case study on 360 degree performance appraisal

Philips 360 degree feedback case study

Created a 360 feedback platform accessible to employees globally.

Powerful business impact, developing employees’ capability in line with strategy

Better enable employee development in line with key competencies

The main business objective for Philips was to introduce a new 360 degree feedback programme that would better enable development of its employees. Magdalena Bracco, HR Group Project Leader, Center of Expertise Leadership, Talent and Learning at Philips, explains: “We really believe in the power of feedback to grow our employees, and the 360 tool is the starting point for effective conversations and development plans.” They asked ETS to create a 360 feedback tool and reports that’d be intuitive, making it easy for employees to give feedback and interpret the results.

Created a 360 feedback programme to focus employee development

The questionnaire.

Philips and ETS ensured that the 360 questionnaire aligned with a new competency framework and leadership behaviours introduced at Philips. This allows people to see clearly their areas of strength and their development needs against key behaviours at Philips.

The system and reports

The report generated by the system and given to participants afterwards is equally clear and simple, highlighting just a couple of feedback themes and development areas. We created these in a highly visual format, graphically displaying key findings rather than showing lots of data.

Magdalena Bracco explains the thinking behind this:

“Our brief to ETS was that reports should ‘go beyond the number’ to explore key themes and capabilities for particular roles as this is more meaningful and beneficial for participants. This then allows them to have a focused development discussion with their line manager.”

In addition to the work on the 360 tool and questionnaire design consultation, our business psychologists have supported HR teams and managers at Philips leading training webinars. These cover how to structure and manage effective behavioural development conversations.

There are also further plans to develop the 360 feedback tool used by Philips. We’re exploring the addition of a questionnaire builder function, which would allow users to build their own questionnaires and select the competencies they wish to be measured against.

Powerful Business Impact

The response to the new 360 degree feedback programme from the managers and executives has been very positive. Participants particularly like the fact that the questions are connected to the new competency framework. Perhaps most importantly, in terms of the 360 feedback process leading to behavioural change, people are finding that the reports are easily-actionable. Magdalena Bracco adds: “The business impact has been powerful in helping peoples’ development. For us as a business, it’s invaluable as great leadership is critical to our continued success.”

Business Impact

Case studies.

Creating a multi-purpose feedback platform for Nationwide

Developing managers and leaders at Gatehouse Bank

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A Manager’s Guide to 360-Degree Performance Reviews (with Examples)

Understanding 360-degree performance reviews, what are the benefits of 360-degree performance appraisals for hr managers, how to prepare for a 360-degree performance review, how to do a 360-degree performance review, sample questions for 360-degree performance review, free 360-degree performance review template, overcoming common challenges in 360-degree performance reviews, measuring the success of your 360-degree performance review process.

Other Related Blogs

Examples of effective 360-degree reviews

• This process is commonly used for leadership development programs . It involves gathering feedback from an individual’s supervisor, peers, direct reports, and sometimes even external stakeholders such as clients or customers.
• The evaluation criteria may include leadership competencies , communication skills, decision-making abilities, and teamwork.
• The feedback is typically used to create personalized leadership development plans, including coaching and training, to enhance leadership effectiveness.
• In a team-focused 360-degree review, team members evaluate each other’s contributions and teamwork. This process helps improve collaboration and team dynamics.
• Criteria may include communication within the team, problem-solving abilities, task allocation, and overall team effectiveness.
• The feedback is used to identify areas where the team can improve its performance, leading to more efficient and productive teamwork.
• This type of 360-degree review focuses on the growth and development of individual employees . Feedback is collected from supervisors, peers, and sometimes subordinates.
• The criteria may include job-specific skills, interpersonal skills, adaptability, and overall job performance.
• The feedback aids in creating personalized development plans to address specific skill gaps and encourage career progression.

Pros and cons of 360 degree performance reviews

• Holistic Performance View: Collects feedback from diverse sources (direct reports, peers, self, and supervisors) to comprehensively understand employee performance, strengths, and weaknesses.
• Enhances Teamwork and Collaboration: Cultivates a culture of open and candid feedback among coworkers, which improves communication and working relationships.
• Resource and Time-Intensive: The feedback collection process can be time-consuming, and it may be perceived as a resource burden by employees and administrators.
• Potential for Conflicting Feedback: Conflicting feedback from various sources can be challenging to reconcile. Resolving differences in feedback may require additional effort that could lead to confusion or frustration among participants.

• Provide clear instructions on providing constructive feedback to ensure helpful feedback is received. 
• Prepare employees for receiving input from multiple sources, emphasizing the benefits of this approach. 
• Set expectations regarding confidentiality and anonymity to create a safe environment for open and honest feedback. 
• Provide resources such as templates and share examples and case studies to explain the process of 360-degree performance reviews. 

The role of technology in conducting 360-degree performance reviews

How does this work.

• Launch a self-assessment and get your score
• Request your team members to share feedback on your skills 
• Generate a combined report to catch insights on strengths, weaknesses, and gaps that miss your eye! 
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Understanding the 30-Degree Performance Review Process

• Identify Key Stakeholders:  Determine the individuals who will provide feedback, typically including supervisors, peers, and direct reports. Define the scope of the review, specifying who will participate and the purpose of the evaluation.
• Develop Evaluation Criteria:  Create a set of standardized criteria for your team to assess the individual’s performance. These criteria may encompass communication skills, teamwork, leadership abilities, and overall job performance.
• Collect Feedback:  In the next step, you need to collect feedback through a method suitable for your team. You can utilize anonymous surveys or interviews to gather input from the identified stakeholders. Ensure that the feedback process is confidential to encourage candid responses.
• Compile and Analyze Feedback:  Collect all feedback and data from surveys or interviews. Analyze the responses to identify patterns, common themes, and areas of consensus or divergence.
• Provide Feedback and Create Development Plans:  Share the feedback with the individual being evaluated in a constructive and supportive manner. Finally, managers can collaboratively develop an improvement plan based on the identified strengths and areas for growth, including clear goals and actions for development and growth, incorporating the insights from the 360-degree review.

