Implementation of the 360 Degree Performance Appraisal Feedback System in Private Sector Organizations in Sri Lanka

Abstract

Performance appraisal is very important for effective management which helps to develop the employees and leads to improve the performance of organizations. The job performance of employees in an organisation is measured and evaluated through a performance appraisal system over a period of time with set standards. Different types of organizations are using different methods of performance evaluation and 360 degrees performance appraisal is one of them. Though this system is not popular in Sri Lanka, many multinational organizations are using this method for measuring employees' performance. This technique receives feedback of employees' performance not only from their supervisor/s but also from co-workers, subordinates, self, customers etc. as a multiple source feedback. Many organizations in Sri Lanka are managed as per the hierarchy and the decisions are made by the top level of the hierarchy. Most of the time, subordinates are dissatisfied about their performance rating which was given by their supervisor due to the usage of a performance feedback system that does not absorb the real image of their performances. Therefore, the research problem was whether the 360 degree performance feedback system can be implemented in Sri Lankan private sector organizations or not. This paper attempts to discuss possible ways of implementing this system in private sector organizations in Sri Lanka. Quantitative as well as qualitative data were utilized to achieve the objectives. The sample includes 200 employees from selected 10 medium and large scale organizations in Colombo area. A random number table was utilized to select 20 employees from each organisation. Data presentation and analysis were based on selected statistical measures (central tendency, dispersion and skewness), diagrams and tables. SPSS software was utilized to analyse the collected data. The results depict that the 360 degree performance feedback system is not utilised by the private organisations in Colombo area mainly due to the hierarchy of the organizational culture, not suitable for their organisation, time consumption and unawareness. However, the findings show that there are some avenues to implement the 360 degree performance feedback system as an addition to the existing conventional appraisal system. Implementation of the 360 degree performance appraisal feedback system in Sri Lankan private sector organizations will help to develop the organizations as well as to increase satisfaction levels of employees.