Unit 3 - HRM New PDF

M. ED. SEMESTER: IV GROUP PROJECT OF EDUCATIONAL MANAGEMENT UNIT : 3 HUMAN RESOURCE MANAGEMENT IN ORGANIZATIONS BY: MS. AVANI RASHNE MS. SHAHINA RAJ MS. RITU SARVAHI Human Resource Management Human Resource Management Concept.  Human resource management (HRM or HR) is the strategic appr...

M. ED. SEMESTER: IV GROUP PROJECT OF EDUCATIONAL MANAGEMENT UNIT : 3 HUMAN RESOURCE MANAGEMENT IN ORGANIZATIONS BY: MS. AVANI RASHNE MS. SHAHINA RAJ MS. RITU SARVAHI Human Resource Management Human Resource Management Concept.  Human resource management (HRM or HR) is the strategic approach to the effective management of people in a company or organization such that they help their business gain a competitive advantage.  It is designed to maximize employee performance in service of an employer's strategic objectives. Human resource management is primarily concerned with the management of people within organizations, focusing on policies and systems.  HR departments are responsible for overseeing employee-benefits design, employee recruitment, training and development, performance appraisal, and reward management, such as managing pay and Employee benefits benefit systems. HR also concerns itself with organizational change and industrial relations, or the balancing of organizational practices with requirements arising from collective bargaining and governmental laws  Need of HRM HRM becomes significant for business organization due to the following reasons. Objective HRM helps a company to achieve its objective from time to time by creating a positive attitude among workers. Reducing wastag e and making maximum use of resources etc. Facilitates professional growth :- Due to proper HR policies employees are trained well and this takes them ready for future promotions. Their talent can be uti lized not only in the company in which they are currently working but also in other companies which the employees may join in the future. Better relations between union and management :- Healthy HRM practices can help the organization to maintain co-ordinal relationship with the unions. Union members start realizing that the company is also interested in the workers and will not go against them therefore chances of going on strike are greatly reduced. Helps an individual to work in a team/group :- Effective HR practices teach individuals teamwork and adjustment. The individuals are now very comfortable while working in team thus teamwork improves. Identifies person for the future :- Since employees are constantly trained, they are ready to meet the job requirements. The company is also able to identify potential employees who can be promoted in the future for the top-level jobs. Thus, one of the advantages of HRM is preparing people for the future. Allocating the jobs to the right person :- If proper recruitment and selection methods are followed, the company will be able to select the right people for the right job. When this happens the number of people leaving the job will reduce as the will be satisfied with their job leading to decrease in labour turnover. Improves the economy:- Effective HR practices lead to higher profits and better performance by companies due to this the company achieves a chance to enter new business and start new ventured thus industrial development increases and the economy improves. Principles Of HRM Job Analysis Job analysis is a systematic process of collecting the information on nature of a job, qualities and qualifications required to a job, physical and mental capabilities to required to a job, duties and responsibilities, physical and mental effort required to perform a job, necessary skills required to perform a job, working conditions and environment for a job, in order to describe job description and job specification, for recruitment and selection of employee, improve job satisfaction, employee safety and to build up employee motivation etc.  Employee Development Methods Methods and Training This method includes developing employee skills through a combination of lectures, Process of staff hands-on-exercises, videos, podcasts, simulations, and individual/group-based assignments. Task/job rotations development Employees could volunteer to rotate roles with colleagues on a shift/team, to put some of those new skills into practice. The goal is to rotate the tasks and roles to learn something new or have a chance to practice what has been learned. Coaching When talking about various employee development methods and their benefits, we can’t stress the importance of helping employees polish their skills through coaching. This method of skills development typically involves senior staffers working one-on- one with less experienced individuals. Mentoring This method involves senior leaders/management taking junior staff under their wing to help develop important skills that the mentored individual might lack. Workshops/Committees/Working-Groups These are methods that give employees an opportunity to interact with peers/colleagues from within and external to the organization. The benefit here is rich access to similar colleagues (internal) and dissimilar colleagues (external).  