Indian Navy Adopts first 360 Degree Appraisal System

The Indian Navy has institutionalized a transformational appraisal mechanism namely '360 Degree Appraisal System' on 7 October 2023. This system has institutionalized a new transformative initiative of '360 Degree Appraisal System' for various promotion boards in the Indian Navy.

What is 360-degree performance appraisal?

• 360-degree performance appraisal is an advanced medium of providing appraisal to the employees in the organization. It includes feedback taken from various relevant groups of the organization and from outside (customers). The group of people or reviewers may include managers, human resources, coworkers, etc. with whom they have worked.

Why was '360 degree appraisal system' adopted?

• The ‘360 degree appraisal system’ has inherent limitations as a ‘top-down’ approach which does not meet the current needs.
• Towards promoting their professional and personal development, the Indian Navy believes that an agile, adaptive and innovative human resource management is imperative. In this regard, the Indian Navy has institutionalized a new transformative initiative of '360 Degree Appraisal System' for various promotion boards.
• The present appraisal mechanism of periodic confidential reports by superiors has the inherent limitation of 'top-down' approach, as it does not cater to or determine the influence of a leader on subordinates.

What is the main objective of the 360 degree appraisal system?

• The Indian Navy's '360 Degree Appraisal System' aims to address this shortcoming by involving a comprehensive survey of suitably identified colleagues and subordinates for each officer being considered for promotion.

How are surveys conducted?

• The survey asks a variety of questions covering aspects such as business knowledge, leadership qualities, suitability in war/crisis and ability to hold senior office.
• The inputs received from this are subjected to independent analysis as appropriate by a Board of nominated officers headed by the Flag Officer.
• It will also be provided as feedback to executives to effect behavioral change and improvement.

Why was this necessary?

• Similar evaluation systems are in practice in various national and international educational organizations. The Indian Navy is in continuation of other efforts towards remaining 'battle ready, credible, cohesive and an impenetrable force for the future' by assimilating such 'best practices'.

Importance of 360 degree performance appraisal?

• Feedback is the best evaluation based on the performance of employees. Activity helps motivate your employees to perform better every time. An accurate and fair 360 appraisal system makes employees a vital asset in terms of effective employee management in an organization.

What is the 360 degree appraisal method based on?

• This system is based on the following several methods: Rating Scale Method, Ranking Method, Free Form Method, Confidential Reporting Method, Bars Method etc.
• Rating scales are one of the most common methods of assessing an employee's performance. This method involves a 1 to 10 point scale. The parameters of scale rating are delivery, attitude, attendance, regularity and responsiveness, according to which the employee is evaluated.

Advantages and Disadvantages of 360 Degree Performance Appraisal:

• This appraisal management system can be an extremely useful resource for businesses. Nevertheless, every resource has its own positive and negative aspects:

• Positive aspects of 360 degree appraisal:

  • This increases self-development in employees;
  • Fair and accurate reviews are conducted;
  • Removes bias;
  • Motivated workforce;
  • Comprehensive view of employee performance;
  • Inspirational Reviews;
  • Employee morale increases;
  • Creates a positive work environment;

• Negative aspects of 360-degree appraisal system:

  • There are several signs that can prove detrimental in a 360-degree appraisal system including:
  • Prejudice and injustice
  • Lack of accountability
  • Time consuming
  • Data overload
  • Internal dispute
  • Conflicting reaction
  • Increases office politics