A

Project report On

performance appraisal in jyote

motors pvt.ltd.
Submitted in partial fulfillment of the
requirements for the award of the degree of
Bachelor of Business Administration
In
Academy of Management & Information
Technology (AMIT)
Vidya Bihar, Plot no- 67/68, IID Centre, Khurda

(Recognised by Govt. Of Odisha, Affilated to Utkal University & NCVT)

Under the supervision of

Mr. Subhashis Mohanty

Submitted By-
Miss Ajita Mohanty
B.B.A 2008 Batch
Roll no- 56303UT08033
 ACKNOWLEDGEMENT

The successful completions of the present

research work conducted by me has been possible under the able and

sincere guidance of Miss Sabita Parida and Mrs Debasmita Dash,

HR executive of Jyote motors Pvt. Ltd. Bhubaneswar. Their

persistent supervision and co-operation has been the source of

inspiration for me to carry on the survey. I express my deepest

gratitude to them for making my task easier with their profound

advice which has been of immense value to me.

Date:

Place: Bhubaneswar Ajita Mohanty

 DECLARATION

I do hereby declare that the report entitled

“Performance Appraisal” is an authentic piece of work and

submitted as a partial fulfillment of the requirements for the BBA

course, in “ACADEMY OF MANAGEMENT AND

INFORMATION TECHNOLOGY” in course of summer training

done at JYOTE MOTORS PVT. LTD. Bhubaneswar.

This report has not been submitted for the awards of any

other degree elsewhere in part or in full.

Date:

Place: Bhubaneswar (Ajita Mohanty)

 GUIDE CERTIFICATE

This is to certify that the work entitled “Performance

Appraisal” is a piece of Term Project done by Ajita Mohanty

student of BBA under my guidance and supervision for partial

fulfillment of BBA curriculum of ACADEMY OF MANAGEMENT

AND INFORMATION TECHNOLOGY.

To the best of my knowledge and belief the Term Project Report:

1. Embodies the work of the candidates them self.

2. Has been duly completed

3. Is up to the standard both in respect to contents and

language for being referred to the examiner.

(Mr. Subhasish Mohanty)

 OBJECTIVE OF THE STUDY

Project Title:

Study of the performance of employees for JYOTE Motors, Bhubaneswar

OBJECTIVE OF THE STUDY

 To enhance my knowledge about the performance of employees.

 To enhance my knowledge about increment, promotion.
 To know the salary satisfaction of employees.
 To convert theoretical knowledge into practical knowledge.
 To prepare myself as a HR person & for the organization as well.
 To narrate the profile of the company.
 To overview of JYOTE MOTORS.
 To study the professional status of employees.
WHAT IS “PERFORMANCE APPRAISAL”?

Performance Appraisal is defined as the process of assessing the

performance and progress of an employee or a group of employees on a given job
and their potential for future devlopment.It consists of all formal procedures used in
working organizations and potential of employees.

Performance appraisal can be defined as a system of measuring employee’s

performance relative to the assigned or agreed objectives. The process starts with
the supervisor or with the subordinate agreeing on specific objectives that need to
be met on an agreed time period. The objectives that are used in the Performance
appraisal system from the main organizational objectives that are reduced to
Departmental goals and now to individual goals.

In simple terms, performance appraisal may be understood as the

assessment of an individual's performance in a systematic way, the performance
being measured against such factors as job knowledge, quality and quantity of
output, initiative, leadership abilities, supervision, dependability, co-operation,
judgement, versatility, health, and the like. Assessment should not be confined to
past performance alone. Potentials of the employee for future performance must also
be assessed.

According to Flippo, “Performance Appraisal is the systematic, periodic and

an important rating of an employee’s excellence in matters pertaining to his present
job and his potential for a better job.”

A formal definition of performance appraisal is:

It is the systematic evaluation of the individual with respect to his/her

performance on the job and his/her potential for development.
 OBJECTIVES OF PERFORMANCE APPRAISAL

Data relating to performance assessment of employees are recorded, stored

and used for seven purposes. The main purposes of employee assessment are:
1. To effect promotions based on competence and performance.
2. To confirm the services of probationary employees upon their completing the
probationary period satisfactorily.
3. To assess the training and development needs of employees.
4. To decide upon a pay raise where (as in the unorganized sector) regular pay
scales have not been fixed.
5. To let the employees know where they stand insofar as their performance is
concerned and to assist them with constructive criticism and guidance for the
purpose of their development.
6. To improve communication. Performance appraisal provides a format for dialogue
between the superior and the subordinate, and improves understanding of personal
goals and concerns. This can also have the effect of increasing the trust between the
rater and the ratee.
7. Finally, performance appraisal can be used to determine whether HR programmes
such a selection, training, and transfers have been effective or not.
Broadly, performance appraisal serves four objectives-
(i) developmental uses,
(ii) administrative uses/decisions,
(iii) organizational maintenance/objectives, and
(iv) documentation purposes.
ROLE OF PERFORMANCE APPRAISAL IN JYOTE MOTORS