Simulations These are becoming very popular due to both how engaging and effective they have Methods and become. In its simplest form, a simulation could be role-playing a customer service interaction, for example, learning how to diffuse an irate and confrontational client in person, or responding Process of Staff to an emergency situation such as mock first aid scenarios. Conferences Much like workshops and committees, conferences are a useful way to network and gain development exposure to a vast knowledge base of both On-the-job development interdisciplinary and outside industries. Cont.. Employees who have attended some basic training on a technical skill (whether it be in operating a new machine or learning new financial analysis methods) will often find on-the-job development a great method to hone those skills. Self-study This can be accomplished through different methods: reading/researching, taking classes, etc. outside of work hours. 360-degree performance review This method involves getting feedback about an employee, from a cross-section of peers, subordinates, supervisors and external vendors, and then identifying skills development opportunities based on those inputs. Career planning While this method is usually viewed as something that is "employer-driven" – where HR decides which employee should fill what role – it shouldn't be so!  Process of Staff Development Identification of Staff Development Needs Professional Developments are largely influenced by the curriculum and the impact this has on the learner. In this instance t he learner can be students, whether full- time, part-time, young or mature. Other stakeholders such as employers also influence professional needs. Staff Development Activities- The Staff Development Officer co-ordinates and delivers professional and career development activities for individuals, departments and the College. The range of Staff Development Activities include: 1. Induction programs for new staff 2. Short courses in teaching development, supervisory and management development, personal effectiveness and safety, health and welfare. 3. Internal and external conferences 4. In-house training 5. Working towards qualifications such as post graduate qualifications and other appropriate certificates and diplomas 6. Membership of committees and professional bodies 7. Disseminating good practice 8. Working with other colleagues in teams and as mentors 9. Group and individual projects Equal Opportunities and Access Everyone working at the College has a right to have their development needs recognized. How ever these needs should be approp riate to provision and be consistent with human, physical and financial resources. Evaluation All staff attending any training and development activity will be required to provide appropriate data and information. The main categories are: In-house courses: Staff attending complete a written evaluation form Long External courses (e.g., M Ed): Reviewed annually Short courses and External Conferences: Staff present evaluation of course. Dissemination of Information In-house evaluations, appropriate action and developments identified are produced and distributed by the Staff Development Officer. Where staff have gained knowledge or skills which may be useful beyond their own needs, i.e. to other staff, they may be asked to disseminate these t o other staff in the appropriate way. MODULE 1: MEANING, PRINCIPLES AND APPROACHES OF EDUCATIONAL MANAGEMENT UNIT 3: HUMAN RESOURCE MANAGEMENT IN ORGANIZATIONS CRISIS MANAGEMENT What is Crisis? A sudden and unexpected event leading to major unrest amongst the individuals at the workplace is called as organization crisis. In other words, crisis is defined as any emergency situation which disturbs the employees as well as leads to instability in the organization. Crisis affects an individual, group, organization or society on the whole. Characteristics of Crisis Crisis is a sequence of sudden disturbing events harming the organization. Crisis generally arises on a short notice. Crisis triggers a feeling of fear and threat amongst the individuals.  Crisis Management The art of dealing with sudden and unexpected events which disturbs the employees, organization as well as external clients refers to Crisis Management. The process of handling unexpected and sudden changes in organization culture is called as crisis management. Need for Crisis Management ▪ Crisis Management prepares the individuals to face unexpected developments and adverse conditions in the organization with courage and determination. ▪ Employees adjust well to the sudden changes in the organization. ▪ Employees can understand and analyze the causes of crisis and cope with it in the best possible way. ▪ Crisis Management helps the managers to devise strategies to come out of uncertain conditions and also decide on the future course of action. ▪ Crisis Management helps the managers to feel the early signs of crisis, warn the employees against the aftermaths and take necessary precautions for the same.  