A research of the impact of 360 degree performance evaluation on organizational learning capacity

Purpose: The main purpose of this study is questioning the impact of 360-degree performance appraisal system in hospital managements on the organizational learning capacity. Method: Questionnaire was used in the study. In this study which is undertaken multicenterly (namely in Istanbul, Duzce, Sakarya, Konya, and Mersin), data about 425 people who are working in both private and state hospitals that 360-degree performance appraisal system is both applied and not applied was reached. Data analysis package programs were used while analyzing the data collected. The analysis techniques which are used in the research are Descriptive Analysis, Reliability Analysis, Factor Analysis, T-Test, Correlation Analysis, Variance Analysis, Tukey's Test and Cluster Analysis. Findings: There is a positive impact ofperformance appraisal system which is applied in hospitals on organizational learning capacity. Employees give the most importance on acquiring knowledge about what the system does and how it is applied, informing staffs about the results of the assessment and organizing training activities accordingly. It is also believed by the employees that enrichment of communication among employees, increasing team-work and enhancing interaction with external environment are needed to be considered as the most important dimensions of the organizational learning capacity. Result: This study shows that organizational learning capacity of the hospital employees where 360-degree performance appraisal system is used is greater than those which are not used. Besides, it reveals that hospitals can use organizational learning capacity as a tool in order to increase employees' the performance level of their employees. It is also noticed that when performance assessment is used to increase organizational learning capacity, there may be negative effects on the learning capacity of the organization till the employees get used to performance appraisal system. Previous studies conducted showed that there are some challenges in hospitals that are used performance appraisal system. This study which provides information for organizations who want to establish an effective performance appraisal system about where to start will contribute to the satisfaction of the employees with the performance appraisal system and also increase performance. Key Words: 360-degree performance appraisal system, organizational learning capacity, performance assessment