research paper on 360 degree performance appraisal

Assessing the Effectiveness of 360-Degree Performance Appraisal System to Enhance Employees’ Productivity in Jordanian Listed Banks

• First Online: 27 August 2023

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• Mohammad Sami Ali   ORCID: orcid.org/0000-0001-6600-5398 4 ,
• Sadam Awadallah Abdalgani   ORCID: orcid.org/0000-0002-2045-4152 5 &
• Dina Dahlan 6  

Part of the book series: Studies in Systems, Decision and Control ((SSDC,volume 488))

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The performance appraisal is not limited to evaluate the performance of banks’ employees, but it also facilitates highlighting the particular objectives of organisations. Performance appraisal is considered as a very effective tool for evaluating and improving employees’ knowledge and training with an intension to establish a long term learning guide, and strategies for nourishing employees’ productivity for enhanced working hours. Therefore, the study investigated the effect of “360-degree performance appraisal system” in the productivity of Jordanian listed banks’ employees. Through examining data that was collected from a sample of 120 employees, those are working in Jordanian Islamic and commercial banks; the results indicated that the current performance appraisal system is significantly and positive affecting the level of employees’ productivity. Moreover, the study suggested that Jordanian banking sector must perform performance appraisals more frequently to have positive outcomes, as well as it is necessary to evaluate the strengths and weaknesses of employees to allocate responsibilities accordingly.

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Department of Financial Technology, Faculty of Economics and Administrative Sciences, Zarqa University, Zarqa, 13110, Jordan

Mohammad Sami Ali

Department of Business Administration, Faculty of Business and Finance, The World Islamic Science and Education University, Amman, Jordan

Sadam Awadallah Abdalgani

College of Business Administration, University of Business and Technology, Jeddah, Saudi Arabia

Dina Dahlan

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Middle East Technical University Northern Cyprus Campus, Kalkanlı, Türkiye

Bahaaeddin A. M. Alareeni

Faculty of Computer Science and Engineering, Alamein International University,, New Alamein City, Egypt

Islam Elgedawy

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Ali, M.S., Abdalgani, S.A., Dahlan, D. (2023). Assessing the Effectiveness of 360-Degree Performance Appraisal System to Enhance Employees’ Productivity in Jordanian Listed Banks. In: Alareeni, B.A.M., Elgedawy, I. (eds) Artificial Intelligence (AI) and Finance. Studies in Systems, Decision and Control, vol 488. Springer, Cham. https://doi.org/10.1007/978-3-031-39158-3_15

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What Makes a 360-Degree Review Successful?

• Jack Zenger
• Joseph Folkman

It has to start with buy-in from the top.

Companies have continued to use the 360-degree process throughout the years because it works. But for it to be worthwhile, the process has to be implemented in a way that engages leaders so they are compelled and motivated to become better at their job. When they learn through the feedback whether others’ perceptions of them are different than their own, identify a weakness to fix or a strength to build, and understand how their leadership is affecting the productivity and engagement of their direct reports, they can use – and act on – that information, to improve themselves and the company in the process.

Too many companies don’t take the 360-degree feedback process seriously enough. Often it goes like this: After shopping around and deciding on a 360-degree feedback instrument, talent professionals administer it to the colleagues of each participant. After aggregating the data, those same professionals send a summary report to the leader, who then reads through the report with some interest and puts it away. Sometimes, it’s never discussed again.

• Jack Zenger is the CEO of Zenger/Folkman, a leadership development consultancy. He is a coauthor of the October 2011 HBR article “ Making Yourself Indispensable ” and the book The New Extraordinary Leader: Turning Good Managers into Great Leaders (McGraw Hill, 2019). Connect with Jack on LinkedIn .
• Joseph Folkman is the president of Zenger/Folkman, a leadership development consultancy. He is a coauthor of the October 2011 HBR article “ Making Yourself Indispensable ” and the book The Trifecta of Trust: The Proven Formula for Building and Restoring Trust (River Grove, 2022). Connect with Joe on LinkedIn .

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Evaluating the effectiveness of a 360- degree performance appraisal and feedback in a selected steel organisation KE Lithakong 22647058

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360 Degree Performance Appraisal Methods & Template

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Summary: Explore the 360 Degree Performance Appraisal method to enhance your team dynamics and individual growth. Experience a whole new dimension of feedback system to foster self-awareness and transparency within your organization. Elevate the way you perform your appraisal with the help of this comprehensive guide!