Essential Features of Crisis Management Crisis Management includes activities and processes which help the managers as well as employees to analyze and understand events which might lead to crisis and uncertainty in the organization. Crisis Management enables the managers and employees to respond effectively to changes in the organization culture. It consists of effective coordination amongst the departments to overcome emergency situations. Employees at the time of crisis must communicate effectively with each other and try their level best to overcome tough times. Points to keep in mind during crisis Don’t panic or spread rumors around. Be patient. At the time of crisis the management should be in regular touch with the employees, external clients, stake holders as well as media. Avoid being too rigid. One should adapt well to changes and new situations.  Examples Example of Successful Crisis Management Pepsi In 1993, many people claimed to find syringes in cans of diet Pepsi. Pepsi investigated the situation, leading to an arrest, which Pepsi communicated publicly. This was followed by their first video news release, clearly showcasing the production process to demonstrate that such an incident cannot happen within their factory premises. A second news release showed the guilty arrested. A third video displayed surveillance footage from a convenience store where a woman was caught inserting a syringe into a can. The company also publicly worked with the FDA during this crisis, to come out clean. Even after the resolution of the crisis, the corporation thanked the public for standing by the corporation. Unsuccessful Story of Crisis Management Bhopal Gas Tragedy The Bhopal gas tragedy in which poor communication before, during, and after the crisis cost thousands of lives, illustrates the importance of incorporating cross-cultural communication in crisis management plans. Local workers and residents of Bhopal could not understand warnings of potential threats from the Union Carbide plant installed by an American organization, Union Carbide. Operating manuals were also printed only in English. As claimed by Union Carbide, a day after the crisis Union Carbide’s upper management arrived in India but they were house arrested by the Indian government and were unable to contribute to the relief efforts. More than 2,250 people were killed in the crisis. STAGES OF CRISIS The Three Stages of a Crisis An essential aspect of effective crisis communication is to divide the crisis into different stages, in order to prevent the adoption of a blanket approach to crisis management. A crisis can be divided into three stages: Pre-crisis Crisis Response Post-crisis Pre-Crisis The pre-crisis stage can also be described as the “warning” stage in which a member of the organization, usually the supervisor or manager discovers an impending critical situation, and warns the senior management about it. At the initial stage of the crisis, mass communication is usually bypassed, with the crisis being limited to the higher tiers of the organizational hierarchy. It is the job of the managers to analyze the situation during this stage and determine its potential harm, as well as any necessary action that needs to be taken. When managers begin risk assessment, an emergency notification system plays an important role, as the organization’s emergency action plan is activated, with the communications being geared towards assembling the team members, executives, and officials connected to the incident. Crisis Response The next stage of a crisis is the acute-crisis, in which the crisis becomes visible to people outside the organization. It is necessary to activate the crisis management team at this stage. In the case of a small business, this usually refers to the business owner and some key staff members. The crisis team members also make use of the crisis communication system to notify the “masses” about the incident at this stage. Effective communication is imperative at the acute-crisis stage to ensure the constituents are made aware of the incident and are provided with the necessary instructions. First-responders are also called into the scene at this stage. As the crisis progresses towards resolution, the focus of communication shifts to providing regular status updates to the concerned audiences, modifying previous instructions, controlling rumors, and conferencing with leadership and responder teams. Post-Crisis When the crisis moves from the acute-crisis stage and is contained, this is the final stage of the crisis, known as the post-crisis. It is at this stage that the organization tries to recoup their losses, and show the community, shareholders, and customers the repercussions of the crisis through all-clear alerts and reassurance messages. The key goals of the organization in the post-crisis stage are to recoup the losses, evaluate the performance during the crisis, and identify necessary changes that need to be made in the crisis management system. Communication at this stage also involves post-crisis counseling. When creating or updating an emergency preparedness plan, each of these stages should be identified and documented in full detail, including key contacts or functions within the organization that must be involved at each step. The result will be a much completer and more thorough document that provide the key information needing to be available at a moment’s notice.  