Multi-rater assessments have risen to popularity over the last decade. These assessments, also known as the 360 degree assessments are used by a number of organizations to provide performance-related feedback to their employees. This feedback is a compilation of all the feedback received from the senior managers, peers, other employees and clients in the organization. Each rating source provides a unique perspective and added information about a particular employee’s performance, thus enhancing the process of performance evaluation and helping the organization identify the employee’s strengths and weaknesses more accurately. The assessments also help the senior management take developmental action based on their employee’s performance more effectively.
Research has suggested that over the last decade about one-third of the companies in the United States have begun to use multi-rater assessment feedback in order to improve developmental and appraisal processes. As more and more organizations are turning to the 360 degree assessments, these assessments are becoming increasingly popular and common components of an organization’s performance management system and leadership development programs.
What The Multi-Rater Assessment Research Is Telling Us
Many organizations use the multi-rater assessments as an integral component of their approach to managing and developing performance. These assessments are conducted annually in organizations. Multi-rater assessments are helpful in providing employees with appropriate and helpful performance feedback from the supervisors, coworkers, customers and peers. Most of the multi-rater assessment tools include a self-assessment component. It has been discovered that the alignment of the self-rating as well as the other ratings has relevant implications for managerial performances. Since multi-rater assessment feedback includes feedback from a variety of different sources, it differentiates itself from the more traditional top-down feedback practices. Multi-rater assessments have been helpful in team building by making team members more accountable to one-another, enhancing career development initiatives and helping organizations identify their training needs.
If poorly implemented, multi-rater assessments fail to have the desired effect on individual and organizational performances. If the feedback is not delivered to the employee with utmost caution and care, it might end up hindering their future performance in the organization. Hence, it is advised that multi-rater feedback should be focused on only those aspects of an employee’s behavior that can be changed. If not well aligned with the organization’s strategic goals and mission, multi-rater assessment tools have been found to fail often. The results and behaviors on which an employee is rated must be linked to the overall strategic aims of the organization in order for the assessment to be effective.
The Benefits Of Multi-Rater Processes
Multi-rater assessments have grown in popularity over the past decade. As they become an increasingly common component of an organization’s performance management system, they are earning a relatively positive reputation among organizations. Stated below are the five particular benefits of the multi-rater assessment process:
• Accuracy
The 360 degree assessments are more accurate than the top-down performance reviews for a number of reasons. Rating from multiple sources like managers, self, peers and clients paint a much more accurate picture of the performance rates as compared to relying on an individual’s opinion based on the very limited interactions they might have had with all the employees.
• Face Validity
Participants tend to accept the multi-rater feedback more than they accept a manager’s evaluation because the performance ratings they receive from a multi-rater assessment are more face valid. Managers are not able to be around and observe their performance in every aspect of the job. Thus, being aware of the fact that their feedback comes, not from one individual but from multiple sources helps them accept their results, and reduces their anxiety while also ensuring that the results are based on their performance across all aspects of their job.
• Valuable Insights
Not only does providing feedback from multiple perspectives improve acceptance and accuracy of the stakeholders of the organization, but it also provides participants with an insight on how they are perceived by various groups of people they work with on a day-to-day basis. These insights provide valuable information for the changing behaviors of essential groups in the organization.
• Open Communication
One of the most helpful benefits of the multi-rater assessment surveys is that they help improve performance-related communication. Encouraging stakeholders to offer their opinion, and the giving and receiving of feedback helps improve open communication, thus making it easier for them to discuss performances openly. This sharing of performance feedback tends to eventually become a part of the organizational culture and provides the opportunity for more open communication regarding performances with the senior management and other key stakeholders of the organization.
• Practical And Cost-Effective
Multi-rater assessments are widely available online and are usually cost-effective. Considering applications of the assessment on an individual and organizational level, the cost per participant is extremely low.
• Effective Execution
Specific recommendation of research is required in order to help HR practitioners implement or improve the multi-rater assessment process. A number of researchers have observed how the process can be effectively implemented.
Assessing Organisational Readiness
When organisations consider implementing multi-rater assessment processes, they should consider the current organisational environment as well as the organisation’s history with respect to the performance management in the organisation. Multi-rater assessments must be put into use only at an appropriate time, when the organisational goals are not stressful or tedious. For example, if assessments are implemented at a time when the organisation is downsizing or laying off employees, stakeholders will begin to view it as a tool for determining future cuts in employment, thus harming their morale and reducing their trust in the organisation. In order for the developmental intentions of the assessment to be realised for what they truly are, the multi-rater assessments must be introduced at a more favorable time.
If not done, the future of the organisation might suffer. Organisations must also consider the specific timing of the multi-rater assessment process to ensure that it is well-aligned with the other organisational systems and processes such as the employee surveys or the execution of internal employee moves. In order to be either to rate an individual, a rater must first observe them while at work, performing their daily actions and gathering out the responsibilities handed over to them. This observation period should last for a minimum six months, after which the rater can present a well-informed performance assessment. Many large organisations have HR departments in which one part of the function is dedicated to multi-rater assessments while the other part may be responsible for employee opinion surveys.
HR leaders must understand the organisations history before implementing new performance assessment processes. Reviewing the organisations previous attempts to introduce similar performance assessment processes and examining their circumstances and the time period within which the assessments were introduced provides an insight into all the elements that were right and wrong in the process. Interviews with the company’s current stakeholders and those who were involved in prior efforts will help interviewers get the gist of the potential challenges and resistance during assessments.
Communication Of Clear Objectives And Intended Organisational Goals
Many a time, honest and direct feedback from multiple sources can prove to be intimidating for those people who lack confidence in their job abilities or are uncertain about the job security. Therefore, it is highly essential to communicate the purpose of the multi-rater assessment system to the employees working for the organisation. Participants should be well aware of how the assessment results will be put to use.
Managers should reinforce the message of the business needs and developmental benefits that individuals can expect on participation in the multi-rater
assessment process by resolving employee concerns and doubts and emphasizing on the developmental nature of the assessment process.
In order to make sure the multi-rater assessment process is successful, organisations must:
• Communicate with the employees and maintain transparent goals related to why they are conducting a multi rater assessment.
• Use multiple forms of communication leading up to the launch of the assessment.
• Shared upfront how the data will be used to attain beneficial business outcomes.
• Provide a sufficient amount of individual and group training on how to interpret the results and put them to the best possible use in order to create developmental plans.
• Make sure that organisational leaders undergo sufficient training on how to deliver the results effectively to the employees.
• Share the results with all the stakeholders of the organisation to ensure that all the leaders understand the impact of the multi-rater assessment process on business.
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