Step into the world of performance appraisals like never before! Have you ever wondered how beneficial it would be to receive feedback from not just your manager, but everyone around you? That’s the magic of 360 Degree Performance Appraisal.

It’s a revolutionary approach to performance evaluation that goes beyond the traditional one-on-one feedback, giving you a comprehensive view of your strengths, weaknesses, and skills. In this article, we’ll explore the realm of 360 Degree Performance Appraisal and its impact on individuals and organizations.

Key Takeaways:

• 360-degree employee feedback involves insights from peers, managers, and direct reportees, providing a comprehensive evaluation.
• Use a combination of open as well as closed-ended questions for a balanced assessment.
• Include questions that prompt actionable responses and measure employees’ core competencies in their job roles to enhance the evaluation process.

What is a 360 Degree Performance Appraisal?

360-degree performance appraisal, often known as 360-degree feedback or multi-rate feedback, is a method of evaluating employee performance that involves gathering input from a variety of sources instead of relying only on feedback from a direct manager.

This comprehensive approach aims to provide a complete overview of an individual’s performance by considering feedback from peers, subordinates, and other relevant stakeholders. The aggregated feedback is then analyzed to identify the employee’s strengths, weaknesses, and skills, contributing to a more comprehensive performance review.

When properly implemented, a well-designed performance appraisal can enhance team performance, encourage self-awareness, and facilitate open communication within an organization. However, if not carefully executed, there are potential drawbacks that can impact its effectiveness and reliability.

Objectives of a 360 Degree Performance Appraisal

Some of the important objectives of 360 Degree Performance Feedback include:

• Encouraging open communication between employees and managers
• Defining performance expectations, setting goals, and monitoring progress
• Providing formal, written performance feedback
• Preparing new employees for increased responsibility
• Facilitating KT (the transfer of knowledge) between academic studies and practical work
• Cultivating workplace professionalism and skills
• Motivating employees through recognition and support

Components of a 360 Degree Assessment

Some of the crucial components of 360 Degree Assessment include self-evaluation and evaluation by managers, peers, subordinates, and external stakeholders. Collectively all these evaluations lead to a 360-degree assessment of an employee.

• Self-Evaluation: Employees assess themselves, offering their perspective on their strengths and areas for improvement.
• Manager Evaluation: Supervisors or managers provide input based on their observations of the employee’s performance.
• Peer Evaluation: Colleagues or coworkers provide feedback on the employee’s performance and behavior offering insights from individuals closely connected to their work.
• Subordinate Evaluation: When the employee oversees others, direct reportees can provide feedback on their leadership and management capabilities.
• External Stakeholder Evaluation: Clients, customers, or external partners can also share feedback, providing an external viewpoint.

360 Degree Performance Appraisal Methods

There are 5 broad methods of performance appraisal. These include rating scale, ranking method, confidential reporting, free form, and BARS method. Let’s know about them in detail below.

1. Rating Scale Method

Rating scale is a widely used approach for evaluating employee performance as it is the simplest approach of all. It involves a scoring system ranging from 1 to 10-pointers. In this approach, specific performance parameters such as delivery, attitude, attendance, regularity, and accountability are assessed and rated according to each employee’s performance.

The total points scored in all categories contribute to employee recognition and their potential salary increases.

2. Ranking Method

The traditional ranking method involves comparing employees’ performance within the same tier and rank. This comparison is typically presented through a report using numerical data and graphs by a manager.

Employees are then categorized into different performance levels, such as excellent, good, average, below average, or poor, based on a predetermined percentage. This approach for evaluation is mainly used when decisions regarding promotions or layoffs need to be made.

3. Free Form Method

The free-form method, also known as the “ Essay appraisal method ,” consists of a detailed and subjective evaluation provided by the supervisor, including examples, and supporting documents of the employee’s performance.

The subjective nature of this method sometimes brings bias in the feedback. Furthermore, the reviewer uses the previously described rating scale method to assess the employee’s strengths and weaknesses.