 To help each employee to understand more about their role and become clear
about their functions;
 To be involved in helping employees to better understand their strengths and
weaknesses with respect to their role and functions in the organization;
 To help in identifying the developmental needs of employees, given their role
and function;
 To increase mutuality between employees and their supervisors so that every
employee feels happy to work with their supervisor and thereby contributes
their maximum to the organization;
 To act as a mechanism for increasing communication between employees
and their supervisors. In this way, each employee gets to know the
expectations of their superior, and each superior also gets to know the
difficulties of their subordinates and can try to solve them together, thus they
can better accomplish their tasks;
 To provide an opportunity to each employee for self-reflection and individual
goal setting, so that individually planned and monitored development takes
place;
 To help employees internalize the culture, norms and values of the
organization, thus developing an identity and commitment throughout the
organization.
 To help in preparation of employees for higher responsibilities in the future by
continuously reinforcing the development of the behavior and qualities
required for higher-level positions in the organization.
 To be instrumental in creating a positive and healthy climate in the
organization that drives employees to give their best while enjoying doing so;
and to assist in a variety of personnel decisions by periodically generating
data regarding each employee.
ORGANIZATION STRUCTURE

Jyote Motors Pvt. Ltd. Is a premium Maruti Suzuki showroom in Orissa. The CEO of
Jyote Motors Pvt. Ltd. Is Mr. Devijyoti Pattnaik. Having a energetic personality and
applying the new strategy to increase the sales force and stand number one in orissa
market.

The showroom is at Bhubaneswar, lewis Road, the background and atmosphere is

excellent. The front office section attracts the customers ground floor is filled with
number of stocks of different products of Maruti Suzuki. As the employee's works
sincerely from 9am to 7pm. It has one beautiful designed conference hall for
discussion having all types of strategies, planning, etc. Everything is computerized
within it.

In Jyote Motors Pvt. Ltd. There are various departments which are interlink in
between them. First from the entrance the Lobby manager dept. then Accessories
dept. and the GM chamber. Then in first floor first the Finance dept. then the
accounts dept. having excellent experienced persons who are maintaining the
financial position of the Jyote Motors Pvt. Ltd. Then the customer care dept., process
dept, car loan dept, tele caller dept, HR Dept, then the Director dept and at the final
the CEO or MD chamber.
METHODS OF PERFORMANCE APPRAISAL

The foregoing list of major program pitfalls represents a formidable challenge,

even considering the available battery of appraisal techniques. But attempting to
avoid these pitfalls by doing away with appraisals themselves is like trying to solve
the problems of life by committing suicide. The more logical task is to identify those
appraisal practices that are (a) most likely to achieve a particular objective and (b)
least vulnerable to the obstacles already discussed. Before relating the specific
techniques to the goals of performance appraisal stated at the outset of the article, I
shall briefly review each, taking them more or less in an order of increasing
complexity.

The best-known techniques will be treated most briefly.

ESSAY APPRAISAL

In its simplest form, this technique asks the rater to write a paragraph or more
covering an individual's strengths, weaknesses, potential, and so on. In most
selection situations, particularly those involving professional, sales, or managerial
positions, essay appraisals from former employers, teachers, or associates carry
significant weight.

GRAPHIC RATING SCALE

This technique may not yield the depth of an essay appraisal, but it is more
consistent and reliable. Typically, a graphic scale assesses a person on the quality
and quantity of his work (is he outstanding, above average, average, or
unsatisfactory?) and on a variety of other factors that vary with the job but usually
include personal traits like reliability and cooperation. It may also include specific
performance items like oral and written communication.

FIELD REVIEW

The field review is one of several techniques for doing this. A member of the
personnel or central administrative staff meets with small groups of raters from each
supervisory unit and goes over each employee's rating with them to
(a) identify areas of inter-rater disagreement,

(b) help the group arrive at a consensus, and

(c) determine that each rater conceives the standards similarly. .

