Final answer:
A 360-degree assessment is a performance appraisal method that includes feedback from a full circle of stakeholders around an employee, including self-assessment, peers, supervisors, and sometimes external parties. It aims to provide a comprehensive perspective on an employee's performance and identify areas for improvement and training.
Step-by-step explanation:
Understanding 360-Degree Assessments in Performance Appraisals
The concept referred to in the question is known as a 360-degree assessment or 360-degree feedback. This method of performance appraisal incorporates feedback from all directions within the organization, involving supervisors, peers, subordinates, and sometimes even external parties such as customers or suppliers. Unlike traditional performance evaluations, which may only include a manager's perspective, this comprehensive approach aims to provide a rounded view of an employee's performance by comparing self-ratings with those given by various other stakeholders.
Despite the widespread use of 360-degree feedback systems, research, such as that by Atkins and Wood (2002), suggests there can be issues with reliability. Supervisors might underrate employees who are modest in their self-assessment, leading to potential disparities in ratings. Tornow (1993a) suggests that these discrepancies are valuable learning opportunities, granting employees insight into the reasons for different perspectives on their performance. The process aims at enabling employees to improve performance through increased self-awareness and targeted training.
The methodology of a 360-degree assessment often involves various modes of information collection, including observation, surveys, and interviews. This system not only serves as a performance evaluation tool but is also crucial in identifying training needs and opportunities for competency development within an organization.