• How effectively does the individual communicate goals and expectations to their team?
• What are the individual’s key strengths as a leader?
• In what areas do you think the individual could improve as a supervisor?
• How well does the individual support and provide guidance to team members?
• How does the individual handle conflicts or challenges within the team?
• How would you rate the individual’s ability to make decisions and solve problems?
• Does the individual effectively delegate tasks and responsibilities?
• How does the individual contribute to the overall success of the team or organization?
• How would you describe the individual’s communication skills when collaborating with peers?
• What strengths does the individual bring to team projects and interactions?
• Are there areas where the individual could enhance their collaboration with colleagues?
• How well does the individual provide support and assistance to fellow team members?
• How does the individual handle disagreements or conflicts with peers?
• Does the individual actively contribute to the success of group projects?
• How would you rate the individual’s ability to adapt to changing circumstances?
• What suggestions do you have for the individual to improve their peer relationships?
• How effectively does the individual communicate job expectations and provide feedback?
• What are the individual’s strengths as a manager or supervisor?
• Are there areas where the individual could enhance their leadership and support?
• How well does the individual foster a positive and inclusive work environment?
• How does the individual handle employee concerns or conflicts?
• Does the individual encourage professional development and growth among team members?
• How would you rate the individual’s ability to provide coaching and guidance?
• What recommendations do you have for the individual to improve their leadership style?

Best practices for effective feedback from a 360-degree review

• To ensure personal development:
• Provide actionable feedback.
• Foster honesty and transparency in the feedback process.
• Streamline the review process by using performance management software.
• Incorporate feedback from peers and subordinates for multiple perspectives.
• Instead of solely highlighting strengths, focus on areas of improvement

Resistance to change in the organization

Ensuring confidentiality and anonymity in the review process, dealing with unresponsive or uncooperative reviewers, managing negative feedback from multiple sources, ace performance reviews with strong feedback skills..

Master the art of constructive feedback by reviewing your skills with a free assessment now.

How to Build a High-Performing Team?

How culturro developed effective performance reviews – a lookback, becoming an effective employee relations manager: 5 skills you need, 20+ useful performance feedback examples for managers.

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Getting 360-Degree Feedback Right

• Maury Peiperl

360-degree feedback is all the rage in companies big and small. But it is frequently bureaucratic, politically charged, and agonizing. The good news is that by understanding four paradoxes inherent to peer appraisal, managers can take some of the pain out of the process—and get better results in.

If a single e-mail can send the pulse racing, it’s the one from human resources announcing that it’s time for another round of 360-degree feedback. In and of itself, this type of appraisal isn’t bad. Indeed, many businesspeople would argue that over the past decade, it has revolutionized performance management—for the better. But one aspect of 360-degree feedback consistently stymies executives: peer appraisal. More times than not, it exacerbates bureaucracy, heightens political tensions, and consumes enormous numbers of hours. No wonder so many executives wonder if peer appraisal is worth the effort.

• MP Maury Peiperl is a pro-vice-chancellor of Cranfield University, in England, and the director of its School of Management.

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• Performance Management

The Complete Guide to 360 Degree Reviews

• July 10, 2023

Organizations are recognizing the limitations of traditional performance reviews that rely solely on supervisor feedback. 

To address this, the 360 reviews process has emerged as a more comprehensive approach, gathering feedback from multiple perspectives to provide a holistic assessment of employee performance.

The concept of 360 performance reviews originated from the need for a thorough evaluation process . It aims to ensure a comprehensive assessment of employee performance by incorporating input from supervisors, subordinates, peers, and external stakeholders. 

This diverse range of perspectives offers a more accurate and well-rounded understanding of an individual’s strengths, areas for improvement, and developmental needs.

In this blog, we will:

• Understand the difference between traditional performance reviews with 360 reviews 
• Importance of conducting effective 360 performance reviews 
• Which size companies can use 360-degree reviews?
• How to Conduct Effective 360 reviews?
• Best Practices and Challenges
• How to run an effective 360° performance review with Peoplebox?

Implementing a 360 performance process can yield significant advantages regardless of your organization’s size. We understand that each company size has specific considerations and challenges when adopting this approach. Therefore, we will provide valuable insights to help you navigate potential obstacles and maximize the benefits of 360 performance reviews.

What is a 360 Review?

A 360 review is a performance evaluation methodology that allows you to capture a wide range of feedback on an employee’s performance in the organization. This review process involves peer feedback, manager feedback, direct reportees, and others, therefore making it an all inclusive process.

Understanding the Difference – Traditional Performance Reviews VS 360-Degree Reviews

Performance reviews are crucial for assessing employee performance and driving growth within organizations. 

While traditional performance reviews have been the norm for many years, a new approach called 360-degree reviews has gained popularity. These reviews offer a more comprehensive and well-rounded evaluation by incorporating feedback from multiple sources.  Let’s take a closer look at the key differences between traditional performance reviews and 360 degree performance reviews.

By comparing these two approaches side by side, it becomes evident that 360 degree process reviews offer a more comprehensive and inclusive assessment of employee performance. They provide broader insights, foster a collaborative environment, and enhance self-awareness. 

Organizations looking to implement a more robust and holistic performance review process may find 360 degree reviews valuable in driving growth and development.

Importance of Conducting Effective 360 Performance Reviews

The 360 degree performance appraisal process offers a unique and comprehensive approach to evaluating employee performance. 

Let’s explore the key reasons why conducting an effective 360 degree performance appraisal process is essential for organizations.

1. Enhanced Self-awareness

The 360 degree review process gives employees a broader perspective on their strengths, areas for improvement, and blind spots. This multi-dimensional feedback helps individuals gain a deeper understanding of their impact on others and fosters self-awareness. 

With this knowledge, employees can make more informed decisions, adapt their behavior, and proactively address any areas hindering their performance.

2. Improved Team Dynamics

One of the significant benefits of the 360 degree review process is their ability to enhance team dynamics. These reviews create a culture of collaboration and feedback by involving input from peers, subordinates, and other colleagues.

