360-Degree Performance Appraisal Systems

360-Degree Performance Appraisal Systems
Author: Neil M. Boyd a
Affiliation: School of Behavioral Sciences and Education, Penn State University, Capital College, Middletown, Pennsylvania, U.S.A.
Abstract
A 360-degree performance appraisal system is a multisource assessment approach that taps the collective wisdom of those who work closely with an employee. The employee and their supervisors, colleagues, direct reports (subordinates), internal customers, external customers, and others may be part of the evaluation process.

Proponents of the 360-degree feedback approach offer it as a “progressive” means of conducting performance appraisal. Many contend that 360-degree feedback systems and other forms of multisource or multirater assessment methods in organizations have evolved from an innovative “nice-to-have” technique administered only to the most senior levels to a “must-have” tool for integration into overall performance and human resource management strategies. These systems appear well suited for the flexible, team-based, change-oriented organizational cultures of many organizations today.

360-Degree systems are gaining popularity because they tend to reduce the problems of previous generations of assessment methods. 360-Degree appraisal moves the manager (as appraiser) back into the “comfort zone” as she or he is now only one among a number of assessors. It greatly reduces the problems of central tendency, positive skewness, and “halo effects” in ratings that plague the boss-subordinate approach. 360-Degree appraisal reduces defensiveness on the part of the appraisee because there are a variety of assessors, feedback is presented as more balanced, and it is said to have greater face validity. It requires organizations to resolve the issue of what is meant by job effectiveness and what behaviors are causally related to it. It recognizes that subordinates are best placed to assess “leadership” or “people management” skills. The technique is helpful in defending legal challenges of the outcome of appraisals, it is presented as important in meeting the demands for employee empowerment and involvement, and finally, it is a useful tool in tapping employee opinions and attitudes.