Final answer:
The traditional performance feedback process is being replaced by the 360-degree feedback system, which includes evaluations from a wide range of sources for a more comprehensive view of an employee's performance. While this method aims to promote development and align with organizational goals, its effectiveness can vary with possible discrepancies causing both concerns and opportunities for improvement.
Step-by-step explanation:
Companies are increasingly moving away from the conventional superior-subordinate performance feedback process and are adopting a multi-rater appraisal system known as 360-degree feedback. This comprehensive evaluation method involves gathering performance assessments from a variety of sources, including supervisors, peers, direct reports, and sometimes even customers, in addition to self-evaluation. The 360-degree feedback process is designed to offer employees multiple perspectives on their performance, fostering a more complete understanding and facilitating professional development and training opportunities.
However, opinions on the effectiveness of 360-degree feedback systems are mixed. Some studies, such as those by Atkins and Wood (2002), suggest that self and peer assessments may be unreliable, with a tendency for supervisors to underrate employees who are modest in self-assessment. On the other hand, some researchers, like Tornow (1993), argue that discrepancies in ratings can lead to constructive discussions and learning opportunities for employees.
Overall, 360-degree feedback aims to provide a more dynamic and holistic approach to performance appraisals, aligning them with organizational goals and employee development, albeit with an understanding of the potential challenges and varied effectiveness associated with this appraisal method.