Imperial Journal of Interdisciplinary Research (IJIR)

Vol-3, Issue-5, 2017

ISSN: 2454-1362, http://www.onlinejournal.in

From 90 degree to 720 degree performance appraisal

Sujith A S
Research Scholar, Mahatma Gandhi University, Kerala, India

Abstract : In today’s scenario, human resources starting from the traditional “comparison method‟
are to be considered as a very important asset of to the modern “720 degree appraisal method”. This
the company and the importance of human article discusses the development of performance
resources is very well known to the organization. appraisal methods from 90 degree, 180 degree, 360
The success of any organization depends on its degree, 540 degree appraisal to 720 degree
ability to correctly measure the performance of its appraisal. “720 degree performance appraisal”, is
members and use that measure to neutrally boost the latest appraisal method that has been introduced
and optimize their performance. Performance in New economy companies.
appraisal important, because it play a vital role in
any organization human resource framework. Methods of performance appraisal
There are clear benefit from managing individual
and team performance to achieve organizational There are various techniques/methods
objectives. Performance appraisal is an important used for conducting performance appraisals, each
tool in the hands of personal management because having their own advantages and shortcomings.
this technique accomplishes the main objective of Depending upon the needs of an employee or an
the department of the development of people by organization a performance appraisal method needs
appraising the worth of the individual. to be selected. All performance appraisal methods
Performance Appraisal is a concept that stated in can be divided into two different categories namely
the early 20th centuary. It is the process of past oriented methods (Traditional) and future
obtaining, analyzing and recording information oriented methods (Modern methods).
about an employee to evaluate and improve their
performance. The success of the organization Past oriented Methods
depends on the performance of the employees and
it is the human tendency to judge everything and Traditional Methods are relatively older
everyone around them. methods of performance appraisals. This method is
In modern business scenarios where job roles have based on studying the personal qualities of the
become more diverse it’s not easy to measure the employees. It may include knowledge, initiative,
performance of any employee. This is where loyalty, leadership and judgment.
performance appraisal methods can be really 1. Ranking method: In the ranking method, the
helpful. This paper review the future oriented evaluator places employees from a particular
performance appraisal methods and identifies group in the order of overall performance,
advantages and disadvantages for using each starting with the top performer--who is rated
method. the highest--and moving down to the poorest
performer in the group who receives the lowest
Introduction ranking
2. Graphic Rating Scales: A scale that lists a
All organizations aim at being effective number of traits and a range of performance
and achieving their objectives, in order to do this it for each, the employee is then rated by
is important to monitor or measure the performance identifying the score that best describes his or
of the employees on a regular basis. Effective her performance for each trait
monitoring also includes giving timely feedback, 3. Paired comparison method: Paired comparison
reviewing the performance according to pre- is a variation of the ranking method in which
determined standards and timely recognition of the the performance of each employee is compared
accomplishments, that motivates the employee to with every other employee. The employee who
perform better each day. It is rightly said that, receives the greatest number of favourable
“Encouraged people achieve the best; dominated comparisons is ranked the highest
people achieve second best; neglected people 4. Forced Distribution method: To eliminate the
achieve the least.” as recognition and reward at the element of bias from the rater’s ratings, the
right time is the best encouragement. From the time evaluator is asked to distribute the employees
Human beings have evolved they have employed in some fixed categories of ratings like on a
different methods to appraise the performance normal distribution curve. The rater chooses

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Imperial Journal of Interdisciplinary Research (IJIR)
Vol-3, Issue-5, 2017
ISSN: 2454-1362, http://www.onlinejournal.in

