Evaluating the effectiveness of a 360-degree performance appraisal and feedback in a selected steel organisation

Abstract

Most companies are competing in the diverse global markets, and competitive advantage through human capital is becoming very important. Employee development for high productivity and the use of effective tools to measure their performance are therefore paramount. One such tool is the 360-degree performance appraisal system. The study on the effectiveness of the 360-degree performance appraisal was conducted on a selected steel organisation. The primary objective of the research study was to determine whether the current 360-degree performance evaluation system the organisation uses is effective or whether there is a need to explore other employee evaluation and feedback systems across the industry to identify the best practice. Constructs that were measured are the impact of 360-degree appraisal on the employee motivation and performance, job satisfaction, the organisation's performance, succession planning as well as training and development. The findings showed that the 360-degree appraisal system is effective in most of these areas. The findings will also assist management with a better understanding of where the process has failed and what gaps need to be filled. The results concluded that there is no need to explore other performance appraisal systems; however, as recommended, the identified deficiencies in the current evaluation process need to be addressed.