The use of 360 degree feedback based on peer review as the key method to evaluate an individual’s performance is disputable in human resource management, especially where it is intended as the key method to evaluate an individual’s performance.
The decision in favor of it or against it depends on the targeted use of this appraisal tool. It seems perfectly acceptable as a development tool that allows the employee glimpses into his or her performance and areas for improvement. In this context, “the results from 360-degree feedback are often used by the person receiving the feedback to plan their training and development” (Wikipedia, 2006).
However, its use as the tool in decision-making on pay increases or decreases should be restricted for a variety of reasons. First of all, it is not always clear who will pick the evaluators and how this will influence the process.
Besides, from the developmental point of view because of the anonymity of the process, those who are being evaluated “have no recourse if they want to further understand the feedback” (Heathfield, 2006). If suppliers or clients are involved in the process as they frequently are, there is no guarantee that they will be able to assess an individual’s performance adequately, relying on the criteria desired by the management team.
Therefore, it seems a good idea to recommend that 360 degree feedback be used as a developmental tool for employees’ reference. The standards performance appraisal by the supervising manager has to be used, however, as a basis for reward decision-making.
The manager is better equipped with an understanding of the employee’s contribution to the organization by virtue of the managerial position. However, if the results of the managerial performance appraisal differ dramatically from those obtained via 360 degree feedback, senior management might want to explore the discrepancy.
References
Heathfield, S.M. 360 Degree Feedback: The Good, the Bad, and the Ugly. Retrieved August 1, 2006, from http://humanresources.about.com/od/360feedback/a/360feedback_3.htm
Wikipedia. (2006). 360 Degree Feedback. Retrieved August 1, 2006, from http://en.wikipedia.org/wiki/360-degree_feedback
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