Chapter 7: Performance Assessment and 360 Degree Feedback

Learning Outcomes
To understand the Performance Assessment as used as a tool for planning and development
To have an idea about the Performance Assessment Interview process.
To understand the importance in using the 360 degree employee assessment.

PERFORMANCE ASSESSMENT
Performance assessments should be conducted during an employee’s probationary period and annually
thereafter. Performance assessments can also be done on an interim basis in consultation with your
Human Resources Partner. Assessments provide the employee with an honest, accurate summary of their
strengths and provide an opportunity for continuous improvement. Additionally, in most collective
bargaining units, assessments are the basis for determining pay increases for satisfactory performance. It
is important to remember that nothing should appear on a performance assessment that has not been
addressed by using performance management tools such as feedback, coaching or mentoring.

PERFORMANCE ASSESSMENT MATERIALS

1. Communications:

 How well does the employee express themselves?

 How well does the employee communicate with direct/indirect reports, peers, students, and other
professional contacts?
 How well does the employee keep his/her supervisor informed?

2. Job Knowledge:

 Assess the employee’s command of the knowledge base required to perform the job.
 How well does the employee understand job responsibilities?
 How well does the employee understand and adhere to policies and procedures?
 Does the employee consistently attempt to expand job knowledge and keep abreast of
developments in the field?

3. Organization and Planning:

 Does employee use continuous improvement in their duties?

 Does employee define and arrange activities in a logical manner?
 Does employee effectively use resources including staff, time, money, and materials?

4. Leadership and Supervision:

  Does employee set a good example for others?
 Does employee delegate appropriate tasks to direct/indirect reports?
 Does employee develop the capabilities of direct/indirect reports?
 Does employee motivate direct/indirect reports so that they work together toward common
objectives?

5. Dependability:

 Can the employee be relied on to fulfill job responsibilities in both routine and complex job
situations?
 Does employee observe and meet deadlines?
 Is employee punctual for meetings?
 What is the employee’s attendance record?

6. Initiative:

 Does employee act independently when appropriate

 Does employee actively pursue or initiate projects for the benefit of the department and/or the
University?

7. Problem Solving and Creative Ability:

 Does employee develop logical and creative solutions to problems and make effective decisions?
 Can employee distinguish between significant and minor issues?
 Does the employee’s work reflect creativity?

8. Adaptability:

 Does employee adapt to changing work demands?

 Is employee receptive to new ideas and concepts?

9. Professional Attitude:

 Does employee demonstrate interest in the job, the department and the University?
 Does employee emphasize the positive aspects of most situations?
 Does employee work effectively under pressure or in crisis situations?
 Is employee willing to work beyond normal expectations when work load and deadlines require
it?

10. Productivity:
  Does employee produce work at satisfactory levels?
 Is the employee’s work timely, complete and accurate?

11. Relationship with Others:

 Does employee have the confidence of others?

 Does employee work effectively with other people?

Performance Assessment Interview

A performance assessment interview is a planned and prepared personal interview. It addresses the
working situation and can be used as a tool for planning and development.
Content

 Purpose
 Interview partners
 Preparations
 Content
 Follow-up
 Local guidelines and routines

Purpose

 The interview is based on mutuality and reciprocity, providing an opportunity for both parties to
channel their wishes and needs. The purpose of the interview is to promote mutual trust and
openness, good communication and good cooperation so that the individual is as capable as
possible of carrying out his or her tasks.

 A performance assessment interview may be difficult, and therefore requires openness from both
parties. The performance assessment interview does not replace regular contact; it is a
supplement and an opportunity for a more planned and systematic exchange of opinions with
respect to the working situation.

Interview function
Who the most natural interview partners are will depend on working conditions and areas of
responsibility:

 For administration employees, it will be an interview between an employee and his or her
immediate superior.
 For academic employees, it will be an interview with a head of an institute or another
professional leader or coordinator.
  For technical personnel who are closely linked to research, it will be with the scientific
employees for whom the individual works, e.g. the leader of the research group.

