Performance Appraisal: Methods, Errors, Feedback and 360-Degree Appraisal (Overview) Questions

Question 1

Define performance appraisal.

Accepted Answer

Performance appraisal is the systematic evaluation of an employee’s performance by comparing actual work with predetermined **standards/KPIs** and giving feedback.

Question 2

State one objective of performance appraisal.

Accepted Answer

One objective is to identify **training needs** by finding performance gaps.

Question 3

What is halo effect in performance appraisal?

Accepted Answer

Halo effect is a **rating error** where one positive trait of an employee influences the overall rating across other factors.

Question 4

What is 360-degree appraisal?

Accepted Answer

360-degree appraisal is a method where performance feedback is collected from **multiple sources** such as supervisor, peers, subordinates, customers and self.

Question 5

Performance appraisal is a continuous process throughout the year. (True/False)

Accepted Answer

False. Performance appraisal is usually periodic, while **performance management** is continuous throughout the year.

Question 6

State any one modern method of performance appraisal.

Accepted Answer

MBO (Management by Objectives) is a **modern** method of appraisal.

Question 7

Explain the steps in performance appraisal process with a simple flowchart (brief).

Accepted Answer

Steps in appraisal:

- set **standards/KPIs**
- communicate expectations
- measure actual performance
- compare with standards
- feedback discussion
- action plan (training/reward)

Flow: Set standards → Measure → Compare → Feedback → Action → Follow-up

Question 8

Differentiate performance appraisal and performance management using a table (any three points).

Accepted Answer

Appraisal vs management:

| Basis | **Performance appraisal** | **Performance management** |
|---|---|---|
| Nature | periodic evaluation | **continuous** cycle |
| Focus | rating and review | goal-setting, coaching, development |
| Outcome | appraisal score/decision | improved performance over time |

Thus, appraisal is a part of performance management.

Question 9

Explain any three traditional methods of appraisal (brief) with a small table.

Accepted Answer

Traditional methods (any three):

| Method | Idea |
|---|---|
| **Ranking** | arrange employees best to worst |
| **Graphic rating scale** | rate traits on a scale |
| **Forced distribution** | place employees into fixed categories |

These methods are simple but can be subjective if standards are unclear.

Question 10

List rating errors/biases (any four) and write one control measure.

Accepted Answer

Rating errors (any four): **halo**, **horn**, **leniency**, **strictness**, **central tendency**, **recency**, similarity bias.

One control: use clear **KPIs/behaviour anchors** and train appraisers to rate based on evidence.

Question 11

Explain 360-degree appraisal participants (sources) using a small table and mention one benefit.

Accepted Answer

Sources in **360-degree appraisal**:

| Source | What they observe |
|---|---|
| **Supervisor** | overall targets and results |
| **Peers** | teamwork and collaboration |
| **Subordinates** | leadership and communication |
| **Customers** | service quality |
| **Self** | self-assessment |

One benefit: it reduces single-rater **bias** and gives a more complete view.

Question 12

Explain objectives/uses of performance appraisal (exam-style) with a table and conclusion.

Accepted Answer

### Objectives/uses
Performance appraisal is used for improving performance and supporting HR decisions.

| Use area | Examples |
|---|---|
| **Development** | training needs, coaching, career planning |
| **Administrative** | promotion, transfer, increments, incentives |
| **Documentation** | performance records, compliance support |

### Conclusion
Thus, appraisal supports both employee development and organisational decision-making when done fairly and systematically.

Question 13

Explain 360-degree appraisal: process, merits and limitations (exam-style) with a table and conclusion.

Accepted Answer

### Meaning/process
360-degree appraisal collects feedback from **supervisor, peers, subordinates, customers and self**.

Flow: Collect multi-source feedback → consolidate → feedback session → development plan

| Merits | Limitations |
|---|---|
| reduces single-rater **bias** | time-consuming and costly |
| improves self-awareness | can create conflict if anonymity fails |
| good for leadership development | needs training; not ideal only for pay |

### Conclusion
360-degree feedback works best as a development tool with confidentiality and proper coaching.

Question 14

Write an exam-style note on appraisal interview/feedback: guidelines to make feedback effective (include a checklist table).

Accepted Answer

### Guidelines for effective feedback
- be **timely** and regular
- use specific examples (evidence-based)
- focus on behaviour/results (not personality)
- balance strengths and improvement areas
- agree on an action plan (training, targets, support)

| Checklist | Done |
|---|---|
| **Clear examples** prepared |  |
| **Employee participation** encouraged |  |
| Action plan documented |  |

### Conclusion
Constructive, two-way feedback improves performance and trust in the appraisal system.

Question 15

Explain rating errors in performance appraisal and suggest remedies (exam-style) with a table and conclusion.

Accepted Answer

Rating errors and remedies:

| Error | Meaning | Remedy |
|---|---|---|
| **Halo** | one trait affects total rating | evidence + behaviour anchors |
| **Leniency** | rates everyone high | rater training + calibration |
| **Recency** | recent events dominate | maintain performance record |

Thus, clear standards and trained raters improve **fairness** of appraisal.

Performance Appraisal: Methods, Errors, Feedback and 360-Degree Appraisal (Overview)

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