Employees better understand how their actions and behaviors affect others, leading to improved teamwork, communication, and synergy within the team.

3. Targeted Development Opportunities

The comprehensive feedback gathered through the 360 degree performance appraisal process enables organizations to identify specific areas for employee development. This feedback-driven approach allows for targeted training, coaching, and support tailored to each individual’s unique needs. 

By addressing specific areas of improvement, employees can enhance their skills and capabilities more effectively, contributing to their professional growth and overall organizational success.

4. Fair and Objective Evaluation

The 360 degree review process provides a fair and balanced evaluation process by incorporating feedback from multiple perspectives. 

By considering input from supervisors, peers, and subordinates, biases, and subjectivity associated with a single-source evaluation are mitigated. 

This results in a more objective assessment of an individual’s performance, ensuring fairness and equity in the evaluation process.

5. Alignment with Organizational Goals

360 degree performance appraisal process aligns individual performance with organizational goals and values. 

By evaluating performance in the context of broader corporate objectives, these reviews ensure that individual contributions align with the company’s overall mission and vision. 

This alignment fosters a sense of purpose and direction among employees, reinforcing their commitment to the organization’s success.

Which Size Companies Can Use 360-Degree Reviews?

The 360 degree review process is a valuable tool for organizations of all sizes. 

While the specific implementation may vary based on company size, the benefits of utilizing 360 reviews are relevant across the board. 

Let’s explore how companies of different sizes can leverage 360-degree reviews to their advantage.

1. Small Companies: Utilizing 360 Reviews for Growth and Development

For small companies, 360-degree reviews can foster growth and development. 

With a smaller workforce, these reviews offer an opportunity for comprehensive feedback that helps employees identify their strengths and areas for improvement. 

By leveraging the insights gained from multiple perspectives, small companies can provide targeted training and coaching to enhance employee skills, drive performance, and nurture a culture of continuous learning.

2. Medium-sized Companies: Balancing Objectivity and Anonymity in 360 Reviews

Medium-sized companies often face the challenge of balancing objectivity and anonymity in 360-degree reviews. They have a larger employee base, making maintaining confidentiality and anonymity in the feedback process challenging. 

However, by implementing well-designed feedback mechanisms, ensuring transparency in the review process, and safeguarding employee identities, medium-sized companies can overcome these challenges and derive the benefits of comprehensive feedback from multiple sources.

3. Large Companies: Managing Logistics and Scalability of 360 Reviews

Large companies typically have a more complex organizational structure, with numerous departments and teams. This complexity presents logistical challenges in conducting 360-degree reviews efficiently. Managing large-scale data collection, analysis, and feedback dissemination can be significant. 

However, with proper planning, the use of technology-enabled tools, and strategic implementation, large companies can successfully navigate these challenges. They can harness the power of 360-degree reviews to –

• Improve performance
• Enhance employee development
• Align individual performance efforts with organizational goals

How to Conduct Effective 360 Performance Reviews?

From preparation to feedback analysis and action planning, learn how to maximize the benefits of this performance evaluation approach. 

Let’s explore the process of impactful 360 performance  reviews for individual skill development and organizational success .

1. Preparing for the Review Process

To conduct effective 360 performance reviews, proper preparation is essential. 

This involves:

• Setting clear objectives and criteria: Clearly define the purpose and goals of the 360 performance review. For example, a software company aims to assess project managers’ leadership skills and team collaboration abilities.
• Scope of review: Determine which individuals will be evaluated, such as managers, team members, or specific departments, based on their relevance to the company’s objectives.
• Individual evaluation: Assess the performance and competencies of each individual using specific criteria and rating scales.
• Evaluation by supervisors, subordinates, and colleagues: Gather feedback from supervisors, subordinates, and colleagues who work closely with the individual. For instance, a B2B consulting firm collects input from project stakeholders, team members, and clients to gain a comprehensive perspective.
• Defining timeline: Establish a timeline for the review process, including deadlines for feedback collection, analysis, and sharing results.
• Identifying stakeholders: Determine the key stakeholders involved in the review process, such as HR representatives, department heads, or senior leadership.

2. Gathering Feedback

Collecting feedback from various sources is crucial to obtaining comprehensive insights into an individual’s performance. 

This can be done:

• Using various methods: Employ multiple feedback collection methods, such as online surveys, interviews, or focus group discussions, to gather multiple perspectives.
• Setting up questions with examples: Craft well-designed questions that prompt respondents to provide specific examples and insights related to the individual’s performance.
• Ensuring confidentiality and anonymity: Assure respondents that their feedback will remain confidential and anonymous, fostering a safe environment for honest and candid responses.

3. Analyzing and Interpreting Feedback

Once feedback is collected, it needs to be carefully analyzed by:

• Identifying patterns and trends: Analyzing the feedback data to identify common themes, strengths, and areas that require attention. Look for recurring feedback points across multiple sources to gain a comprehensive understanding.
• Focusing on strengths and areas for improvement: Highlight the individual’s strengths and acknowledge their achievements. Also, identify specific areas where improvement is needed and offer actionable recommendations.
• Sharing results and providing constructive feedback: Sharing the review results and constructively delivering feedback is essential for the individual’s growth and development.
• Delivering feedback in a sensitive and supportive manner: Sharing the feedback with the individual in a constructive and non-threatening way, focusing on their strengths and areas for improvement and providing specific recommendations.
• Organizing a one-on-one review session: Scheduling a dedicated one-on-one meeting with the individual to discuss the feedback, address any questions or concerns, and collaboratively create an action plan for improvement.
• Balancing positive reinforcement and constructive criticism: Striking a balance between recognizing the individual’s achievements and offering constructive criticism for areas of improvement. Provide specific examples and actionable steps for growth.

4. Create an Action Plan

After sharing the review results and providing feedback, creating an action plan outlining the necessary steps for improvement and development is crucial.

