What is LS 360 Appraisal System?

What is 360 Degree Appraisal

The 360 Degree Appraisal System is a performance management tool used to evaluate and provide feedback on the skills and competencies of individuals in an organization. The primary objectives of this are:

• Reliable management evaluation/assessment
• Improved organizational & personal training/development
• Better team development
• Comprehensive & reliable multi-channel feedback
• Remuneration qualification
• Better customer service
• Promotion/layoff qualification
• Reducing discrimination risk
• Involving staff in developing their own manager

The 360 degree appraisal significantly differs from the traditional supervisor-subordinate performance evaluation. The 360 degree system calls for this to be done by subordinates, peers, managers and the individual. This process enables the individual to be evaluated from an all around perspective and thereby provide more accurate information on an individual?s performance over a stated time period.

The Concept

Briefly put, the 360 degree method evaluates an employee's performance by collating it with the feedback sought from everybody else: peers, managers, direct reports as well as internal and external assessment from customers. This, along with the employee's self-evaluation forms the final appraisal. The method has been successfully employed by over 90% Fortune 1000 companies over the past decade. It has been primarily used in identifying training and developmental needs of the employees or validating ongoing training programs. It is also used in making decisions relating to promotions, terminations, pay hikes, etc.,

Its Cost Effective

The concept, by and large, is most democratic as it takes into account the perception of not only your supervisors, but also of several others. The employee also perceives an element of objectivity here. Further, the linking of an individual's performance with all relevant constituents fits in well into the emerging team-based work culture. However, its greatest strength lies in designing future development programs for employees.