Preparations

 For a performance assessment interview to be experienced as meaningful, it is important that it is

prepared. To arrange for mutuality and reciprocity, it is helpful if both parties are prepared for
what the interview will include.

 The outline for performance assessment interviews is a form that is meant to help preparations. It
is not necessary to follow the form slavishly, but it can be a useful aid in carrying out the
interview and in making it easier to follow up on what you agree. The interview must be arranged
in good time before it takes place and should last at least an hour.

Content
1. Follow-up and conclusions following the previous performance assessment interview
If you have previously participated in an performance assessment interview together. A review of
what has happened during the period beginning with the conclusions you agreed upon then is sensible.
2. Clarifying the institute’s/faculty’s/section’s goals
The performance assessment interview shall address the faculty’s/department’s/ section’s goals
and the employee’s tasks in relation to these.
3. Working tasks
You will discuss the tasks you have today and their prioritization, and any wishes for new or
other tasks. An understanding of one’s own work, what the important and less important working tasks
are, and how you can get your work done in the best possible way should also be clarified. For academic
employees, the distribution of work duties with respect to the special agreement can be addressed.
4. Working environment
Different aspects of the working environment may be addressed, both the psychosocial and
physical environments. Here it is important that both parties state their views. Whether you are content,
and how cooperation with colleagues and other staff functions should be discussed. If needed, you should
discuss what might be done to make improvements. Concrete wishes/complaints in connection with the
physical working environment may also be discussed.
5. Leadership/Management
Here you should provide feedback to the leader/manager about how you perceive him/ her as a
leader/manager and how he/she fulfills his/her leadership/management function.
6. Professional and personal development
 This part is about how you function in your position today, eg, as scientist, teacher, liaison,
administrator. Here you will be able to give your view of you own development needs and plans, and
simultaneously receive feedback as to whether the needs and plans are realistic.
7. Plans and goals
Discuss the plans and goals that you both regard as important to prioritize during the next period,
i.e. until the next performance assessment interview. Any goals you set should be realistic, have a
deadline and lie within your area of responsibility and authority.

Follow-up

 For the interview to have an effect, it is important to draw conclusions and to ensure that you
agree on what should be followed up. It should be clearly stated what is to be done by whom, by
when, and according to which standards. Both parties are responsible for following up what they
have agreed on.

 The performance assessment interview should be conducted regularly: once a year should be an
aim.

Local Guidelines and Routine

 Some units have issued more specific guidelines and routines for performance assessment
interviews

PERFORMANCE ASSESSMENT TIPS FOR SUPERVISORS AND MANAGERS

 Ask the employee to complete a Self-Assessment. Supervisors should ask the employee to
review his or her own performance and expectations for the previous year by preparing a self-
appraisal, provided as Appendix IV. The purpose of the Self-Assessment is to engage the
employee in the performance assessment process and provide him or her a chance to think about
and document how he or she performed in meeting job expectations and goals.

 There should be no surprises. The performance assessment is a review of the past year's
performance. Through previous coaching, counseling, and other communications, the employee
should be aware of any concerns you have about his or her job performance. The annual
assessment discussion should not be the first time the employee learns or hears about your
concerns.

 Be honest and fair in evaluating all employees. Be certain that you, as the supervisor, have
assessed the performance of all of your employees in an objective and consistent manner as
individuals and relative to other employees in the group. Among the many purposes of
performance assessment is that it allows the supervisor to take a realistic snapshot of the
employee’s performance-although that snapshot comprises the employee’s performance during
 the past twelve (12) months. You should never say the employee is improving if she or he is not
performing well.

 Be consistent in your approach. Don’t create a situation where it appears you are creating
excuses for one employee while holding another employee accountable. Define your criteria for
each of the five levels of performance (ie., the five levels are provided in an earlier section of this
guidebook and also included on each of the performance assessment forms) and use the same
criteria for every employee. Don’t set separate criteria for certain employees when they are
performing essentially the same job.