• The resources needed: Determine the workforce, logistics, and budget required to support the individual’s growth and development . This may involve assigning mentors or coaches, providing additional training or resources, or allocating specific project opportunities.
• The timeframe for achieving the goals: Establish a timeline for accomplishing the goals outlined in the action plan. This could be on an annual or semi-annual basis, depending on the nature of the goals and the review cycle.
• Assessment criteria: Define the criteria for assessing progress and success. This may include improved job performance metrics, increased customer satisfaction ratings, or enhanced skills and competencies.
• Employee development: Identify the specific development opportunities available for the individual. This could involve training programs, courses, webinars, or mentoring relationships to enhance their growth and skill.

By following these steps, organizations can effectively conduct 360 reviews, promote individual growth, and drive overall organizational success.

360 Reviews Best Practices and Challenges

Implementing 360 performance reviews requires careful consideration of best practices and an awareness of potential challenges. 

By following proven approaches and addressing potential pitfalls, organizations can maximize the effectiveness of 360 performance reviews. 

Let’s explore some key best practices and challenges to keep in mind:

1. Establishing a Culture of Trust and Openness

One of the essential best practices in 360 reviews is establishing a culture of trust and openness within the organization. This involves creating an environment where feedback is valued, encouraged, and constructively received. 

When employees feel safe to provide honest and open feedback, it fosters a culture of continuous improvement and growth.

2. Ensuring Confidentiality and Safeguarding Data

Confidentiality is a critical aspect of the 360 process. Employees must trust that their feedback will be treated confidentially and used only for developmental purposes. 

Organizations must implement robust safeguards to protect the anonymity and privacy of participants, ensuring that data collected during the review process is securely stored and accessed only by authorized individuals.

3. Addressing Potential Biases and Unfair Judgments

360 review processes have the potential for biases and unfair judgments to influence the feedback provided. It is crucial to address these issues by promoting awareness, sensitivity, and training among participants. 

Encouraging raters to provide objective and evidence-based feedback, and ensuring that feedback is evaluated fairly and unbiasedly, can help mitigate these challenges.

4. Setting Realistic Goals and Expectations

A best practice in the 360 degree review process is setting realistic goals and expectations. It is important to define clear evaluation criteria, provide guidelines for feedback, and establish realistic timelines for review cycles. 

By aligning expectations and ensuring clarity, organizations can enhance the effectiveness of the review process and facilitate meaningful performance discussions. All in all, implementing best practices in 360 performance reviews is essential for their success. Establishing a culture of trust and openness, ensuring confidentiality, addressing biases, and setting realistic goals are all important considerations. By adhering to these best practices, organizations can foster a culture of feedback, enhance the quality of reviews, and drive continuous improvement and development.

How to Run an Effective 360 Performance Review with Peoplebox?

When it comes to running an effective 360 performance review, having the right tools and processes in place is essential. 

Peoplebox is designed for enterprises and offers a comprehensive platform that connects goals (OKRs), feedback, coaching, and reviews. With Peoplebox, you can streamline your review cycle and ensure a seamless experience for both employees and managers. 

Let’s explore how to make the most of Peoplebox’s features for running an effective 360 performance review.

• Run Performance Reviews in Slack: With Peoplebox, you can eliminate the need for additional tools and run the entire review cycle within Slack , making it easy and convenient for everyone involved.
• Integrate OKRs/KPIs with Performance Management: Peoplebox allows you to align and customize how OKRs inform performance reviews, ensuring that goals are integrated seamlessly into the evaluation process.
• Centralized Goal-Setting & Tracking : Keep all your goals, KPIs, and initiatives in one centralized place that is updated in real-time, providing transparency and clarity throughout the review cycle.
• Auto-Reminders and Nudges: Peoplebox offers automatic reminders and nudges on Slack or via email, keeping employees and managers engaged and on track with the review process.
• Real-Time Visibility of the Entire Review Cycle: With Peoplebox, you can have a comprehensive view of the entire review cycle, ensuring smooth and efficient performance reviews.

By leveraging the power of Peoplebox’s features, you can run an effective 360 performance review that enhances feedback, drives development, and improves overall performance management. 

Take advantage of Peoplebox’s user-friendly platform and integrated tools to streamline your review process and empower your employees and managers for success.

Conducting effective 360 performance reviews offers numerous benefits for organizations, including enhanced self-awareness, improved team dynamics, targeted development opportunities, fair and objective evaluations, and alignment with organizational goals. 

By leveraging insights and feedback from multiple perspectives, organizations can make informed decisions, foster a culture of continuous improvement, and drive employee growth and engagement.

With Peoplebox, organizations gain access to a holistic performance management platform designed for enterprises, empowering their employees, driving growth, and achieving organizational success. Start utilizing Peoplebox to unlock the full potential of your 360 performance reviews and take your performance management process to the next level.

Encourage 360 review feedback and leverage the expertise of Peoplebox to streamline and enhance your processes. Platforms such as Peoplebox help you understand the type of performance reviews you are looking for and help you conduct and measure them meaningfully and seamlessly.  

Book your call today to let us help you execute faster.

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Case Study – 360 Degree Feedback Survey

Brian's story, the problem.

Brian applied to be a Plant Manager with his current employer, but he wasn’t given the role. Reasons noted were that his plant was underperforming, his people were unmotivated and there were concerns about morale among the employees.

THE Approach

The PRADCO Quick View™ 360 Survey identified areas for him to improve to be a better leader and get better results from his team. Following the 360 Feedback, a coaching program was put in place to support Brian’s development. The plan was centered around improving three main goals.  

• Improve performance through coaching and mentoring his staff
• Put more focus on developing relationships with people
• Encourage collaboration, flexibility, and teamwork toward organizational objectives

After a year, a second 360 Survey was given to evaluate Brian’s progress on those key areas and to see if he was ready for additional leadership responsibility. Results showed he had improved in many of the identified areas and had been utilizing different strategies to manage and interact with others.

Brian had become much more engaged with his people, providing them with more opportunities, more guidance, and more feedback. People became stronger through the changes he made in his leadership style.

