Objectives of the article:

This article focuses on the following areas.

1. To define the meaning and concept of the 360 degree performance appraisal process.
2. To communicate or inform the participants about the weaknesses of the conventional system
and how 360 degree system overcome these weak areas.
3. To provide necessary skills to plan and implement a 360-degree appraisal System in the
organization.
360 Degree Appraisal System :
A latest “performance management tool” is a 360 degree appraisal system. This process enables
the individuals performance to be evaluated from an all around perspective and thereby provide
more accurate information on an individual’s performance over a stated time period. The
concept of 360 degrees comes from the number of degrees in a circle. Every point at the edge of
the circle provides a direction or a dimension to its centre. So providing an employee with 360
degree feedback means that feedback comes from all directions like From your boss From your
peers From your customers From your team members on special projects & alsoFrom those
people who report to you. This leads toward validity and reliability of the performance appraisal.
CURRENT THINKING ON 360 DEGREE PERFORMANCE APPRAISAL Here we see that what
factors we should keep in mind while appraising under 360 rule. 1. Do the various sources
provide unique information. 2. Does 360 degree feedback result in improved performance 360
Degree Works Best When
1. Managers meet with their subordinates to discuss their upward feedback.
2. The Managers, receiving the feedback ,were initially not the top performers.
3. The Managers, receiving the feedback , initially think that they are performing better than do
their subordinates.
4. The results are used for feedback rather than for decisions about compensation and
promotions.
NOTE The above four concluded points are the results of a research conducted by executives in
the American companies.
The points 1 , 2 are the findings of walker & smither , 1999. The point 3 is the finding of Johnson
& feostle , 1997.
The point 4 is concluded by denisik & kinger , 2000.
A modern questionnaire is designed on the basis of various job dimensions. These job
dimensions could vary from employee to employee. These forms are given to all the points on
the edge of the circle keeping employee as a centre of that circle.
CONCLUSION The process of 360 degree performance appraisal or assessment can help your
employees see themselves in an entirely new light. It can assist them in gaining consensus about
what they are doing right and what they still need to improve.
Designing and Implementing A 360° Appraisal System
The 360-degree appraisal system is the latest performance management tool currently being
used by many of the Fortune 500 companies in the U.S. to evaluate and provide feedback on the
performance of individuals in an organization. Unlike conventional appraisal systems, which
call for the evaluation and feedback to be, provided by only an individual’s superior, the 360-
degree system calls for this to be done by subordinates, peers and superiors. According to a
survey carried out by the Human Resources consulting firm of Towers Perrin in 1998, 8 percent
of major companies in the United States were using the 360-degree appraisal system. It also
stated that 69 percent planned to introduce it in the next three years. Some of the companies,
which are presently using it, are McDonell-Douglass, At & T, Dupont, Boeing and Intel, where it
has been judged a considerable success.
Article # 2
HOW TO MEASURE WHITE COLLAR EMPLOYEES PERFORMANCE APPRAISAL
This Article focuses on the following areas
Reasons For Measuring White-Collar Work
Why it is so difficult
Techniques to identify the “results” and “performance standards” for this kind of work.
Examples of “verifiable performance standards” created with these
techniques.
*1* Reasons to measure white-collar work
a. performance management
b. Corporate direction
c. Pay for performance
d. Evaluation
e. Job ROI (return on investment)
*2* Reasons of difficulty in measurement
a. Fear ,Creative work,Nature of work,Lack of knowledge
*3* Technique to create performance standards for white-collar work
This procedure consists of three steps
1. Identifying the results
This step helps to decide what to measure in a job
• Behavior or Results
2. Defining the measures
This step decides the factors to evaluate how well a result has been done.
Two kinds of measures are
• Numeric or Descriptive
3. Setting standards
Here we assume that each measure is a yardstick. The employee should know what point on the
yardstick represents meeting expectations.
Job Aid: How to Create Performance Standards
Step 1 Draw a customer diagram showing the internal and external customers to whom you
provide products and services
Step 2 Create a list of results for your position
Step 3 Decide how to measure each result
Step 4 Create performance standards for each measure
Step 5 Check the performance standard.
Does the list of results: Does each performance standard:
_ Describe end products, not activities? _ Allow verification that the performance standard has
been met? Can it be seen, or could several knowledgeable persons agree that the performance
standard has been met?
_ Account for 80 percent or more of your job's responsibilities? _ Have a judge, list of factors
and what a good job looks like for each factor, when the measure is descriptive?
_ Specify the critical results your customers need? _ Appear practical to track and monitor?
_ _ Use a range when the measure is numeric?
_ _ Leave room to exceed the standard, or require perfection only when no errors can be
tolerated?