 Be realistic. Don’t inflate or deflate the impact of the employee’s contributions or performance.
When employees fail to receive a candid performance assessment and feedback, they are less able
to adjust their performance and may fail to seek training to enhance their skill levels. In addition,
employment decisions related to promotions, terminations, and pay increases become clouded by
inflated ratings, as do assessments of organizational effectiveness.

 Rate the employee’s performance, not the employee’s “attitude.” Keep your comments job
related and based on the employee’s ability to perform his/her job. Avoid phrases like “bad
attitude,” “he’s not a team player,” and other subjective type comments. Explain the behavior that
is a result of the “attitude” you deem unacceptable.

 Set goals with the employee. Don’t just criticize an employee’s deficient performance; set; goals
for improvement and/or development. Work with the employee to create a plan of action to help
him or her address any areas of deficiency and to establish goals for the coming year. Establish a
timeline for monitoring the employee’s progress and to reevaluate the employee at the
appropriate time.

 A performance assessment should motivate an employee toward improvement. The

employee should feel excited about the challenges and about his or her ability to meet them. If
employees hear only about their failures and weaknesses, they likely will question their ability to
succeed. If employees perceive support and encouragement from their supervisor, they will gain
the confidence needed to keep trying. When the employee implements the supervisor’s
suggestions for improvement and those suggestions yield results and recognition, the employee is
more likely to listen attentively to future suggestions.

COMMON RATING ERRORS IN ASSESSMENT

 The Leniency Error: Giving everyone high ratings regardless of actual performance in an
attempt to avoid conflict or as a way to influence the employee’s perception of the supervisor.
 The Central Tendency Error: Clumping or clustering all employees in the middle performance
categories in an attempt to avoid extremes. This error is usually caused by the rater’s desire not to
call attention to him or herself or by super ordinate sense of “democracy,”
 The Regency Error: Failing to take into account the entire evaluation period and focusing on a
recent performance episode, positively or negatively. Base your evaluation on representative
information from the whole evaluation period to avoid this error.
  The Halo Effect Error: Letting one favored trait or work factor influence all other areas of
performance, resulting in an unduly high overall performance rating.
 The Horns Effect Error: Allowing one disfavored trait or work factor to overwhelm other more
positive performance elements resulting in an unfairly low overall performance rating.
 Contrast Error: Evaluating an employee in relation to another. Evaluations should be based on
how well the employee performed in relation to his/her duties, goals and stated performance
standards, i.e., actual performance compared to expected performance.
 Past Performance Error: Rating on past performance rather than present performance.
 Biased Rating Error: Allowing personal feelings toward employee to influence rating.
 High Potential Error: Confusing potential with performance.
 Similar to Me Error: Similar to me and therefore feeling of comfort and compatibility.
 Guilt by Association Error: Evaluation influenced by employee’s associations rather than
performance.
In addition to manager feedback, in some situations expanding input for the assessment to include other
people (ie project managers, clients, colleagues, customers etc.) can be beneficial. This approach to
performance assessment is called 360-degree performance assessment.

What is 360 Degree Feedback?

360 Degree Feedback is a system or process in which employees receive confidential, anonymous
feedback from the people who work around them. This typically includes the employee’s manager, peers,
and direct reports. A mixture of about eight to twelve people fill out an anonymous online feedback form
that asks questions covering a broad range of workplace competencies. The feedback forms include
questions that are measured on a rating scale and also ask raters to provide written comments. The person
receiving feedback also fills out a self-rating survey that includes the same survey questions that others
receive in their forms.
Managers and leaders within organizations use 360 feedback surveys to get a better understanding of their
strengths and weaknesses. The 360-feedback system automatically tabulates the results and presents them
in a format that helps the feedback recipient create a development plan. Individual responses are always
combined with responses from other people in the same rater category (eg. peer, direct report) in order to
preserve anonymity and to give the employee a clear picture of his/her greatest overall strengths and
weaknesses.

How is 360 Degree Feedback Used?

