1. Proposal to Open Access Inc. Adopt 360 Degrees Performance Review System

2. Table of Contents
Employee Turnover at Open Access Inc. ……………………….1
Chart of Employee Cost Turnover at Open Access Inc. ………..2
Pie Graph of Employee Turnover cost at Open Access Inc. ……3
Research Coverage and Tested Hypothesis to Optimize
performance Review……………………………………………..4
Performance Measurement Process for Open Access Inc. ……...5
Results Summary of Performance Measurement System……….6
Adoption of 360 Degrees Performance Appraisal System……….7
Recommendations to Senior Management: Adopt 360 Degree
Performance Appraisal System at Open Access Inc. …………….8

3. Employee Turnover at
Open Access Inc.
 According to the study, high turnover rate of 2% of the
employees (150 employees) is costing the company $885,000
 High turnover has affected profits and the growth of the
company
 Traditional form of Performance Review is not conducive to
employee growth nor it fulfills organizational objectives
 360 Degrees method of Performance Review will align the
needs of the employees and the objectives of the company
1

4. Chart of Employee Turnover Cost at
Open Access Inc.
Cost Factor
Recruitment cost of replacements
Loss of productivity cost
Cost of learning curve
Training cost
Loss of pre-termination productivity
Total Cost
Associated Cost
$380,000
$185,000
210,000
$45,000
$65,000
$885,000
2

5. Pie Graph of Employee Turnover Cost at
Open Access Inc.
$65,000
Recruitment cost of replacements
$45,000
Loss of productivity cost
$210,000
$380,000
Cost of learning curve
Training cost
$185,000
Loss of pre-termination
productivity
3

6. Research Coverage and Tested Hypotheses to
Optimize Performance Review
 A structured confidential questionnaire was prepared and
presented to 75 employees and 15 supervisors
 Data was collected, analyzed and tested based on the
following hypotheses: Present form of Appraisal System is not
conducive to employee growth nor it fulfills organizational
goals and objectives.
 Recommendations to change the Performance Measurement
System was submitted to the Senior Management.
4

7. Performance Measurement Process for
Open Access Inc.
5

8. Results Summary of the Performance
Measurement System at Open Access Inc.
 Traditional review system is measuring wrong and irrelevant
performance measures
 Supervisors are not trained in conducting performance review
nor do they interpret the results of the review correctly
 Person to Person review is viewed as creating “rater biases”
and personal prejudice
 Performance review does not align employee expectations to
the objectives and goals of the organization
6

9. Adoption of 360 Degree Performance Appraisal
System at Open Access Inc.
360 Degree Performance appraisal is performed by
self, peers, supervisors, customers, and subordinates
Advantages of 360 Degree Performance Measurement
 Provides a more comprehensive view of employee performance
 Increases credibility of performance appraisal
 Feedback from peers enhances employee self-development
 Increases accountability of employees to their customers
 The combination of opinions can approximate to an „accurate‟ view
 Comments expressed by several colleagues tend to carry weight
7

10. Recommendations to Senior Management: Adopt
360 Degrees Performance Review System
 Majority of the personnel showed some degree of
dissatisfaction with the current performance appraisal system
 Current system is costing the company $885,000 per year on
employee turnover cost
 Current performance review is impeding growth of the
company and keeping projects and objectives incomplete
 Morale of the employee is low due to high turnover and exodus
of talented employees to competitors.
 360 Degrees Appraisal System will allow alignment of
employees and company objectives
8