720 Degree Performance Appraisal: A New Intervention for Workforce Development

Transcription

1 720 Degree Performance Appraisal: A New Intervention for Workforce Development Dr. P. Aranganathan Associate Professor& HOD Department of MBA M.I.E.T. Engineering College, Trichy, Tamilnadu, India Corresponding Authors id: aranganathanp@gmail.com Abstract In the recent years, in addition to several traditional and other modern methods of performance appraisal, 720 Performance Appraisal is a feedback method, wherein the assessment is done not only by the stakeholders within the company but also from the groups outside the organization. 720 Degree evaluation aims at monitoring, mapping, giving feedback and encouraging the employees to achieve the goals of the Organization. 720-degree performance appraisal method is more development focused than performance alone, and supports training and development functions in a better way. Hence 720-degree performance appraisal is needed for the improvement in performance of the employees in their jobs and to ensure that the expectations of the employer, employee and the customers are met. This paper is aimed providing a review on the 720 performance appraisal technique practiced in the Indian organizations. This paper also highlights review on effectiveness of the 720 Performance Appraisal system in work force development. Keywords: Balance Score card, BARS, self-appraisal, customer appraisal, pre-appraisal feedback, etc I. INTRODUCTION Performance Appraisal is a tool used in an organized and objective way to measure the actual performance of employees to the standards set by the organization followed by formal or informal feedback from the 1 Page 1-10 MANTECH PUBLICATIONS All Rights Reserved

2 superior in judging the relative worth or ability of the employee performing his or her task (Dessler, Gary. (2011), Eichel, E., & Bender, H. E. (1984)). Companies are using various methods of performance appraisal to assess their employee s performance. Performance appraisals are one of the most important processes for successful businesses, and are one of the key metrics a human resource department within an organization will be judged on (Kressler, 2003). Each performance appraisal method has its own pros and cons which might work well for an organization but might not be noble enough to suit for other organizations. Hence, organizations use different methods according to their expectations and culture to evaluate their employees performance. The appraisal methods are broadly classified into traditional and modern methods. Some of the traditional methods include Graphic Rating Scales, Paired Comparison, Ranking Method, Critical Incidents Methods, Essay Method, etc. Plentiful Indian organizations still prefer traditional appraisal methods in contrast to the modern approaches. The performance appraisal process itself should be carefully designed by integrating organization s objective and goals, since it is as well used as a means of providing feedback to further motivate and maximize the performance of the employees to achieve the expected results (Boxall, P., Purcell, J., & Wright, P. (2007)). But some of the traditional methods discussed earlier fails to incorporate the above stated features because performance appraisal is assessed based on knowledge, initiative, loyalty, leadership and judgment (Aggarwal, A., & Thakur, G. S. M. (2013). Hence, there is a keen need for Indian organization to transform and adopt the modern techniques of appraisal such as MBO, 360 degree, 720 degree, BARS, Human Resource Accounting, Balance Score Card, Electronic Performance Monitoring, Assessment Centers and etc ( S. Vadivelu & Ramila Ram Sing, 2016). According the studies carried out by Sanyal, M. K., & Biswas, S. B. (2014) for IT field in West Bengal, India, the use of modern performance appraisal methods such as 360 degree and MBO which plays a vital role for the HRD activities. It is also very evident that the modern performance appraisal methods establish a causal linkage between the applications of appraisal methods and employees motivation level. In recent years, Indian companies have started to depart from the traditional method of evaluating performance normally carried out by the superior (Armstrong, M., & Baron, A. 2 Page 1-10 MANTECH PUBLICATIONS All Rights Reserved