Companies typically use a 360-feedback system in one of two ways:
1. 360 Feedback as a Development Tool to help employees recognize strengths and weaknesses and
become more effective
When done properly, 360 is highly effective as a development tool. The feedback process gives people an
opportunity to provide anonymous feedback to a coworker that they might otherwise be uncomfortable
giving. Feedback recipients gain insight into how others perceive them and have an opportunity to adjust
behaviors and develop skills that will enable them to excel at their jobs.
2. 360 Feedback as a Performance Appraisal Tool to measure employee performance
Using a 360 degree feedback system for Performance Appraisal is a common practice, but not always a
good idea. It is difficult to properly structure a 360 feedback process that creates an atmosphere of trust
when you use 360 evaluations to measure performance. Moreover, 360 feedback focuses on behaviors
and competencies more than on basic skills, job requirements, and performance objectives. These things
are most appropriately addressed by an employee and his/her manager as part of an annual review and
performance appraisal process. It is certainly possible and can be beneficial to incorporate 360 feedbacks
into a larger performance management process, but only with clear communication on how the 360
feedbacks will be used.

What a 360 Feedback Survey Measures?

 360 feedback measures behaviors and competencies

 360 assessments provide feedback on how others perceive an employee
 360 feedback addresses skills such as listening, planning, and goal-setting
 A 360 evaluation focuses on subjective areas such as teamwork, character, and leadership
effectiveness

What 360 Feedback Surveys do not Assess?

 360 feedback is not a way to measure employee performance objectives (MBOs)

 360 feedback is not a way to determine whether an employee is meeting basic job requirements
 360 feedback is not focused on basic technical or job-specific skills
 360 feedbacks should not be used to measure strictly objective things such as attendance, sales
quotas, etc.

WHO ARE THE STAKEHOLDERS IN DOING 360-DEGREE ASSESSMENT?

360 degree respondents for an employee can be his/her peers, managers (Le, superior), subordinates, team
members, customers, suppliers/vendors-anyone who comes into contact with the employee and can
provide valuable insights and information or feedback regarding the “on-the-job” performance of the
employee. 360 degree appraisal has four integral components:

 Self appraisal
 Superior’s appraisal
 Subordinate’s appraisal
 Peer appraisal

SELF-APPRAISAL
This form of performance information is actually quite common but usually used only as an informal part
of the supervisor-employee appraisal feedback session. Supervisors frequently open the discussion with:
“How do you feel you have performed?” In a somewhat more formal approach, supervisors ask
employees to identify the key accomplishments they feel best represent their performance in critical and
non-critical performance elements. In a 360-degree approach, if self-ratings are going to be included,
structured forms and formal procedures are recommended.

SUPERIOR’S APPRAISAL
Evaluations by superiors are the most traditional source of employee feedback. This form of evaluation
includes both the ratings of individuals by supervisors on elements in an employee’s performance plan
and the evaluation of programs and teams by senior managers.

SUBORDINATE’S APPRAISAL
An upward-appraisal process or feedback survey (sometimes referred to as a SAM, for “Subordinates
Appraising Managers”) is among the most significant and yet controversial features of a “full circle”
performance evaluation program. Both managers being appraised and their own superiors agree that
subordinates have a unique, often essential, perspective. The subordinate ratings provide particularly
valuable data on performance elements concerning managerial and supervisory behaviors. However, there
is usually great reluctance, even fear, concerning implementation of this rating dimension.

PEER APPRAISAL
With downsizing and reduced hierarchies in organizations, as well as the increasing use of teams and
group accountability, peers are often the most relevant evaluators of their colleagues performance. Peers
have a unique perspective on a co-worker’s job performance and employees are generally very receptive
to the concept of rating each other. Peer ratings can be used when the employee’s expertise is known or
the performance and results can be observed. There are both significant contributions and serious pitfalls
that must be carefully considered before including this type of feedback in a multifaceted appraisal
program.

ADVANTAGE OF 360-DEGREE APPRAISAL

 Offer a more comprehensive view towards the performance of employees.

 Improve credibility of performance appraisal.
 Such colleague’s feedback will help strengthen self-development.
 Increases responsibilities of employees to their customers.
 The mix of ideas can give a more accurate assessment.
 Opinions gathered from lots of staff are sure to be more persuasive.
 Not only manager should make assessments on its staff performance but other colleagues should
do, too.
 People who undervalue themselves are often motivated by feedback from others.
  If more staff takes part in the process of performance appraisal, the organizational culture of the
company will become more honest.

