360 Degree System
Chapter 1
Introduction:
Performance appraisal is the critical tool in the human resources management for the achievement of the organizational goals and the objectives. This performance appraisal helps to improve the employee’s strength and weakness. Based on the performance appraisal, the performance of the employees can be measured and evaluated. 360 degree review is the appraisal approach and it is defined as collecting feedback from multiple sources of the input of employees, colleagues, seniors to evaluate the performance appraisal. The research mainly focuses on the validation and reliability of the appraisal system which makes convenient for the organization in order to determine the performance. But there is a problem associated with the designing of a reliable system for the performance appraisal. In this research, the enhancement of 360 degree is useful for the process of performance appraisal system and how it causes the employee’s performance.
Background to the study:
Performance appraisal is organized in the small business company and one of the appraisal method takes place in the company. The method called 360 degree, this can be implemented in the small company and predict the employee performance, feedback from the multiple sources of the organization. This method is used to evaluate the overall performance from different perspectives, different people who are working in the company. By using this system, the effects of employees are also suspected. The company recognizing that this method is useful for the performance appraisal and needs some improvements in the process of evaluating the individual needs because it receives only feedback from seniors, colleagues and subordinates. But, it does not provide employee’s needs and requirements in the process.
The aim of this research is to evaluate that 360 degree useful for the performance appraisal system and how it effect on the employees.
Objectives:
The main objectives are,
Correlate the benefits and effects of appraisal system with the result of applying 360 reviews.
Research questions:
What is the purpose of 360 degree in the evaluation of the performance appraisal system?
Does 360 degree system reliable?
How this 360 does affects the performance appraisal methods?
Structure of proposal:
Chapter 1: In this chapter, the research problem, purpose of the study, aim and objectives, research questions will be stated
Chapter 2: This chapter will carry out the literature review of the performance appraisal system and the purpose of 360 degree review
Chapter 3: Methodology and research design used in this research study will be discussed
Chapter 4: The outcomes of the research proposal and deliverables will be stated.
Chapter 2:
Literature review:
Theoretical background:
Performance appraisal is the process of evaluating the overall performance of the employees. It is also defined as the evaluation of the individual’s work performance in order to obtain the organizational objectives. In other words, it is defined as the process of acquiring, developing and measuring the human performance in the organization (Eder, 1982). There are number of appraisal methods are used in the organization. The main benefits of the performance appraisal are allowed the employees and managers discuss about the future targets, training, movement of the company or the organization (Grote, 1996).
Performance appraisal:
The performance appraisal is the systematic process in which the employee’s job performance and productivity with respect to the organizational objectives can be obtained (Catapano, 2005). The aspects of the individual employees such as organizational behavior, establishments, strengths and weakness, and potential for future improvement. There are three methods available for collecting the data. They are personnel, judgmental evaluation and objective production (Brown, 1989). Performance appraisal is the long term process and many companies are moving to the shorter cycles of performance appraisal. Judgmental evaluation is the most common method used in the evaluation of the performance appraisal. It is the phenomenon of providing feedback to the employees, counselling and developing employees or job status.
Performance management system is used for managing and align the organization, resource to attain the highest possible performance (Chandhana and Easow, 2015). (Joshi) stated that the performance is accomplished in the organization in order to determine the success or failure of the organization. The enhancement of performance appraisal is having higher priority than the traditional organization.
The main applications of performance appraisal are the promotion, termination, test validation, performance improvement and termination. Even there are many benefits of performance appraisal, there are also some potential drawbacks can be obtained from the organization (Lansbury, 1981). Performance appraisal helps to manage the management employee communication. If the performance appraisal cannot be executed in a right way, the result in the legal issues and many employees get unsatisfied with the performance appraisal process.
Why performance appraisal is important:
The performance appraisal is significant for evaluating the employee’s hard work, capabilities and performance who work for the organization. The appraisal may be promotion, increase in salaries, requires training and development and so on (MacNulty, 1984). This is the way of boosting the employees who work harder for the success of the company.
