Report on 360 Performance Appraisal: Advantages and Disadvantages

This report examines the advantages and disadvantages of the 360-degree performance appraisal system, based on an interview with a healthcare company manager. The report highlights how this appraisal method can motivate employees through monetary benefits and provide opportunities for performance improvement by gathering data over an entire year. However, it also acknowledges the potential for biases in evaluation sheets and supervisor feedback, which can negatively impact employee morale, productivity, and team environment. The report concludes that while 360 appraisals can be beneficial, transparency and ethical handling are crucial to prevent negativity and foster a positive work environment. The report also references several academic sources to support its findings.

Running head: 3600 PERFORMANCE APPRAISAL
Interviewee’s Perceived Advantages and Disadvantages of Multi-Source (360O) Appraisal
Name of the student:
Name of the university:
Author note:

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Abstract
The report is aimed at discussing the interviewee’s perceived advantages and disadvantages of
360O performance appraisal. An interview conducted with the manager of my company was
made the basis for the findings. Besides, some additional resources were also being used to add
more depth to the discussion. It was being found in the study that performance appraisal is a
good strategy to review performance and reward the performers with attractive monetary
benefits. These are some good ways to motivate employees. However, it was also being found
that a mismanaged performance appraisal can lead to fatalities like negativity into the individual
or team.

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Table of Contents
Company background......................................................................................................................3
Advantages and Disadvantages.......................................................................................................3
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

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Company background
Recently, I had an interview with the manager of my organization regarding the ‘Multi-
Source (360O) Appraisal’ program. My organization is a healthcare company that does counter
sales for medicines as well as offer treatments on many chronic diseases like skin diseases. The
company has the quality and skilled doctors with expertise in numerous medical disciplines.
Advantages and Disadvantages
Based on the findings of the interview conducted with the company’s manager who also
conducts 360O performance appraisal, I could figure out the advantages and disadvantages of the
appraisal program as perceived by the appraised individuals. These are:
Advantages
360O performance appraisal program is an exchange of values where individual
performance is judged for its value to the company and in return, he or she receives the monetary
benefits, a hike in salary. However, an appraisal program is not that simple as it appears from
looking to the outcomes of an appraisal program. An appraisal sheet talks about the data of an
entire working year. The datasheet, which is purely numerical in nature indicates the productivity
for an individual in a given year. Besides, it also contains many subjective questions answering
which or receiving scores on it will indicate whether there are rooms to improve (Anand et al.,
2018). This means the overall outcome of the program and the feedback shared with the
appraised individual can be utilized by him or her in developing their future performance goals.
Those who really want to learn and pursue incrementing growth should find an appraisal
program beneficial in their career-repair. It is not feasible to get the data for the entire year or
people do not have the tendency to look for such initiatives. However, an annual appraisal

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provides these people some real opportunity to gather data from their supervisors and store it for
future reference. Serious people will take their feedback as the learning guide. Overall, it is a
good process to conduct provided it is free from any biasness (Anand et al., 2018).
Monetary benefits are of course a boost to individual motivation of work. A hike in the
salary is always good considering the cost of living is never static. If the hike makes sense with
regards to the cost of living it should be appreciated by employees and their motivation should
also boost. Positive employee motivation is always good for companies as motivated employees
perform to their potentials, and also have desires to meet new and trendsetting management
expectations (Zondo, 2018).
Disadvantages
One of the questions in the interview indicates the existence of possible biases in the
appraisal program. As long as the data-sheet is concerned, there is no room for any biases. It is
purely data-based. However, the evaluation sheet and the attribute sheet can be the problem
areas. These sheets are purely based upon the scores of the appraised individuals as well as the
remarks of his or her supervisors. Supervisors may tend to give low scores against one or more
criteria. Individuals not being able to give any solid counter to low ratings will end up receiving
a low rating for the particular question. This affects the appraisal as well as the work motivation
of employees. When employees could sense a feeling of favoritism taking root in his or her
supervisors their performance will be affected (Hosain, 2016). They will face problems on a
daily basis. They would not be a hundred percent present to work. Their daily productivity might
be hampered leading to performance fall down in the long-term.

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Appraisal, when not handled ethically or misjudged an individual, can affect the work
morals of the affected individual. That individual will see loopholes in each and everything that
is a part of the management policy. If this happens the negativity will take its root in the
individuals affected by biases done to him or her. An individual with growing negativity in him
or her will also influence the others. The entire team environment may be affected as well as
team productivity (Brown, Inceoglu & Lin, 2017). It is very difficult to identify such things
taking root into the system and control it as well. It is difficult to let the individual grow into
confidence. A lot of things management does to ensure they have the right skills in place and that
there is sufficient motivation for work. They do training sessions and conduct skills development
programs to ensure new skills are regularly developed. All these efforts will be of less
significance if negativity gets spread into a team or more.
Conclusion
On a concluding note, it can be said that 360O performance appraisal is a good
management program to conduct. It provides employees the opportunity to prepare for next
year's performance goals. By living up to their goals and to the expectations of the management,
they can ensure good salary growth. However, performance appraisal can be the cause of
negativity into a team or more if not handled ethically. It is recommended that managers should
keep things transparent, so that, there is nothing hidden to employees.

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References
Anand, V. V., Badrinath, V., Renganathan, R., Bharathi, K. S., Manjula, R., & Nallisai, E.
(2018). An assessment of 360 degree performance appraisal system-A study with special
reference to private banks. International Journal of Pure and Applied
Mathematics, 119(7), 2717-2728.
Brown, A., Inceoglu, I., & Lin, Y. (2017). Preventing rater biases in 360-degree feedback by
forcing choice. Organizational Research Methods, 20(1), 121-148.
Hosain, S. (2016). 360 Degree Feedback as a Technique of Performance Appraisal: Does it
Really Work?. Asian Business Review, 6(1).
Zondo, R. W. (2018). The influence of a 360-degree performance appraisal on labour
productivity in an automotive manufacturing organisation. South African Journal of
Economic and Management Sciences, 21(1), 1-7.