When people feel valued and appreciated, they are more likely to work harder toward business objectives. The effort that Brian put into building better relationships with people helped him work through issues, resolve conflicts, and earn their support.

The focus that Brian put on the team had the effect of building morale and encouraging people to work together. With clearer objectives and more collaboration, people were on the same page and working in a more efficient manner. Brian’s boss noted that his overall ownership improved 31 points, from 57 to 88. He was acting more like a leader and showing more accountability for the team.

Brian worked with his PRADCO coaches for 12 months and was gratified by the improvement he had demonstrated. He had become a more balanced leader who is more ready for the challenge the next time a promotional opportunity arises.  

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A Study of 360-Degree Appraisal and Feedback System for Effective Implementation in Indian Corporate Sector

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Organizations have employed 360-degree feedback as a tool for performance assessment and employee development for almost a decade now, with reasonable success. However, as there are always two sides to everything, 360-degree as an assessment tool is not an exception. Due caution may have to be employed by organizations, before they use this tool for assessment. Authors attempted to investigate the perception of the middle-level managers, working in different sectors, in the cities of Bangalore and Mysore, on the 360-degree feedback process. Data revealed that the average importance level assigned to the issues of overall 360-degree feedback process, by the respondents, was significantly different. Also, there was significant sector-specific difference between average importance levels assigned to the issues of overall 360-degree feedback process. However, there was no gender-specific difference in the average importance level assigned to the issues. Based on the research findings, HR Departments may initiate in-depth employee opinion survey to investigate whether the managers forwarded socially acceptable responses. Also, HR Departments of the respective companies need to investigate the parameters of the respective company’s culture. Further cross-sectoral studies are also needed to substantial the present study findings

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Performance appraisal in Indian organization remains a widespread and common practice despite documented criticism of the process by practitioners and researchers alike. Lack of efficient ways to evaluate performance appraisal systems within organizational phenomenon. However, studying individual variables has proved so inadequate at explaining the intricacies of performance appraisals that researchers are attempting more comprehensive evaluation techniques. Attitudes and perceptions of performance appraisal by participants within the context of the organizations in which the process operates are now being conducted. In this study we will see about what is the opinion of employees towards 360 degree performance appraisal system and how effective the system to motivate employees. After finding it is concluded that there is positive correlation of 360 degree feedback and level of motivation. 360 degree feedback is a powerful and effective as a development tool appraisal

publication descriptionInternational Journal of Scientific Progress And Research (IJSPR)

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The purpose of this paper was to empirically study the relationship between factors, namely, feedback richness, perceived appraisal accuracy, perceived appraisal fairness, and effects of performance appraisal like satisfaction and employee motivation to improve performance. This study seeks to study these factors in the context of the Indian garment manufacturing export industry. A deductive approach was used with a single case study strategy. A quantitative questionnaire was administered to study the different factors by means of multiple item scales. Results indicated that feedback richness has a positive relationship with perceived appraisal accuracy and procedural fairness; perceived appraisal accuracy is positively related with employee satisfaction and employee motivation to improve performance; proved the relationship between appraisal fairness and appraisal satisfaction and motivation.

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India is the worlds largest sourcing destination for the IT industry, accounting for approximately 52% of US $ 124-130 billion market. India employs about 10 million Indians and continues to contribute significantly to the economic transformation of the country. Hence IT sector is considered to be one of the highest contributing sectors towards GDP. Being such an opportunity driven sector, attrition rate in this sector is also quiet high. In addition to that the attrition rate with respect to dissatisfaction in the performance appraisal methods used is 18.7%. Thus performance appraisal methods used in the organization plays a vital role in determining the employees performance, as well as the satisfaction level of the employee towards the performance appraisal method used. It is considered to be one of the important factors motivating the employees to perform on par or above the standard set. This paper is a study of performance appraisal methods used by the top 10 IT companies (based on revenue-2014) which includes-TCS, Infosys, Wipro, Tech Mahindra, HCL Technologies, Mphasis, Oracle Financial Services, Mindtree, Polaris Technology and Rolta India sequentially. Coincidentally these companies use either 360 degree feedback or Balanced Score Card. Thus this paper is a review of 360 degree feedback and balanced score card, analyzing its advantages, disadvantages and reasons for using the method.

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360-Degree appraisal is a powerful multi-dimensional competence development tool that draws upon the knowledge of an individual within his own circle of influence: supervisors, peers, and direct reports. The argument for multidimensional performance feedback is discussed in the areas of factors that have changed the role of competence as we have moved from the Industrial Age/Cold War to Globalization and the Information Age. A review of successful organizations reveals that many are using 360-degree appraisal for modern competence development, reinforced by similar systems for administrative performance appraisal. Research on 360-degree appraisal reveals effectiveness conditions, design and implementation considerations, and some categories of potential benefits. The article ends with strong recommendations for the use of 360-degree appraisal for both competence development and administrative Appraisal. In today's changing and volatile world organizations are continually looking for ways to improve performance, and satisfy the demands of all stakeholders. Achieving this almost inevitably involves change, which then becomes the pivotal dynamic for success. For an organization to evolve the people working within it will have to adapt; and for this to be successful, they first of all need to know what it is about the way they are currently performing that needs to change. This is where 360 degree feedback is playing a growing role in organizations through its ability to provide structured, in depth information about current Performance and what will be required of an individual in the future to enable detailed and relevant development plans to be formulated. Professionally managed, 360 degree feedback increases individual self-awareness, and as part of a strategic organizational process it can promote.

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The literature on 360-degree feedback performance appraisal systems has attracted considerable attention by showing a link between behavior change and individual performance. This study aimed to analyze the strengths, weaknesses, opportunities, and threats to the 360-degree feedback performance appraisal system for Civil Servants in the City Government of Medan. To determine the participants in this study, it was calculated using the formula, Slovin. The data was collected through observations, interviews, and literature studies. Data analysis used qualitative descriptive analysis. The data results would be used to determine the strengths, weaknesses, opportunities, and threats to the implementation of the Civil Servants' 360-degree feedback performance assessment system in the City Government of Medan. The strategy of implementing a 360-degree feedback performance appraisal system as a performance assessment system for Civil Servants in the City Government of Medan was creating...

