Final answer:
A 360-degree feedback system is the tool used to reduce perceptual errors and biases in employee performance appraisals. It gathers evaluations from multiple sources, aiming to provide a more balanced view and reduce individual bias. This system is an area of active research, with mixed effectiveness findings.
Step-by-step explanation:
To reduce perceptual errors and biases when judging subjective employee performance, the tool that can be used is a) 360-degree feedback. This system involves collecting performance appraisals from various sources such as supervisors, peers, direct reports, and occasionally customers, in addition to the employee's self-assessment. This multi-source feedback aims to provide a more balanced and comprehensive view of an employee's performance, reducing the impact of individual biases that might affect the performance appraisal.
While there are mixed findings regarding the reliability of 360-degree feedback, with some studies indicating issues with self and peer ratings, its multi-faceted nature can prompt valuable discussions between employees and their supervisors about performance discrepancies. The goal of the 360-degree feedback system is to encourage improvement and development through self-directed efforts or training.
Performance appraisals are typically documented several times a year and play a crucial role in the employee's career development, serving as a basis for important decisions regarding position and compensation. Furthermore, the effectiveness of these systems, and whether or not they enhance performance and motivation, remains an active research area in industrial psychology.