DISADVANTAGE OF 360-DEGREE APPRAISAL

 Taking a lot of time, and being complex in administration

 Extension of exchange feedback can cause troubles and tensions to several staff.
 There is requirement for training and important effort in order to achieve efficient working.
 It will be very hard to figure out the results.
 Feedback can be useless if it is not carefully and smoothly dealt.
 Can impose an environment of suspicion if the information is not openly and honestly managed.

HOW ARE 360-DEGREE REVIEWS DIFFERENT FROM TRADITIONAL PERFORMANCE

REVIEWS?
This multi-rater feedback differs from what most employees get in an annual performance review in
several ways:

 Well-rounded look. Most performance reviews involve the employee getting feedback directly
from their manager. While a manager’s perspective is invaluable, it's inherently limited. 360-
degree feedback involves feedback from many additional sources, providing a well-rounded look
at an employee. After all, people may act differently around their boss than around their peers and
direct reports.

 Forward-looking. While there is some debate on the role of 360s and performance reviews, a
general rule of thumb is that performance reviews are evaluative and backward looking-how have
employees performed in relation to their goals. In contrast, 360-degree feedback is traditionally
non-evaluative and forward-looking what are employees’ strengths and weaknesses, and what
developmental steps can help them become even better.

 Broader view. Some argue that keeping 360-degree assessments non-evaluative is essential to
getting honest feedback. An employee’s peers, they’ll argue, are much less likely to provide
negative or even constructive feedback if they think it will negatively impact someone’s bonus or
promotion potential.

IMPORTANCE OF 360-DEGREE FEEDBACK

When it comes to measuring valuable employee skills and attributes, few things are as important or
effective as 360s. They measure things like leadership, teamwork, communication, decision-making and
collaboration. Given the continual demands of work, it is easy to get caught up in only looking at how
well employees get their jobs done, instead of taking the longer term view to make sure they are
developing into the most productive employee they can become. 360s help managers and employees look
at competencies that will help make them and their organizations better.
In addition, with more and more Millennial in the workforce, providing regular feedback has never been
more important. Millennial want feedback more than any other group. While providing ongoing multi-
rater feedback is important, 360s provides a formalized opportunity for a holistic view of strengths,
weaknesses and opportunities for development. The results should be put into action plans to give
employees the tools they need to develop into better employees.

MAKE IT EASY TO USE

Making 360s work means making it as easy as possible for the manager to take action on the results. Here
are three steps that will help guarantee that managers will follow the advice in the 360: Don't rate-guide:
The typical 360 rates managers as being good or bad at various behaviors. This doesn't help anyone
change. Instead, use a scale that tells a manager to "Do More" or "Do Less" on that particular behavior.

 Focus only on the top three behaviors: Busy managers don't have time to search through
confusing 360 reports to identify their priorities for change. The first page of their 360 reports
should list the vital few actions for them to improve.

 Tell the manager exactly how to change: A well-designed 360 report should include specific
"start, stop or continue" suggestions from their raters that describe exactly how the manager
should change those vital few behaviors.

 Don't include norms or self-ratings: We do not like to be compared to other people, especially
when the comparison isn't favorable. Self-ratings and external norms only increase our resistance
to change if we score below our expectations but don’t motivate us further if we score above our
expectations.
The "old school" of human resource management used to insist that 360s were purely for development
and that they should never be used to evaluate managers or help make organizational decisions. If we
believe that how managers behave is important, then ignoring the best data we have about a manager's
behaviors seems ridiculous. Properly gathered 360 data should be considered as one of many data points
when making decisions about new roles, promotions or development.
When managers know their behaviors have consequences, they'll be much more likely to take action to
change them. Getting 360 feedbacks doesn't have to be painful or unhelpful. By focusing on the core
science and presenting information in a practical and easy-to-understand way, 360s can help managers to
make important behavior changes quickly and easily.