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Performance appraisal is an important process for individuals as well as for organizations, and yet it is challenging to find the appropriate tools due to many problems. Subjectivity was one of the problems faced by organizations when it comes to apprise its employees. 360-degree feedback often served as the best alternative to minimize the issue and still is not flawless. Specific preparations needed to perform feedback appropriately, are easily overlooked. A review of 360-degree feedback practices in three organizations in Bandung showed that applying proper 360-degree feedback was a long and complex road. The organizations did not apply the entire procedure/steps as prescribed. Cultural variable (high power distance) and the awareness of the role of the organization's culture were deem important to set up right prior to 360-degree feedback deployment, so the intended goal of the assessment can be achieved.

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What is 360 Degree Performance Appraisal? Methods, Advantages & Disadvantages

You must have already heard about performance management system at enterprises for effective employee management . But do you know the benefits and best methods? Do you know what is 360 degree appraisal?

This blog will help you learn definition of 360 appraisal management and unique methods to perform. Let’s start with definition of 360 degree performance appraisal.

What is 360 Degree Performance Appraisal?

In its simplest, 360 degree performance appraisal is an advanced form of providing appraisals to employees at organisation. It involves feedbacks from different associated groups of organisation and outside (clients). The group of people or reviewers may include manager, HR, colleagues, and client they worked with.

The feedback is collected in the form of reviews from people and provides data for appraisals accordingly based on reviews. In other words, 360 degree appraisal method includes multi source feedbacks for the employees affected by their performance throughout the period.

Also Read: 11 Key Objectives of Performance Appraisal in 2024

Importance of 360 Degree Performance Appraisal

When we talk about business performance and growth, what most important? Definitely your employees, their well-being and what else?

Now, what could be better than feedback appraisal for employees based on their performance? The activity helps motivate your employees to perform better every time. An accurate and fair 360 appraisal system makes employees an important asset in terms of effective employee management at an organization.

360 Degree Appraisal Method

• Rating scale method
• Ranking method
• Free form method
• Confidential reporting method
• BARS method

1. Rating Scale Method

Rating scale is one of the most common methods of assessing an employee’s performance. This method includes a scale of 1 to 10 points. The parameters of the scale rating are delivery, attitude, attendance, regularity, and accountability, which are rated for the employee accordingly.

Many performing companies are using this method to have an effective and simple activity at place. The reviewing people are selected based on the employee’s role and nature of the job. The number of points scored for all the columns are finally added. Employees are therefore recognised and given a raise based on the performance and ratings.

This method makes the 360 degree performance appraisal management easier and fool proof.

2. Ranking Method

This traditional method includes comparison of performance of the employees with other employees at same tier and with same rank. Here a manager is allotted to provide the comparison report based on numbers and graph. A fixed percentage of employees are allotted different performance categories like excellent, good, average, below average, poor etc.

Ranking method is generally used when the manager has to make decision as to which person is the best worker for a given period of time. When someone has to be promoted or needs to be laid off, ranking methods is the best and quick way to rank.

The biggest advantage of this method is that it comes handy to HR manager and makes the complicate reviewing process easier.

3. Free Form Method

It is also called the ‘Essay appraisal method’. This is because the superior provides a detailed description of the selected employee’s performance. This includes supporting documents and examples of his/ her performance. This method could be highly biased at providing feedbacks.

The reviewer under this method also uses the rating scale method (described earlier in the blog) to rate the weaknesses and strengths of an employee to validate the essay report. This method is very time consuming as the reviewer is required to collate all the documents and submit a brief.

Free form method is considered to be one of the non-quantitative evaluations for performance appraisal .

4. Confidential Reporting Method

This method is very popular among governmental organizations. Here the superiors need to write a confidential report on the subordinates, who needs to be reviewed, with respect to his/ her behaviour and duties at organization. The report prepared here would not be exposed to anyone.

This is only referred by the top management or the human resource. In India this method is being used by most of the government organizations like the Armed Forces, Police department, CBI etc. The main factors assessed here are:

• Temperament
• Sincerity and trust-ness
• His/her behaviour with the subordinates

5. BARS Method

BARS (Behaviourally Anchored Rating Scale) method is one of the new age methods to provide accurate feedback. The method consists of a set of behavioural statements that explain the performance of an employee towards a particular job.

This method acquires a set of parameters and decided points for each. The performance parameters could include good, bad, average, must be laid off, and so on.

Also Read: How to Ensure Constructive Feedback for Managers?

360 Degree Performance Appraisal Advantages and Disadvantages

Appraisal management system could be very powerful asset for businesses. Yet, every resource has its own advantage and disadvantage.

Advantages of 360 Degree Appraisal

• Self-development
• Fair and accurate reviews
• Eliminates Biasness
• Motivated workforce
• Comprehensive view of employee performance
• Persuasive Reviews
• Boost employees morale
• Positive work environment

Let us get an insight into the advantages of 360-degree appraisal.

▸Self Development of Employees

The 360-degree appraisal system includes acquiring of 360 degree feedback from different proficient, skilled, and accomplished personnel from the organization. This will give a vivid picture of the areas of improvement for the employees and they can work on it for self-development.

In addition, it helps employees to know the expectancy and standard of performance expected from him and can work accordingly to achieve it.

▸Fair and Accurate Reviews

The 360 degree appraisal reviews are just and fair as the review system includes different departments or different personnel and not a single source.

This surges the transparency of reviews and blocks the loop holes of biasness or unfair reviews. The accuracy of reviewing also escalates.

▸Eliminates Biases

The 360 degree appraisal is bias-free as the 360 degree feedback is a multi-rater feedback system that is appropriated from different sources of an organization and is not monocentric.

The performance review of employees is acquired on the basis of their strengths and weaknesses, skills, and more are evaluated based on the feedback of employers, peers, managers, and more. Overall it is a 360-degree performance management.

so, it leaves no room for biases as biased feedback can be filtered out from the actual ones by referring to the statistics of multisource reviews.