Analysis of Parco
Type of organization Manufacturing
Categories of employees Senior executive , line managers, mangers, Engineer and technical staff,
operating staff, Sales force
Existence of Hr department yes
Purpose of performance appraisal promotion, guide to job changes, salary decision, employee
development, supervisory understanding.
Performance appraisal approach comparison against standards, direct performance measure
Who does performance appraisal immediate supervisor
Feedback to employee about
resultsyes upto some extent
Methods of appraisal rating scale(personal trait and behavior scale, job dimension rating scale)
Problems organizational influence, personal biasness, difficult to set qualitative standard
Evaluation of performance appraisal
accuracy up to some extent
Reason for inaccurate evaluation subjective standard, rate error, negative communication
Analysis of Pakarab
Type of organization Manufacturing
Categories of employees executives, supervisors, workers
Existence of Hr department yes (personal administration for executive and supervisor, industry
relation department for workers)
Purpose of performance appraisal promotion, salary decision, employee development
Performance appraisal approach comparison against standards, interpersonal comparison
Who does performance appraisal immediate supervisor
Feedback to employee about results no
Methods of appraisal rating scale (job dimension rating scale, forced distribution)
Problems organizational influence, personal biasness, difficult to set qualitative standard
Evaluation of performance appraisal accuracy up to some extent
Reason for inaccurate evaluation rate error, negative communication
Comparison Of Performance Appraisal System
In Parco & Pakarab Fertilizers:
PARCO AND PAKARAB have the various similarities and dissimilarities in their performance
appraisal systems. These similarities and dissimilarities are the followings:
Similarities:
1.Both have the same nature of organizations (Manufacturing).
2.The organogram of both the organizations is same because of having same nature of job
Description.
3.Both have complex human resource structures, having more than 1500 employees.
4.To handle these complex human resource both have their HR departments which conducts the
formal appraising system.
5.Puroses of Performance appraisal are same in both the organizations.
Dissimilarities:
1.The main difference in their performance appraisal systems is feedback of results to
supervisors and employees. Parco communicates the results of employees to immediate
supervisors but in PAKARAB FERTILIZERS this is not done usually.
2.Thier are no formal training programs in PAKARAB as a result of performance appraisal but
PARCO has.
Findings & Recommendations:
In the light of the articles and our study in the organizations, we become able to suggest some
recommendations which are as follows:
1.They should convert the qualitative work into measurable quantitative factors so
that clear standards can be set for performance measurement.
2. They should apply MBO technique to check performance of those employees who are having
work assignments which can be quantified accurately.
3.They should apply 360 degree appraisal system so that appraisal biasness can be reduced to
the minimum level and to improve measurement accuracy.
For the application of 360 degree appraisal system, it requires cultural change in whole
organization.360 degree appraisal system should be used where investigation is required.
360 degree approach can measure the performance of an employee more effectively because this
approach involves getting feedback about an employee from a wide variety of sources in addition
to his or her manger.
4.For evaluation accuracy, skilled personnel should be appointed, for the evaluation of
measured performance, who have greater knowledge of descriptions of those jobs.
5. Post appraisal interviews should be conducted to give opportunity to employees for their
justification and to create motivation in them.