the appropriate fit for the categories on his

own discretion Statement of the problem
5. Critical incident method: The critical incident
method requires the evaluator to maintain The 720 degree evaluation is emerging as
records of employees’ favorable and a possible alternative appraisal technique.
unfavorable performances. These critical Organizations are slowly but steadily realizing the
incidents become the basis for evaluation need for this new system, which is better than the
6. Essay method: In the essay method, the existing 360 degree evaluation, especially in terms
evaluator writes a brief narrative of the of the focus of the evaluation and the involvement
employee’s performance. The major criticism of the evaluators in the process. Now, recently
of this method is that it is very subjective Cadbury introduces ‘720-degree’ feedback. This
because the evaluation criteria left entirely to study is concentrated on the need and significance
the discretion of the evaluator and the results of 720 degree Performance appraisal in the modern
are dependent on the writing skills of the business world and also differentiates this new
evaluator. emerging technique from the 360 degree
7. Checklist method: The rater is given a Performance appraisal. The method of 720 degree
checklist of the descriptions of the behaviour Performance appraisal developed through different
of the employees on job. The checklist stages from 90 degree, 180 degree, 360 degree, 540
contains a list of statements on the basis of degree appraisal to 720 degree appraisal. “720
which the rater describes the on the job degree performance appraisal”, is the latest
performance of the employees. appraisal method that has been introduced in new
economy companies.
Future oriented methods
Objectives
Modern Methods were devised to improve  To examine the development of 720
the traditional methods. It attempted to improve the degree performance appraisal from 90
shortcomings of the old methods such as biasness, degree appraisal.
subjectivity, etc  To examine the comparative significance
1. Management by objectives (MBO): MBO is a of the 720 degree performance appraisal
results-based system that relies on the manager with 360 degree performance appraisal
and the employee to jointly agree on objectives, system.
the attainment of which becomes the basis of
evaluation for the next appraisal period. Methodology
2. Behaviourally Anchored Rating Scale (BARS): The secondary data is used for the study.
BARS combines elements from critical incident The secondary data is collected from the various
and graphic rating scale approaches. The books, journals, articles etc.
supervisor rates employees‟ according to items
on a numerical scale. Development of 720 degree appraisal
3. Assessment Centers: Employees are evaluated
over a period of time; say one or three days, by Employee performance appraisals are now
observing their behaviors across a series of universally conducted, considering to be the most
selected exercises or work samples. important channel, to provide feedback to
4. Psychological Appraisals: These appraisals are employees on their past performance. Precisely, the
more directed to assess employees’ potential for appraisals are the significant opportunities for
future performance rather than the past one. It is managers when they can discuss the strengths and
done in the form of in depth interviews, weaknesses of their team members and guide them
psychological tests, and discussion with to develop extraordinary skills to excel
supervisors and review of other evaluations professionally.
5. Human Resource Accounting (HRA): The Since ages, we have seen traditional
people are valuable resources of an organization performance reviews taking place in organizations
or enterprise, Information on investment and where the manager and the HR take control over
value of human resource is useful for decision the entire appraisal process. However with the
making in the organization. changing time and technology, the approach to
conduct annual performance evaluations have
altered dramatically, giving a wider scope to
The remaining modern methods of appraisal like, include other participants in the process. Today,
360 Degree, 720 Degree appraisals are discussed we’re here to share some critical information on
below. different employee performance appraisal methods

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Imperial Journal of Interdisciplinary Research (IJIR)
Vol-3, Issue-5, 2017
ISSN: 2454-1362, http://www.onlinejournal.in

and how advanced HR tools can make the entire how an employee does a job may be one of the
process easier and faster. appraisers. This technique is highly useful in terms
of broader perspective, greater self-development
90 degree appraisal and multi-source feedback is useful. 360-degree
appraisals are useful to measure inter-personal
skills, customer satisfaction and team building
skills. However on the negative side, receiving
feedback from multiple sources can be
intimidating, threatening etc. Multiple raters may
be less adept at providing balanced and objective
90 Degree appraisal is the most basic form feedback. The style of 360 degree performance
of performance appraisal. In this method the appraisal is a method that employees will give
appraiser/manager gives their evaluation of the confidential and anonymous assessments on their
employee. This appraisal method does not provide colleagues.
any self-evaluation system to the employees. It
facilitates only one way and top down Components of 360 Degree Appraisal
communication.
360 degree respondents for an employee can
180 degree appraisal be his/her peers, managers (i.e. superior),
subordinates, team members, customers, suppliers/
vendors - anyone who comes into contact with the
employee and can provide valuable insights and
information or feedback regarding the “on-the-job”
performance of the employee.360 degree appraisal
has four integral components:
 Self-Appraisal: Self-appraisal gives a chance
to the employee to look at his/her strengths and
180 degree appraisal is one of the simplest weaknesses, his achievements, and judge his
ways to appraise employees. The employee own performance
evaluation process starts with self-evaluation step  Superior’s appraisal: Superior’s appraisal
where the employee fills a form giving appropriate forms the traditional part of the 360 degree
ranking to himself / herself and shares feedback on appraisal where the employees’ responsibilities
their own performance. After completion of this and actual performance is rated by the superior
step, the manager discusses the self-appraisal of the  Subordinates appraisal: Subordinates appraisal
employee in a review meeting. Once all the gives a chance to judge the employee on the
information is agreed by both the parties, including parameters like communication and motivating
the manager and the employee, appraisal is abilities, superior’s ability to delegate the work,
finalized. leadership qualities etc.
 Peer Appraisal: feedback given by peers can
360 degree appraisal help to find employees’ abilities to work in a
team, co-operation and sensitivity towards
others.

