360-Degree Assessment System:
The 360-degree assessment is an advanced performance evaluation system that relies on feedback from multiple sources, ensuring neutrality and credibility while avoiding the pitfalls of traditional methods, where only the direct manager evaluates subordinates.
The concept of the 360-degree assessment involves evaluating an employee annually by four different parties instead of just the direct supervisor. These parties include:
- Direct Manager Evaluation:
Regardless of the other parties involved in the assessment, the direct manager remains the most crucial person in evaluating their employees. Due to their close relationship, many employees prefer that their manager has the most significant say in their evaluation. According to a survey conducted by an American organization among public sector employees, 90% preferred that the majority of their evaluation comes from their direct manager. To ensure neutrality and fairness in the assessment, the direct supervisor must be close to the employee they are evaluating.
- Peer Evaluation:
It has been practically proven that colleagues observe their peer’s performance more closely than the direct manager. The relationship between an employee and their direct supervisor is sometimes governed by the employee’s attempts to hide their failure or laziness. However, peers working alongside them monitor their performance closely and track their improvement or deterioration. Therefore, it is crucial to involve peers in the assessment process. Peer opinions are significant as they can better predict future performance, ultimately benefiting the employee by helping them develop.
- Subordinate Evaluation:
What distinguishes the 360-degree assessment program is that it ensures the participation of subordinates. Their involvement in the annual evaluation is essential as it helps reveal the extent of negligence from those above them in the hierarchy.
- Customer Evaluation:
Customers differ from other participants as they are not asked to evaluate an individual but the overall performance of a department or the organization as a whole. Using statistical averages and other indicators, logical statistical rates can be created to measure customer opinions.
Company Evaluation Methods:
- Net Book Value Method
- Adjusted Book Value Method
- Replacement Value Method
- Discounted Cash Flow Model
- Profitability Multiples Method
- Residual Value Method
Evaluation Criteria:
- Leadership Standard
- Policy and Strategy Standard
- People Standard
- Partnerships and Resources Standard
- Operational Standard
- Results Measurement Standard
One of the most famous global evaluation systems is the European model issued by the European Foundation for Quality Management (EFQM), which includes nine criteria available online.
Balanced Scorecard:
A management system established by Kaplan and Norton, the balanced scorecard helps organizations translate their vision and strategy into a set of interconnected goals and strategic actions. It aids in measuring performance in four areas:
– Financial
– Customer
– Internal processes
– Learning and organizational growth
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Pfeiffer’s Strategic Planning Model:
Pfeiffer’s model, proposed by the American Pfeiffer Company, consists of ten steps for strategic planning:
- Forming and organizing the team and defining the plan duration.
- Reviewing values.
- Vision: Long-term goals, summarized in one sentence.
- Mission: A sentence summarizing who we are and what we want.
- Identifying work areas.
- Strategic business units.
- Defining key performance indicators.
- Gap analysis.
- Implementing the plan.
- Integrating with operational planning.