluate a singleevaluate a singleemployee, unless theemployee, unless thecustomer has a direct customer has a direct relationship with therelationship with theemployeeemployee



SelfSelf

ProsPros Improves communicationImproves communication

between supervisor andbetween supervisor and

employeeemployee Particularly useful if entireParticularly useful if entire

cycle focuses on self cycle focuses on self--assessment; forcesassessment; forcesindividual to keep track of individual to keep track of successes and failuressuccesses and failures

Develops ability to seeDevelops ability to seeones self for what theyones self for what theyreally arereally are

Allows supervisor to have Allows supervisor to havebetter handle onbetter handle onperformance when it canperformance when it cannot always be observednot always be observed

CautionsCautions Research indicates lowResearch indicates low

correlation between self correlation between self--ratings and all otherratings and all othersources of ratings,sources of ratings,particularly supervisorparticularly supervisorratingsratings

Self ratings are consistentlySelf ratings are consistentlyhigher than other ratingshigher than other ratings

If supervisors do not useIf supervisors do not useappropriate feedback skills,appropriate feedback skills,

the fact that a self the fact that a self--rating israting ishigher than thehigher than thesupervisors may causesupervisors may causealienation andalienation anddefensivenessdefensiveness



Web ResourcesWeb Resources

www.360www.360--degreefeedback.comdegreefeedback.com

www.hr.comwww.hr.com

http://humanresources.about.comhttp://humanresources.about.com

www.businessballs.comwww.businessballs.com

www.managers.org.ukwww.managers.org.uk www.quality.orgwww.quality.org

www.opm.govwww.opm.gov



Closing ThoughtClosing ThoughtThis is a performance development tool!This is a performance development tool!

In working with organizations, one of the biggest fears people have In working with organizations, one of the biggest fears people haveis that a group of anonymous people will determine their raises,is that a group of anonymous people will determine their raises,

promotions, and standing. I am a strong proponent of introducingpromotions, and standing. I am a strong proponent of introducing360 degree feedback as a developmental tool for individuals.360 degree feedback as a developmental tool for individuals.

In a performance development environment, the question of In a performance development environment, the question of whether 360 degree feedback should impact performance appraisalwhether 360 degree feedback should impact performance appraisalbecomes irrelevant. The performance appraisal has transformedbecomes irrelevant. The performance appraisal has transformed

into the performance development tool. The measurements used tointo the performance development tool. The measurements used todetermine compensation in such a system include meetingdetermine compensation in such a system include meetingmeasurable goals, attendance, and contribution.measurable goals, attendance, and contribution.

--Susan M. HeathfieldSusan M. Heathfield1111



The endThe end

360 Appraisals

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