Every organization is vulnerable to crises. The days of playing ostrich—burying your head in the sand STEPS OF and hoping the problem goes away–are gone. CRISIS Crisis management should not merely be reactionary; it should also consist of preventative MANAGEMENT measures and preparation in anticipation of potential crises. Effective crisis management has the potential to greatly reduce the amount of damage the organization receives as a result of the crisis. 1. Anticipate 1. Anticipate. 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Be as open as possible; tell what you know and when you became aware of it; explain Knowing what’s being said about you in who is involved and what is being done to fix the situation. Be sure to traditional and social media, by your correct misinformation promptly when it emerges. Remaining silent or employees, customers, and other stakeholders appearing removed could enrage the public and other stakeholders. often allows you to catch a negative “trend” 6. The death of the super injunction that, if unchecked, could turn into a crisis. While crisis experts assert that the legal route is still a valid approach to Likewise, monitoring feedback from take, from a reputational point of view, it can sometimes do more harm. stakeholders during a crisis situation allows Taking legal action can be required at times, but be warned it can cause you to accurately adapt your strategy and reputational issues if it looks like you have something to hide or if it looks tactics. Furthermore, your organization should like you’re being greedy. Also, be aware that the legal route takes time. have the means to reach the internal and Time is not on your side in a crisis. external stakeholders as soon as possible. 7. Post-crisis analysis After a crisis, formal analysis of what was done well, what could be done better next time and how to improve various elements of your crisis response plan. This is another must-do activity for any crisis communications team. As the crisis comes under control, a company should examine how effective their plan was during the crisis and the impact the incident has had on its employees, brand(s) and reputation. If any of those three have taken a hit, a company may need take steps to address them. ROLE OF A CRISIS MANAGER A sequence of sudden, unplanned and unexpected events leading to instability in the organization and major unrest amongst the individuals is called as crisis. Crisis generally arises on a short notice and causes major disturbances at the workplace. Leaders and managers play an extremely important role during crisis. ROLE OF A CRISIS MANAGER One should lead from the front. Show confidence and steadiness. Take complete charge of the situation. Managers should have full control on the employees. They should know what is happening around. Any issue neglected in the initial stage might be a major concern later. Problems must be attended immediately. One should not ignore even minor issues or wait for someone else to take the initiative. Any issue left unattended might lead to crisis and major unrest later. One should be alert at the workplace. A leader should be able to feel the early signs of crisis and warn the employees against the negative consequences of the same. It is his duty to take precautionary measures to avoid an emergency situation. A leader should be able to foresee crisi s. Such a stage is also called as Signal Detection. Leaders must try their level best to prevent crisis. Encourage effective communication at the workplace. Let employees discuss issues amongst themselves and come to the best possible alternative to overcome crisis. Ask the employees not to panic at the time of crisis. Encourage them to face the tough times with courage, determination and smile. Make them work as a single unit. It is the duty of the leader to provide a sense of direction to the employees. ROLE OF A CRISIS MANAGER The leaders should interact with the employees more often. Let them feel that you are there for them. Impart necessary crisis management trainings to the employees. Planning is essential to avoid emergency situations. Learn to take quick decisions. Make sure everyone at the workplace is well informed about emergency situations. Identify the important processes and systems which should keep functioning for the smooth running of the organization. Develop alternate plans with correct and accurate information. Don’t let negativity creep in the organization. Motivate the employees to believe in themselves and the organization. It is essential to trust each other during such situations. Take strict action against those spreading rumours and trying to tarnish organization’s image. ROLE OF A CRISIS MANAGER Don’t avoid stakeholders, external parties and most importantly media. Come out, meet them and explain the whole situation. Ignoring people makes things worse. Develop strong partnerships with external parties and ask for help. Never lose hope. Be a strong pillar of support for your team members. They should be able to fall back on you. Leaders should strive hard to come out of tough times as soon as possible. Learn to take risks. Clarify the roles and responsibilities of the individuals during this time. Communicate the lessons learnt. Once the organization is out of crisis, it is the leader’s duty to communicate the lessons learnt so that employees do not commit same mistakes again. Work hard and relive your