360 Degree Performance Appraisal Technique

Topics: 360-degree feedback, Human resource management, Performance appraisal Pages: 22 (5989 words) Published: April 5, 2013



People differ in their abilities and their aptitudes. There is always some difference between the quality and quantity of the same work on the same job being done by two different people. Therefore, performance management and performance appraisal is necessary to understand each employees abilities, competencies and relative merit and worth for the organization. Performance appraisal rates the employees in terms of their performance.

Performance appraisals are widely used in the society. The history of performance appraisal can be dated back to the 20th century and then to the second world war when the merit rating was used for the first time. An employer evaluating their employees is a very old concept. Performance appraisals are an indispensable part of performance measurement. Performance appraisal is necessary to measure the performance of the employees and the organization to check the progress towards the desired goals and aims.

The latest mantra being followed by organizations across the world being – ―get paid according to what you contribute‖– the focus of the organizations is turning to performance management and specifically to individual performance. Performance appraisal helps to rate the performance of the employees and evaluate their contribution towards the organizational goals. If the process of performance appraisals is formal and properly structured, it helps the employees to clearly understand their roles and responsibilities and give direction to the individual’s performance. It helps to align the individual performances with the organizational goals and also review their performance.

Performance appraisal takes into account the past performance of the employees and focuses on the improvement of the future performance of the employees.


1)Setting SMART Goals for Employees:
Goal setting provides leaders, managers and employees with web-based tools to set SMART goals and track progress on frequent intervals.

2)Evaluate Employee Performance:
Employee Appraisal ensures objective and accurate evaluation of your employee’s performance and helps you find the strengths and weakness of the employee.

3)Coach and Train Employees to improve their performance:
To continually improve performance of your organization you need to continuously training employees to update their skills and competencies. Training Management allows you manage employee training effectively.

4)Define competitive employee compensation plans:
Employee compensation plan helps you to remain competitive in your business and attract and retain talented employee.

5)Promote right employees to critical positions:
Organizations succeed by placing right employees in right positions


The objectives of Performance appraisal are:

To review the performance of the employees over a given period of time. To judge the gap between the actual and the desired performance. To help the management in exercising organizational control. Helps to strengthen the relationship and communication between superior and subordinates and management – employees. To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future. To provide feedback to the employees regarding their past performance. Provide information to assist in the other personal decisions in the organization. Provide clarity of the expectations and responsibilities of the functions to be performed by the employees. To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development.  To reduce the grievances of the employees.



Traditionally, performance appraisal has been used as just a method...

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