Purpose of performance appraisal:
The main purpose of the performance appraisal is facilitation of the communication, improving the employee focus through the trust, setting goal and desired performance establishment and determination of the training needs (Marcoulides, 2008).
Facilitation of communication;
This aspect is used for worker motivation in the organization. The feedback from performance appraisal aids is used for reducing the employees perception of the uncertainity. The management employee communication and feedback should facilitate in the job performance.
Employee focus through the trust:
Trust issues are the main issues which is distracting the bond of employees. The behaviour and thought may distract the employees from the work. These factors can lower the job performance and lose the organization goals. In order to avoid these distracting factors, the encouraging trust must be implemented within the organization.
Setting goal:
The effective organizations work upon the employee’s goals and performance. Performance appraisal offers room for discussing about the workers and the organization goals. The employee acceptance and satisfaction of the appraisal results will be added more advantage.
Performance improvement:
The well-defined performance appraisal is the valuable tools for communication with the employees to determine how their job performance relates to the organizational expectations. The human resource practices have some positive relationships with the employees who are working in the organization.
Determination of training needs:
Training and development of employees is the critical constituents of the strategic management in the organization. If the performance appraisal should be effective, then the appraisal opportunities for training and development in the problem areas should be undermined and provided. Performance appraisal may help in the accomplishment and the supervision of the employee’s career goals (Brown, 1989).
Different types of method:
There are several types of approaches for determining the performance appraisal system. They are absolute standard, objectives and the relative standards (MacNulty, 1984).
Absolute standard:
In this standard, the employees are compared to the defined standard, which is independent of another employee. This standard can be categorized into essay appraisal, critical incident appraisal, graphic rating, checklist and the forced choice.
The essay appraisal:
In this method, the evaluator writes the strength and weakness of the employees , previous performance and suggestion in the essay format. This method causes their employee’s flexibility and should focus on the employee behaviours.
Critical incident appraisal:
This method is focused on the individual performance with respect to the incidents and episodes taken place in the job performance. These are known as critical incidents.
Checklist:
The checklist has a list of statements and situations which can be compared with employees. It is the composition of the employee’s characteristic and performance.
Graphic rating scale:
This method used for quantitative analysis and comparison of the characteristics and performance of each individual employee. It is combined with the essay appraisal technique.
Forced choice:
In this method, the evaluator should rank the behaviour of each employee. The state of behaviour may be favourable or unfavourable.
Relative standards:
This method is used compare each individuals against other individuals. This method has categorized into individual ranking, group order ranking and comparison with paired (Miller, 1997).
Group order ranking:
In this method, the employees are grouped in the particular classification as to one to fifth. Example, the rater has ten employees, only 3 can be in top fifth and 3 can be in the bottom fifth.
Individual ranking:
The individuals are ranked from highest to the lowest rank. The manager compares each employee with other individuals based on the work standards.
Comparison with paired:
The employees are compared with all other individuals in pairs. The comparison should be formulated by using the formula as N.(N-1). N denotes the number of employees.
Objectives:
This is the third method of performance appraisal method in which the employees are evaluated on how well they established in definite set of objective and how they worked for successful completion of their job. Based on the objectives, the performance appraisal has been recommended in terms of action planning, self-control and the goal setting.
360 degree:
360 degree is the latest approach for the performance appraisal method. 360-degree feedback needs the employer to take survey with the colleagues, seniors, supervisors and subordinates about their actions and behaviour (Millmore, Biggs and Morse, 2007). Hence, it is treated as multiple channels of feedback which reveals about the behavioural activities and qualities. In the small business company, they used 360 degree feedback for the developments and evaluation purpose. It offers more benefits to the employees to develop their work skills and the behaviours. In an organization, they use 360 degree feedback for evaluating the performance and the employment decisions. They are focused on the pay and promotion. This 360 degree feedback is used for examining the review of the employees, so it is called as 360 degree review (Corbin, 2009).