organization’s image. Adapt well to changes and new situations. TOPIC- PERFORMANCE MANAGEMENT Performance Management Performance management can be defined as a systematic process for improving organizational performance by developing the performance of individuals and teams. It is a means of getting better results from the organization, teams and individuals by understanding and managing performance within an agreed framework of planned goals, standards and competence requirements. Processes exist for establishing shared understanding about what is to be achieved, and for managing and developing people in a way that increases the probability that it will be achieved in the short and longer term. It is owned and driven by line management  Other definitions are: Performance management is: ‘The development of individuals with competence and commitment, working towards the achievement of shared meaningful objectives within an organisation which supports and encourages their achievement’ (Lockett, 1). ‘Performance management is managing the business’ (Mohrman and Mohrman, 2). Performance management is: the process of ‘Directing and supporting employees to work as effectively and efficiently as possible in line with the needs of the organisation’ (Walters, 3). ‘Performance management is a strategic and integrated approach to delivering sustained success to organisations by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors’ (Armstrong and Baron, 4). Guiding Principles Of Performance Management Egan (10) proposes the following guiding principles for performance management: Most employees want direction, freedom to get their work done, and encouragement not control. The performance management system should be a control system only by exception. The solution is to make it a collaborative development system in two ways. First, the entire performance management process – coaching, counselling, feedback, tracking, recognition, and so forth – should encourage development. Ideally, team members grow and develop through these interactions. Second, when managers and team members ask what they need to be able to do to do bigger and better things, they move to strategic development. The Process Of Performance Management Performance management should be regarded as a flexible process, not as a ‘system’. The use of the term ‘system’ implies a rigid, standardized and bureaucratic approach, which is inconsistent with the concept of performance management as a flexible and evolutionary, albeit coherent, process that is applied by managers working with their teams in accordance with the circumstances in which they operate. As such, it involves managers and those whom they manage acting as partners, but within a framework that sets out how they can best work together. This framework has to reduce the degree to which performance management is a top-down affair and it has to be congruent with the way in which the organization functions. Performance management has to fit process-based and flexible organizations. In these circumstances, which are increasingly the norm, it has to replace the type of appraisal system that only fits a hierarchical and bureaucratic organization. The processes of performance management consist of: Planning: agreeing objectives and competence requirements and producing performance agreements and performance improvement and personal development plans. Acting: carrying out the activities required to achieve objectives and plans. Monitoring: checking on progress in achieving objectives. Reviewing: assessing progress and achievements so that action plans can be prepared and agreed. This sequence of activities can be expressed as a continuous cycle as shown in Figure  THE PERFORMANCE MANAGEMENT CYCLE Performance management can be described as a continuous self-renewing cycle as illustrated in Figure , which follows the plan–act–monitor–review sequence as described above.  THE PERFORMANCE MANAGEMENT SEQUENCE The sequence of processes carried out in this cycle and the likely outcomes are illustrated in Figure.  HOW PERFORMANCE MANAGEMENT WORKS The basis upon which performance management works as a continuous process is illustrated in Figure. Concerns Of Performance Management The following are the main concerns of performance management: Concern with outputs, outcomes, process and inputs. Performance management is concerned with outputs (the achievement of results) and outcomes (the impact made on performance). But it is also concerned with the processes required to achieve these results (competencies) and the inputs in terms of capabilities (knowledge, skill and competence) expected from the teams and individuals involved. Concern with planning. Performance management is concerned with planning ahead to achieve future success. This means defining expectations expressed as objectives and in business plans. Concern with measurement and review. ‘If you can’t measure it you can’t manage it.’ Performance management is concerned with the measurement of results and with reviewing progress towards achieving objectives as a basis for action.  