Final answer:
In the context of Company XYZ, the use of feedback from teammates in their performance appraisal process signifies the implementation of a 360-degree feedback appraisal system. This system is aimed at enhancing the understanding of an employee's performance by considering diverse perspectives.
Step-by-step explanation:
Company XYZ, which is a global leader in plastics, has incorporated feedback from teammates into its performance appraisal process. This type of appraisal, in which the evaluation includes feedback not only from supervisors but also from peers, direct reports, and even the employees themselves, is known as a 360-degree feedback appraisal. This method is designed to provide a more comprehensive view of an employee's performance by gathering multiple perspectives.
The introduction of a 360-degree feedback appraisal system supports the objective of performance appraisals that serve as tools for motivation and competence expansion. The appraisal becomes a vital touchpoint for recognizing training opportunities or the success of existing training programs. It also aids in aligning performance assessment with organizational goals and culture, an important aspect highlighted by DeNisi & Kluger and Schraeder, Becton, & Portis.
Despite its popularity, the effectiveness of 360-degree appraisals has been a topic of debate. Some studies suggest these appraisals can sometimes lead to unreliable ratings, while others argue that discussing the discrepancies can offer rich learning experiences, as mentioned by Tornow.