▸Motivated Workforce

One of the vital advantages of the 360-degree appraisals is that it motivates the employees in terms of both resource and knowledge. In terms of resources, an appraisal system adds to the income of an employee which is the main focus of outcome for productivity for an employee.

Similarly, a 360-degree feedback is taken from diversified personnel from the organization which boosts their morale when the reviews are positive and exhibits the areas of learning from the adverse ones.

▸Comprehensive view of Employee performance

The employee’s 360 degree performance is reviewed in a comprehensive way which gives a brief insight into the work process and progress of the employee. A 360 degree appraisal is an outcome of the 360 degree feedback system which is a comprehensive way of gathering reviews from multiple sources within an organization.

It gives a vivid insight into the performance of the employee as well as showcases the areas to improve.

▸Persuasive Reviews

The feedback system in a 360 degree appraisal is comprehensive as it is reviewed by proper reasoning and analytics rather than casual evaluation.

It is not just a merry temptation of biases but rather an analytical review that is a result of the diversified reasoned opinion of various ( employer, peer appraisal feedback, and more) personnel in an organization. Being a multi-rater feedback system, the reviews are not only fair but also persuasive.

▸Boost Employees Morale

The appraisal and positive feedback from heterogenous prominent personnel as well as peers improve the employee’s morale and encourage them to be more productive. In addition, the adverse feedback too increases the learning capacity of the workforce and makes it a win-win situation for them in both scenarios.

Besides, appraisal and recognition naturally boost the employees’ motivation to be more productive.

▸Positive Work Environment

The process of 360-degree feedback contributes to team building by enhancing the professional relationship among the organization’s workforce.

An engaging and healthy professional relationship between the employees yields a positive work environment out of controversies and conflicts.

Also Read: 4 Tricks to set-up a Fair and Transparent Appraisal system!

Disadvantages of a 360-degree appraisal system

There are various pointers that can prove as a disadvantage in a 360-degree appraisal system which includes

• Time-consuming
• Bias and Unfairness
• Data Overload
• Lack of accountability
• Conflicting feedback
• Internal controversies
• Enhances Office politics

Let us take a close watch on the above-mentioned pointers on the disadvantages of 360-degree appraisal.

▸Time Consuming

The process of a 360-degree appraisal is time exhausting as it goes through different personnel in an organization for 360-degree feedback.

The process of gathering feedback, analyzing the received data, discussing the feedback, and appropriate follow-ups take time. The multiple steps and personnel involved in it make it lengthy and time-consuming.

▸Bias and Unfairness

This is a potential drawback that can prevail while giving feedback. Feedback may be influenced by personal relationships, and biases and can be an outcome of office politics.

Specifically, when the company size is mid, office politics becomes prominent. In addition, there is intentional negative feedback in fear of retribution which degrades honesty and transparency in acquiring feedback.

▸Data Overload

360-degree appraisals system gathers feedback from diversified sources like employers, subordinates, peers, and sometimes even customers in order to make it more authentic. But this in contrast increases the data and results in data overload thereby creating complexities and confusion.

In a mid or large-scale company where the employees count is large, 360-degree performance appraisal data creates perplexity and goes puzzled for the management to access.

▸Lack of accountability

The 360-degree appraisals system too has accountability issues as it comes from different sources and makes it difficult to determine who is responsible for specific comments or suggestions.

For example, if an employee receives negative feedback from a peer, it may be difficult to determine who specifically provided the feedback. This can make it challenging to follow up on the feedback and take appropriate action.

▸Conflicting Feedback

As a 360 degree feedback is acquired from various sources, the possibility of contradictory feedback persists which creates confusion.

This not only creates perplexity but also makes it challenging for employees for understanding their priority areas that need attention and focus.

▸Internal Controversies

As there are multiple raters to review the performance of an employee for 360-degree appraisal, There arises conflicts and disagreements between the raters regarding the feedback.

For example, a peer may rate an employee’s performance highly, while a supervisor may rate the same employee’s performance as average. These discrepancies can create internal controversies and make it challenging to develop an accurate assessment of an employee’s performance.

▸Enhancement in Office Politics

In some cases, feedback provided by raters can be misinterpreted, leading to controversies. For example, a rater may provide feedback that is intended to be constructive, but the employee may interpret it as overly critical or negative.

This can create internal conflicts and lead to gossip, hatred, and toxicity giving rise to office politics. It affects the healthy work environment and makes it gloomy.

Committing to performance appraisal on your own without any software assistance could be difficult and error prone. Data handling could be the biggest hurdle. Instead, dedicated software like appraisal management system can help conclude with yearly appraisal skilfully and easily. Pocket HRMS is one such integrated HR solution!

Visit Pocket HRMS to get cloud-based HRMS software today. Also, follow our recent blogs to learn new HR strategies and HR solutions. Write to us at [email protected] . You can also reach out to us on our Twitter , LinkedIn , Instagram, or  Facebook  page.

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Deery, Margaret and Jago, Leo Kenneth (2003) Improving Employee Performance in the Hotel Industry : a case study of 360 degree performance appraisal. In: CAUTHE 2003: Riding the Wave of Tourism and Hospitality Research. Braithwaite, Robyn L and Braithwaite, Richard W , eds. Southern Cross University, Lismore, NSW, pp. 286-297.

This paper details the use of a style of performance appraisal, known as 360 degree appraisal, in order to improve employee performance. The paper explores whether the use of 360 degree appraisal provides better feedback than only using the traditional performance interview. It provides a review of the current literature pertaining to performance appraisal, to the development of a performance appraisal scale, its implementation, and analysis. The survey instrument was tested on eleven supervisory staff at a major hotel in the Central Business District of Melbourne. Each supervisor was evaluated using up to nine appraisals from peers, subordinates, managers, customers, and their own supervisor. The data were then analysed; factor analysis revealed four underlying factors relating to communication, leadership, teamwork and excellence. A report was developed for each supervisor and used in conjunction with other appraisal methods such as interviews. Interviews were then conducted with the Human Resources (HR) Manager and with some participants in the process to assess the performance of the 360 degree appraisal. Participants who were interviewed, were unanimously supportive of the 360 degree appraisal system believing that being asked to rate the performance of others encouraged them to reflect upon their own performance. Most interviewees, however, felt that more training was needed prior to the process taking place. The HR Manager was firmly of the view that this approach provides a wealth of information to assist with staff development that is not obtained in the more traditional performance appraisal process.

