When choosing the performance appraisal methods, choosing the best approach can be a challenge. On most cases, the potential appraisal method used often comes down to 180 degree or 360-degree appraisals. Here, we will examine the main differences and meaning when using each system. This way, the next time you decide on which system you use, you will have the answers readily available.
The direct manager and the employees themselves usually take a 180-degree appraisal, meaning that the employees will fill in a self-evaluation form. After that, they will rate themselves and offer feedback based on how they feel they performed. After this, the employee will meet the manager and discuss the appraisal. It is a less holistic approach according to most experts. The reason for this is that there are simply fewer people involved in the process.
Despite the employee having interacted with various other employees and team members, the direct manager will be the only ones to appraise the report. While it works in certain conditions, this style might not work in other conditions since it does not encompass everything else than an employee does.
360-degree performance review
The 360-degree performance review is considered more holistic. It gives more insight into the behavior of someone at work. This is because it takes in views from more people. The method is great for measuring the behavior and competence of an employee and getting feedback from other employees and organizations. A 360-degree review is important for performance management since it takes feedback from people who have observed the employee in different settings. This feedback is taken from the direct manager, peers, self-rating, and other colleagues who have interacted with them, clients, and subordinates. More fields can be added in order to make this method as effective as possible.
As you may have noted the difference in the method used is quite huge. The main difference is in the number of people involved in the review. Holistic and all-encompassing approaches offer more details and can be the difference between how the employee performs in the future and how they are doing. By getting feedback from all areas, its all a macro perspective into what they are doing. A general and specific example can be given in this review. It makes it easier for your boss and those working under you to point out areas, which could be improved for better efficiency at the organization.
Picking the Right One
Deciding on the option that will work best for you and your firm is subjective. The things you need to consider include the size of your organization, the level of interaction an employee has with other employees, and how his or her work relates to others in the organization. It will also depend on how much insight you wish to get when discussing the performance review with an employee.
The more detail you need, the more sense it makes to use the 360 degree approach. Not only is it going to help you when discussing the review with an employee, but it will also help you understand how they behave and perform in various settings. By offering specific examples of the good work and the work that requires improvement, it can help you focus on their strengths and point out areas in which they could improve. For employees that work independently, a 180 degree approach is the best choice.
Cost and Time Considerations
One of the important aspects that any company needs to consider is time and cost. For instance, imagine a high-level executive, who has to go through various layers of reports each year. In such a case, he or she interacts will almost all areas of the organization. A 180 degree assessment of his leadership will have little or no useful information. As such, while money might have been saved, it will not help them improve their leadership style or practices.
Another example is a junior employee who has been at the company for only a few months. Such an employee likely reports to only one supervisor. Depending on the department in which they work, they likely do not interact with any customers or other staff in any meaningful capacity. As a result, conducting a 360-degree appraisal would be a huge waste of company resources. Most of those involved in the appraisal would not offer any meaningful input. Even if they did, it has little impact on the general running of the company. As such, a 180 degree review will save money and still offer some insight.
If a company wants to save money while at the same time, receive meaningful feedback. This review of the two main appraisal methods should help them get an idea of what they need to do. None is more important than the other is; it all depends on the circumstances and context in which it is carried out.