720 Degree Perfomance Appraisals


720 degree performance appraisal‟, is the latest appraisal method that has been introduced in New Economy companies. Accurately and objectively measuring the performance of an employee is the most difficult part of the Performance appraisal process. Different methods are used for Performance appraisal that includes: Critical incident method, weighted checklist method, paired comparison analysis, graphic rating scales, essay evaluation method, behaviorally anchored rating scales, performance ranking method, Management by Objectives (MBO) method, 360 degree performance appraisal method, Forced ranking and Behavioral observation scales.

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720 degree performance appraisal is an integrated method of performance appraisal where, the performance of an employee is evaluated from 360 degrees (Management, Colleagues, Self and also customers) and timely feedback is given and performance is evaluated again based on the targets that are set. Hence, 720 degree performance appraisal can be stated as twice 360 degree performance appraisal: once when the appraisal is done and the targets are set and he second where the feedback is given and the boss gives tips to achieve the goals. Hence, there is a pre and a post round of feedback.


As Organizations evolve and new techniques make work complicated it also becomes necessary to have a complex and integrated appraisal system. As organization grows and become diverse the expectation from each employee becomes high in turn, the employee‟s expectation from the employer also increases.

The main need of 720-degree performance appraisal is the improvement of the performance of the people in their jobs and to ensure that the expectations of the employer, employee and the customers are met. The main need of 720-degree performance appraisal can be summarized as follows:

  • 720-degree performance appraisal method is more development focused than performance alone, and supplements training and development functions in a better way.
  • Provide information about the performance ranks. Assist in taking decisions regarding salary fixation, confirmation, promotion, transfer and demotion.
  • Provide timely feedback about the performance, set targets and monitor the performance based on the targets set.
  • Helps to check the effectiveness of personnel procedures and practice i.e validation.
  • It is needed to ensure that employees reach organizational standards and objectives.
  • To discover the work potential and to understand the areas where training is required to guide the employees to perform their best.
  • To understand the expectations of the employees and prevent grievances and in disciplinary activities.
  • Provide information to diagnose deficiency in the employee regarding skill, knowledge, determine training, and prescribe the means for employee growth and information for correcting placement.
  • Set realistic target, monitor the performance and provide timely feedback to ensure that the performance is enhanced.
  • These critical competencies are essential to assist the executives and managers to be able to lead these organizations toward successful implementation of strategic changes.


All the current IT organizations aim at achieving higher rate of employee satisfaction and transparency in the working environment. In order to achieve the above goals, 720 degree performance appraisal would be a vital tool as it is used to appraise the performance of an employee from different dimensions and helps to overcome the barriers of bias, prejudice and discrimination. The performance is appraised from 5 dimensions and feedback or the appraisal meeting is conducted twice (pre and post feedback) to ensure the efficient performance of the employee. Including the pre and the post feedback, that plays a vital role, the 720 Degree performance appraisal has 7 phases.

  1. PRE APPRAISAL FEEDBACK. This is the first appraisal step that is done after the feedback is collected from the different dimensions or people with whom the employee would interact. In this step, the performance is evaluated, targets are set and feedback or training is organized to help the employee achieve the target.
  2. SELF APPRAISAL. The employee is given a questionnaire and asked to evaluate his performance and through this method, the employee gets an opportunity to express his thoughts and his valuation of strengths, weakness and judge his performance.
  3. PEERS/COLLEAGUES APPRAISAL. The feedback from the peers or colleagues is important as it helps to understand the ability of the employee to work as a team, co-operate, co-ordinate with others and bring out the best.
  4. CUSTOMER APPRAISAL. In order to survive in the current competitive market, Organizations aim at achieving high customer satisfaction. Customer feedback helps to analyze the customer‟ point of view and help to improve the person and the Organization.
  5. SUB-ORDINATES APPRAISAL. The feedback of the sub-ordinates is essential to analyze the organizing skills of the employee and to understand his abilities like communication and motivating abilities, ability to delegate the work, leadership qualities and way of handling responsibilities.
  6. MANGERS/SUPERIORS APPRAISAL. In this, the performance, responsibilities and the attitude of the employee is evaluated by the Superiors or Managers.
  7. POST APPRAISAL FEEDBACK. It is this step that makes the 720-degree performance appraisal different and better than the 360-degree performance appraisal method. In this step, the performance is evaluated based on the target set in the Pre appraisal and feedback is given. Timely feedback and guidance helps to make the employee improve his performance.


Degree performance appraisal will help in creating a synergetic work environment and will help to bring out the best of each employee. The other benefits of the 720 degree performance appraisal are as follows:

  • It helps in better analysis and improved feedback from different dimensions
  • Helps to develop a better and co-operative team
  • Reduces the appraisal barriers like prejudice, bias and discrimination
  • Customer feedback is valued do better customer service and satisfaction can be obtained
  • Encourages transparency and feeling of treated justly.


  • Exceptional Expectations for the process.
  • Insufficient Information.
  • Design process downfalls
  • Failure to connect the process.
  • Insufficient training and process understanding.
  • Focus on negatives and weaknesses.
  • Requires commitment of top management and the human resources(time, finance, resources, etc) 8.Paperwork(computer entry overload)
  • Rater inexperience and ineffectiveness.

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720 Degree Perfomance Appraisals. (2016, Nov 11). Retrieved from https://graduateway.com/720-degree-feedback/