3 (2000)) to contemporary methods in compliance with the significant change in organization s structure, processes and culture. Rohan Singh, R., Mohanty, M., & AK, M. (2010) examined the relationship between performance appraisal and employee s performance in Indian service and manufacturing sector. The findings indicated that there was an association exits between performance appraisal and employee s performance. Hence it is clear that outstanding performance appraisal practices leads to enhanced employee performance. In today s working environment, even the employees want to know how they fit their organization and whether they have achieved the organization s goals. Also they need to understand about their aspects of selfimprovement for enhancing their performance in future through performance appraisal methods. Gal breath started using the 720 degree and defined it as a more intense, personalized and above all greater review of the upper level managers that brings in the perspective of their customers or investors, as well as subordinates. "There is little disagreement that if well done, performance measurements and feedback can play a valuable role in effecting the grand compromise between the needs of the individual and the needs of the organization" (Virginia tech, 2010). Companies need to understand the purpose of appraising performance. This is to motivate an employee to increase their performance levels by attempting to help the employee understand why they are not performing effectively. It is also to identify how they can perform better (Kokemuller, 2012). Companies need to select the correct method for them based on a range of different factors, such as the need to compare employees, the cost of the method, the scope for error as well as the training needs evaluation for their specific company (Jafari et al., 2009). 720 PERFORMANCE APPRAISAL In addition to traditional and other modern methods of appraisal, 720 Performance Appraisal is a new feedback method, wherein the assessment is done not only by the stakeholders within the company but also from the groups outside the organization including customers, investors, suppliers and other financial institutions. It is one of the most crucial modern methods of performance appraisal since this is the only group that determines the success of the organization as a whole. 3 Page 1-10 MANTECH PUBLICATIONS All Rights Reserved

4 The 720-Degree performance evaluation is required for the improvement in performance of employees in their jobs and to ensure that the prospects of the organization, employee and the customers are met. It is a proficient tool to improve and recompense the performance of the personnel. It helps to scrutinize employees attainments and evaluate their influence towards the attainment of overall organizational objectives. 720 Degree evaluation aims at monitoring, mapping, giving feedback and encouraging the employees to achieve their goals as well as the overall goals of the Organization degree performance appraisal method is more development focused than performance alone, and supports training and development functions in a better way. 90 degree appraisal process is done by one person i.e. supervisor and 180-degree appraisal process is reviewed by supervisor and self. Then, 270 degree appraisal process is done by one more dimension of people along with supervisor and self. 360 degree appraisal involves four dimensions such as the peers, supervisor, managers, customers, etc. When this happens in encyclical basis is known as 720 degree appraisal. 720 degree is appraisal by 8 dimensions (self, peers, supervisors, subordinates, suppliers, customers, family and shareholders). 360 degree performance appraisal is done by superiors, peers, subordinates and internal customers of a firm whereas 720 degree appraisal system consists of appraisal by all the persons consists of top management, superiors, subordinates, peers, internal clients and auditors, external suppliers, customers, and all stake holders of the firm. 720 degree method concentrates on what matter most, which is the customer or investor knowledge of their work (Mondy & Wayne, 2008). While 360 degree performance appraisal is a well-known performance appraisal system practiced in many organizations, recently in the modern management, 720 degree performance appraisal system is also gaining popularity. The 720 degree appraisal has been developed in such as way that the employees performance is based on targets, measured and analyzed in the first phase of the appraisal and over a definite span of time, their performance is measured again and proper feedback and guidance is given to ensure that the employees work efficiently and achieve the given target. As explained by Anupama et al., 720 degree performance appraisal is an integrated method of performance appraisal where, the performance of an employee is evaluated from 360 degrees 4 Page 1-10 MANTECH PUBLICATIONS All Rights Reserved

5 (Management, Colleagues, Self and also customers) and timely feedback is given and performance is evaluated again based on the targets that are set. 720 degree approach gives people a very different view of themselves as leaders and growing individuals. 360 degree appraisal method is practiced twice. When the 360- Degree appraisal is done, then the performance of the employee is evaluated and having a good feedback mechanism, the boss sits down with the employee again a second time and gives him feedback and tips on achieving the set targets (Sapra N, 2012). Hence, 720 degree performance appraisal can be stated as twice 360 degree performance appraisal: Once when the appraisal is done and the targets are set and the second where the feedback is given and the boss gives tips to achieve the goals. Hence, there is a pre and a post round of feedback. 720 PERFORMANCE APPRAISAL - PHASES Majority of the organizations today aim at accomplishing higher rate of typical fulfillment and fairness in the workplace. So in order to accomplish the above objectives, 720 Degree appraisal is an indispensable instrument as it is utilized to assess the execution of a representative from various measurements and defeats the obstructions of inclination, partiality and separation. The execution is assessed from 5 measurements and input or the appraisal meeting is led twice (pre and post feedback) to guarantee the proficient execution of the employee. Counting the pre and the post feedback, the 720 Degree execution appraisal is done in 7 stages. 1. Pre Appraisal Feedback: This is the first appraisal step that is done after the feedback is collected from the different dimensions or people with whom, the employee would interact. In this step, the performance is evaluated, targets are set and feedback or training is organized to help the employee achieve their target. 2. Self-Appraisal: The employee is provided with a questionnaire and asked to fill the same through which he/she can evaluate his/her performance through this method. So, the employee gets an opportunity to express his thoughts and his value his own strengths, weakness and finally his performance. 3. Peers/Colleagues Appraisal: The feedback from the peers or colleagues is important as it evaluates the ability of the employee to work as a team member, thereby to co-operate, coordinate with others to accomplish the assigned projects. 5 Page 1-10 MANTECH PUBLICATIONS All Rights Reserved

