In the second half of every year, as annual performance reviews approach, I’m frequently faced with the client question “is it appropriate to integrate employee performance appraisals (PA) and 360 results?” There is considerable debate and controversy about the relationship between the two, but from where I stand, 360 degree feedback can play a beneficial role in PA systems, if several issues are carefully managed.
Before covering those issues, let me first describe the broader context of PA systems and one of the reasons they often don’t work very well. Most PA systems include two components – evaluation of operational/business goals to be achieved and evaluation of performance factors (how the job is accomplished and the competencies required). Typically evaluations of both components are then integrated into some overall “score” or rating, and there are usually consequences linked to those ratings, such as merit salary increases, bonus allocations, and so forth.
http://blog.talentsim.com/bid/19095/Should-360-Degree-Feedback-be-used-in-Performance-Appraisals
The advantages of making modest improvements in the PA system could be outweighed by the potential damage done to the 360 degree feedback program.
