In: Operations Management
What are the advantages and disadvantages of applying 180-Degree Appraisal in a company?
ANSWER:
Monitoring, measuring, and encouraging the performance of an employee is an integral part of organizational progress. An efficient way of doing this is through periodic appraisals. Appraisals are broadly divided into traditional and modern based on the methods and techniques that are used to appraise an employee.
The 180-degree appraisal is a type of appraisal where the employee self evaluates using a form and evaluates his/her own performance in the past. Through this, the employee is able to analyze his strengths and weaknesses and also assess his/her areas of improvement. After the employee has complete their self-assessment, their reporting manager or superior will rate them and give feedback on similar competencies. Due to the simplicity of the process, this method is often preferred for a speedy conclusion of appraisals in a company.
Like all appraisal methods, the 180-degree appraisal has its own merits and demerits.
Advantages:
The advantages of the 180-degree method are two-fold as the employee benefits from them as well as the company. Understanding the advantages derived by the employee will help better understand organizational benefits. Tabulating the both below:
Employee | Company |
The self-reflective process helps the employee understand their strengths and weaknesses in-depth and also serves as a reality check during the appraisal. | The method is cost-effective as there are only two people involved as opposed to other appraisal methods that require feedback from more than one person. |
The employee gets objective feedback from one person (their reporting manager) in a short amount of time. This helps to also grow their professional relationship. | It is less time-consuming. The process ensures feedback and communication happens quickly within the organization. |
The one on one meeting provides the employee of a platform to clarify or raise issues and understand professional obstacles directly with their manager. | Data obtained from the appraisal meetings can be used to evaluate the need for any changes to training or processes. |
The employee gets a clear picture of what his goals and expectations for the future. | The process provides a cost-effective way of ensuring all the employees are aligned with the vision and goals of the Company. |
A properly planned and executed comprehensive 180-degree appraisal can help an employee utilize all the above information to plan out his future training, action plan, and future career development. | Continuous followup on the employee post the appraisal can ensure employees are motivated to achieve their goals. This will ultimately improve a company's credibility and employer brand image. |
The above are advantages of the 180-degree appraisal method however, it is to note that these can only happen smoothly if there is a well-structured appraisal process in place that is comprehensive. It must include elements that address training, remedying a lack of skill, goal setting, regular followups, etc.
Disadvantages:
The disadvantages of the 180-degree method for a Company are as follows:
1. Since the feedback and appraisal process only involves two people, it could be said that it does not offer comprehensive feedback on performance. This can impair development and growth since the feedback is wholely dependent on the manager thus stunting employee growth and ultimately affecting company growth.
2. This method relies on feedback from reporting managers who have also worked closely with the employee and within the company. Thus when it comes to employees in the upper levels who deal with external stakeholders, it becomes hard to obtain feedback and conduct an appraisal.
Due to these disadvantages, the 180-degree method is extensively used for entry-level employees who have not yet worked with a lot of other employees and directly report to the manager.