6 4. Customer Appraisal: In order to sustain in the current competitive market, the organizations aim at ensuring high level of customer satisfaction. Customer feedback helps management to analyze the customer point of view thereby go for the competitive strategies to ensure customer satisfaction. ADVANTAGES & DISADVANTAGES The 720-degree performance appraisal is needed for the improvement in performance of the people in their jobs and to ensure that the expectations of the employer, employee and the customers are met. It provides the basis for the following: 5. Subordinates Appraisal: The feedback from the subordinates is essential to analyze the organizing skills of the employee and to understand his abilities like communication and motivating abilities, ability to delegate the work, leadership qualities and way of handling responsibilities. 6. Managers/Superiors Appraisal: Here, the performance, responsibilities and the attitude of the employee is evaluated from the Superiors or Managers point of view. Improved Feedback from More Sources belonging to various dimensions Personal and Organizational Performance Development Responsibility for Career Development Improved Customer Service of the organizations Appropriate Training Needs 7. Post Appraisal Feedback: It is this Assessment Process step that makes the 720-degree performance appraisal different and better than the 360-degree performance appraisal method. In this stage, the performance is evaluated based on the target set in the Team Development Reduced discrimination risk pre-appraisal and feedback is given. Timely feedback and guidance helps to However it has some disadvantages. The disadvantages are mentioned as follows: make the employee improve his Exceptional expectations for the performance. process 6 Page 1-10 MANTECH PUBLICATIONS All Rights Reserved

7 Insufficient training and process understanding Focus on negatives and weaknesses Rater inexperience and ineffectiveness Requires commitment of top management and the human resources (time, financial resources etc) prejudice influenced their appraisal. Hence, it is necessary to introduce an objective multi-dimensional appraisal method like the 720 degree performance appraisal method where personal bias cannot influence the appraisal process (Anupama, Mary Binu T.D. & Tapal Dulababu, 2011). The 720 appraisal system is more focused on Management/ Higher level staffs while the 360 appraisal system is general. The 360 has a Single evaluation cycle while the 720 has dual evaluation cycles. Insufficient information. NEED OF 720 PERFORMANCE Design process downfalls FEEDBACK SYSTEM The 720 degree feedback system is Failure to connect the process focused on overall development of the employee rather than performance alone, Paperwork(computer entry and provides training and development in overload) a superior way. An important developmental tool as when conducted at DIFFERENCE BETWEEN 360 AND 720 APPRAISAL METHODS regular intervals it helps to keep a track of the changes, others perceptions about the The 720 Degree appraisal system is more employees. Many organizations have focused on the customer s feedback on various position in the organization such as directors, managers and other higher or mid-level managers and while the 360 Degree appraisal system is more focused on the internal customer s feedback on started realizing that the skill base of their executives and managers does not match the perquisite of a rapidly changing environment. Without core competencies, executives and managers are less likely to be able to lead these organizations toward employee performance. 68% of the successful implementation of strategic employees stated that personal bias and changes. The essentiality of 720-degree 7 Page 1-10 MANTECH PUBLICATIONS All Rights Reserved

