Final answer:
The multi-rater appraisal system often replacing traditional performance feedback methods in companies is called the 360-degree feedback. It involves evaluations from various stakeholders, offering a more comprehensive view of an employee's performance, which helps with training and development needs, and decision-making regarding compensation.
Step-by-step explanation:
The traditional superior-subordinate performance feedback process in companies is increasingly being supplanted by the 360-degree feedback appraisal system. This comprehensive evaluation method involves obtaining performance feedback from a range of sources, including supervisors, peers, direct reports, and sometimes even customers, in addition to the employee's self-assessment. The main purpose of a 360-degree appraisal system is to provide multiple perspectives on an employee's job performance, which can help in identifying areas for improvement, training needs, and making decisions about position and compensation.
Despite mixed findings on its effectiveness from studies by Atkins and Wood (2002) and Tornow (1993), this system is seen as a tool to encourage employee development. Performance appraisals, including those utilizing 360-degree feedback, are typically documented several times a year and include formal meetings where performance is discussed. This approach fits within organizational shifts towards flatter structures and increased emphasis on teamwork and cross-hierarchical feedback.