FORCED-CHOICE RATING

Like the field review, this technique was developed to reduce bias and
establish objective standards of comparison between individuals, but it does not
involve the intervention of a third party.

MANAGEMENT BY OBJECTIVE

To avoid, or to deal with, the feeling that they are being judged by unfairly
high standards, employees in some organizations are being asked to set - or help
set - their own performance goals. Within the past five or six years, MBO has
become something of a fad and is so familiar to most managers that I will not dwell
on it here.

RANKING METHODS

For comparative purposes, particularly when it is necessary to compare

people who work for different supervisors, individual statements, ratings, or appraisal
forms are not particularly useful. Instead, it is necessary to recognize that
comparisons involve an overall subjective judgment to which a host of additional
facts and impressions must somehow be added. There is no single form or way to do
this. The best approach appears to be a ranking technique involving pooled
judgment.

The two most effective methods are alternation ranking and paired
comparison ranking.

1. “Alternation ranking”:

Ranking of employees from best to worst on a trait or traits is another method

for evaluating employees. Since it is usually easier to distinguish between the worst
and the best employees than to rank them, an alternation ranking method is most
popular. Here subordinates to be rated are listed and the names of those not well
enough to rank are crossed. Then on a form as shown below, the employee who is
highest on the characteristic being measured and the one who is the lowest are
indicated. Then chose the next highest and the next lowest, alternating between
highest and lowest until all the employees to be rated have been ranked.

2. “Paired-comparison ranking”:

This technique is probably just as accurate as alternation ranking and might

be more so. But with large numbers of employees it becomes extremely time
consuming and cumbersome. Both ranking techniques, particularly when combined
with multiple rankings (i.e., when two or more people are asked to make independent
rankings of the same work group and their lists are averaged), are among the best
available for generating valid order-of-merit rankings for salary administration
purposes.

ASSESSMENT CENTERS

So far, we have been talking about assessing past performance. What about
the assessment of future performance or potential? In any placement decision and
even more so in promotion decisions, some prediction of future performance is
necessary. How can this kind of prediction be made most validly and most fairly?

3600 FEEDBACK

Many firms have expanded the idea of upward feedback into what the call
360-degree feedback. The feedback is generally used for training and development,
rather than for pay increases. Most 360 Degree Feedback system contains several
common features. Appropriate parties – peers, supervisors, subordinates and
customers, for instance – complete survey, questionnaires on an individual. 360
degree feedback is also known as the multi-rater feedback, whereby ratings are not
given just by the next manager up in the organizational hierarchy, but also by peers
and subordinates. Appropriates customer ratings are also included, along with the
element of self appraisal. Once gathered in, the assessment from the various
quarters are compared with one another and the results communicated to the
manager concerned. Another technique that is useful for coaching purposes is, of
course, MBO. Like the critical incident method, it focuses on actual behavior and
actual results, which can be discussed objectively and constructively, with little or no
need for a supervisor to "play God."

BALANCED SCORECARD

The balanced scorecard as a method of measuring performance channelizes

the efforts of people to achieve organizational goals. The implementation of
balanced scorecard involve formulating a strategy & deciding what each employee
needs to do to achieve the objectives based on strategy.

TEAM APPRAISAL

In the new economy era, where team work is essential for any venture to
succeed, team appraisal has emerged as one of the best tool for the performance
management. In the team appraisal method the individual team member evaluate
their colleagues in the team & provide feedback.

BEHAVIOR ANCHORED RATING SYSTEM (BARS)

BARS concentrates on the behavioral traits demonstrated by the employees

instead of his actual performance. Some of the other methods like graphic rating
scale & checklist also measure the behavior based on the assumption that desirable
behavior result in effective performance.

CRITICAL INCIDENT METHOD

In this method of performance appraisal, the appraiser makes a note of all the
critical incident that reflect the performance & behavior of the employee during the
appraisal period. These are recoded as & when they occur & can demonstrate either
positive or negative traits or performance.