8 performance appraisal is the enhancement of the performance of the individuals in their jobs and to ensure that the expectations of the employer, employee and the customers are met. The main need of 720-degree performance appraisal can be summarized as follows: a) 720-degree performance appraisal method is more development focused than performance alone, and supplements training and development functions in a better way. e) It ensures that employees that they meet organizational standards and objectives. f) To discover the employees potential and to identify the areas where training is required to guide the employees to perform their best. g) It recognizes the expectations of the employees and avoid grievances and in-disciplinary activities. b) It provides all the needed information about the performance ranks. It helps the HR departments in taking crucial decisions regarding salary fixation, confirmation, promotion, transfer and demotion. h) It provide information to diagnose deficiency among the employees regarding their skill and knowledge thereby determining training needs and prescribe the means for employee growth and information for correcting placement. c) It supplies appropriate feedback about the performance of the employees, set targets and make sure the performance based on the targets set. d) It helps management to check the effectiveness of employees procedures and practice i.e. validation. i) It helps to set targets, monitor the performance and provide timely feedback to ensure that the performance is improved. j) These critical competencies are essential to assist the executives and managers to be able to lead these organizations toward 8 Page 1-10 MANTECH PUBLICATIONS All Rights Reserved

9 successful implementation of strategic changes. CONCLUSION The organizations need to understand that performance appraisal is an important human resources practice tool which provides information to many critical human resource decisions (Sudin. S, 2011). The success of an organization depends on its ability to measure accurately the performance of its employees and use it objectively to optimize them as a fundamental resource (Bajpai, N., & Soni, A. (2011)). The effectiveness of the Performance appraisal system is also based on to the extent how well Human Resource Development in an organization is oriented (Jain and Kamble, 2005). In this regard, when compared with other appraisal methods, 720 degree feedback system aims at developing the work force for ensuring the organizational effectiveness by creating better work environment and co-operative teams. Also it helps in better analysis and improved feedback from different dimensions. Due to its capability of taking an all-round feedback, this system of performance appraisal is more transparent and quantifiable. It also minimizes various appraisal barriers like prejudice, bias and discrimination. REFERENCES I. Aggarwal, A., & Thakur, G. S. M. (2013). Techniques of Performance Appraisal-A Review. International Journal of Engineering and Advanced Technology (IJEAT) ISSN, II. Dessler, Gary. (2011). Human Resource Management. 12th ed., Upper Saddle River, NJ: Pearson Education, Inc Eichel, E., & Bender, H. E. (1984). III. Performance Appraisal: A Study of Current Techniques. An AMA Research Study. New York: Research and Information Service, American Management Association. IV. Jafari, M. Bourouni, A. Amiri, R. (2009) A New Framework for Selection of the Best Performance Appraisal Method. European Journal of Social Sciences. 7(3) V. Kokemuller, N. (2012) [Online] The Pros & Cons of Performance Appraisal Methods. Available from: 9 Page 1-10 MANTECH PUBLICATIONS All Rights Reserved

10 s-cons-performance-appraisalmethods html VI. Kressler, H. (2003) Motivate and Reward. Basingstoke: Palgrave Macmillan. VII. Mondy & Wayne, Human Resource Management, Tenth Edition, Pearson Education, Prentice Hall, 2008 VIII. S. Vadivelu & Ramila Ram Sing, (2016). International Journal of Applied Engineering Research ISSN Volume 11, Number 5 (2016) pp XII. Jain, H. C., & Venkata Ratnam, C. S. (1994). Affirmative action in employment for the scheduled castes and the scheduled tribes in India. International Journal of Manpower, 15(7), XIII. Armstrong, M., & Baron, A. (2000). Performance management. Human resource management, XIV. Boxall, P., Purcell, J., & Wright, P. (2007). Human resource management: scope, analysis, and significance. IX. Sapra N.(2012). Current trends in performance appraisal, IJRIM,vol.2(2). X. Virginia tech (2010) [Online] Performance Appraisals 101. Available from: edu/performanceappraisal101/litera ture.htm XI. Bajpai, N., & Soni, A. (2011). Study on recent trends in performance appraisal in international business. Global J. of Arts & Mgmt, 1(3), XV. Sanyal, M. K., & Biswas, S. B. (2014). Employee motivation from performance appraisal implications: Test of a theory in the software industry in West Bengal (India). Procedia Economics and Finance, 11, XVI. Singh, R., Mohanty, M., & AK, M. (2010). Performance appraisal practices in indian service and manufacturing sector organizations. 10 Page 1-10 MANTECH PUBLICATIONS All Rights Reserved