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Performance appraisals are critical in understanding the skills, potential and productivity of any employee. Apart from these, they are also essential to assess the dedication and hard work of the staff.

While there are numerous methods available today to evaluate employee performance, 360 degree evaluation is a simple yet effective way of analysing the same. But like any other method, 360 degree appraisals need to be carried out with care so that a fair and an accurate result is obtained. We look into the benefits and loopholes involved in this technique and understand the usefulness of 360 degree evaluations.

Harinder Singh, HR & strategic head, Vigneshwara Developers, tells us about the method, "360 degree appraisal is a comprehensive method wherein the feedback about the employees' performance comes from all the sources that come in contact with the employee on his job. The respondents for an employee can be his/her peers, managers, subordinates, team members, customers, suppliers/vendors; hence, anyone who comes into contact with the employee and can provide valuable insights and feedback regarding the ‘on-the-job' performance of the employee. 360 degree appraisal has four integral components that include self-appraisal, superior's appraisal, subordinate's appraisal and peer appraisal." 360 degree appraisals are found to be very effective in assessing an employee's performance.

Vishal Chibber, director HR, Kelly Services India, tells us about the benefits of this method, "360 degree feedback is one of the most widely used employee assessments today as the process is more transparent and beneficial compared to any other appraisal procedure. In a knowledge-based economy, it is increasingly important for organisations to understand the competencies needed in the workforce for business success, and then develop those competencies on an ongoing basis".

SWOT method is a very useful technique that is generally utilised in 360 degree appraisals for good evaluations. Debabrata Mandal, VP – HR, Kutchina, elaborates, "SWOT is a strategic method to ascertain the strengths, weaknesses, opportunities and threats of an organisation, project and individual. Its usefulness lies in the fact that the source of information helps in strategic planning for future, reverses the weaknesses of the employees, ascertains and overcomes prospective threats and makes a thorough analysis of the strengths and weaknesses that can further help visualise the opportunities available. The SWOT method can be helpful for improving employees as there is ample scope of self analysis and room for improvement on their weaknesses. In addition, a management gets the opportunity to foster better performance among the employees by providing required growth in terms of salary, perks, incentives and even promotion, if required."

Shitanshu Jhunjhunwalla, director, Turtle Limited, tells us about the loopholes of this method, "The concept may not have any perceived benefits and can pose difficulties in concluding the provided feedback. It does not focus on technical and job-specific skills or performance only. Furthermore, some feedback of superiors or subordinates may be biased or negative if the employee is a task master."

Thus, 360 degree appraisals can go a long way in analysing an employee's performance and making an accurate estimation of his capabilities.

- Palak Bhatia