360-degree performance appraisal is a performance evaluation system of his/her skills, abilities, and behaviors by the seniors, team members, subordinates, and customers. The key features of this appraisal system are multidirectional, multidimensional, self-appraisal, superior's appraisal, subordinates appraisal, peer appraisal, and customer appraisal.
The advantage of this system is that the feedback system can increase an employee's engagement and professional development. It helps to create self-awareness in the employee of their strengths and weaknesses, help the employer to find the lagging of the employee so that proper training and mentoring can be provided. It also provides insight into the employee's work and helps to maintain transparency.
The disadvantage of this system is that the managers might be looking only for the negative aspects of the employees. The feedbacks from different coworkers might be dishonest and can provide negative feedbacks by peers for their own benefits. Since this process is multidirectional and multi-dimensional, it can be time-consuming.
Yes, definitely this appraisal system will help to reduce appraisal bias, some employee might not be good at speaking but could be good at writing. Managers can encourage them to improve their writing skills. The negative feedback can be analyzed by creating a development plan so fear or anger can be put out. Errors like hallo effect, similarity, a first impression can be reduced from this type of appraisal since the managers are not the only one who will be providing feedback.
The 360-degree approach helps in increasing self-awareness in the employees about their strengths and weaknesses. This system helps to improve working relationships between employees since they will be working in a team or closely for providing feedback. It also encourages personal development and improves performance. This system will help to irradicate the errors in performance appraisal, like halo effect, first impression error, recency error by the managers. These are the reasons for being this form of performance evaluation increasingly used.