WORK STANDARD APPROACH

 This method of appraisal is more suitable in a manufacturing scenario, where
the goals are pre determined work standard. These work standards can be set
based on the average output of a typical employee in the organization or by bench
marking against the work standard of a competitor in a similar business.
PERFORMANCE APPRAISALS PROCESS

• Prepare - prepare all materials, notes agreed tasks and records of

performance, achievements, incidents, reports etc - anything pertaining to
performance and achievement - obviously include the previous performance
appraisal documents and a current job description. A good appraisal form will
provide a good natural order for proceedings, so use one. If your organization
doesn't have a standard appraisal form then locate one, or use the template
below to create one, or download and/or adapt the appraisal forms from this
page. Whatever you use, ensure you have the necessary approval from your
organization, and understand how it works. Organize your paperwork to
reflect the order of the appraisal and write down the sequence of items to be
covered. If the appraisal form includes a self assessment section and/or
feedback section (good ones do) ensure this is passed to the appraisee
suitably in advance of the appraisal with relevant guidance for completion. A
sample performance appraisal template is available free below, which you can
adapt and use to create your own form. Part of your preparation should also
consider 'whole-person' development - beyond and outside of the job skill-set
- as might inspire and appeal to the appraisees. Many people are not
particularly interested in job skills training, but will be very interested,
stimulated and motivated by other learning and development experiences.
Get to know what your people are good at outside of their work. People's
natural talents and passions often contain significant overlaps with the
attributes, behaviours and maturity that are required and valued in the
workplace. Use your imagination in identifying these opportunities to
encourage 'whole-person' development and you will find appraisals can
become very positive and enjoyable activities. Appraisals are not just about
job performance and job skills training. Appraisals should focus on helping the
'whole person' to grow and attain fulfilment.
• Inform - inform the appraisee - ensure the appraisee is informed of a suitable
time and place (change it if necessary), and clarify purpose and type of
appraisal - give the appraisee the chance to assemble data and relevant
performance and achievement records and materials. If the appraisal form
 does not imply a natural order for the discussion then provide an agenda of
items to be covered.
• Venue - ensure a suitable venue is planned and available - private and free
from interruptions - observe the same rules as with recruitment interviewing -
avoid hotel lobbies, public lounges, canteens - privacy is absolutely essential
(it follows also that planes, trains and automobiles are entirely unsuitable
venues for performance appraisals......)
• Layout - room layout and and seating are important elements to prepare also
- don't simply accept whatever layout happens to exist in a borrowed or hired
room - layout has a huge influence on atmosphere and mood - irrespective of
content, the atmosphere and mood must be relaxed and informal - remove
barriers - don't sit in the boss's chair with the other person positioned humbly
on the other side of the desk; you must create a relaxed situation, preferably
at a meeting table or in easy chairs - sit at an angle to each other, 90 degrees
ideally - avoid face to face, it's confrontational.
• Introduction - relax the appraisee - open with a positive statement, smile, be
warm and friendly - the appraisee may well be terrified; it's your responsibility
to create a calm and non-threatening atmosphere. Set the scene - simply
explain what will happen - encourage a discussion and as much input as
possible from the appraisee - tell them it's their meeting not yours. Confirm the
timings, especially finishing time. If helpful and appropriate begin with some
general discussion about how things have been going, but avoid getting into
specifics, which are covered next (and you can say so). Ask if there are any
additional points to cover and note them down so as to include them when
appropriate.
• Review and measure - review the activities, tasks, objectives and
achievements one by one, keeping to distinct separate items one by one -
avoid going off on tangents or vague unspecific views. If you've done your
preparation correctly you will have an order to follow. If something off-subject
comes up then note it down and say you'll return to it later (and ensure you
do). Concentrate on hard facts and figures, solid evidence - avoid conjecture,
anecdotal or non-specific opinions, especially about the appraisee. Being
objective is one of the greatest challenges for the appraiser - as with
interviewing, resist judging the appraisee in your own image, according to
 your own style and approach - facts and figures are the acid test and provide
a good neutral basis for the discussion, free of bias and personal views. For
each item agree a measure of competence or achievement as relevant, and
according to whatever measure or scoring system is built into the appraisal
system. This might be simply a yes or no, or it might be a percentage or a
mark out of ten, or an A, B, C. Reliable review and measurement requires
reliable data - if you don't have the reliable data you can't review and you
might as well re-arrange the appraisal meeting. If a point of dispute arises,
you must get the facts straightened out before making an important decision
or judgement, and if necessary defer to a later date.
• Agree an action plan - An overall plan should be agreed with the appraisee,
which should take account of the job responsibilities, the appraisee's career
aspirations, the departmental and whole organization's priorities, and the
reviewed strengths and weaknesses. The plan can be staged if necessary
with short, medium and long term aspects, but importantly it must be agreed
and realistic.
• Agree specific objectives - These are the specific actions and targets that
together form the action plan. As with any delegated task or agreed objective
these must adhere to the SMARTER rules - specific, measurable, agreed,
realistic, time-bound, enjoyable, recorded. If not, don't bother. The objectives
can be anything that will benefit the individual, and that the person is happy to
commit to. When helping people to develop, you are not restricted to job-
related objectives, although typically most objectives will be.
• Agree necessary support - This is the support required for the appraisee to
achieve the objectives, and can include training of various sorts (external
courses and seminars, internal courses, coaching, mentoring, secondment,
shadowing, distance-learning, reading, watching videos, attending meetings
and workshops, workbooks, manuals and guides; anything relevant and
helpful that will help the person develop towards the standard and agreed
task. Also consider training and development that relates to 'whole-person
development' outside of job skills. This might be a hobby or a talent that the
person wants to develop. Developing the whole person in this way will bring
benefits to their role, and will increase motivation and loyalty. The best
employers understand the value of helping the whole person to develop. Be
 careful to avoid committing to training expenditure before suitable approval,
permission or availability has been confirmed - if necessary discuss likely
training requirements with the relevant authority before the appraisal to check.
Raising false hopes is not helpful to the process.
• Invite any other points or questions - make sure you capture any other
concerns.
• Close positively - Thank the appraisee for their contribution to the meeting
and their effort through the year, and commit to helping in any way you can.
• Record main points, agreed actions and follow-up - Swiftly follow-up the
meeting with all necessary copies and confirmations, and ensure documents
are filed and copied to relevant departments, (HR, and your own line manager
typically).