How does it affect:
In recent days, many companies used 360 degree feedback and focused to enhance the leader’s behaviour. It is used to build development course and effective teams in the organization. The company believes that this feedback will change either the manager’s behaviour or maximize the manager’s motivation to change (Review of 360 degree feedback). Hence, this feedback focused only on the behaviour than the skills, then the willingness of the employee’s intention will drop dramatically.
Chapter 3
Methodology:
The method used for evaluating the performance appraisal in the small business company is 360 degree feedback review. The methodology used for conducting this research is survey based. 360-degree feedback needs the employer to take surveys with the collegues, seniors, supervisors and subordinates about their actions and behaviour. Hence, it is treated as multiple channels of feedback which reveals about the behavioural activities and qualities (Zand, Asadeian, and Koshki, 2014). By using this 360 degree feedback, the employee know about the strength and weakness, behavioural action, etc.In the company, they used 360 degree feedback for the development and evaluation purpose. It offers more benefits to the employees to develop their work skills and the behaviours. In organization, they use 360 degree feedback for evaluating the performance and the employment decisions. They are focused on the pay and promotion. This 360 degree feedback is used for examining the review of the employees, so it is called as 360 degree review.
In other words, it is called feedback providers with respect to the motivation and performance of the employees. Hence, it is used for developmental as well as the evaluation purpose (Petley, 2013). It is used to check whether the feedback providers have the capability to meet the organizational goals and objectives. This may influence the employment decision sometimes lead to the legal liability.
The main reason for conducting the performance appraisal in the company is for training needs and development, merits increases the salary of the employees, promotions and the documentation for the personnel action (Silverman, 1991). The below diagram represents the reason for conducting performance appraisal system in the company.
Reason for performance appraisal system
Limits of 360 degree review:
During the 360 degree review process, there are some drawbacks occurring in the company. This review lack of receiving the frank and honest opinion. Stress might be occurring in each individual while giving the feedback. The two severe issues are over reliance on the technology and too much of the bureaucracy. The feedback will be useless if they cannot deal with the correct situation (Biggs, 2007).
Method of collecting data:
In this research, the qualitative research design is used. The number questions are taken by the researchers. The questionnaire is asked for the staff by conducting interviews with the managers. The questionnaire can be collected from the primary source by taking surveys in the small business company. The questionnaires may be open ended and closed ended questions. The questions can be prepared by hand or email that can send it to the staff for answering the questions. The analyzed data can be evaluated by the statistical method. In this survey, the managers are satisfied with the method of using this 360 degree review by giving the staff reply.
The qualitative research is used to determine the situations in the uniqueness of the particular context and the interaction. There are two types of the questionnaires were designed for this research. One for the managers and other for the staff. The instruments used for collecting primary data from the small business company.
Chapter 4
Outcomes:
The study will show the numerical relationship between performance appraisal and 360 degree feedback. The project deals with numerous aspects of organizations, performance management, individuals, groups and other aspects of the employees in the small business company. This study will influence the employee behavior to choose and work diplomatically. Finally the project will reflect various hypotheses from different areas of studies in research. The project will evaluate how the 360 degree feedback affects the performance appraisal of the employees in the organization.
Project management:
In order to accomplish the project aims and objectives it is very important to manage the time and milestones. Basically a good project management drives project into achievement. The following chart shows the project execution stages and milestones of the project.
Gantt chart:
Chapter 5
Conclusion:
The performance appraisal is the method of evaluating the employee’s hard work for the successful completion of the project. The method used for evaluating the performance appraisal is 360 degree. Though it has advantages and disadvantages, it needs some improvement in the performance management of the organization. The system needs enhancement for evaluating the performance appraisal. This is mainly focused on determining the employee’s behaviour. This study will estimate the effects of 360 on an appraisal and how does it works in the small business company.
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