Employees are the biggest assets in an organisation and hence a 360-degree appraisal system is most relevant, said Mr Gopi Krishna Pidatala, Managing Director of Denousource, a business analytics company here.

Delivering a BL Club lecture on ‘360 degree appraisal — a boon or bane to corporates' at the Malla Reddy Engineering College for Women, he said the appraisal is founded on the idea that an employee's performance is seen by many — the manager, peers, direct reports and customers.

Highlighting the importance of performance management systems in different industries, he advised students as to how to build a career in HR. The lecture was sponsored by Tata Photon+.

Mr Gopi Krishna said an appraisal is a developmental process and also a tool to decide salary increments or at times punishment (if the appraisal is not good). It is a mechanism by which organisations strive to achieve the complete development of the individual.

Therefore, organisation should make sure that the appraisal process is transparent and free of bias.

The 360-degree appraisal combines evaluation with the feedback received from many people who see different facets of an employee's performance.

Also known as multi-perspective and peer-to-peer feedback, managers, supervisors and employees have found it to be effective in improving their performance.

He reiterated that the biggest advantage with the 360-degree appraisal is that it creates accountability at all levels.

“If you know that you will be evaluated by peers and subordinates, it ensures a working culture that respects and encourages team-work. If done properly, the 360-degree appraisal programme can be a very positive experience for an employee,” he said.

He said the 360-degree review provides employees with valuable feedback on their job performance and their work habits as viewed by their managers, co-workers, and subordinates.

From a management perspective, it provides another perspective on an employee's performance and also a measure of his or her overall management style.

These appraisals are meant for change, to help individuals leverage their strengths and work on their weaknesses. It also helps an organisation map its training and development activities for an individual based on feedback.

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