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Google’s Performance Management Playbook: Inspiration for Your Organization

Google has been ranked by Glassdoor as one of the best places to work since 2013. As one employee said: “All of the good things people say are true—great culture, great pay and benefits, fun projects, and awesome offices.” 

That’s an enviable position that any company would like to hold, especially in an environment characterized by high turnover and growing employee dissatisfaction.

So what about Google helps it hold onto its position as a great place to work, even during the uncertainty of the great resignation ? 

There’s a number of reasons, but its great performance management practices are high on the list.

Streamline your performance management process with PerformYard. Learn More

Google’s Performance Management Practices

Google has what some say is the world’s most progressive human resource organization . Its “People Operations Practice” includes a strong focus on a merit-based reward/incentive program and developing employees to reach their fullest potential.

Google has a robust process full of performance management practices, including:

Self-Assessment

The employee evaluates themself on five criteria and highlights their main accomplishments for the last review cycle. This gives employees an opportunity to be introspective and also to give some consideration to their own performance in preparation for a discussion with their managers.

360-Degree Feedback

Employees and managers discuss and decide together who will provide 360-degree feedback for the employee. Peer feedback is sought for input on strengths, weaknesses, and contributions to specific projects. Having a broader range of input can help employees put the feedback into perspective and gain a more well-rounded sense of how their work is perceived.

Annual Performance Review

Google’s annual performance review is split into two parts: a mid-year checkpoint and end-of-year review.  The end-of-year review uses data from the employee’s self-assessment and the 360-degree feedback provided. Managers also draft a rating for employees as part of the annual performance review. Two main things are taken into account when assigning employee performance ratings:

• Results attained, or what the employee accomplished
• Behaviors, or how the employee attained these results 

These two factors help maintain a focus on both hard and soft skills as part of the annual review.

Monthly Performance Check-Ins

In addition to the mid-year and annual review, Google employees meet monthly with their managers for regular check-ins. These check-ins address career development, coaching, and an opportunity to address any personal issues. They facilitate open communication between employees and managers and help both parties stay on top of developing issues or need for course correction throughout the year.

Googlegeist Engagement Survey

The Googlegeist is an annual survey given to all employees where they are asked to rate their managers and life at Google. The survey allows leaders to manage and monitor trends as well as to make comparisons across the company to spot trends, best practices, and areas that may need attention.

Upward Feedback Survey

In addition to the Googlegeist for gathering broad input on employee sentiment, Google also conducts annual upward feedback surveys where direct reports have the opportunity to rate their managers. Like the Googlegeist, this input allows leaders to identify trends, best practices, and areas that may need attention or improvement.

Related: What is Upward Feedback? Lessons from Google Manager Surveys

OKRs: How Google Sets Goals

Every quarter, Google assigns about 4-6 Objectives and Key Results (OKRs) to help provide the company with clear focus and to ensure that employees understand how their work impacts their work area and the company overall. OKRs also encourages team effort. Overall targets drive the creation of sub-objectives and are set annually. 

Meritocracy

Google has a strong focus on meritocracy, striving to compensate people based on their contributions through bonuses, equity stock option grants, and prizes.

What Google Employees Are Saying

Google has a robust ​​performance management process that encourages employee engagement, feedback, and a strong performance culture. But what do its employees think? Let’s take a look at a few anonymous Glassdoor reviews to see what Google’s employees are saying. 

“The company is amazingly open: every week Larry Page and Sergey Brin host what's called TGIF where food and drinks are served, a new project is presented, and an open forum is held to ask the executives anything you want. It's truly fair game to ask anything, no matter how controversial.”

“Google has incredible resources for learning high-tech and managing teams. There is outstanding onboarding, process documentation, and shadowing for new joiners. The community of individuals is top-notch​​—amazingly smart, driven, and courteous colleagues.” 

“Google is a fantastic company with its heart in the right place. The real gem, though, are the people. I have thoroughly enjoyed working with some of the most incredible people on the planet.”

“Sometimes being that it is such a big company it is sometimes hard to be heard when you need to voice concerns or comments.”

“Product culture is bewildering sometimes.” 

“Very flat organization structure creates for highly ambiguous roles.”

Takeaways for Your Organization

Like any organization, Google has both its cheerleaders and its detractors. But Google generally has a great reputation among both employees and customers. 

So, what can you take away from Google’s practices to consider for your organization? Here are a few recommendations:

• Google has “Googleyness”—it places a big focus on company values and how employees adhere to them.
• Employees are heavily involved in the performance review process. They help decide who provides 360-degree feedback, set their own OKRs, and provide upward feedback to their managers.
• The peer feedback process is simple and focuses only on strengths, weaknesses, and contributions to specific projects.
• Google’s OKRs are shared publicly with the entire company—everybody knows how and where they fit in and have the opportunity to know what others are working on.
• Upward feedback is used to give employees an opportunity to rate their managers.

Having a robust performance review process with a number of elements designed to provide feedback throughout the year, engage employees in the process, and ensure a well-rounded perspective of both employees and leadership have helped Google position itself as a place where employees have a voice and an opportunity to make a difference.  

More Inspiration

Looking for more inspiration and ideas for performance management at your organization? These articles show how other top companies do performance management.  

How Does Uber Do Performance Management?

How Does Asana Do Performance Management?

How Netflix does Performance Management

Deloitte's Radically Simple Review

How Does Amazon Do Performance Management

How Does GE Do Performance Management Today?

3 Approaches to Performance Management: Google, Betterment and IBM

How Does Facebook Do Performance Management?

The tools to streamline your performance management process.

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