Concern with continuous improvement. Concern with continuous improvement is based on the belief that continually striving to reach higher and higher standards in every part of the organization will provide a series of incremental gains that will build superior performance. This means clarifying what organizational, team and individual effectiveness look like and taking steps to ensure that those defined levels of effectiveness are achieved. Concern with continuous development. Performance management is concerned with creating a culture in which organizational and individual learning and development is a continuous process. It provides means for the integration of learning and work so that everyone learns from the successes and challenges inherent in their day-to-day activities. Concern for communication. Performance management is concerned with communication. This is done by creating a climate in which a continuing dialogue between managers and the members of their teams takes place to define expectations and share information on the organization’s mission, values and objectives. This establishes mutual understanding of what is to be achieved and a framework for managing and developing people to ensure that it will be achieved (Armstrong and Murlis, 5).  Concern for stakeholders. Performance management is concerned with satisfying the needs and expectations of all the organization’s stakeholders – owners, management, employees, customers, suppliers and the general public. In particular, employees are treated as partners in the enterprise whose interests are respected, whose opinions are sought and listened to, and who are encouraged to contribute to the formulation of objectives and plans for their team and for themselves. Performance management should respect the needs of individuals and teams as well as those of the organization, recognizing that they will not necessarily coincide. Concern for fairness and transparency. Four ethical principles that should govern the operation of the performance management process have been suggested by Winstanley and Stuart-Smith (6). These are: – respect for the individual; – mutual respect; – procedural fairness; – transparency of decision making. Performance Measures And Assessment It is often said that, ‘if you can’t measure it, you can’t manage it’ and ‘what gets measured gets done’. Measurement is an important concept in performance management. It is the basis for providing and generating feedback, it identifies where things are going well to provide the foundations for building further success, and it indicates where things are not going so well, so that corrective action can be taken. In general, it provides the basis for answering two fundamental questions: ‘Is what is being done worth doing?’ and ‘Has it been done well?’ Measuring performance is relatively easy for those who are responsible for achieving quantified targets, for example sales. It is more difficult in the case of knowledge workers, for example scientists. But this difficulty is alleviated if a distinction is made between the two forms of results – outputs and outcomes.  Outputs and outcomes An output is a result that can be measured quantifiably, while an outcome is a visible effect that is the result of effort but cannot necessarily be measured in quantified terms. Classification of output and outcome measures Output measures or metrics include: financial measures – income, shareholder value, added value, rates of return, costs; units produced or processed, throughput; level of take-up of a service; sales, new accounts; time measures – speed of response or turnaround, achievements compared with timetables, amount of backlog, time to market, delivery times.  Outcome measures include: attainment of a standard (quality, level of service etc); changes in behaviour; completion of work/project; acquisition and effective use of additional knowledge and skills; reaction – judgement by others, colleagues, internal and external customers. Inputs – competency and upholding core values However, when assessing performance it is also necessary to consider inputs in the shape of the degree of knowledge and skill attained and behaviour that is demonstrably in line with the standards set out in competency frameworks and statements of core values. It is emphasized by Risher (2) that it is important to encourage behaviours such as the following: builds effective working relationships with others; takes the initiative to address problems; seeks knowledge related to emerging issues; shares know-how and information with co-workers; responds effectively to customer concerns.  Assessing competency Positive and negative indicators for competency headings in a framework can be devised and used as the basis for assessments. Positive indicators Achieves high level of performance from team. Defines objectives, plans and expectations clearly. Continually monitors performance and provides good feedback. Maintains effective relationships with individuals and the team as a whole. Develops a sense of common purpose in the team. Builds team morale and effectively motivates individual members of the team by recognizing their contribution while taking appropriate action to deal with poor performers. Negative indicators Does not achieve high levels of performance from team. Fails to clarify objectives or standards of performance. Pays insufficient attention to the needs of individuals and the team. Neither monitors nor provides effective feedback on performance. Inconsistent in rewarding good performance or taking action to deal with poor performance.  