Explain the concept of the 360

Explain the concept of the 360-degree appraisal. Howis this conceptused in industry to appraise the employees. Highlight both theadvantages and disadvantages of this multi-raters performanceevaluation and discuss whether this method is suitable for localemployers in Malaysia.


Concept of 360-degree appraisal

The 360 degree appraisal is the modern form ofperformance evaluation method for employees whereby a employee isevaluated by his or her co-workers. These co-workers annonymouslygives feedback for the concerned employee in the feedback formabout the competencies of the concerned employee.

How is this concept used in the industry to appraise theemployees:

There are different method assigned to carry out modern360 degree performance evaluation of employees.They are listedbelow:

  1) The BARS method: this method is called asbehaviourally anchored rating scale where behaviour of particularemployee towards particular activity is tested against preferredbehavioural statements. These preferred behavioural statements arederived from critical incidents or events happened in past. Thecomparision thus obtained is given a numeric value which is basedin good, beyond average, average, below average andpoor.

2) Human Resource accounting method: In this methodhuman resource accounting is done whereby simply a formula is usedwhich is as follows

cost on employee minus value added byemployee   

where cost means cost of employer right from hirng ofemployee to it’s induction programme and value added by employeemeans input provided by employee to it’s organisation. Differenceis treated as performance of the employee hired in theorganisation

Advantages and Disadvantages of this multi ratersperformance evaluation system:


1) Acts as SWOT analysis for employee: It is well saidthat our strength, weakness, oppoortunities and threats are betteranalysed by person who works with us day and night. therefore 360degree performance evaluation system gives employees a mch betterself awareness of thier srengths and weakness.

2) Identifies Training gaps : there is lots of datacollected regarding competencies of an employee from colleagues,subordinates, managers or clients which indicate vaccum of skillsof particular employee and if there is any issue identified on thatdata collected then there can be various trainng programmes can bedeployed.

3) Gives insight into employee’s work : 360 degreeperformance evaluation finds out the real worth of the employeeexamined under the appraisal. it obtains all value adding and nonvalue adding of employees and tries to refine it’s value addingactivities and demolish non value adding activities.

Disadvantages :

1) Time consuming process: it is very time consuming processbecause fellow employees, managers are first expected to givefeedback of an employee and then these feedbacks are collated andanalysed and then final feedbacks are released which takes lots oftime of organisation.

2) better execution but poor implementation: if leaders doesnotcommunicates the problems and ways to solve that problem in theemployee then it creates distrust in the employee for leader andthey think that they wasted there time in the whole exercisecarried out.

3) sideline positive feedbacks: there are some managers in theorganisation that only focuses on negative aspects of the employeeand ignores the positive ones which can lead to reduction inengagement of above appraisal program. so there should properbalance between indication positive and negative aspect of anemployee

Yes this modern approach is suitable for loca employers ofmalaysia.

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