Is 360-Degree Feedback Still Effective for Performance Appraisal in Today's Corporate World?

Status of the 360-Degree Feedback Method in the Corporate World

The 360-degree feedback method remains a prevalent tool in the corporate world for performance evaluation and development. It provides a comprehensive view of an individual's performance by collecting feedback from various sources, including managers, peers, subordinates, and even external stakeholders. This multi-perspective approach offers valuable insights for both the individuals being evaluated and the organizations implementing the feedback process.

Despite some challenges in its implementation, such as ensuring confidentiality and providing constructive feedback, the 360-degree feedback method continues to be widely used for enhancing professional growth and fostering a culture of continuous improvement.

It's mind-blowing and it is producing excellent results because it's not just limited to the superior or HR manager but is extended to your team members and co-workers as well.

With profound regards

360-Degree Performance Appraisal System (PAS)

The 360-degree Performance Appraisal System (PAS) is utilized successfully by many corporate companies. However, the system is not implemented in a few industrial setups. It is essential for appraisees to be mature enough to accept feedback and ratings from their subordinates and peers. When there is a healthy and harmonious interpersonal relationship, this system can yield excellent results.

Currently, 720-degree systems are also being implemented.

With warm regards,

S. Sethupathy
Excellent HR Services
Erode

Understanding the 720-Degree Performance Appraisal System

What does a 720-degree system mean? A circle has only 360 degrees. How can it be 720 degrees? Isn't this against mathematical principles?

Regards,
Pon

Understanding 720-Degree Appraisal

It is essentially 360 x 2. The appraisals are done twice. I am enclosing a PPT downloaded earlier from our site to explain it clearly.

Components of 720-Degree Appraisal

In a traditional 360-degree appraisal, raters include:
- Boss
- Peers – immediate & functional colleagues
- Direct reporters
- Colleagues and internal customers

Then, a 540-degree appraisal adds more external customers and suppliers. Of course, a 720-degree appraisal would also take feedback from stakeholders and family. In a 720-degree appraisal, feedback is taken from external sources such as stakeholders, family, suppliers, and communities.

However, the first version of appraising twice is in practice and more effective also.

With warm regards,
S. Sethupathy

This depends on the company's policy. The most suitable time for the second 360 is 6 months after the first 360. This allows for the assessment of the improvements provided in the initial feedback.

Regards,
S. Sethupathy

Thank you for the excellent post on 360-degree appraisal. It is very useful for HR professionals responsible for managing Performance Management System activities in an organization. Please continue to share informative PowerPoint presentations like this.

Thank you,

Regards,
JP
Asst. Manager - HR & Admin
Chennai

Dear All, please let me know if self-appraisal and review discussions with L1 (Reporting Manager) and L2 (Super Boss/Director) will be known as 180-degree or 360-degree assessments.

Understanding the Success of the 360-Degree Feedback System

First things first, the reason for the 360-degree feedback system's success and its significant impact is not just the performance appraisal method, but because it's essentially a performance management system, which is a continuous process. Appraisal is done once a year and falls under PMS. The fundamental reason behind its success is that it's one of the modern systems that minimize errors in appraisal. Under traditional appraisal, you are either rated or graded, but with 360-degree feedback, you are evaluated from all sides you are connected to—peers, subordinates, seniors, customers (internal or external), and even self-appraisal is included.

It's not just about your job performance or hitting your targets; it's about how you achieved them. For example, you may have met your target, but how did you treat the customer, which might cost the company in the long term? Your behavior is continuously noted throughout the year, not just a few months before the appraisal. Additionally, everything is documented in forms in a particular format so that differences can be visible, and the transparency in the system helps you analyze how you perceive yourself versus how the company sees you. Employees and employers can easily identify gaps (this is how training needs are analyzed) between achievements and desired results. Companies can customize this system according to their needs, mixing it with management by objectives (KRA, Target).

360-degree feedback doesn't just judge employees; it also evaluates the company overall (what kind of employees do we have, are they right for us?). It helps companies improve performance by enhancing employee performance. Another successful system in terms of PMS is the balanced scorecard.

Hope this helps a little.

Regards, Vandana Malik

Dear Mr. Sethupathy ji, A BIG THANK YOU for sharing with us about 540 and 720-degree appraisals. It is very informative and good to know about such concepts. However, I personally feel that it is quite a time-consuming process and can be applied in small firms. It will be difficult to exercise the 720-degree method in large MNCs. Also, the 720 process, which involves family, is quite unnecessary because a person may be different at home and at work. Can you please comment on my above-mentioned notions?

Thanks again.
Regards.