360 degree appraisal system

360 degree appraisal systemWhat is 360 degree feedbackAlso known as multi-rater feedback, multi- source feedback, full circle appraisal or group performance reviewUses full circle of people with whom the employee interacts: supervisors, subordinates and co-workers.Used as a developmental toolWho should do the appraisingImmediate supervisorsSubordinatesPeersRating committeesSelfCustomersObjectivesProviding insights into strong and weak areas of the candidateIdentification of developmental needsGenerating data for R&R purposeReinforcing organizational effectiveness interventionsAligning individual and group goals with organizational vision and goalsCulture building

Leadership developmentPotential appraisal and developmentCareer planningSuccession planningTeam buildingRole clarityAdvantages More credibilityEmphasises difference between self perception and reality Positive effect on employeeStrengthening of leadership competenciesIncreased customer orientationDisadvantagesExpecting improvements too soonSensitive employees may feel exploited/demotivatedWithout organizational support, it may not workToo much cost

Balanced ScorecardAn approach to translate an organizations vision into a set of performance indicators.

Four kinds of measures:1. Customer: Measures customers' satisfaction and their performance requirements for the organization and what it delivers, whether it's products or services.2. Financial: Tracks the companys financial requirements and performance.3. Internal Business Process: Measures the critical-to-customer process requirements and measures. Eg reworked units, process cost.4. Learning and Growth: Focuses on how the company educates their employees, how it gains and captures its knowledge, and how it uses it to maintain a competitive edge within its markets.What to define?Strategic objectives- strategy for achieving a perspectiveMeasures- how progress of that particular objective will be measuredTargets- target value sought for each measureInitiatives- what will be done to facilitate reaching out the targetPurpose of the BSCClarify and update strategyCommunicate strategy throughout the companyAlign unit and individual goals with strategyLink strategic objectives to long term targets and annual budgetsIdentify and align strategic initiativesConduct periodic performance review to learn and improveChallenges in implementing BSCToo few measures per perspectiveToo many indicators which may not all be criticalMeasures may not reflect organizations strategyLinking non financial indicators to financial resultsLack of senior management commitmentNot integrated with company management review process- used as stand alone toolKeeping scorecard only at top level- no deployment to all levelsLong time taken to develop BSC processBSC implemented without sound strategy