Advantages of 360 degree appraisal

The 360 Degree Feedback has the following

benefits:
 Offer a more comprehensive view towards the
As the name implies, this method uses performance of employees.
multiple appraiser, including supervisor,  Improve credibility of performance appraisal.
subordinates and peer of the targeted persons. The  Such colleague’s feedback will help strengthen
appraisal is 360 degree in that information is self-development.
collected & feedback is provided in full circular  Increases responsibilities of employees to their
fashion top to bottom & back to top. It is a customers.
technique which is systematic collection of  The mix of ideas can give a more accurate
performance data on an individual group, derived assessment.
from a number of stakeholders like immediate  Opinions gathered from lots of staff are sure to
supervisors, team members, customers, peers and be more persuasive.
self. In fact anyone who has useful information on

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Imperial Journal of Interdisciplinary Research (IJIR)
Vol-3, Issue-5, 2017
ISSN: 2454-1362, http://www.onlinejournal.in

 Not only manager should make assessments on

its staff performance but other colleagues should
do, too.
 People who undervalue themselves are often
motivated by feedback from others.
 If more staff takes part in the process
of performance appraisal, the organizational
culture of the company will become more honest.

Disadvantages of 360 degree appraisal

A 720 degree appraisal is basically a 360
The 360 Degree Feedback suffers from the degree appraisal performed twice. A second 360
following limitations: degree is performed at a timely interval and
 Taking a lot of time, and being complex in compared against the results of the first 360 degree
administration appraisal. 720 Degree Performance Appraisal,
 Extension of exchange feedback can cause considered an “all-round” appraisal, is one of the
troubles and tensions to several staff. most recently introduced concepts. The major
 There is requirement for training and important setback in the previous methods of appraisal was
effort in order to achieve efficient working. that it did not guide the employee after the
 It will be very hard to figure out the results. appraisal hence the 720 Degree Appraisal was
 Feedback can be useless if it is not carefully and introduced when the employees performance is
smoothly dealt. measured, analyzed and targets are set in the first
 Can impose an environment of suspicion if the appraisal and after a short period his performance
information is not openly and honestly is measured again and proper feedback and
managed. guidance is given to ensure that the employee
achieves the target. Hence, 720 degree performance
540 degree appraisal 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. The 720 Degree Performance
Appraisal system is a kind of double check for the
360 Degree Performance Appraisal system. 720
Degree Performance Appraisal is the evaluation of
an employee from all the aspects and giving timely
feedback to ensure that the person is able to
In 360 degree appraisal, performance data achieve the set goals before the next appraisal. In
on an employee is derived from a number of other words a 720 Degree Appraisal is basically a
stakeholders like immediate supervisors, team 360 Degree Appraisal performed twice. A second
members, customers, peers and self. 540 degree 360 Degree is performed at a timely interval and
appraisal adds an external element as feedback is compared against the results of the first 360 Degree
also collected from customers or clients. It has 5 appraisal. Cadbury introduces ‘720- degree’
dimensions: appraiser/manager, the appraisee (self- feedback on April 2010.
appraisal), peers, subordinates and
customer/clients. All the current IT organizations aim at
In order to survive in the current achieving higher rate of employee satisfaction and
competitive market, organizations aim at achieving transparency in the working environment. In order
high customer satisfaction. Customer or client to achieve the above goals, 720 degree
feedback helps to analyze the customer point of performance appraisal would be a vital tool as it is
view and help to improve the person and the used to appraise the performance of an employee
organization. from different dimensions and helps to overcome
the barriers of bias, prejudice and discrimination.
720 degree appraisal
Dimensions of 720-degree performance
appraisal
The performance is appraised from 5
dimensions and feedback or the appraisal meeting

