Performance Appraisal and 360 Feedback

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  • 0:07 Performance Checkpoints
  • 1:15 Top-Down
  • 1:56 MBO
  • 2:30 Self-Assessment
  • 3:21 360 Feedback
  • 4:11 Lesson Summary
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Lesson Transcript
Instructor: Kat Kadian-Baumeyer

Kat has a Master of Science in Organizational Leadership and Management and teaches Business courses.

Employee evaluations are a way managers can assess job performance and provide feedback to employees. An employee's performance is measured using various types of evaluation systems, including top-down appraisal, management by objectives (MBO), self-assessment and 360 degree feedback.

Employee Performance Checkpoints

Measuring employee performance is similar to a cook tasting a pot of soup as ingredients are added. Each checkpoint, or taste of the soup, tells the cook what needs to be done to make the soup taste right. He begins with a recipe, gathers ingredients, begins cooking and tastes along the way. When he is done, his customers evaluate the soup by enjoying it or spitting it out. Employee appraisals work the same way.

An employee appraisal is a method of measuring employee job performance. The employee appraisal consists of regular reviews at different intervals, generally every six months or yearly. Employee appraisals are based on a predetermined set of criteria, generally centered on organizational goals and measures things like:

  • Behaviors
  • Productivity
  • Strengths and weaknesses

Commonly Used Employee Appraisals

There are several types of appraisals that can be used to evaluate an employee's performance. The most commonly used appraisals are:

  • Top-down appraisal
  • Management by objectives (MBO)
  • Self-assessment
  • 360 degree feedback

Top-Down Appraisal

Top-Down Appraisal is used most commonly, involves an employee evaluation by a direct supervisor and is based on the completion of pre-set goals set by management. Productivity, behavior and goal completion are generally measured. Outcomes of this method are used for raises and promotions.

Miss Nelly, owner of Nelly's Noodle Soup, sets goals for soup production and sales. Employees are given the criteria for their appraisal for how many soups to make and sell each day. At different intervals, like when they are hired and at each appraisal period, Nelly calculates the production and sales. This is compared to the criteria and then feedback is given.

Management by Objectives (MBO)

Management by Objectives, also called MBO, involves management and employee collaboration on goal setting. Once goals have been set and agreed upon, management uses the outcomes to provide feedback.

Higher-level employees, like shift managers, are evaluated differently. Because managers are responsible for so much more than the taste of the soup, the evaluation method should be more collaborative. Nelly and the manager will work together on the organizational goals. Once agreement has been met, the manager will be responsible for completing the goals.


Self-Assessment is an assessment of performance done by the employee himself or herself.

The employee will compare his actual performance to that of the goals that were set for him. Outcomes of this method are generally goal attainment, behavioral, problem solving skills, communication skills and teamwork. There is generally a professional development or growth plan developed by the employee that lists ways in which the employee plans to increase his or her performance. This may include additional training, education or higher productivity goals.

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