Being subjective, this approach is regarded as a non-quantitative evaluation approach but provides a comprehensive assessment of an employee’s performance .

4. Confidential Reporting Method

This kind of evaluation is commonly employed in government bodies in India such as the Armed Forces, Police Department, and CBI. In this method, the superiors prepare private reports on their subordinates related to their conduct and responsibilities within the organization.

The assessed factors include temperament, punctuality, attendance, sincerity, trustworthiness, and interpersonal behavior with subordinates. The reports remain confidential and accessible only to senior management or HR.

5. BARS Method

BARS (Behaviorally Anchored Rating Scale method) is a modern approach designed to provide precise performance feedback. It includes a set of behavioral statements that illustrate an employee’s job performance.

Each behavior has assigned associated points and is categorized as good, bad, average, or a recommendation for termination. This ensures a highly descriptive performance evaluation approach.

Process of 360 Degree Appraisal

The process of 360-degree appraisal consists of a series of essential stages for a comprehensive, unbiased, and valuable collection of feedback aimed at fostering personal and professional growth.

Here is a common process for implementing a 360-degree appraisal:

1. Preparation and Planning

• Clarify Objectives and Goals: Clearly define the appraisal’s purpose and the specific objectives to be accomplished. Identify competencies and behaviors to be evaluated.
• Participant Selection: Identify the individuals who will offer feedback, typically involving supervisors, peers, subordinates, and at times, external stakeholders such as clients or customers.
• Tool Selection: Choose or create a 360-degree feedback tool or questionnaire aligned with the appraisal’s goals. Ensure that the questions are pertinent, clear, and suitable for the participants.
• Confidentiality Assurance: Guarantee participants that their feedback will be confidential, fostering sincerity and openness in their responses.
• Training: Offer training to participants providing feedback (appraisers) and those receiving feedback (the individual being appraised). The training should encompass the appraisal’s purpose, guidelines for completing feedback forms, and the significance of delivering constructive feedback.

2. Data Gathering

• Questionnaire Distribution: Distribute the questionnaires to all participants, providing clear instructions on the completion process and the timeline for submission.
• Data Collection Period: Establish a specific timeframe for participants to fill out questionnaires, which may vary from a few weeks to a month based on the organization’s size and the number of participants involved.
• Confidential Feedback: Emphasize the significance of maintaining anonymity in the feedback process. Participants should submit their completed questionnaires directly to a designated impartial entity or system to uphold confidentiality.
• Reminder Communication: Issue reminders to participants as the deadline nears to ensure a heightened response rate.

3. Compiling and Analyzing Information

• Data Recording: Record the gathered feedback data in a secure database software or system , prioritizing the confidentiality of the provided responses.
• Information Assessment: Scrutinize feedback data to discern recurring themes, tendencies, and aspects for enhancement and development. This process might encompass consolidating scores, classifying comments, and generating comprehensive summary reports.

4. Discussion of Feedback

• Feedback Review: Schedule a feedback session with the individual undergoing appraisal. Discuss both positive and negative feedback in a constructive and supportive manner, emphasizing strengths and areas for improvement.
• Goal Establishment: Work together to establish specific goals and action plans derived from the received feedback. These goals should concentrate on addressing improvement areas and leveraging strengths.

5. Personal Growth and Continued Monitoring

• Growth Strategy: Develop a detailed plan outlining the steps and approaches the individual will undertake to tackle the identified areas requiring enhancement.
• Ongoing Evaluation: Introduce a follow-up procedure to monitor progress and offer continuous assistance. This may involve periodic 360-degree evaluations to gauge developmental advancements.
• Assistance and Tools: Guarantee that individuals have the essential resources, training, coaching, or mentorship required to aid them in accomplishing their growth objectives.

6. Continuous Enhancement

• Process Assessment: Regularly review the efficiency of the 360-degree appraisal process. Gather input from participants to pinpoint areas for refining the process itself.
• Refinement and Adaptation: Utilize feedback and insights gained to enhance the process for subsequent rounds of appraisals, aiming for increased effectiveness and efficiency.

7. Documentation and Record Maintenance

• Keeping Records: Create comprehensive documentation of all feedback, goals, action plans, and progress reports for each participant. This record-keeping holds significant value for performance management and organizational advancement.