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Imperial Journal of Interdisciplinary Research (IJIR)
Vol-3, Issue-5, 2017
ISSN: 2454-1362, http://www.onlinejournal.in

is conducted twice (pre and post feedback) to e) Encourages transparency and feeling of treated
ensure the efficient performance of the employee. justly.
Including the pre and the post feedback, that plays
a vital role, the 720 Degree performance appraisal 720 Degree Performance Appraisals in the
has 7 phases. Modern Business World

a) Pre Appraisal Feedback: This is the first The main need of 720 degree performance
appraisal step that is done after the feedback is appraisal is the improvement of the performance of
collected from the different dimensions or people the people in their jobs and to ensure that the
with whom the employee would interact. In this expectations of the employer, employee and the
step, the performance is evaluated, targets are set customers are met. The main need of 720-degree
and feedback or training is organized to help the performance appraisal can be summarized as
employee achieve the target. follows:
b) Self-Appraisal: The employee is given a
questionnaire and asked to evaluate his  720 Degree Performance Appraisal is the
performance and through this method, the evaluation of an employee from all the
employee gets an opportunity to express his aspects and giving timely feedback to
thoughts and his valuation of strengths, weakness ensure that the person is able to achieve
and judge his performance. the set goals before the next appraisal.
c) Peers/Colleagues Appraisal: The feedback from  720 Degree performance appraisal is a
the peers or colleagues is important as it helps to method that gives paramount importance
understand the ability of the employee to work as to feedback as there is a pre and post
a team, co-operate, coordinate with others and feedback session.
bring out the best.  720-degree performance appraisal method
d) Customer Appraisal: In order to survive in the is more development focused than
current competitive market, Organizations aim at performance alone.
achieving high customer satisfaction. Customer  It assists in taking decisions regarding
feedback helps to analyze the customer point of salary fixation, confirmation, promotion,
view and help to improve the person and the transfer and demotion.
Organization.  It helps to check the effectiveness of
e) Sub-Ordinates Appraisal: The feedback of the personnel practice of the enterprise.
sub-ordinates is essential to analyze the  It is needed to ensure that employees
organizing skills of the employee and to reach organizational standards and
understand his abilities like communication and objectives.
motivating abilities, ability to delegate the work,  To discover the work potential and to
leadership qualities and way of handling understand the areas where training is
responsibilities. required to guide the employees to
f) Managers/Superiors Appraisal: In this, the perform their best.
performance, responsibilities and the attitude of  It enhances the accountability and
the employee is evaluated by the Superiors or transparency of the performance appraisal
Managers. system.
g) Post Appraisal Feedback: It is this step that  To understand the expectations of the
makes the 720-degree performance appraisal employees and prevent grievances and in
different and better than the 360-degree disciplinary activities.
performance appraisal method. In this step, the  Provide information to diagnose
performance is evaluated based on the target set deficiency in the employee regarding skill,
in the Pre appraisal and feedback is given. knowledge, determine training, and
Timely feedback and guidance helps to make the prescribe the means for employee growth
employee improve his performance. and information for correcting placement.
 Set realistic target, monitor the
Merits of 720-degree performance appraisal performance and provide timely feedback
to ensure that the performance is enhanced
a) It helps in better analysis and improved feedback  The 720 Degree performance appraisal
from different dimensions method as an objective method that cannot
b) Helps to develop a better and co-operative team be influenced by personal bias and a
c) Reduces the appraisal barriers like prejudice, method that suits the new economy
bias and discrimination companies as it gives feedback and
d) Customer feedback is valued do better customer follows up to ensure that the appraised
service and satisfaction can be obtained reach the goal.

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Imperial Journal of Interdisciplinary Research (IJIR)
Vol-3, Issue-5, 2017
ISSN: 2454-1362, http://www.onlinejournal.in

Degree performance appraisal method as an

360 degree and 720 degree performance objective method that cannot be influenced by
appraisal personal bias and a method that suits the new
economy companies as it gives feedback and
Similarities between the 360 degree follows up to ensure that the appraised reach the
performance appraisal & 720 degree goal.
performance appraisal

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Imperial Journal of Interdisciplinary Research (IJIR)
Vol-3, Issue-5, 2017
ISSN: 2454-1362, http://www.onlinejournal.in

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