OVERCOME OF A PROBLEM

It was assumed that the information given by the respondents is authentic and
best of their knowledge.

 Some of the view given was completely views by employees as they were in a
hurry and were not considered in the data analysis.
 The result of the study is applicable to the survey area only.
 Time is also one of the important limitations.
Dull process and unwilling respondent also affect the result of the study.
 FINDINGS
1) They treat all the employees equally.
2) They tries there best to increase the efficiency of the employees by providing
them different motivation programs.
3) They make new recruits aware about the company and working pattern of the
company.
4) They focus on each and every department of the organization.
5) Having different recruitment process for different departments of the organization.
6) They provide different types of training to the different
departments according to the need of the people.
7) They take feedback from there employees on regular basis.
8) They adopts 360 degree method of performance appraisal for there employees.
 CONCLUSION

With rewards being directly linked to achievement of objectives, goal setting

and Performance Appraisal assumes utmost importance. The Performance
Appraisal System has been professionally designed and it is monitored by HRD. The
implementation is the responsibility of each and every employee along with their
supervisor. There should be adequate training to the evaluator that will go a long
way in answering the quality of Performance Appraisal. In conclusion, a Performance
Appraisal is a very important tool used to influence employees. A formal
Performance review is important as it gives an opportunity to get an overall view of
job performance and staff development. It encourages systematic and regular
jointstocking and planning for the future. Good performance reviews therefore don’t
just summarize the past they help determine future performance.
 BIBLIOGRAPHY

NEWS PAPERS:

TIMES OF INDIA

THE ECONOMIC TIMES

BOOKS:

Personnel & Human Resource Management

**P.SUBBA RAO,Himalaya Publishing house

**Aswathappa,Kalyani publishers

MAGAZINES :

BUSINESS WORLD
BUSINESS TODAY
INDIA TODAY

PERIODICALS AND REPORTS:

BUSINESS INDIA, JULY- AUGST,2010

INDIA TODAY, SEPTEMBER, 2010

WEB:
www.wikipedia.com
www.jyotemotors.pvtltd.com
www.citehr.com
www.google.com
SPECIFIC METHOD SUGGESTED FOR JYOTE MTORS

3600 method is the best method to rate the performances of the employees in
JYOTE MOTORS. Under the 360 Degree appraisal method the employee is rated
from all angles i.e., by the superiors, subordinates, peers, suppliers, distributors,
customers and clients. Under the Management by Objective method the employee
goals are set mutually by the employee's and the management. And the employees
are rated based on the accomplishment of these goals. Under the Rating Scale
method each employee trait or characteristic is rated on a scale that usually has
several points ranging from "poor" to "excellent" (or some similar arrangement).The
traits assessed on these scales include employee attributes such as work quality,
cooperation, initiative, punctuality and technical competence, etc. The selected traits
should be in some way relevant to the appraisee's job.

According to Milliman and others, “360-degree appraisal is the process of

systematically gathering data on a person’s skills, abilities and behaviors from a
variety of sources –the manager, peers, subordinates and even customers and
clients”. Thus, appraisal of an employee is done by his superior, his peers, his
subordinates and clients or outsiders with whom he interacts in the course of his job
performance. In 3600 appraisal, besides appraising the performance of the assesses,
his other attributes such as talents, behavior, values, and technical capabilities are
also appraised.

