How to Do a 360 Performance Appraisal

A 360-degree performance appraisal provides feedback from multiple sources.

Performance appraisal is a process where managers and employees review and discuss an employee's objectives and contributions to the organization. A 360-degree or multi-rater performance appraisal solicits feedback from multiple sources such as managers, peers, subordinates, clients and other stakeholders. It provides the employee a more comprehensive view of his performance as perceived by others. This evaluation tool encourages open and honest feedback. It is often seen as more accurate, objective and reliable than other appraisal methods.

Instructions

1. Select the performance appraisal tool. The form must include questions about the employee's competencies. A point scale allows raters to select the rating that best describes the employee's performance. It must also have space for examples and comments to explain the basis for rating each competency.

2. Select the employees who will be evaluated using the 360-degree performance appraisal. This tool is often used for senior management positions or roles that require interaction with a diverse group of people such as subordinates, colleagues, external clients and vendors.

3. Select the raters for the employees to be evaluated. Some organizations allow employees to identify potential raters. A minimum of 3 raters is suggested for each rating source so that the ratings can be averaged. This also protects the anonymity of raters.

4. Train all participants in the performance appraisal process. Explain how the data will be collected and managed, and what information the employee can expect. Emphasize that the purpose of evaluation is to help the employee identify his strengths and weaknesses, and improve performance.

5. Ask all raters to complete the performance appraisal form. The employee also does his self-appraisal. Provide timelines by which the form must be completed and submitted.

6. Collect data and present them to the employee. The immediate manager usually conducts the performance discussion. The employee must understand the importance of feedback as a tool for development. Otherwise, the appraisal can create a negative impact. The employee must have the opportunity to react, ask questions and develop strategies to address performance issues.

Tips & Warnings

• Designing a 360-degree performance appraisal takes time. The organization can use the services of external professionals to design and implement the system. Performance appraisal forms and templates can also be purchased from third-party providers.

• This type of appraisal works best in a climate that is open, supportive and committed to continuous improvement.

• The 360-degree performance appraisal involves more people and thus takes more time. A web-based or online system can facilitate this process.

• Employees may be intimidated to give feedback, especially if they are rating their manager, or the evaluation is related to pay increases and rewards. It is important to assure anonymity of responses.

• Since responses are anonymous, it is hard for employees to clarify any comments or ask for more information about their rating.

References

• U.S. Office of Personnel Management: 360 Degree Assessment---An Overview
• U.S. Fire Administration: Exploring 360 Degree Feedback Performance Appraisal
• Society for Human Resource Management: Performance Management
• HR Council for the Nonprofit Sector: Keeping the Right People
• University of Minnesota: UWide Policy Library