Judging People 360º

People at work can make or break a company. Going to the root of any problem will find people responsible to it. Judgment of the performance of employees has been always a challenge to the managers. Performance management can serve a helping tool to solve this problem.

Performance management has three basic dimensions, namely, defining performance, facilitating performance and encouraging performance. The first aspect starts with goal setting or determination of targets. There must be congruence between individual targets and organizational objectives. The individual performance standards must be mutually agreed at the beginning of the fiscal year, which may also be modified during the year. However, such goals must be clear, measurable and assessable. Appraisal system comes into picture during assessment stage.

The second aspect deals with the facilitation of the performance of the employees. The management can not expect better results if it does not support the employees with not only physical and human resources but with moral encouragement and personal support by those who are directly related to their jobs also. It means management must clear roadblocks or performance blocks.

The third responsibility of management while managing performance of employees is to encourage performance by providing sufficient rewards that have value to the employees. Such rewards must be timely and impartial. One has to understand that the things that get rewarded get done.

Any appraisal method to be effective there must be a meaningful relationship/linkage between performance standards and corporate goals; between job elements and performance indicators.The method must be capable of distinguishing effective performers from the ineffective ones. There must be consistency of judgment. Unreliability must not be confused with unfamiliarity. The method must be acceptable to those who are going to use it. The method must be easy for managers and employees to understand and use it.

Various organizations are applying various methods of employees' appraisal systems. Every method has its distinct advantages and disadvantages. The applicability of a specific method has something to do with the nature of performance to be appraised and the corporate philosophy of respective organizations with respect to the human capital. A 360-degree assessment method is gaining popularity these days in many world famous companies and organizations.

This Feedback may be taken against questions or statements and can also include rater's comments and suggestions. In case the method is extended toward appraisal also,weightage to the raters would be different. HR specialists prescribe various levels of weightage to different raters in consultation with the management. Many experts question whether 3600 should be used as a basis for salary increment and promotion or just as tool for employee development.

In 3600 feedback is a highly effective process in that the employee receives feedback from a range of people at different levels and sometimes from outsiders also, e.g. customers. Comments given by raters are kept confidential so that the raters can feel comfortable giving honest feedback and feedback is provided against a competency standard or questionnaire as opposed to a vague set of guidelines.

1. There should be participation of employees to design the system.

2. Performance standards should be developed on the basis of inputs from the potential users and HR experts .

3. The system should be made simple and easy so that the users and the employees can apply it without spending much time learning it.

4. Before implementing the system to the whole organization there should be a trial run making changes to the system based on the feedback from the trial.

5. Everyone in the organization should be educated about it.

6. Secrecy on the providers of feedback should be well maintained.

7. The success of the system should be constantly monitored.

People management helps in predicting profitability and productivity in organizations. The success of any organization depends upon how we evaluate the performance of our employees. Different appraisal methods can be used depending upon nature of job, HR philosophy that is being adopted in organization and the type of employees working for the organizations. The 360-degree is effective management tool for employee motivation and development. I hope Nepalese organizations will introduce the system as an efforts to improve productivity, quality of work life and corporate success.