The meaning of the word appraisal is to fix a price or value for something. This is used in finance in terms such as project appraisal or financial appraisal where a value is attached to a project. Similarly performance appraisal is a process in which one values the employee contribution and worth to the organisation. Employees across the entire organisation are appraised of their performance. This could be done annually, twice a year, periodically depending the need of the organisation. Performance appraisal is a systematic and orderly evaluation of performance of employees at work by their superiors or others who are familiar with the techniques of performance appraisal. A performance appraisal is a formal review of employee performance. At a performance appraisal, objectives or targets are agreed between manager and employee. At each subsequent appraisal, current and past performance is compared and targets are reviewed. Performance appraisals are essential for the effective management and evaluation of staff. Appraisals help develop individuals, improve organizational performance, and feed into business planning. Formal performance appraisals are generally conducted annually for all staff in the organization. Each staff member is appraised by their line manager. Performance appraisals are also essential for career and succession planning. Performance appraisals are important for staff motivation, attitude and behaviour development, communicating organizational aims, and fostering positive relationships between management and staff. Performance appraisals provide a formal, recorded, regular review of an individuals performance, and a plan for future development. In short, performance and job appraisals are vital for managing the performance of people and organizations.

360 DEGREEE PERFORMANCE APPRAISAL In 360-degree performance reviews, many different types of people are consulted about an employees performance. This includes customers, suppliers, peers and direct reports. In the case of a manager, employees are often asked to give upward feedback on how well they are being managed. If 360-degree performance reviews are performed, a Human Resources manager should coordinate the process, so that subordinate reviewers (i.e., employees) are assured that their performance reviews are kept anonymous.

The aim is to find the gap between ones own appraisal and the perceptions of others. This will in turn enable a professional to analyse his strengths and shortcomings and accordingly improve his performance. While it is true that the system serves as an excellent process since it reduces biases, it is not always successful. It is necessary to create the right culture in the company before introducing the system. If many people are unhappy or their morale is low, the situation can turn disastrous as some staffers will become obvious targets. ADVANTAGES OF 360 DEGREE APPRAISAL

Provides a more comprehensive view of employee performance.

Increases credibility of performance appraisal.

Feedback from peers enhances employee self-development.

Increases accountability of employees to their customers.

The combination of opinions can approximate to an accurate view

Comments expressed by several colleagues tend to carry weight

Some skills are best judged by peers and staff, not by manager alone

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360 Degree Performance Appraisal | MBA Articles