Given the complex nature and competitive environment under which they operate, organizations are faced with problems of demotivated staff and rivalry resulting in poor performance with feedback being the major constraint. This paper examines the effectiveness of 360-degrees appraisal tool in Human resource practice and how it affects the perceived usefulness, based on a study of the Municipal Council of Nakuru. The study targeted employees from 8 departments with a total population of 1062 employees but it employed 282 respondents. Stratified sampling technique was used on the basis of departments for employees. To select specific respondents among employees, purposive sampling technique was used. The data obtained was coded and analysis was done using central tendency, bar graphs, percentages and Chi-square. The study findings revealed that the 360 degrees affects organization performance, which suggests that there is a significant relationship between the organizational use of 360 degrees appraisal tool and it’s performance. The study recommends that the organizations evaluate the outcomes of 360 appraisal tool and compare with the past tools. It would be beneficial to incorporate 360 feedbacks into a larger performance management process, but only with clear communication on how the 360 feedback will be used. The study contributes largely to the improvement of performance in local authorities by ensuring that the activities identified take into consideration the needs of the authorities and individuals. Its findings and recommendations are also important to the management when planning for performance appraisal sessions as well as in reviewing individual performance. The study also sheds light on the strengths, weaknesses and opportunities of the 360 degrees feedback system.
Keywords: Effectiveness, 360-Degrees Appraisal Tool, Human Resource Practice, Kenya