Besides the employee himself, superior, subordinates and peers play an

important role in the appraisal. Structured questionnaires are used to collect
responses about the employee from his superiors, peers and subordinates. Several
parameters relating to performance and behavior are used in the questionnaires.
Each manager is assessed by a minimum of fifteen colleagues, at least two of them
being his bosses, four of them peer, and six of them subordinates. Even the
important customers or clients of the firm may also be requested to give their
assessment of the concerned employee. The responses are presented collectively to
the assesses in the form of charts and graphs.
 Comments and interpretations are presented later. Counseling sessions are
arranged with the employee to remove the weaknesses identified in the 360 degree
assessment.

Merits of 360º Appraisal

The merits of 360º appraisal are as under:

 The 360 degree appraisal leads to greater self-awareness of those appraised.
 It reveals strengths and weaknesses in their working styles.
 The gap between self assessment and the views of one’s colleagues of peer
group in reduced.
 It facilitates empowerment of subordinates who get a say in the appraisal of
their bosses.
 Inflexible managers are forced to initiate self-change.
 Facts about organizational culture and ambience are brought to light by the
multiple appraisals.

Demerits of 360º Appraisal

The system of 360º appraisal suffers from the following limitations:
 The 360 degree appraisal system ignores performance in terms of goals.
 The candidate being appraised may not accept negative feedback from the
subordinates and peers. He might feel humiliated.
 Responses from colleagues often tend to be biased.
 Linking rewards to findings under 360 degree appraisal can prove to be unfair.
 The subordinates and peers might not be fully competent in appraisal.
Guidelines for Better Use of 360º Appraisal

The use of multisource appraisal can be effective if the following guidelines

are followed:

(i) Involve people-Ask them who should serve as raters, and give them an
opportunity to review and interpret the results. This will strengthen their commitment
to both the overall process and the specific decisions.

(ii) Ensure that relevant data are being collected -Focus on behaviors and
outcomes that raters are capable of observing and are competent to evaluate.

(iii) Ensure that no single rater can dramatically affect the outcome-Use a
large enough sample or eliminate the highest and lowest scores to ensure that no
one rater can skew the data.

(iv) Train raters in what and how to observe-The better people understand
what they look for and how to record”critical incidents” (specific things the person
said and did that can be used as examples to support their ratings, and better the
quality of the information that will be collected.

(v) Ask raters to support their evaluations- Whenever possible, raters should
discuss their observations and evaluations with other raters. These discussions
should trigger thoughts and combat selective memory. Raters should also be
required to provide a rationale for their rating to other raters. This would prevent
people from using the process to act on personal grudges.

(vi) Move slowly and start small-Any organization considering using 360 º
feedbacks in the appraisal process should begin by using it for development purpose
only and then gradually to make it a part of appraisal system. Even then, the focus
should be on the goal-setting portion of the appraisal. People need to get
comfortable with the idea of multisource feedback as a development tool before they
can accept it as part of the formal performance management process.
 A lot of organizations seem to be hurrying to integrate 360º feedback into the
human resource management system. Multisource feedback really does have the
potential to enhance human resource management system. However, 360º feedback
won’t fix a system that does not work.

(vii) Develop a culture that supports open feedback-Not surprisingly, 360º

feedback works best in companies where the environment is participatory rather than
authoritarian, where giving and receiving feedback are the norm and are seen as
valuable sources of information. If the current system (where only the supervisor
does the appraisal) is not working due to lack of straight talk and hesitancy to give
direct feedback, it is essential to introduce openness in the organization.

(viii) Clear and agreed on performance measures and behaviours-When 360º

feedback is used for development only, the organization may be able to settle the list
of behaviors and skills that have reasonable face validity and general support:
“coaching” or “team building”, for instance. However, when the feedback is being
used to determine performance ratings, the result and behavior for which people are
held accountable must be clear, unambiguous and specific.

(ix) The users must support the system and be willing to invest the time
required to make it work-The introduction of 360º feedback makes an already time-
intensive appraisal process even more demanding. It means more data to collect
and more information to process for the additional feedback.

(x) Sound feedback process- While the way the data are collected and
presented are always important, two aspects of sound 360º feedback procedure are
particularly relevant when the data are used for appraisal purpose: the validity and
reliability of the practices for which people will be measured and the confidentiality of
the raters.