Performance Appraisal A performance appraisal is a regular review of an employee's job performance and overall contribution to a company. Also known as an annual review, performance review or evaluation, or employee appraisal, a performance appraisal evaluates an employee's skills, achievements, and growth--or lack thereof. Performance appraisal is instrumental in achieving following purposes: Helps giving feedback to the employee of his performance The review is documented and forms the basis of the measure to assign organizational rewards Personal appraisal of an employee helps in formulating personal decisions like merit based salary increases, promotions or even disciplinary actions against employees whose performance is not up to the mark. Helps recognize training needs. It is an opportunity to diagnose the overall performance of an organization and chalk out ways for its future development strategies. Performance appraisal validates human resources policies and ensure statutory compliance of equality of employment called for in any standard organization. Performance appraisal Process Content of Job performance appraisal process was carried out in three steps: 1. Define the job/task/responsibilities Define the job that is the unity between the personnel dept/line managers and staff to:- - What companies expect staff to carry out? - The model standard, which will be based on evaluating job performance ofemployees. 2. Job assessment of the work means to compare the job performance of the employees with standard form. In this step, it can use various different methods toevaluate the job performance such as: Methods are often used:- Reviews by the table and graph: (This method is simple and most common toevaluate job) -Rated rotation. -Paired comparison -Stored critical method. -Narrative form method -Coordinate method (This method combines the advantages of the narrative formmethod and the reviews by score method) The other method- Method of Graphical scale -Checklist -Method of recording important events -Management by objectives 3. Provide feedback: This can be done once when job evaluation finish or could do the job several times during the process of evaluating the job performance of employees; this depends on the nature and characteristics of the job. The work is diverse and complex. Assessing the implementation of the work of production workers those who work in labor norms is simple, can be based directly on the degree of completion of the workers. Assessing the job of the work of other employees are very complex, hardly accurate and often use the necessary methods. Performance appraisal tools & techniques When it comes to measuring and reporting performance of employees, many employers choose to use a wide range of software tools available on the market. However, in some cases those programs do not provide the kind of appraisal features employers are looking for. This is why many are moving to doing a 360 degree appraisal to replace the less than satisfactory types of appraisal sold in software products in the market. A 360 degree appraisal is actually a system of measurement that involves an employee being measured anonymously by co-workers and superiors in the workplace. With this type of appraisal, the employees direct supervisor or manager, co-workers on the same level, as well as subordinates get the opportunity to give honest feedback about an individuals performance. The essence of a 360 degree appraisal is to provide a balanced view on an employee as it relates to a range of workplace competencies. Between eight and twelve people are asked to anonymously complete an online "survey", where they rank another employee on specific competencies on a rating scale. They are also asked to expand other rating choice, giving examples to support their mark where possible.  On the other side, the employee being rated also has the opportunity to measure their own performance and answer the same questions their peers, subordinates and supervisors are asked to respond to. What many leaders have found after switching from other types of appraisals to a 360 degree appraisal is that both they and the employee are able to gain a clearer understanding of the employees strengths and weaknesses. And with the appraisal coming from such a broad cross-section, it helps the employee to accept the results and have more of a desire to work on those areas that need improvement. Another factor that makes a 360 degree appraisal effective is that it can also be used on a regular basis to help people maintain high quality with their work. It only have to be used as an evaluation tool by business leaders; it can also be used as a self-help tool to show people where they are falling off in terms of their day-to-day functions. If your company or organization is in need of an effective method to rate the performance of employees, an effective tool to consider is a 360 degree appraisal. Not only will it measure the relevant competencies, but it will also give a more balanced view of each employee from the eyes of a broad cross-section of workers Thank You