Advantages and Disadvantages of 360 Degree Performance Appraisal Method

360 degree appraisal template: useful 360 review questions by hr experts.

Creating a 360-review template is important for streamlining the feedback collection process within your team. You can begin this process by making a questionnaire with both open-ended and closed questions to have a blend of qualitative and quantitative data.

Ensure that the questions are clear, actionable, and targeted towards the individuals being appraised. Some of the questions/statements that you can cover in your appraisal template are:

1. Closed-Ended Questions

It is beneficial to have a balance between quantifiable data for performance evaluation and qualitative responses for additional context. As mentioned earlier, closed-ended questions are most suitable for gathering quantifiable data.

Provide respondents with the following options from the Likert scale — “ strongly disagree ,” “ disagree ,” “ neutral ,” “ agree ,” and “ strongly agree ”. Ask them to indicate their level of agreement or disagreement with the following statements:

• XYZ effectively prioritizes their workload and consistently meets deadlines.
• XYZ communicates clearly and effectively with me and other colleagues.
• XYZ demonstrates strong leadership capabilities.
• XYZ possesses strong interpersonal skills and contributes to a welcoming team environment.
• XYZ embodies our company values effectively.
• XYZ consistently delivers timely and efficient feedback.
• XYZ consistently prioritizes teamwork.
• XYZ is skillful at finding creative solutions and taking initiative in problem-solving situations.
• XYZ is consistently open to receiving both negative and positive feedback.
• XYZ values diverse perspectives, even when they differ from their own.

2. Open-Ended Questions

To collect qualitative insights, it’s important to incorporate a range of questions addressing both an employee’s strengths and areas for growth. This approach supports managers in ensuring that each 360-degree evaluation offers a blend of positive feedback and constructive criticism.

Here are ten open-ended queries for your feedback survey:

• What do you consider to be the strengths of this individual?
• What new activity should this employee initiate?
• What ongoing activity should this employee continue?
• What should this employee discontinue?
• How effectively does this individual manage their time and workload?
• Can you provide an instance where this person has embodied a company value?
• How would you describe this employee in three or four words?
• If you were in this individual’s position, what initial action would you take?
• How well does this person handle shifting priorities?
• In what area do you believe this employee could enhance their performance?

Types of 360 Degree Appraisals

In the domain of performance evaluations, 360-degree appraisals offer a complete approach to assessing an individual’s capabilities and potential. Let’s check various types of 360-degree appraisals that not only measure an individual’s performance but also bring holistic development.

• Supervisor Feedback: Involves obtaining assessments from the direct supervisor, focusing on the employee’s work performance, leadership skills, and adherence to company policies.
• Peer Review: Provides valuable insights from colleagues who collaborate closely with the employee, offering perspectives on teamwork, communication, and interpersonal skills.
• Subordinate Assessment: Subordinates can provide input on the employee’s leadership, guidance, and support, contributing to a well-rounded evaluation.
• Self-Evaluation: Employees reflect on their own performance, strengths, weaknesses, and areas for professional growth, facilitating self-awareness and personal development.
• Customer Feedback: Feedback from external stakeholders, such as clients and customers, provides an external perspective on the employee’s customer service, communication, and problem-solving skills.

The integration of these diverse perspectives fosters a more balanced and insightful evaluation, contributing to a culture of continuous improvement and individual development.

How to Conduct a 360 Degree Appraisal?

Conducting a 360-degree appraisal requires strategic planning to ensure effective outcomes for both individuals and organizations. Let’s check some of the essential steps to conduct a comprehensive and insightful 360-degree appraisal process:

• Preparation and Goal Setting: Begin by clearly defining the purpose, goals, and criteria for appraisal. Communicate the process to all involved parties and ensure clarity on objectives for a successful evaluation.
• Selecting Appropriate Raters: Carefully choose raters from different perspectives such as supervisors, peers, subordinates, and even external stakeholders like clients to gather diverse feedback of the individual’s performance.
• Feedback Collection: Provide raters with specific and detailed questions or a structured survey to gather meaningful feedback. Encourage honest and constructive responses to ensure that appraisal reflects various viewpoints accurately.
• Confidentiality and Anonymity: Assure raters of confidentiality and anonymity to promote unbiased feedback. This creates a safe space for honest assessments, enhancing the credibility of the appraisal process.
• Data Analysis and Reporting: Thoroughly analyze the feedback collected, identifying common strengths and areas for improvement. Prepare a detailed report that highlights key insights and actionable recommendations for the individual’s development.
• Feedback Discussion: Schedule a feedback session with the individual (who is being appraised) to discuss results openly. Encourage self-reflection, provide support, and create a plan for growth based on the feedback received.
• Goal Setting and Development Planning: Collaborate with the individual to set goals, create a development plan, and establish a timeline for improvement based on appraisal results. Ensure continuous support and monitoring to track progress.
• Follow-Up and Evaluation: Regularly follow up on the development plan, provide support, and evaluate progress against set goals. Adjust the plan as needed and celebrate achievements to motivate continued growth.

By following these steps, you can conduct a 360-degree appraisal that fosters personal and professional growth and cultivates a culture of continuous improvement within organizations.

Tips for an Effective 360 Degree Performance Appraisal

360-degree appraisals are effective in comprehensive employee feedback and development. To ensure effectiveness and success, consider the following tips:

• Transparently communicate the purpose, process, and expectations of 360-degree appraisal to all participants.
• Provide training and support to raters to ensure they understand the process, the significance of feedback, and how to provide feedback effectively.
• Carefully choose raters to provide well-informed perspectives, ensuring a balanced and holistic assessment of the individual’s performance.
• Emphasize the confidentiality of feedback to raters, creating a safe space for honest and constructive input.
• Implement a structured questionnaire or guidelines for feedback collection to ensure consistency and relevance in the feedback received.
• Initiate follow-up discussions and provide ongoing support for individuals to understand feedback, self-reflect, and create development plans.
• Collaborate with the appraised individual to create a development plan based on the received feedback, highlighting areas for improvement and growth opportunities.
• Regularly monitor progress, provide support, and evaluate growth against set goals to ensure the effectiveness of the appraisal process.

In conclusion, 360-degree Performance Appraisals offer a comprehensive and transformative approach to employee feedback and development. By considering insights from various perspectives, including peers, managers, and direct reports, organizations can gain a holistic view of individual performance, promoting an environment of transparency and self-awareness.

While the 360-degree appraisal method provides valuable opportunities for growth, it is crucial to ensure clear communication, confidentiality, and ongoing support to maximize its effectiveness. By embracing this approach, organizations can foster a culture of continuous improvement and drive both individual and team performance to new heights.

360-Degree Performance Appraisals: FAQs

What are the 4 components of a 360-degree appraisal.

The four key components of a 360-degree appraisal include self-assessment, peer review, supervisor evaluation, and feedback from subordinates or other relevant stakeholders. This holistic approach gathers insights from various perspectives, providing a comprehensive view of an individual's performance for a well-rounded evaluation experience.

What is a 360-degree appraisal method?

A 360-degree appraisal method is a comprehensive feedback system that gathers input from multiple sources such as peers, supervisors, and subordinates to evaluate an individual's performance from various perspectives. This inclusive approach offers a holistic view of one's strengths, weaknesses, and skills, enhancing the effectiveness of performance evaluations.

What is meant by 360 degree?

In the context of performance appraisals, “360 degrees” refers to gathering feedback from all relevant sources. It includes feedback from peers, supervisors, and subordinates to provide a comprehensive and well-rounded assessment of an individual’s performance from various viewpoints. This approach aims to capture an individual's strengths and areas for improvement.

Which companies use 360-degree performance appraisal?

Many leading companies use 360-degree performance appraisal including Google, General Electric, Microsoft, and Deloitte to enhance employee development and overall performance evaluation.

Why is 360 used for degrees?

The term “360 degrees” in 360-degree feedback signifies a complete circle of feedback from all directions. This includes peers, managers, subordinates, and clients providing a comprehensive assessment of an individual's performance from multiple viewpoints. This all-encompassing approach aims to offer a well-rounded evaluation.

Namrata is a skilled content writer with an expertise in writing marketing, tech, business-related topics, and more. She has been writing since 2021 and has written several write-ups. With her journey with Techjockey, she has worked on different genres of content like product descriptions, tech articles, alternate pages,... Read more

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